Amazon is establishing its own ad-powered, free streaming service. Reports say that it has the likeness of Roku’s The Roku Channel which was launched in September.
To be named as Free Dive, Amazon’s upcoming streaming service is reported to be a dark horse to Roku. It can put an end to The Roku Channel’s growing momentum.
Amazon’s thriving advertising venture is one of the advantages which it possesses to dethrone The Roku Channel and to make its Free Dive dominant.
Search advertisements have primarily developed the e-commerce giant’s advertising venture as it leads product searches online. Furthermore, the user information of Amazon shoppers provides the company with a wellspring of important data for targeting video advertisements.
Apparently, the advertising business of Amazon is among its most massive profit propellers and will most likely transform itself into the most profitable venture.
This makes Amazon well-placed financially, capable of deriving considerable amounts of profits from advertisement-supported streaming time and can spend more to boost its video content supply and grow its library.
On the other hand, Roku may have made significant strides in gathering user information and improving its advertising technology. However, it apparently cannot compete with the power of data possessed by the retail behemoth.
The other advantage of Amazon which could make its Free Dive streaming service lead versus The Roku Channel is its growing user base.
Based on the latest survey conducted by analysts from investment and wealth management firm, William Blair & Company, 29 percent of streamers regularly employ a Fire TV device to stream videos, while 27 percent use the one manufactured by Roku.
Roku and Amazon are two of the only digital media gadget manufacturers earning streaming timeshares, increasing at almost the same pace.
The growing Prime ecosystem of Amazon has been behind its increasing user momentum. Amazon is gaining more customers by adding more areas to serve in Prime Now, expanding the Prime-eligible offerings, growing its Prime Instant Video content library, and consolidating perks with Whole Foods.
In addition, it is selling its Fire TV devices at affordable prices to increase its viewer base for the Prime-bundled premium video offering.
Roku’s user momentum, alternatively, is significantly being propelled by its endeavors in licensing its operating system to TV manufacturers. The company expects most of its new users to originate from licensed sources moving forward.
Given the substantial monetary capabilities of Amazon, its forthcoming Free Dive streaming service may overtake Roku in the market.
Reports say that Free Dive will deliver TV series and classic movies via the help of several Hollywood studios which Amazon has recently been coordinating with.
Amazon’s Fire TV device owners will get the exclusive streaming service, in the same way as Roku device users can exclusively access The Roku Channel.