What Happened
Amazon is exploring the possibility of creating a live online TV service and has been in talks with major media companies including CBS Corp. and NBCUniversal to discuss carrying their channels, according to Bloomberg. No further details are available at the moment, but it seems very likely that the service will be tied into the existing Amazon Prime Instant Video service and likely to be subscription-based, and not ad-supported. However, if Amazon does manage to strike a deal with the broadcasters to carry their live programming, it would have commercial spots available to brands.
Market Impact
A live service would expand Amazon’s involvement in the OTT video space and bring it into direct competition with pay-TV providers like Comcast and AT&T Inc. Meanwhile, Apple has long been reportedly working on the creation of a live online TV service, which was expected to launch in September along with the new Apple TV, but was delayed into 2016 due to alleged difficulty in negotiating with content owners. Only time will tell if Amazon can pull it off before Apple.
As the digital transition of the TV industry continues, we expect to see more twists and turns in the changing TV landscape that all brands and media owners need to be aware of, so as to keep up with the shifting audience behavior.
Source: Bloomberg Business