Currently, Amazon only offers free streaming video with a $99 per year Amazon Prime subscription. This new video streaming service, reportedly available in early 2015, would not only compete with Netflix, it would also be an opportunity for Amazon to gain more Prime subscribers. The report did not say whether Amazon would charge for its ad-supported streaming.
“The main point is to bring in more users that you can eventually upsell to Prime, or to get to a broader audience that doesn’t want to pay for Prime, in order to increase their video share,” a source told the Post.
Amazon Studios, like Netflix, began producing original shows last year, and last month Amazon announced its new streaming device, the Fire TV Stick, in an obvious attempt to compete with other streaming hardware like Google’s Chromecast, Apple TV, and Roku. The company is even exploring the gaming industry with Amazon Game Studios.
Clearly, Amazon is looking to dominate the digital space as it does online retail sales.