Netflix may be dominating instant viewing right now, but Amazon plans to step up their game. The company plans to launch a free, ad-supported streaming service in the next couple of months, according to a report by the Wall Street Journal.
The move would allow customers to obtain Amazon streaming services without purchasing Amazon Prime, the $99 annual membership service that gives users access to movies and TV-shows, free two-day shipping, and more.
Amazon also plans to offer free music videos with advertising to people visiting its retail website, two of the people said. For example, a search for Miranda Lambert CDs, might show you the option to watch her “White Liar” music video.
This free service would be in direct competition with Google’s YouTube, Hulu, and Netflix, which charges $7.99 per month for unlimited streaming.
Last year, Amazon invested about $1 billion to acquire content and produce original programming, according to Cantor Fitzgerald.
Amazon is hosting an event in New York next week, where they are expected to release their new streaming service. That service will feature apps found on other set-top boxes like Netflix and Hulu.
According to the WSJ, Amazon hopes the ad-supported music and video services prompts users to buy more merchandise from them. This also gives them the opportunity to better tailor their product recommendations with access to your viewing history.
Would you cancel your Netflix subscription and opt for the new Amazon?