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Amazon reportedly prepping ad-supported video service

Amazon Instant VideoAmazon is reportedly planning to launch an ad-supported streaming service, which will be separate from its subscription Amazon Prime offering.

According to a New York Post report, the new ad-supported option will be part of an overhaul of Amazon’s media services that will see it launch a fresh assault on the likes of Hulu in the US.

The service will reportedly be used to attract a broader audience base for Amazon’s online video offerings, with a view to upselling customers to Prime. In the US this costs US$99 per-year and includes access to Prime Instant Video, along with cut-price shipping for physical goods.

The news comes just days after Amazon launched its Prime Instant Video service in Austria and started to ship its HDMI TV streaming device, the Fire TV Stick, to customers in the US, claiming it to be the “fastest-selling Amazon device ever.”