The year 2015 is all set to be an important year for Amazon and its fans; the internet retail giant is currently working to make sure that it can launch ad-supported video streaming by 2015.
It is, however, not the only big plan Amazon has for the New Year; it can be said that the e-commerce company’s plate is more than full as far as the year 2015 is concerned.
There are rumors that the New Year will see Amazon entering the online industry of hotel and flight booking. However, what is leaving users most excited is the possibility of Amazon launching an ad-supported video service that users will be able to use for free.
Once the online retail giant launches the new video service, industry leaders including Hulu will definitely experience significant decrease in popularity.
One thing Amazon will not require to do is getting the infrastructure required for offering video streaming ready; it already has that. However, at this point, only the Amazon Prime customers have access to the service; these are people who pay $99 yearly and enjoy an array of benefits including free 2-day shipping and access to videos absolutely free of cost.
The new ad-supported video streaming service Amazon is currently working on is something absolutely different from what customers have experienced to date. With it, the company is probably looking to tempt users to turn into paying customers. That’s not all; as a result of being ad-supported, the new service will also bring in hefty revenue for Amazon.
By turning free users into Prime subscribers, the new video streaming service will increase revenue streams of Amazon by a big margin. Additionally, it will also encourage all new subscribers to make maximum use of benefits offered by Amazon.
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Amazon believes that its new service will allow it to attract Prime customers and make them spend bigger amounts on online purchases than they usually do. This makes it clear that launching ad-supported video service that can be accessed for free is just a way of attracting more customers.
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Recently obtained statistics suggest that Amazon already has over 50 million Prime customers globally; 50% of them i.e. around 25 million users use the video service of the company regularly. The number is much less than that of rival group Netflix, which has 35 million users only in the US. However, with the launch of the new service in 2015, Amazon can expect the user base for its video streaming service to increase rapidly.
