Friday, November 21, 2014

Amazon reportedly launching free, ad-supported video streaming service


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Amazon is set to launch a free, ad-supported video service separate from its $99 Prime Instant Video offering, according to the New York Post. In case you're having deja vu, the WSJ reported exactly the same thing back in March and Amazon firmly denied it.

However, the Post confidently said that the offering is now a definite "go." One of its sources for the rumor is a potential advertiser, which said Amazon would unveil the service in order to increase its video share against arch-rival Netflix -- so that it could ultimately tempt users into purchasing Prime memberships.

Amazon offers limited ad-supported streaming now, in a way, by letting non-Prime users watch a limited selection of shows with commercial breaks. If the Post's report proves accurate, the launch of a full-bore streaming service with ads may indicate that the limited version may have helped entice Amazon customers to buy Prime.

Amazon recently scored a deal to stream classic HBO programs like The Sopranos and Six Feet Under in a minor coup over Netflix. But it still has less than a tenth of its competitor's size -- so if the rumor is true, an ad-supported service looks like an attempt to change that ratio.

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