|Amazon Free Dive: Free TV service|
Amazon is preparing to launch a new video service that will be backed by ads, The Information reported Tuesday. The TV service will be available to the 48 million people who own Amazon Fire TV devices, including HDMI dongles manufactured by Amazon or Fire Cubes with Alexa.
IMDB, which Amazon bought 20 years ago, will develop the free TV service. Amazon can call it Free Dive and offer it as a free alternative to Prime Video, with content like older TV shows. Amazon already receives advertising revenue from the video ads that IMDB executes before the movie trailers. The company also sees advertising revenue in its e-commerce store and has been posting more ads on its popular Twitch gaming site.
The service, as reported, is similar to that launched by Roku stick, the Roku channel, which broadcasts old films such as The Matrix and television replays such as Bewitched and Good Times. The ads have been an important source of revenue for Roku. Roku channels shares fell 2% in after-hours trading after the report on Amazon’s plans.
Advertising has quietly become a reliable area of growth for Amazon in recent years. The segment of “other” income of the company, which comes mainly from advertising revenues, grew 132% in the second quarter of the previous year to $2,200 million.
“Now it’s a multi-million dollar business for us,” Amazon finance manager Brian Olsavsky said during the company’s most recent earnings call. “We are seeing strong adoption on several fronts: vendors, vendors, authors and third-party advertisers who want to reach Amazon customers.”
So, if you are searching for how to watch tv without cable or satellite? Then this may be a good news for you as you can now enjoy Amazon free TV service.