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The NY Post reports Amazon (AMZN +1.7%) will launch an ad-supported video service next year that won't require a Prime subscription. "The main point is to bring in more users that you can eventually up-sell to Prime, or to get to a broader audience that doesn’t want to pay for Prime," says a source.
- The WSJ reported in March Amazon was prepping a free/ad-supported streaming service, but Amazon quickly denied it had plans to do so. The Post's sources state roughly half of Amazon's Prime subscriber base (recently estimated by RBC to total 40M-50M) uses Prime Instant Video.
- Netflix (NFLX -0.7%) is off slightly on a morning the Nasdaq is up 0.7%. The company (37M U.S. subs, 53M globally) has long been contending with ad-supported streaming services from Hulu and others.
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Yesterday: Amazon reportedly prepping travel service
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Update: An Amazon spokeswoman says the company hasn't "announced any plans" for an ad-supported services, but adds it's "often experimenting with new offers and experiences for customers."