Amazon is reportedly gearing up to launch a second streaming video service that will co-exist with its current Instant Video product, which is available for all Amazon Prime subscribers. According to the NYPost, Amazon CEO Jeff Bezos will announce the service early next year as an ad-supported option for customers who don’t have Prime accounts.
Amazon already offers some free and ad-supported content in its Instant Video application, but it’s largely unadvertised. According to the NYPost, the new option will target customers in an effort to eventually move them over to full-time paying subscribers.
“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,” one insider told the news outlet.
It’s possible to gather the assumption that “ad-supported” means “free,” though other ad-supported options such as Hulu Plus do charge subscribers a small fee. One analyst speaking with the NYPost suggested Amazon’s option could kill Netflix if it comes in at a lower monthly cost, though, to quote our editor-in-chief, “selection is king” in that space, not always cost.
The move isn’t just about bringing new customers into Prime, however, clearly there’s a lot of potential new revenue on the table from advertisers. We won’t know who those partners are, however, until Amazon lifts the veil on this service.