Update: Amazon has clarified that it hasn’t launched any free (ad-supported) video streaming service, and it revealed that the company is experimenting with different kinds of offers to its Amazon Instant Video users. Amazon said that Amazon Instant Video is offering the first episode of some of the television shows for free as part of its First Episode Free offer. Full statement, at the end of the post. Read the earlier report below.
Adding another name to the list of video service providers, Amazon is all set to take the next step into the field. According to the reports, Amazon is gearing up to launch a new video streaming service. According to recent reports, Amazon is going to launch the video streaming service free of any cost. The catch is that the video streaming will be interrupted by advertisements. As it seems till now, Amazon will be primarily gaining its profits from the advertisements only. Thus, the users will have this golden opportunity to watch videos free of cost.
The free-of-cost video service from Amazon is not a part of the Prime Instant video offering. Prime Instant video offering costs its users a yearly subscription charge of $99. This is not the first time that such talks involving Amazon have come to the scene. Interestingly, about 8 months ago, similar sort of rumors had sprung up about a free video service deal from the same. Amazon had strongly denied any such intentions.
It seems that the rumors were very much true. The experts believe that Amazon had its plans back then, but the company was waiting for the competitors to throw their cards. As it happens now, Amazon will provide free video service and will slowly and steadily try to lure the customers into the $99 Prime Instant Video Service Offering.
Some people also think that Amazon will continue with its free services as the company will still be making profits from the commercials that it will be airing. As it stands, Amazon might well be set to earn much more with advertisements compared to direct subscriptions. Nonetheless, Amazon is yet to make any official statements in this regard. One will have to wait for the company to officially announce the launch of free video streaming service.
Update: Amazon’s statement to Engadget:
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.