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Amazon's ambitions for streaming video could take a big step forward as the company prepares a new advertising-funded television service to be launched this week, CNBC reports.
In August, we started talking about Amazon's new television service, which would be separate from its Amazon Prime Video and operate under Amazon's IMDB subsidiary. The service, which could be called Free Dive, would be available to the 48 million people who own Amazon Fire TV devices, including HDMI dongles made by Amazon or its Fire Cubes powered by Alexa.
Instead of offering programming in the form of Amazon Studios or its Prime Video license partners, the IMDB television channel would present content similar to older television programs. This would make him a competitor of Hulu and the Roku channel, operated by the Roku digital television platform, which offers reruns such as Lost in space as well as old movies like Bad Boys and ghost hunters.
The service could offer Amazon a new platform for its growing advertising business. According to CNBC, commercials will be broadcast between programs or will be integrated around an integrated video player, as IMDB currently does in movie trailers. Amazon can also enable marketers to access exclusive user data to improve ad targeting.
Amazon already receives advertising revenue from video ads that IMDB runs between the trailers, as well as ads on its online commerce store and on its popular gaming website, Twitch. According to research firm eMarketer, Amazon has quietly become the third largest online advertising platform behind Google and Facebook. Advertisers will spend around 4.6 billion US dollars for Amazon ads this year, said eMarketer, up 145 percent from 2017.
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