Amazon wants to launch an ad-supported, streaming-video service next year, and it'll be different from the company's $99-a-year Prime membership that includes access to an established streaming-video service.
According to The New York Post, which cited unnamed sources, the new service will be more like an ad-supported option. It won't cost $99 a year, and you'll still have access to Amazon's video library. The report claimed such a service would hurt Netflix, mostly because it would undercut Netflix's monthly price of $7.99.
Amazon is allegedly hoping the ad-supported option would encourage people to eventually sign up for a Prime membership, and that's really the whole point: the company wants to expand Prime's audience. Of course none of this information is totally new, as The Wall Street Journal reported similarly in March.
Amazon in the meantime has been bulking its content offering by adding popular HBO shows, for instance, and it has even experimented with video ads in a few shows, according to Re/code.