Amazon May Introduce A New Ad-Supported Free Streaming Service

• Amazon may soon compete with the likes of YouTube with a new ad-supported streaming service that will be free for all users.
• The new service is currently being developed by IMDB according to Amazon.
• Ad-supported shows are already being introduced on IMDB and might be introduced as a standalone service in the near future.

According to AFTV report, Amazon is set to enter the market of video ads for a new ad-supported streaming service. The video streaming service is said to be in development by IMDB to tap into the TV ad market. Amazon is currently focused on search ads and product sponsorships but breaking into the TV ad market can allow the company to generate billions of dollars in revenue.

Amazon is already experiencing a strong financial start with its earnings growing 132% in the second quarter of this year. The new streaming service can solidify the company’s position in the e-commerce market and also create new partnerships with the entertainment industry.

The new streaming service is completely standalone and is not related to Prime Video. The service is being called Free Dive internally as per industry reports. According to a media buyer Andrew Sandoval “Amazon has very good data, and if I could track back sales activity to the actual Amazon account and target those people, it would be very powerful.”

While Amazon might not be able to compete with the likes of Netflix when it comes to exclusive content as it would be extremely difficult to do so on a free platform, it can carve out a niche like Roku has. Roku offers a free channel which offers a decent amount of content and is supported by ads.

The Free Dive app may be targeting only a small section of the TV ad market and lure in advertisers to the platform. The e-commerce giant is also expanding its video-ad partnerships with its subsidiary Twitch. The popular live streaming platform is now showing partnered video ads controlled by Amazon for users who do not have a paid Prime membership.

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