Amazon's Fire TV Streaming Project Is About Hooking in Prime Members
*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).
Big tech companies such as Amazon and Google are garnering criticism for failing at their proposed climate pledges, most of which rely on carbon offsets — a potential loophole where companies pay others to address their omissions. Gilles Dufrasne, policy officer at Carbon Market Watch, joined Cheddar News to explain the organization's negative evaluation. "The objective here is not to bash companies and say everybody is doing the wrong thing," he said. "The objective is to also provide lessons, and there are some companies that are doing the right thing."
U.S. markets opened lower as disappointing Meta earnings dragged down the tech-heavy Nasdaq. Today, investors will be watching for Amazon's Q4 earnings report set for release after the market close. Greg Swenson, Founding Partner, Brigg Macadam joined Cheddar's Opening Bell to discuss.
Markets opened mostly higher led by gains in the tech sector on strong Q4 earnings. It comes after a tumultuous January which saw stocks suffer one of their worst months since the early days of the pandemic. Jim Worden, Chief Investment Officer, Wealth Consulting Group joined Cheddar's Opening Bell to discuss early market activity.
CLMBR is hoping to become the next big thing in connected fitness. The brand offers a high intensity, low impact workout with on-demand, instructor-led classes. Avrum Elmakis, CLMBR's CEO and founder, joined Cheddar to discuss where the company is heading next.
Peloton is reportedly drawing interest from multiple suitors. According to the Wall Street Journal, Amazon is considering acquiring the exercise bike company as it looks to expand into the health and wellness technology industry. Hatem Dhiab, managing partner at Gerber Kawasaki, joined Cheddar to discuss Peloton's future and which company might be its best bet as a buyer.
Amazon shares jumped north of 13 percent in after-hours trading as the E-commerce giant posted a beat on earnings in its fourth quarter. Amazon saw particular success in its cloud computing business, as well as its stake in EV startup, Rivian after its massive IPO. Deren Baker, CEO, Edge by Ascential joined Cheddar's Opening Bell to discuss.
Google parent company Alphabet reporting a beat on its Q4 earnings report, with revenue up 32%. The company's strong quarter was thanks to success in its cloud and advertising businesses, which both saw solid year-over-year growth. Angelo Zino, Senior Industry Analyst, CFRA Research joined Cheddar's Opening Bell to discuss the tech giant's blowout results.
