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Amazon

A Free Version Of Amazon Prime Video Is On The Way, But There’s A Catch

By
Grace Donnelly
Grace Donnelly
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By
Grace Donnelly
Grace Donnelly
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November 14, 2017, 11:12 AM ET

You may soon be able to watch Amazon Prime content for free — and without your ex-boyfriend’s sister’s login.

The company is reaching out to TV networks, movie studios, and other media companies as it works on an ad-supported version of its video streaming service, which would bring outside marketing dollars into the platform for the first time.

“Amazon is talking about giving content creators their own channels, and sharing ad revenue in exchange for a set number of hours of content each week,” an executive familiar with the project told AdAge.

So far ads on Prime have been minimal and mostly promoted Amazon’s own products to the platform’s estimated 50 million subscribers.

As audiences move away from traditional TV and toward commercial-free streaming services, marketers are looking for new opportunities to put get their products in front of viewers.

Amazon is expected to spend $5 billion on video content this year, according to Wall Street Journal analysis, and they’ll need high-quality offerings to compete with television networks for the big ad budgets.

This “freemium” model could mean a new revenue stream and a new entry point for increasing the number of Prime subscribers.

With a new studio in Los Angeles, deals with creators like Robert Kirkman of “The Walking Dead” and Seth Rogen, the company is making moves to expand original content, which currently includes series like “Transparent” and “Man in the High Castle.” It’s also looking to acquire more content for kids along with lifestyle, cooking, and travel shows.

“We have no plans to create a free, ad-supported version of Prime Video,” an Amazon spokesperson wrote in an email to Fortune.

Editor’s note: This article has been updated to include a statement from Amazon.

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By Grace Donnelly
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