It’s apparently too early to say just what Amazon’s proposed service would look like – Bloomberg notes that the current discussions are only preliminary in nature.
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When the deal was agreed last month, Elemental said Amazon’s acquisition will bring together Elemental’s video technologies with the AWS Cloud platform to provide media and entertainment companies with a way to scale their video infrastructure as they move to internet based delivery of services.
Not happy only existing as a digital streaming company, much like Netflix, Amazon seeminlgy wants to diversify its revenue by appearing on traditional pay TV packages. An analyst at Frost & Sullivan, Dan Rayburn stated in a blog post yesterday that the company approached content owners.
Amazon is said to be exploring the concept at the moment, so there’s every chance the venture will fizzle out before it makes it through this phase. “It’s possible Amazon is simply looking at the economics of the business, which would involve them talking with content owners about costs”.
Amazon signed an exclusive deal with former “Top Gear” host Jeremy Clarkson in July to present a new motoring show for its Amazon Prime subscription service.
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Amazon, NBCUniversal and CBS did not immediately respond to requests for comment. It also funds its own TV shows and movies. Other companies are offering or testing a range of channels delivered on the Web, including Apple Inc., Sony, and Dish Network. Apple is working on a similar project. The new report out of Bloomberg follows a similar one from The Wall Street Journal nearly 2 years ago.
