Amazon Reportedly Preparing a Free Ad-Based OTT

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by @todotvnews the 14/11/2017
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A report from Ad Age claims that the e-commerce giant is planning to launch an entirely ad-based OTT platform that can coexist with its premium offering, Prime Video.

Seeking to continue diversifying it’s offering and content monetization, the e-commerce giant Amazon is reportedly planning to launch a new OTT platform, according to Ad Age.

The service would be free for all subscribers, and financed by the ad sales.

The content offered would thus be a mix of some of its original series, alongside content from independent creators in the style of Facebook Watch. In addition, it would also include a catalogue of films and TV studios.

According to Ad Age, which quotes sources from advertising agencies, the company is already presenting the idea to said agencies. The offer for them would be shared ad revenue as well as the sharing of some viewing data.

The new platform would coexist with Amazon Prime Video, which would remain a premium service for all Amazon Prime members paying US$ 99 a year for the SVOD service, free two-day shipping and other advantages.

Prime Video is currently releasing a large number of original series, such as Transparent, The Man in the High Castle or Patriot, as well as other American and international series.

In total, it is estimated that the service currently invests 5,000 million dollars a year in content.

With an ad-based OTT platform, Amazon could find a new way to recover the investment, accessing the millions of dollars invested by advertisers during the upfront of traditional networks.

The service would also provide a new window for advertisers, who nowadays find they have limited chances of reaching massive audiences thanks to the ever-growing demand for ad-free subscription services and curd cutting.

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