Amazon Instant Video is not looking too hot, when compared to Netflix on peak Internet traffic. The two video streamers stack up at 2.5 percent and 34.8 percent, respectively. In order to close the gap, Amazon is reportedly looking to create an ad-supported Instant Video service, where users can watch TV shows and movies on demand for free.
The catch will obviously be long advertisements, and unlike YouTube where AdBlock blocks revenue, Amazon may look to create new ways to force customers to watch ads, like embedding it on the video file before streaming. It would not be one thirty second advertisement either, reports say Amazon will look to create a similar ad experience to traditional TV, adding one or two ads every ten to fifteen minutes.
Even though this has traditionally not worked in the past, Instant Video’s large library of TV shows and movies might be enough to interest customers, even if they do not care for the advertisements.
Amazon has denied these rumors in the past. Earlier this week an Amazon spokesperson denied them again, claiming they already offer free previews of TV shows, through the first-episode free pass. However, the information detailed from multiple sources claim Amazon is interested in reaching the top spot, where Netflix currently sits. The only way to do this is to make Instant Video have a much larger reach in a short timespan.
Hopefully, the ad-free option will be a nice incentive for people sick of ads. Amazon will also try to coy people into purchasing Amazon Prime, instead of just Instant Video, for $99 per year.