Dive Brief:
- According to reports from New York Post and The Wall Street Journal, Amazon is working on releasing an ad-supported streaming video service.
- Amazon hasn't confirmed any of the rumors and a spokesperson told AdAge: "We're often experimenting with new offers and experiences for customers, but we have not announced any plans to offer an ad-supported video streaming service."
- If the ad-support service comes to life, Amazon stands to increase revenue significantly from advertising dollars.
Dive Insight:
Other video streaming services like Hulu, YouTube, and Netflix all should be concerned about Amazon jumping into the ad-supported market. Advertisers, on the other hand, have reason to be curious and excited at the pursuit as Amazon already has a loyal an active customer base for its subscription service Prime. However, there is a chance that the video streaming service market is over-saturated—which if that is the case—an ad-based service could be Amazon's first true misstep. Time will tell exactly what Amazon has up its sleeve.
