Watch out Netflix, Amazon is primed to launch an ad-supported video-streaming service
Amazon is reportedly planning to unveil an ad-based video streaming site, much in the vein of Netflix, according to the New York Post.
Amazon is looking to roll-out its prime membership
The e-commerce giant will offer the service as separate to its existing Amazon Instant Video package which is bundled with the £79-a-year Prime membership. The ad based VOD service will undercut streaming rival Netflix which does not support a freemium model.
Ultimately, those on the ad-free service may be more likely to make the jump to Amazon Prime to remove the commercials and enjoy the other perks of the subscription.
A source inside the company told the New York Times: “The main point is to bring in more users that you can eventually up-sell to Prime, or to get to a broader audience that doesn’t want to pay for Prime, in order to increase their video share.”
Rumours of the service emerged in April this year but Amazon vehemently denied it was working on any such project.
When it is launched, the scheme will boost Amazon’s share of the video-streaming market. It emerged on Friday that while Netflix generates over a third of all US internet traffic, Amazon Instant Video, accounted for 2.6 per cent of traffic, doubling its share of the market in the last 18 months.
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