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Amazon is readying a free video streaming service to take on Netflix, according to rumours.

Insider sources told the New York Post that the service will launch imminently and will be supported by adverts.

amazon prime instant video

It will be a separate service from Amazon Prime Instant Video, which will remain subscription-based.

By taking the two-tiered approach, comparisons with Spotify in music streaming are inevitable.

Spotify offers a free ad-supported version, as well as Spotify Premium, which subscribers pay for.

The idea is to bring in more customers which the e-tail giant hopes will eventually start paying.

"The main point is to bring in more users that you can eventually up-sell to Prime, or to get a broader audience that doesn't want to pay for Prime in order to increase their video share," one of the sources said.

It's thought the service will launch early next year, though Amazon is yet to make an official announcement.

A free service certainly would be a big draw. Amazon Prime costs £79 a year. And while it includes free one-day delivery on items bought from Amazon, it still isn't cheap.

Netflix starts at £5.99 a month and, right now, has many more customers than Amazon's service.

Source:

New York Post

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