Amazon to Launch Free Video Streaming Service in Early 2015, Separate from Amazon Prime
Amazon has gradually transformed over the years into a huge company, with revenues reaching almost $75 billion in 2013. Amazon is one of those companies that is always coming up with the products and services and this is one of the reasons why it’s so profitable.
One of the most important upcoming things for Amazon in 2015 seems to be a free video streaming service, according to a recent story from the New York Post publication. Amazon already has a video streaming service that is available through its Prime membership for customers in the United States, United Kingdom, and Germany.
The free video streaming service is said to launch in early 2015 and will be supported by advertising. However, it won’t replace Amazon’s curent video offering that is bundled into the $99/year Prime membership. Amazon has reached out to some online publication, denying the rumors for now:
We currently offer the first episode of some television shows free with ads through our First Episode Free feature on Amazon Instant Video, and there are display ads on some short videos such as movie and game trailers. 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.
But this is nothing more but a default statement from a company who wants to keep things under the seal right before the official moment comes. And if this rumored free video streaming service from Amazon becomes real, it will bring huge pressure to such veteran players on the market as Netlfix or Hulu.
Amazon seems to be enjoying great success with its Prime membership, which is offering much more perks than just the video service. RBC Capital analyst Mark Mahaney thinks Apple has around 50 million global customers and this is definitely something that the company is making nice money from.
A free video streaming service could help in bringing in even more customers, since they won’t be paying for anything. But it will be a good way to get them accustomed with Amazon’s other products.
Another big advantage for Amazon, when it comes to dealing with advertisers, is the fact that it could possibly tell if ads viewed online led to purchases on its retail site. What Amazon is doing is really great for them, but as someone who doesn’t live in the markets that they are currently targeting, I can only hope that Amazon will brings its services to new countries, as well.