Amazon is planning on launching a new video streaming service, known as Free Dive. And as the name suggests, it would be free but ad-supported.
As reported by The Information, this would be available specifically to all the Amazon Fire TV owners. This new service aims to obtain a part of the $70 billion TV advertising market. Recent years have shown a significant growth in the ad-sales portion of Amazon’s revenue.
More Information regarding Amazon’s Free Dive –
Amazon would amplify advertising during sports broadcasts. Basically Amazon sees TV advertising as a growing source unwrapped revenue for its business. Thus, Amazon further expands into traditional media distribution.
Free Dive is being developed by the subsidiary of Amazon, i.e. Internet Movie Database (IMDB). This is going to be termed as Free Dive. This channel will be different from the Amazon Prime Video that provides its subscribers with a wide variety of licensed movies and TV series, along with original content produced by Amazon. It would function as a separate feature which consists of content that is not the same as what is already available on Prime Video. The new ad–supported video service is more of an add-on to the Amazon Prime Video, which would help consume more of the TV ad market.
Also, Amazon introduced an ad-supported programming to IMDB. It has increased the presence of video advertising on Twitch. Currently, there are approximately 48 million Amazon streaming devices. At least a few million viewers are expected to try Free Dive once it is made available to all the Fire TV owners.
This new service is similar to the service provided by the Roku Channel. That’s also an ad-supported free video service, which is available for the Roku streaming devices and smart TVs. This feature has helped in the growth of the Roku device maker in its platform business.
Reports say that Amazon is focusing on developing original movies for its streaming service. In order to do this, Amazon obtained licenses to older TV shows from major TV studios. This includes Viacom Inc’s Paramount Pictures and Sony Corp’s Studio Division. It’s because these have aired the shows on their networks earlier.
Amazon included major Hollywood partners, hence there’s a big possibility for Prime Video users to use Free Dive. The shows which can be licensed by Amazon depends on the amount of revenue spent by the company. Any new streaming service offered by Amazon is considered to be very interesting to all the subscribers.