How far will Amazon go with its ad-supported video?

Amazon is the benchmark for retail corporations. The company has been the best out there and has dominated the market for many years now. When compared to its peers and competitors, Amazon is way ahead of them as it provides best quality products in comparatively lower prices. Hence, when compared to its competitors, Amazon has planned to give free streaming service to its Amazon Prime members whereas Netflix will be charging around $8.99 for one month plan. Hence, this will leave the Netflix viewers in some confusion whether to stick with Netflix or switch to Amazon Prime.

Amazon already has a video streaming service under its Prime banner which is giving tough competition to Netflix and Hulu. But the company has planned something else to give itself a competitive edge over others. According to New York Post, “Amazon boss Jeff Bezos is primed and ready for a fresh assault on the streaming-video space. The e-commerce giant will roll out a new ad-supported streaming offering early next year that will be separate from its $99-a-year Prime membership, which includes a video service.” Hence as Guardian reported that this new service will give tough competition to Netflix and Hulu once it is launched.

The best part about this new streaming service is that it will be free of cost for viewers in order to lure them towards Amazon Prime membership. This new service sounds like it is TV and possibly films, rather than a short form competitor to YouTube of the kind that Yahoo is rumored to be launching soon. As Amazon has not yet disclosed anything about the number of memberships it’s Amazon Prime has, it is believed that there are more than 25 million people subscribed and watching Prime.

Hence in a nutshell, the main question arises whether this service will be a hit for Amazon giving the company a competitive edge over its peers and competitors.