Back in March, the WSJ reported Amazon was considering an ad-supported video streaming service. Amazon said it wasn’t happening.
Today, the New York Post reports Amazon is indeed planning a video streaming alternative.
According to the New York Post, Amazon is set to launch an ad-supported streaming option early next year. This new service would be completely separate from Amazon Prime membership ($99/year).
It would also be low-cost, maybe even free. I think it has to free. No one is going to pay and watch ads. Hulu gets away with it, but Netflix doesn’t do it. And, that’s who Amazon is competing with.
Analysts say the move could loosen Netflix’s grip on the streaming market.
An ad-supported streaming option is a no-brainer. Amazon can push its library of media towards potential advertisers. And, those who try it out and get tired of ads can upgrade to Amazon Prime.
Soon, I think it will be original content that will ultimately make up a consumers’ mind on which streaming option to choose. Not price.
What do you think? Would a free, ad-supported Amazon Instant Video service be compelling enough for you to switch from Netflix?
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