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Report: Amazon Plans Free, Ad-Supported Video Streaming Service

Alongside the growing amount of original content, signing up for one or more streaming video subscription services such as Netflix or Prime Video comes with the added bonus of no ads. However, Amazon is apparently working on a completely free version of its Prime Video service, but it will be full of ads.

According to AdAge, Amazon is currently in talks with movie studios, media companies, and TV networks to plan content for a free video streaming service. Where as Prime subscribers pay $99 a year and gain access to Prime Video without adverts, this service wouldn't cost consumers a dime. In return for that free viewing experience, Amazon would surround content with advertising to cover the costs of the service.

Earlier this year, the number of Amazon prime subscribers went past 80 million, but that still leaves tens of million more who don't or even won't pay for access to streamed content. A free service may entice them to try Amazon's platform, at which point Amazon could regularly try and upsell them to a Prime subscription as well as introducing all the other perks paying for Prime offers. And don't forget, free viewers will likely still need to buy a Amazon Fire TV device to watch.

If this free service sounds like a return to regular ad-funded TV, think again. Amazon is apparently planning a much more lucrative deal to content owners. For example, it has been suggested Amazon will share advertising revenue with content creators by allowing them to setup their own channels and provide a set number of hours of content each week. We could effectively have the equivalent of YouTube, only each channel would be from an approved and established movie studio, TV network, or media company.

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As to what content we should expect to see on a free Prime Video service, expect a little of everything from children's programming, travel, and cooking, to classic TV shows and the thousands of old movies the studios have to offer.

For now, Amazon is choosing not to comment and the focus remains on Prime subscriptions. If a free service does appear, do you think it will use the Prime Video name or some alternate and new branding?

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The new era in mobile

Joe Apprendi Contributor Joe Apprendi is a general partner at Revel Partners. More posts by this contributor Big data’s humble beginnings A future dominated by autonomous vehicles (AVs) is, for many experts, a foregone conclusion. Declarations that the automobile will become the next living room are almost as common — but, they are imprecise. In our inevitable driverless future, the more apt comparison is to the mobile device. As with smartphones, operating systems will go a long way toward determining what autonomous vehicles are and what they could be. For mobile app companies trying to seize on the coming AV opportunity, their future depends on how the OS landscape shapes up. By most measures, the mobile app economy is still growing, yet the time people spend using their apps is actually starting to dip. A recent study reported that overall app session activity grew only 6 percent in 2017, down from the 11 percent growth it reported in 2016. This trend suggests users are reaching a saturation point in terms of how much time they can devote to apps. The AV industry could reverse that. But just how mobile apps will penetrate this market and who will hold the keys in this new era of mobility is still very much in doubt. When it comes to a driverless future, multiple factors are now converging. Over the last few years, while app usage showed signs of stagnation, the push for driverless vehicles has only intensified. More cities are live-testing driverless software than ever, and investments in autonomous vehicle technology and software by tech giants like Google and Uber (measured in the billions) are starting to mature. And, after some reluctance, automakers have now embraced this idea of a driverless future. Expectations from all sides point to a “passenger economy” of mobility-as-a-service, which, by some estimates, may be worth as much as $7 trillion by 2050. For mobile app companies this suggests several interesting questions: Will smart cars, like smartphones before them, be forced to go “exclusive” with a single OS of record (Google, Apple, Microsoft, Amazon/AGL), or will they be able to offer multiple OS/platforms of record based on app maturity or functionality? Or, will automakers simply step in to create their own closed loop operating systems, fragmenting the market completely? Automakers and tech companies clearly recognize the importance of “connected mobility.” Complicating the picture even further is the potential significance of an OS’s ability to support multiple Digital Assistants of Record (independent of the OS), as we see with Google Assistant now working on iOS. Obviously, voice NLP/U will be even more critical for smart car applications as compared to smart speakers and phones. Even in those established arenas the battle for OS dominance is only just beginning. Opening a new front in driverless vehicles could have a fascinating impact. Either way, the implications for mobile app companies are significant. Looking at the driverless landscape today there are several indications as to which direction the OSes in AVs will ultimately go. For example, after some initial inroads developing their own fleet of autonomous vehicles, Google has now focused almost all its efforts on autonomous driving software while striking numerous partnership deals with traditional automakers. Some automakers, however, are moving forward developing their own OSes. Volkswagen, for instance, announced that vw.OS will be introduced in VW brand electric cars from 2020 onward, with an eye toward autonomous driving functions. (VW also plans to launch a fleet of autonomous cars in 2019 to rival Uber.) Tesla, a leader in AV, is building its own unified hardware-software stack. Companies like Udacity, however, are building an “open-source” self-driving car tech. Mobileye and Baidu have a partnership in place to provide software for automobile manufacturers. Clearly, most smartphone apps would benefit from native integration, but there are several categories beyond music, voice and navigation that require significant hardware investment to natively integrate. Will automakers be interested in the Tesla model? If not, how will smart cars and apps (independent of OS/voice assistant) partner up? Given the hardware requirements necessary to enable native app functionality and optimal user experience, how will this force smart car manufacturers to work more seamlessly with platforms like AGL to ensure competitive advantage and differentiation? And, will this commoditize the OS dominance we see in smartphones today? It’s clearly still early days and — at least in the near term — multiple OS solutions will likely be employed until preferred solutions rise to the top. Regardless, automakers and tech companies clearly recognize the importance of “connected mobility.” Connectivity and vehicular mobility will very likely replace traditional auto values like speed, comfort and power. The combination of Wi-Fi hotspot and autonomous vehicles (let alone consumer/business choice of on-demand vehicles) will propel instant conversion/personalization of smart car environments to passenger preferences. And, while questions remain around the how and the who in this new era in mobile, it’s not hard to see the why. Americans already spend an average of 293 hours per year inside a car, and the average commute time has jumped around 20 percent since 1980. In a recent survey (conducted by Ipsos/GenPop) researchers found that in a driverless future people would spend roughly a third of the time communicating with friends and family or for business and online shopping. By 2030, it’s estimated the autonomous cars “will free up a mind-blowing 1.9 trillion minutes for passengers.” Another analysis suggested that even with just 10 percent adoption, driverless cars could account for $250 billion in driver productivity alone. Productivity in this sense extends well beyond personal entertainment and commerce and into the realm of business productivity. Use of integrated display (screen and heads-up) and voice will enable business multi-tasking from video conferencing, search, messaging, scheduling, travel booking, e-commerce and navigation. First-mover advantage goes to the mobile app companies that first bundle into a single compelling package information density, content access and mobility. An app company that can claim 10 to 15 percent of this market will be a significant player. For now, investors are throwing lots of money at possible winners in the autonomous automotive race, who, in turn, are beginning to define the shape of the mobile app landscape in a driverless future. In fact, what we’re seeing now looks a lot like the early days of smartphones with companies like Tesla, for example, applying an Apple -esque strategy for smart car versus smartphone. Will these OS/app marketplaces be dominated by a Tesla — or Google (for that matter) — and command a 30 percent revenue share from apps, or will auto manufacturers with proprietary platforms capitalize on this opportunity? Questions like these — while at the same time wondering just who the winners and losers in AV will be — mean investment and entrepreneurship in the mobile app sector is an extremely lucrative but risky gamble.

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