Amazon plans to roll out a new ad-supported video streaming service early next year that will be separate from their current Amazon Prime membership video service, according to The New York Post. This new service is expected to challenge both Netflix and Hulu Plus for a bigger share of the video streaming market.
Since it’s separate from Amazon Prime, it will likely still cost a monthly price, but there’s a big possibility that Amazon will price their service cheaper than Netflix, in hopes of undercutting them and stealing viewers.
As we mentioned last week, one study showed that Amazon is already increasing its viewership numbers from last year to 2014.
The fact that Amazon will likely work to upsell these users to Amazon Prime means they can charge less than Netflix, which is essentially charging for the only service they offer.
It’s quite possible, if you think about it, that you’ll see an ad while you’re watching a show on Amazon’s new service, then choose to purchase it through your Amazon Fire TV, making it ultra-attractive to advertisers.