Amazon May Be Developing A Free, Ad-Supported Streaming Service

UPDATE: 11/14 at 11:054a.m.: A spokesperson for Amazon has responded to this story, saying, “We have no plans to create a free, ad-supported version of Prime Video.” Looks like that settles that.

It’s time to dive into the streaming rumor mill. According to a report from AdAge, it seems as if Amazon is considering developing a free-to-use, ad-supported streaming service. This new streaming service would be different than Amazon’s primary streaming service, Prime Video.

According to sources familiar with the potential Amazon offering, the ad-supported streaming service would host content from back catalogs of TV and movie studios. Shows focusing on lifestyle, travel, cooking, as well as children’s programming were mentioned as possible fits for the platform. However, it seems as if this new platform would operate a bit differently from other streaming platforms that have attempted the ad-supported model, like older versions of Hulu or the now-defunct Yahoo Screen. It sounds as if the platform Amazon is interested in creating would be structured like its Amazon Channels streaming option.

“Amazon is talking about giving content creators their own channels, and sharing ad revenue in exchange for a set number of hours of content each week,” an anonymous executive familiar with the project said.

As mentioned before, Amazon wouldn’t be the first streaming service to experiment with ad-supported content. Everything from Hulu to less mainstream options like CrunchyRoll and Crackle have played with the format with varying degrees of luck. Amazon by far has the most diverse options when it comes to how to stream content. While Amazon Video operates like iTunes, allowing anyone to digitally rent or buy shows and movies, Prime Video operates more like traditional streaming services, giving subscribers access to a changing library of new and old titles in exchange for a monthly fee. Then there’s the company’s Amazon Channels option, an add-on system that allows users to sign up and pay for other streaming services from HBO to Shudder through their Prime Video account. This new, rumored streaming service would be different than any of these other services and would likely act as a funnel, trying to convince users to subscribe to Prime Video.

Or perhaps not. Combining advertising and streaming is a challenge that has haunted the internet ever since it became possible to make money through YouTube. This potential ad-supported platform paired with Amazon’s new focus on its ad capabilities may indicate that the company is attempting to disrupt the world of online advertising. However, that’s a big “may.” At this point, the ad-supported platform only exists in the world of vague internet rumors.

By the time AdAge ran its original story, Amazon had not responded for comment.