Amazon is reportedly working on a new video service that will mimic traditional cable and broadcast models. They would be focusing on live streaming programming, according to The Wall Street Journal. The project is said to be in its early stages, though the sources claim the company has already reached out to at least three major content owners to begin discussions about licensing deals.
Amazon is in a good position to do this, since it already offers a wide range of third-party content and several original series, including “Alpha House” and “Betas,” through its Instant Video on-demand service. The company fills a gap between a-la-carte providers like Apple’s iTunes, and subscription streaming services such as Netflix.
We have also heard rumors that Apple may be going down a similar path with live streaming programming, associated with the company’s rumored TV set, but lately we have been hearing about project delays due to problems with establishing deals. Content owners are apparently hesitant to embrace alternative business models that may be viewed as a threat to established revenue streams from cable and satellite bundles after all. The Wall Street Journal’s sources did not indicate if content owners are warming up to the idea during their ongoing talks with Amazon.