We’re not sure if you’ve heard this, but a lot of people watch TV shows online. I know, right? Well, if there aren’t enough on-demand and over-the-top services available to you now, get ready, because there may be another not too far away, even if it is from a company that's already in the game. Amazon is reportedly looking into creating its own live TV service.
Amazon has been approaching content providers - CBS and NBC Universal are mentioned by name, according to Bloomberg Business - about carrying their channels for a new OTT service. While Amazon Prime already provides both subscription and a la carte video on demand, the company's recent acquisition of another company called Elemental Technologies, which makes high-speed video encoding software, now gives them the ability to potentially offer a live TV solution.
While it’s not entirely clear where in the conversation Amazon is, all signs point to this being a very early point in the project. It’s possible that Amazon execs are at the very beginning of this process and is only getting some information about what carrying these channels would cost so that they can get an idea whether they can make the OTT service financially feasible or not. If the numbers they get back from the various channels they talk to are viewed as too high, this entire idea may get scrapped before it really begins.
Amazon already competes in the VOD space with providers like Netflix and is creating original content of their own as well. This new service would put them in competition with current providers of live TV online like Sling TV and Sony. Apple has also been rumored to be working on some kind of over-the-top solution. This would also, of course, put them in direct competition with cable and satellite TV providers like Comcast and DirecTV.
While cutting the cord is becoming more and more popular as TV fans find new ways to consume their media, many people are already subscribing to multiple services in order to get access to all the content that they want. When you eventually have all the services, it ends up costing you as much, or more than the cable bill was in the first place. While adding yet another service could easily be just another option to do what you’re already doing, if Amazon is able to make all the right deals to get all the right channels, or get them at a significantly lower price, then maybe another option is just what we need.
What would an Amazon live TV service need to have in order to get your attention? Does it need particular channels or just the right price?