Wednesday, 20 February, 2019

Free Amazon Prime Video? Amazon Might Have Something in the Works

Krales  The Verge Krales The Verge
Nellie Chapman | 14 November, 2017, 16:22

Amazon could soon have a new weapon in its war against Netflix, as the online retailer is supposedly in the process of developing an ad-supported streaming video service. And as a business that's growing to serve more global (and cost-conscious) markets like India, it makes sense to explore ways to serve up streaming media without a subscription fee. The service generally costs Rs 999 in India and $99 in the United States, and is ad-free.

According to the report, Amazon is talking to TV networks, film studios, and other media firms about bringing their content to an ad-supported version of Prime Video.

The move to offer a free tier could make a lot of sense, given that Amazon has multiple competitors battling to become the replacement of choice as more households ditch traditional cable services.

Prime Video is bundled with Amazon's premium shipping service, which costs $99 a year or $10.99 a month in the US.

In addition to the broadcast television-esque advertising model, Amazon is also seeking to give content creators their own channels, with payments being doled out by the company to a creator based on how much content gets watched, similar to the way creators monetize their channels on YouTube.

Things are different this time around, however. "A version paid for by advertisers instead of subscribers could provide a new foothold in streaming video for marketers, whose opportunities to run commercials are eroding as audiences drift away from traditional TV and toward ad-free services like Netflix and Prime".

An unnamed executive told AdAge that "Amazon is talking about giving content creators their own channels, and sharing ad revenue in exchange for a set number of hours of content each week". Amazon might also share data like audience information and ad revenue to help get the new effort off the ground.

Amazon has dabbled in ad-supported content before, with the company supplementing its National Football League games with mid-roll ads. According to AdAge, even Apple has outbid Netflix for a new series starring Jennifer Aniston and Reese Witherspoon.