Amazon is looking to launch another streaming video service, one that would be free and ad-supported, and is talking with TV networks, movie studios and other media companies about programming, Adage reported, citing sources familiar with the plans. That would make its offering the Spotify of the video streaming industry, with both a premium and free offering.
Unlike Prime Video which is funded by subscribers as part of Amazon's overall Prime package, this offering would be paid for by advertising dollars. There is likely to be one stark difference between the two, however.
This isn't the first time Amazon has been said to be working on an ad-supported video streaming service. In the past, this meant paying $99 for a annual subscription, but now Amazon has a $10.99/month option for those who don't want to pay all at once, as well as a Prime Video subscription that is $8.99/month.
Things are different this time around, however.
In its quest to continue disrupting traditional content models and get all the world to cut the cord, the company is exploring the idea of a version of its streaming video service supported entirely by advertisements rather than subscriber fees.
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.
It's not just about getting ads in front of customers, however. In fact, Amazon is reportedly even thinking about giving content creators an avenue to set up their own channels with revenue sharing agreements put in place.
According to reports, Amazon would sharing audience information with advertisers, allowing them to better target their products towards key demographics. In the past, the company has experimented with commercials on the platform to a very limited extent, such as placing ads inside National Football League games. Now according to AdAge this free service is close to becoming a reality.
While Amazon is increasingly becoming interested in advertising, the company has tended not to share its own data with third parties.