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).
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On this episode of Cheddar Innovates: Yat Labs Co-Founder breaks down how a 'Yat' is changing the way people think about their online identities; Scythe Robotics CEO explains how it's bringing innovation to the landscaping industry with its autonomous, all-electric mowers; Founder of California Cowboy discusses how its creating clothing designed for creating in-person connections with others with features like a beverage pocket, bottle opener, and conversation cards; Cheddar gets a look at Curiosity Stream's 'Beyond the Spotlight' biography series.
Jack Morrison, CEO and co-founder Scythe Robotics, joins 'Cheddar Innovates' to discuss how it's bringing innovation to the landscaping industry with its autonomous, all-electric lawn mowers, and how this is addressing the labor crisis in the landscaping industry.
Naveen Jain, Co-Founder of Yat Labs, joins 'Cheddar Innovates' to discuss how a 'Yat' is changing the way people think about their online identities, and why artists like Questlove and G-Eazy are backing this idea.
Mike Proulx, VP and research director at Forrester, joined Cheddar to talk all about Disney's lackluster Q3 earnings after the company reported a slowdown in Disney+ subscriber growth. Proulx discussed a Forrester study that found 45 percent of U.S. adults subscribed to streaming services because of the pandemic but 26 percent had plans to cancel a service over the next two years. "We're always going to look at growth, and we also have to look at engagement," he said. "But both of those metrics come down to having either original or exclusive content that will offer value to the subscriber base."
