As Amazon has decided and also announced that the company is soon going to launch a video service that is absolutely free, the competitors of the same, including Roku which is a major one, have been facing some problems and that is reflected in the share prices of the companies. For instance, the shares of Roku fell by as much as 4.9% on this Wednesday, soon after the announcement from Amazon, and this is said to be linked to the same as there is no other visible reason that this could suddenly happen.
Amazon, the web giant based in Seattle, is actually working on developing a video service that will e advertisement supported and will be absolutely free, which can be used by nearly 48 million people who use the Fire TV video services of the company, as per the reports from a technology news site The Information. Amazon’s shares also observed a significant spike as they rose by nearly 3.4 %.
The service of Amazon is said to be developed by a subsidiary of IMDB and is going to compete with many other businesses including Roku and will be having a business of more than $70 billion business, when it comes to the US advertising. Some analysts have been saying that for both of these companies, which are competing against each other, the TV advertising market is actually quite big.
As more and more people are preferring the streaming services over the traditional TV services, these businesses in the market are getting highly benefited by the same. In addition to that, the companies are finding new ways to expand, in order to get ahead in the race. Amazon too is planning to expand the streaming footprint of the company, and with this move the company is trying to take on the big giants in the business including Netflix.