And though a free, ad-supported service will sit next to the service bundled into Amazon Prime, it's thought the retailer will use its free service to encourage more Prime membership sign-ups.
A source told the NYP: "The main point is to bring in more users that you can eventually up-sell to Prime, or to get to a broader audience that doesn’t want to pay for Prime, in order to increase their video share."
An Amazon spokeperson, however told TechCrunch: "We’re often experimenting with new offers and experiences for customers, but we have not announced any plans to offer an ad-supported video streaming service."
More after the break
It's not the first time that reports have linked Amazon with a free video streaming service, but the market continues to grow and transform our viewing habits – and may well encourage Amazon.