Amazon Adviser
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Report: Amazon developing free ad-based streaming service

By Patrick Schmidt

WASHINGTON, DC - MARCH 07: Jeff Bezos, CEO of Amazon and founder of Blue Origin, is introduced to speak at the Access Intelligence's SATELLITE 2017 conference at the Washington Convention center on March 7, 2017 in Washington, DC. Bezos talked about the future plans of Blue Origin and the innovation of the satellite and space communities. (Photo by Mark Wilson/Getty Images)
WASHINGTON, DC - MARCH 07: Jeff Bezos, CEO of Amazon and founder of Blue Origin, is introduced to speak at the Access Intelligence's SATELLITE 2017 conference at the Washington Convention center on March 7, 2017 in Washington, DC. Bezos talked about the future plans of Blue Origin and the innovation of the satellite and space communities. (Photo by Mark Wilson/Getty Images) /
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Amazon is continuing to think of ways to better compete with Netflix in the streaming realm and one way they’re exploring is developing a free streaming service supported by ads.

Amazon Video could look radically different in the coming months and years as Amazon Studios has recently been rebranded with new leadership and a new focus for the types of shows they want to make. On the heels of Amazon giving a multiple-season commitment to a new Lord of the Rings prequel TV series that will air on Amazon Prime Video, Amazon is also considering developing a secondary streaming service that will be free for viewers.

According to Ad Age, advertisers will foot the bill for the viewer and provide the advertisements that would run during the programming on the new free service. Basically, Amazon wants to recreate the basic network TV model with commercial breaks.

This fremium model could be a way to help convince viewers to try this model first before committing to spend $99 a year for the Prime membership that will provide access to shows like Transparent, The Man in the High Castle and the upcoming Lord of the Rings series.

"“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,” says one of the executives, speaking on condition of anonymity to discuss a project that Amazon has not announced, via Ad Age."

This sounds like an unnecessary step for Amazon. They’ll have to raid the back catalogs to get movies and TV shows that aren’t entirely popular to draw in viewers. This type of programming isn’t going to drive in viewers to such a degree that it would be more beneficial than investing in content creators to develop shows and movies for Amazon Prime Video. That should be the focus, and recreating the basic network TV model seems outdated and takes the eye off the big prize.

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Amazon expects more kids programming and lifestyle programming would fill out the free streaming programming, which would be a draw for people seeking that type of programming. The entire concept just seems like a departure from the grand ideas that Amazon typically prides itself on.

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