Amazon plans to take on Netflix with an ad-supported video service in early 2015, according to reports.
A separate offering to Amazon's £79 a year Prime Instant Video service, the Netflix rival will undercut Netflix's £6.99 monthly price, anonymous sources told The New York Post.
The sources said that Amazon will launch the ad-supported streaming offering early next year.
It is unclear at this stage whether Amazon's service will be free. The Wall Street Journal reported previously that Amazon was gearing up to launch a free video streaming service, but the firm denied the rumours.
An Amazon spokeswoman remained tight lipped about the plans in a statement seen by TechCrunch.
"We currently offer the first episode of some television shows free with ads through our First Episode Free feature on Amazon Instant Video, and there are display ads on some short videos such as movie and game trailers," she said.
"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."
The New York Post also notes that Amazon's rumoured service would allow the firm to bring in new customers to its already established paid-for Prime service, and offer a chance to advertise its own products, such as the Kindle Fire TV.
"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," the newspaper's source said.
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