Amazon is building a new free, ad-based OTT VOD service that would complement its subscription based Prime Video offering and apply some heat on others in the AVOD sector, AdAge reported Monday.
Update: Amazon issued a statement Tuesday denying that the company has plans to create a free, ad-supported version of Prime Video.
AdAge reported that the service Amazon had in mind would provide free access to a library of movies and TV shows, including Amazon originals such as Transparent and The Man in the High Castle. And it would also build on the ad work it has done around its OTT distribution of live events such as Thursday Night Football with the NFL, AdAge noted.
It would also open the door to another piece of the streaming business and reach an audience that doesn’t subscribe to Prime today.
Notably, it would also put some pressure on other services that focus on or have latched on ad-based, free VOD services or libraries. That group that includes, but isn’t limited to, Tubi TV, Crackle, Vudu, and Pluto TV, which recently added a VOD component to its linear-style free OTT TV service. Many of those services have also built apps for Amazon’s Fire TV platform.
Roku, meanwhile, has teamed with several content partners for a new free ad-based Roku Channel that was launched in September.
According to AdAge, Amazon could be looking to entice content partners to jump on board by offering to share audience data and ad revenue.