“Amazon has invited media to attend an event in New York on April 2 where it is expected to announce plans for a streaming-video device similar to an Apple TV or Roku,” wrote Natalie Jarvey. “Prime Instant Video is already available through devices such as Roku. An Amazon product would also provide access to that content and apps for other services such as Netflix and Hulu.”
In addition to the Amazon Prime service, the company has begun producing original series, including Alpha House and Betas.
The Wall Street Journal claims that Amazon is considering an ad-supported video and music streaming service (but is denying it), to offset the $99 annual Prime membership option.
“Data Amazon collects about viewers’ television and music preferences could allow it to deliver more targeted ads, including for products sold on its retail website,” wrote Greg Bensinger. “It could sell Adidas shoes to Run-D.M.C.’s ‘My Adidas’ music video fans.”
In addition to ads targeted at selling Amazon products to its streaming service viewers, the company would profit by monetizing their product through advertising. The free, ad-supported model is becoming increasingly popular and more profitable.
In some ways, comparing a streaming media service to mobile apps is a bit apples and oranges but the idea is still the same. Given the option, people are more inclined to deal with advertising rather than paying for a service.