Amazon planning ad-supported streaming video service separate from Prime

Amazon’s Instant Video offerings make its annual Prime membership even more appealing, but word is that the company has a separate video streaming option in the works to undercut Netflix.

The New York Post reports that Amazon intends to launch an ad-supported video streaming service, which will offer much of the same kind of content – hit TV shows and major films – but with advertisements running alongside all of it.

The trade-off for the adverts, naturally, is that Amazon can potentially offer the service at a lower subscription fee than a rival like Netflix. So while it won’t be a free service, the lure of saving a couple quid a month might pull many viewers into the fray.

Prime Instant Video (pictured) will continue on as-is, since it’s now a key component of the £79-yearly Prime membership, which bundles free two-day shipping and other included streaming media.

But really, the new service is eyed to ultimately help convert more people into Prime members, once they realize an ad-free option is available. And it’ll only help with sales of the Fire TV and Fire TV Stick, as well, and perhaps even Amazon’s Kindle Fire tablets.

According to the Post report, the service will launch in early 2015. And while an earlier report from this past spring was denied by Amazon, the Post’s sources say “it’s a definite go” now. Once pricing details emerge, we’ll have a better sense of how valuable such an offering could be.

[Source: The New York Post]

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