Amazon is setting up to launch a free video service, which will utilize ads, and remain a separate entity from the company’s $99 Prime Instant Video offer.
Amazon is in the works to be stepping into another portion of the video space once again. After the huge success that is, and was, Amazon Prime the company is now in the process of launching a video streaming service that will aim to attack Netflix. The video streaming service is said to be complete-with-ads, and will remain its own entity – separated from Amazon Prime.
The goal though for Amazon appears to be clear though in the meantime. They are working to take customers away from Netflix and Hulu, and to lure more customers to their already-popular Amazon Prime service which costs $99 a year. Michael Pachter, a Wedbush Securities analyst, noted, “It will not be $99 a year,” and “they will decouple it from Prime, and that is a Netflix killer.”
Earlier in the year, around March, some had begun speculating that Amazon was working on something along these lines and even going as far as to say that the company was going to be running this type of product for free, supported with ads. However, the company remained tight-lipped about it and wouldn’t say specifically what they would be doing.
Estimations are that the company has roughly 25 million users in the Prime Video portion of their service, and that is a serious chunk of business. The best part, according to analysts is that they’re going into “attack mode” and fighting for more users and more market share when they’re already winning, and not waiting to see their numbers begin to fade.
Pretty much everyone agrees that Amazon has a long way to go before they are able to catch Netflix for market share on either front, but note that this is a very good move on their part to start making that climb to the next level. The ad-version of their video platform should do well to attract additional customers that otherwise were not considering Amazon Prime Video, and in the future should pull some Prime customers in as well.