According to a report from The Wall Street Journal, Amazon is attempting to lay the groundwork for a for-pay live Web TV service. The service would offer channels like those currently provided through cable and satellite TV.
The WSJ previously reported that Amazon was developing a set-top box for content delivery that would be similar to Roku or Apple TV. Ostensibly it would work with Amazon’s own Prime Instant Video, but a connected set-top box would also have the potential to deliver streaming live TV.
Sources speaking to the WSJ said that Amazon has “approached at least three big media conglomerates seeking rights to distribute their channels online.” The company’s efforts mirror some of those of Intel’s media platform, which sold to Verizon today. Intel tried for two years to get content distributors on board with the "search and discover" features that would have been its signature, but ultimately it failed to lure distributors away from cable companies.
Amazon has yet to even determine a business model, says the WSJ, meaning announcement of the service is still a long way off. But the company’s interest means that on-demand may not be the entire future of how we consume video.
Update: Amazon spokesperson Drew Herdener has denied the WSJ's report, saying that Amazon is "not planning to license television channels or offer a pay-TV service,” according to Seattle Times Business Reporter Jay Greene.
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