In short: Amazon, by way of IMDb, is reportedly set to announce a new and free video service which will be made available to owners of an Amazon Fire TV device, and irrespective of whether they are Amazon Prime members or not. While not confirmed, the information on this comes courtesy of a new CNBC report which credits “several people with knowledge about the matter” for the details. This latest report reconfirms information provided in another report that came through in late August, while also adding more details such as the imminent launch time-frame.
Background: Amazon is understood to be looking at increasing the content offered to Fire TV owners by launching a new video service which will be made free to consumers by adopting an ad-supported model. According to the details, the ads will primarily be visible between videos and Amazon will look to make the prospect more appealing to advertisers by allowing them access to user data, which when combined with third-party data will allow advertisers to better target ads to the most appropriate individuals. At present, the details on the exact content remain unknown, although it is understood the service will offer an on-demand level of access to TV shows and movies, and it’s expected programming from “at least three major media companies” will be on board. The announcement of the new service is expected to be made this week during Advertising Week, which takes place between October 1 and 4 in New York.
Impact: While this of course will be good news for Fire TV device owners as it adds to the growing number of ways in which those consumers can access free content, it’s also understood to be highly beneficial to Amazon. As while the company has continually made a living room push in terms of hardware, its dedicated content outside of that offered to subscribers of the company's Prime membership remains limited. With this service being aimed at any Fire TV user, it will offer Amazon a route to capitalize on TV advertising revenue. An area which is specifically expected to grow considerably in the future for over-the-top services, such as this one.