*By Amanda Weston* Amazon's reported free video service may be designed to entice more people to sign up for Prime subscriptions, said PCWorld's Michael Simon. "I think if they come out with an ad-supported version, which will probably show a smattering of popular shows to people who aren't Prime members yet, I think it could be super successful for both selling Fire TV devices, which would presumably be the way to get it like Roku, and also upgrading people to that full Prime membership, which I think is the ultimate goal here," Simon said Thursday in an interview on Cheddar. The Information [reported Tuesday](https://www.theinformation.com/articles/amazon-plans-new-video-app-latest-step-into-tv-ad-market) Amazon is planning to launch a service called Free Dive for its 48 million Fire TV customers. Free Dive would be separate from the retail giant's Prime Video service and could be a direct competitor to the popular Roku Channel. Shares of Roku dropped 3 percent Wednesday after the news. Simon said Amazon is likely trying to sell as many Fire TVs as it can to ultimately lure fans to its Prime program, which Amazon CEO Jeff Bezos revealed in a [letter to shareholders in April](https://www.sec.gov/Archives/edgar/data/1018724/000119312518121161/d456916dex991.htm) has over 100 million subscribers. Even after the company raised the annual cost of membership from $99 to $119 in May, Simon called the service "lifetime commitment." Prime members get access to Amazon's original content, but The Information suggested the company wants to license older TV shows that have already aired on other networks for Free Dive and make a play for the traditional TV ad market. For Amazon to take over the industry from streaming giants like Netflix and Hulu, Simon said it might take a while. "Netflix has a tremendous catalog and Amazon is, you know, they're slowly but surely getting there," Simon said. "If I had to peg it, I'd say it'll probably still take another three to five years before they're a realistic competitor to Netflix." For full interview [click here](https://cheddar.com/videos/amazon-reportedly-set-to-launch-new-video-service).

Share:
More In Technology
Google Announces New Privacy Updates to Limit User Tracking
Google announced it will be updating its privacy restrictions that will limit tracking throughout apps on android devices. The update is similar to Apple's previous update, which ended up causing companies like Meta to lose billions of dollars on the market. Cheddar News was joined by David Trainer, CEO of New Constructs, to discuss the implications of the new privacy updates.
Global Semiconductor Sales Reach Record Highs in 2021; What's Next?
Global semiconductor sales topped $500 billion dollars for the first time in history in 2021. Demand for microchips has been at an all-time high amid a global shortage, but questions still remain about the future of semiconductor production. Cheddar News was joined by Tristan Gerra, Senior Research Analyst at Baird, to answer some of these questions and more.
Real Estate Platform Compass CEO on Q4 Revenue Jump, Agent Retention
Compass Inc. reported its Q4 earnings on Wednesday, noting a 31 percent surge in quarterly revenue year over year. The real estate brokerage platform allows agents to promote and market their properties online and saw a 90 percent agent retention rate as well. Compass CEO Robert Reffkin joined Cheddar News to discuss the company's earnings, what ongoing inflation means for the housing market and how they help agents directly. "Let me start by saying my mom is actually a real estate agent, has been the majority of my life. She's a real estate agent today at Compass, and so I built Compass with her in mind," Reffkin said. The goal for an agent is to grow their business and have a better quality of life, more income to support their family, more time to be with their family, and it's not just software. It's a platform of software and services."
Load More