Amazon plans to launch a new ad-supported streaming service early next year, which will be offered separately from its $99 Prime membership, reports the New York Post.
“The ad-supported option — part of an overhaul of its media offerings — poses a serious challenge to streaming rivals such as Hulu and Netflix, analysts said,” according to the report.
Wedbush Securities analyst Michael Pachter called the plan “a Netflix killer.” Amazon could offer something less than Netflix’s current monthly price of $7.99, he added.
“Who wouldn’t switch if you were poor or you’re a cord-cutter?” Pachter said.
Amazon would offer the ad-supported plan separately from Prime, but would hope to upgrade customers to the annual $99 plan, the story notes.
The move by Amazon has been rumored in the media since as far back as March, but the Post reports, “Sources confirmed that it’s a definite go.”