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Rumor: Amazon Developing a Free, Ad-Supported Streaming Service

14 November 2017

Would you use a free, ad-supported version of Prime Video?

Prime Video is bundled with Amazon's premium shipping service in a number of countries, including the United States, offering customers instant access to a slew of syndicated movies and TV shows, as well as original content.

Amazon expects more kids programming and lifestyle programming would fill out the free streaming programming, which would be a draw for people seeking that type of programming.

Now, CNET is speculating that instead of offering a version of Prime Video for free, Amazon might be building a totally different free and ad-supported video-streaming service. Combine this with the ability to rent new releases for a few bucks and the various channels available through Amazon and you're looking at a strong service that offers a lot more variety than Netflix if you choose to take advantage of it. Already sensing that they created a monster by taking large checks from SVOD services in exchange for their content, they are also locked in a struggle with MVPDs over the carriage of their networks in a world of cord-shaving and re-bundling. This gives Amazon the ability to charge advertisers enough money to cover its deals with outside studios. Amazon might also share data like audience information and ad revenue to help get the new effort off the ground.

Now, users will be able to save that $99 a year and watch Amazon Prime for free as long as they're willing to sit through a slate of ads. According to AdAge's sources, payments would be "linked" to how often a show or movie is watched.

Unless you get a discount, this service costs $99 per year in U.S.; and in turn, gave you access to a lot of services including free two-day shipping, access to Amazon's music and video streaming services, exclusively discounted Android smartphones and more. If true, it would be interesting to see how this works for the company.

Rumor: Amazon Developing a Free, Ad-Supported Streaming Service