Amazon considering online TV service

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, in addition to being one of the largest online retailers, has been expanding its online services for entertainment.

Like Apple, Amazon is reaching out to major TV networks including CBS, NBC and others to see if they could offer their channels on a potential new service.

However, the firm appears to be serious about its television plans as it recently acquired Elemental Technologies, a startup dedicated to high-speed video encoding and transcoding software that can be used for live broadcasts.

This seems to be echoed by Frost & Sullivan analyst Dan Rayburn who wrote, “Those I have spoken with haven’t disclosed how far along Amazon is with regards to a live OTT service”.

Craig Berman, a spokesman for Seattle-based Amazon, declined to comment.

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 news comes as reports have suggested that Apple has been in talks to create its own TV service as well.

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.

What Bloomberg’s report is describing, however, sounds more like a TV service that could allow Amazon to compete with TV providers such as Comcast.