Amazon plans new ad-supported video service for Fire TV users

Amazon’s new ad-supported video service called ‘Free Dive’ will be exclusively to Fire TV device owners.

Amazon’s new video service will be different from its Prime Video service which is subscription-based. (REUTERS)

Amazon plans to launch an advertising-supported video service for users of its Fire TV streaming devices, The Information reported on Tuesday, citing people familiar with the matter.

Highly profitable ad sales were a bright spot for Amazon last quarter, as the company's revenue from the category and some other items grew 132% to $2.2 billion.

The new free service, tentatively called Free Dive, is separate from Amazon's ad-free subscription Prime Video service, which rivals Netflix, the report said. Amazon's 'Free Dive' will reportedly be similar to Roku Channel which also offers ad-supported video service for its devices.

Amazon was not immediately available for comment.

The company is in talks with major studios to license older TV shows for the new service, which is being developed by the e-commerce company's movie and television information website IMDB.