Amazon (AMZN) has scrapped plans to launch an online streaming service bundling broadcast and cable networks, according to media reports, with The Verge saying that the e-commerce giant has also denied that it is developing a free, ad-supported version of Prime Video. While this may lessen the threat to Netflix (NFLX), some now predict that Apple (AAPL) will be working on a video subscription product to compete with the streaming service, CNBC reported.
AMAZON VIDEO SERVICES: Amazon has scrapped the company’s plans to launch an online streaming service bundling broadcast and cable networks as the e-commerce giant believes it cannot make enough money on such a service, according to Reuters, citing people familiar with the matter. Sources also said that Amazon was unbale to convince key broadcast and basic cable networks to join an a la carte Amazon Channels service, the report added. Meanwhile, The Verge reported that the world’s largest online retailer has denied reports that it is developing a free, ad-supported version of its Prime streaming video service.
APPLE VIDEO STREAMING?: According to CNBC, citing CSS tech analysts, Apple may launch a video subscription streaming service next year to compete with Netflix, which may be forced to implement new pricing plans and services amid increased pressure for content. “Everyone is jostling for position and everyone is jumping in on the area of video. When you look at Apple, it has a very strong hardware offering and their services business is on the march,” Paolo Pescatore, vice president of multiplay and media at CCS Insight, told the news service. “The real battleground is in the area of original content, but original content would feature prominently and Apple would be very well placed to do that,” he added.
WHAT’S NOTABLE: CCS Insight also argued that social media platforms could push further into the content game, with Facebook (FB) being already involved in bids for sports rights this year. The social media giant struck a deal with Fox Sports (FOXA) to stream the UEFA Champions League soccer tournament, CNBC pointed out. Facebook’s shift to sports streaming may result in the social media platform starting to offer pay-per-view programs, which could be very appealing to sports rights holders given the strength of its targeted advertising, the report noted. Meanwhile, Time (TIME) is said to be planning to launch subscription streaming service Sports Illustrated TV for $4.99 per month on Amazon Channels as it looks to enter digital media and video amid a difficult print environment, according to a report by The Wall Street Journal. The company is expecting to launch the service with 130 hours of content, including original documentary series, studio shows, programming related to the swimsuit franchise and sports movies, but will not air any live sporting events.
