Amazon.com, Inc. (NASDAQ:AMZN) has denied a report from the Wall Street Journal that claimed the company is working on a free streaming media service, which will be an alternative to its Prime Instant Video subscription. The Journal also reported that the company is planning to offer free streaming music videos to users. Late Thursday, Amazon denied all claims of it coming up with a free streaming service.
“We’re often experimenting with new things, but we have no plans to offer a free streaming-media service,” Amazon spokeswoman Sally Fouts said in a statement.
WSJ report denied for the second time by Amazon
The Wall Street Journal, in its report, said that the new service would be ad supported, which is a deviation from the current $99 Prime subscription fee. Through the new service, users will be able to enjoy Amazon’s original content and some of the licensed television series and films, the Journal reported.
This is the second time Amazon has come out to deny a WSJ report. Earlier, in January, WSJ claimed that Amazon.com, Inc. (NASDAQ:AMZN) was in the process of launching broadband-delivered television services; the report was later denied.
Crucial event next week
Yesterday, Amazon.com, Inc. (NASDAQ:AMZN) also announced a press event scheduled for next Wednesday, in New York. The event will be led by Peter Larsen, VP of Amazon’s Kindle division, and will provide details on the company’s video business. It is also expected that the online retailer could launch a streaming-media device at the event, which would be similar to that of Google’s Chromecast. The device from Amazon would offer Prime Instant Video, Netflix, Hulu and other services.
In 2011, Amazon came up with Instant Video to raise the perks enjoyed by Prime subscribers. Recently, the company raised the price of the Prime service from $79 annual fee to $99 a year.
Last year, Amazon.com, Inc. (NASDAQ:AMZN) included its first original series, Alpha House and Betas to the Instant Video library. Also, the company recently, streamed for free its second batch of testers, which includes comedy Transparent from Jill Soloway (Six Feet Under) and supernatural drama The After from Chris Carter (The X Files).
At 11 a.m. EDT, Amazon.com, Inc. (NASDAQ:AMZN) shares were up 2.20% at $345.91.