The WSJ reports Amazon's (AMZN -1.4%) free TV/music service "could arrive in the coming months." It will feature the company's original programming, and might also include licensed content. Notably, an Amazon Prime subscription won't be required.
Amazon reportedly also plans to offer free, ad-supported music videos (a la YouTube) on its site.
The report comes ahead of an April 2 event expected to feature the launch of a streaming/gaming set-top.
Striking deals with media giants (always nervous about upsetting pay-TV providers) for ad-supported content might prove challenging. Hulu's media industry owners, for example, still refuse to make its free service available on set-tops (the Hulu Plus subscription service is allowed).
Netflix (NFLX), which now gets over 80% of its traffic from connected and mobile devices, is down 1.4% AH after falling 2.2% in regular trading.
Update: An Amazon spokeswoman denies the report.