The competition in the video streaming arena is getting tougher every day. With Netflix holding the top spot and Hulu working hard to catch up, Apple and Disney are also planning to spend big to gain a share of the market.
But it seems that Amazon working on a new, free video streaming service focused on Fire TV users. This service, called Free Dive, will be supported by ads, according to a report from The Information.
It's obvious that there will be parallels between Free Dive and the recently launched Roku Channel.
This service is currently being developed by Amazon's IMDb database subsidiary. To add more and more content to the service, Amazon is in talks with major studios to license older TV shows.
It's worth noting that Amazon Fire TV has a huge customer base of around 48 million users. With a free service supported by ads, it means the company will have a better chance of claiming bigger profits in the $70 billion advertising market. The last quarter was quite good for the company in terms of advertising revenue as its revenue from similar categories increased 132%.
