Amazon exploring online pay TV service launch

Amazon.com is exploring the creation of a live online TV service and has reached out to major media companies including CBS and Comcast’s NBCUniversal to express interest in carrying their channels, according to people familiar with the matter.

It’s apparently too early to say just what Amazon’s proposed service would look like – Bloomberg notes that the current discussions are only preliminary in nature.

Amazon now offers an on-demand video streaming service similar to that of Netflix. An analyst at Frost & Sullivan, Dan Rayburn stated in a blog post yesterday that the company approached content owners. Amazon’s recent agreement to acquire Elemental Technologies provides a platform to deliver live TV over the Web, he wrote. It is possible that the company is simply examining the economics of the business that involved them negotiating with content owners regarding costs, he said.

Amazon signed an exclusive deal with former “Top Gear” host Jeremy Clarkson in July to present a new motoring show for its Amazon Prime subscription service. The company also funds its own movies and shows.

Unsurprisingly Amazon has declined to comment on the rumors, so take it with a grain of salt for now.

Pay-TV providers like Verizon Communications Inc. and Dish Network Corp. are responding with “skinny bundles”, cheaper services offering fewer channels than the typical pay-TV package.

Apple has proven that getting a live TV service off the ground is tricky, with reports suggesting that drawn-out negotiations with content providers slammed the brakes on its plans.