WSJ: Amazon to launch ad-supported TV/music service; Netflix slips


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.

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Comments (11)
  • Andrei Volgin
    , contributor
    Comments (624) | Send Message
     
    This is very bad news for Pandora too. If the new service does not require a Prime membership, it will appeal to all Amazon customers, not just 25 million Prime members.
    27 Mar 2014, 04:31 PM Reply Like
  • koolrosh
    , contributor
    Comments (99) | Send Message
     
    This news is actually good for Netflix because it is now more differentiated from Amazon's offering. Netflix and HBO will be the only places you can watch ad-free high quality shows. Amazon's new service will mostly compete with Hulu and traditional TV networks (and their ad-supported websites)
    27 Mar 2014, 05:11 PM Reply Like
  • Sakelaris
    , contributor
    Comments (2505) | Send Message
     
    Netflix might be my personal favorite, but there is also high-quality, ad-free programming on Amazon Prime.

     

    As for the upcoming Amazon music service, well, their commercials must not exceed those currently on Pandora in length, obnoxiousness, or frequency--or I will just stay with Pandora when I want music.
    27 Mar 2014, 05:23 PM Reply Like
  • Andrei Volgin
    , contributor
    Comments (624) | Send Message
     
    If have you a Samsung phone, try Milk. On Nokia try MixRadio. Both are free, no ads, and much better music selection than Pandora.
    27 Mar 2014, 05:27 PM Reply Like
  • Andrei Volgin
    , contributor
    Comments (624) | Send Message
     
    @koolrosh

     

    Amazon Prime video is not going anywhere.
    27 Mar 2014, 05:28 PM Reply Like
  • Mark Krieger
    , contributor
    Comments (6144) | Send Message
     
    koolrosh: if the news is good, then why are the shares $9 lower in extended hours trading?
    27 Mar 2014, 06:44 PM Reply Like
  • James Sands
    , contributor
    Comments (2601) | Send Message
     
    Does anyone know whether Amazon's streaming service performance is better than Netflix?

     

    Netflix is constantly reducing the full-extent size in the middle of programs and lags sometimes. Hulu has a better streaming consistency. I'm just curious if anyone has used Prime and Netflix and can speak to this....

     

    I use both Netflix and Hulu, and find Hulu much more valuable based on available content/current content, and when Netflix has the same content, I use Netflix.
    27 Mar 2014, 05:59 PM Reply Like
  • Sakelaris
    , contributor
    Comments (2505) | Send Message
     
    Both my Netflix and Amazon Prime are fine in quality. My ISP is Windstream.
    27 Mar 2014, 08:08 PM Reply Like
  • James Sands
    , contributor
    Comments (2601) | Send Message
     
    I've got U-verse and Netflix is definitely much worse than Hulu.

     

    Thanks for the comment.
    27 Mar 2014, 08:41 PM Reply Like
  • jeepnsam
    , contributor
    Comments (54) | Send Message
     
    I already have Amazon Prime, Netflix, Hula, YouTube and a bunch others on my Roku 3. Amazon, give me a 50" Kindle Fire with Kinect technology and you'll have yourself a winner.
    27 Mar 2014, 10:27 PM Reply Like
  • Doc's Trading
    , contributor
    Comments (1847) | Send Message
     
    This was denied by AMZN this AM.
    28 Mar 2014, 10:25 AM Reply Like
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