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Free Ad-Supported Amazon Prime Video May Be Coming

Free Ad-Supported Amazon Prime Video May Be Coming

Amazon has experimented with advertisements for streaming video before. But to be fair, everyone continues to lag behind Netflix in that particular race. The new report doesn't contradict this.

Amazon didn't take much time to deny the Ad Age report and it has said that the company has no plans to create a free, ad-supported version of Prime Video.

After getting a taste of ad-supported television with this fall's live streams of Thursday Night Football, complete with ad breaks, Amazon is reportedly taking a serious look at a more comprehensive "freemium" version of its Prime service. At the same time, cable is far from dead, as a recent report shows that 18-34 year-olds in the United States still watch 10 times more traditional TV on average than Netflix.

Prime Video is bundled with Amazon's premium shipping service in a number of countries, including the United States, offering customers instant access to a slew of syndicated movies and TV shows, as well as original content. Even so, an ad-driven service would probably have a huge audience and spur further cord-cutting. Or would you rather pay for an ad-free experience? Welcome to 2017, where everyone wants everything to be free.

Solid State PLC's (SSP) Corporate Rating Reiterated at FinnCap
Shares of Relx PLC ( LON REL ) traded up GBX 9.84 ($0.13) during trading hours on Thursday, reaching GBX 1,729.84 ($22.75). The stock of Microsoft Corporation (NASDAQ:MSFT) has "Neutral" rating given on Friday, January 27 by Citigroup.

Currently, only subscribers of Prime - which costs $99 a year - can access the library of exclusive Prime Video content, which includes original shows and movies, as well as popular video content that includes classic comedies, dramas, contemporary superhero films and more. This gives Amazon the ability to charge advertisers enough money to cover its deals with outside studios.

Amazon would not be the first service to do this.

As Amazon seems to be struggling to make an impact in the SVOD landscape among competitors like Netflix and Hulu, this could be the company's chance to deepen its roots in a more creator focused area like it has done in the past with Amazon Video Direct, which allowed just about anyone to make their content available to Prime Video subscribers and receive a per-hour royalty fee.


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