Amazon is cooking up a new streaming video service exclusively for its Fire TV devices, according to a report from The Information. The app, tentatively called Free Dive, won't cost a subscription fee, instead generating revenue for Amazon by showing viewers targeted advertisements.
The app is being developed by IMDB, which has been a subsidiary of Amazon since 1998. The company is said to be in talks with major TV networks to license non-original content for the service. Free Dive is to be available for free to all 48 million (or so) Fire TV owners.
Amazon's ads business is growing quickly and is projected to make the online retail giant $8 billion this year — although it's still well behind other big players in online ads like Facebook, whose advertising business made $13 billion in just the second quarter of 2018. Free Dive will compete with services like the Roku Channel, which operates on a similar model model, distributing TV shows and movies with ads for free.
- The Information