Amazon plans to launch TV service to compete with Dish Network, Apple

Amazon is looking to expand its entertainment package with a new live TV service in the United States, to compete with Dish Network’s Sling TV, Sony’s PlayStation Vue and the rumoured Apple TV service.

The e-commerce giant is currently in talks with at least two of the top cable TV providers, Comcast’s NBCUniversal and CBS, to see how much this project would cost.

Amazon already offers on-demand content through its Prime Instant Video service, but this new live TV platform will offer all types of live content, with on-demand options for a few days after the live broadcast.

Amazon has not responded to comments on the service.

The project appears to be in its early stages, with Amazon simply fleshing out ideas of a live TV service. Considering its lack of revenue from Prime Instant Video, this might be worrying for investors that already want Amazon to focus more on the cloud business.

Amazon might be ahead of the game by checking out pricing and working on an early service. Netflix has not shown any interest in live TV, with chief executive Reed Hastings going as far as to say live TV will be dead in the next decade.

Apple is also working on a live TV service however, and it is always risky to go head-to-head in business with Cupertino. Amazon might look to make its service cheaper by cutting costs, or adding adverts in-between shows.

The service will no doubt be available in the US to start off, but a UK expansion could be on the cards. The UK has a much smaller broadcasting group, meaning Amazon should be able to pick up all the content in three or four deals, with additional American deals that stretch over the atlantic.

Source: Bloomberg