Amazon is ramping up its efforts to provide users with free, ad-supported content by introducing Fire TV Channels, a new, continuously updated video experience that will be available on Fire TV devices starting this week. This move is part of Amazon’s broader strategy to offer more free streaming options and compete with other streaming services.
A New Era for Free Streaming Content
While Fire TV had previously offered free ad-supported (FAST) content, the new Fire TV Channels experience takes it to a whole new level. The service will now be continuously updated throughout the day, providing users with a vast array of content options. This is a significant departure from traditional streaming services, which often require users to subscribe and create an account.
New Categories and Content Partners
Fire TV Channels will feature a range of categories, including news, sports, food and cooking, music videos, trailers, gaming videos, comedy, and more. The service will also include new content partners, such as NHL, Xbox, and TMZ, in addition to existing partners like Tastemade Travel and Rick Steves’ Europe.
Later this summer, Fire TV Channels will launch an always-on destination that brings all the FAST categories together. This move is expected to further enhance the user experience and provide users with easy access to a wide range of content options.
The Business Model: Targeting Advertisers
Amazon’s pitch to advertisers is that they can now directly target the Fire TV customer base, which tends to include Prime subscribers and younger families. This allows Amazon to leverage its broader advertising team and capabilities to sell Fire TV’s FAST channel ad space.
The company notes that it has sold over 200 million Fire TV devices globally and its ad-supported streaming solutions now reach an average of 155 million unduplicated monthly viewers, or 6 out of 10 adults in the U.S. Amazon also cites a customer success story where an automotive client ran native ads on Fire TV and Fire tablets that led to an 11% lift in brand awareness and a 14% increase in purchase intent.
The Competition
Amazon isn’t the only streamer offering FAST channels, however. Competitor Roku has over 350 FAST channels on its platform as of March, while Google TV just announced over 800 FAST channels. YouTube is also experimenting with them, and other services like Plex, Tubi, and Vudu are offering similar content options.
The Future of Streaming
As the streaming landscape continues to evolve, Amazon’s move to provide more free, ad-supported content options is a significant development. With Fire TV Channels, users will have access to a vast array of content without the need for subscription or account creation.
This shift towards free, ad-supported content could potentially disrupt the traditional streaming model and force services like Netflix and Hulu to rethink their business strategies. However, only time will tell if Amazon’s move pays off in the long run.
