Amazon Considers Adding TV Service

Can Amazon successfully integrate
an online television service?

Amazon.com Inc., the world’s largest online retailer, is looking to begin an online pay-television service. The company has approached many U.S. media companies in order to acquire the rights for these services, according to the Wall Street Journal. This plan, as stated by unidentified sources with knowledge of the situation, is in it’s early stages but would look to expand upon the existing Amazon Prime service by giving viewers the opportunity for live programming. This would put Amazon in competition with traditional pay-television providers. Prime Instant Video is currently free for customers who are a part of Prime’s shipping subscription plan. Currently, the service offers thousands of shows and movies that are accessible on the web, in a very similar manner to Netflix.

If this advancement does indeed occur, Amazon would join Sony Corporations and Verizon Communications as the only American companies with intent to create Internet based television businesses built to challenge the customary cable providers. Previous efforts of this nature have been hindered by content providers who are dependent on their wildly profitable deal with cable and satellite providers. Many major media companies are hesitant to allow online video services the access to their rights for live streaming for mainstream events like significant sporting events. Amazon has denied the Journal’s reports recently, with spokesman Drew Herdener saying in an email to USA Today, "We continue to build selection for Prime Instant Video and create original shows at Amazon Studios, but we are not planning to license television channels or offer a pay-TV service."
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Francis Luby