Amazon (AMZN - Free Report) has rolled out a free video streaming channel via its IMDb movie website. The move is in sync with its strategy to gain further momentum in booming streaming space.
The new channel called IMDb Freedive is free of subscription and supports advertisements. The channel will stream popular TV shows like The Bachelor, Fringe, Heroes and Without a Trace, to name a few.
Further, it will also feature hit and full-length movies such as The Illusionist, The Last Samurai, Foxcatcher, Memento, Monster, Run Lola Run, True Romance, Awakenings and much more.
Along with these, the viewers will be also able to watch IMDb original video series — The IMDb Show, Casting Calls and No Small Parts.
With the new viewer friendly channel and the vast content portfolio, IMDb, is likely to deliver enhanced customer experience, which in turn will aid Amazon’s momentum.
Notably, the service is available in the United States at present.
Initiative to Aid Growth
Customers can avail the streaming service from the new channel on IMDb website by using Amazon Fire TV, laptops and personal computers.
Compatibility with Fire TV devices remains positive since its combination with free streaming service might boost customer base.
Further, free of subscription cost feature of the service is likely boost traffic on the new channel which in turn will aid its momentum in the video streaming market.
Additionally, the ad supportive nature of the service is likely to help Amazon in attracting advertisers to the channel, which will ramp up the company’s ad initiatives. This will generate ad revenues which in turn will drive the company’s top-line growth.
Competition in the video streaming space continues to intensify with the growing initiatives of companies like Netflix (NFLX - Free Report) , Amazon and Hulu, to name a few.
Among these, Netflix continues to rule the roster with the highest number of subscribers driven by its expanding original content portfolio.
Per a latest report from Statista, revenues in the global market for video streaming is expected to hit $22.1 billion in 2019, most of it coming from the U.S. market which is anticipated to generate $11.4 billion this year.
Further, average revenue per user (ARPU) is pegged at $91.37 in the United States from video streaming segment. Further, user penetration is projected to reach 38.7% by 2023.
Given the immense growth opportunities, companies like Disney (DIS - Free Report) , Apple and AT&T (T - Free Report) are also gaining steam to reap benefits from this market.
Disney is set to launch its own streaming service Disney+ this year. Further, AT&T is also gearing up to introduce its direct-to-consumer streaming service, thus expanding its portfolio which already contains DirecTV Now. Meanwhile, the iPhone maker is also about to foray into the market with its own service.
However, the latest move of Amazon might pose a threat to the above-mentioned companies which also includes its own Prime Video. A free streaming service for popular shows and movies is something very beneficial to viewers who don’t like to pay or tired of paying huge subscription fees for the streaming services.
Currently, Amazon carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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