Microsoft and Amazon are partnering to create a new media service that will allow the two tech giants to make advertising money from their own cloud and cloud-based data centers.
The service, dubbed Amazon Video, will offer video streaming and other digital services that Amazon will pay for.
It will be available to consumers who sign up through Amazon’s website and other channels, according to the company.
Amazon’s video service is being developed by Amazon’s MediaTek division and will be sold in Europe and Asia, according a person familiar with the matter.
“We believe this is the first step towards realizing our vision of a cloud-enabled media service,” said Alex Vakil, Amazon Video co-founder and chief executive officer, in a statement.
“As part of our efforts to bring our video offerings to a broader audience, we’re launching a new service, Amazon, Video, to provide consumers a new way to consume content.”
Vakil said the service will be based on Amazon’s cloud-first technology and will offer consumers access to a curated library of video and audio, as well as a wealth of other services and applications.
It’s unclear how many customers will be able to use the service, but the person familiar said Amazon’s goal is to have as many as 3 million users in the first year.
Amazon Video is being launched as part of Amazon’s effort to improve its position in the video market.
The company has been working to get more people into its video streaming services.
The first-quarter results from the company posted on Tuesday showed it was making inroads in a number of areas including advertising, as it added more than 500,000 video customers, up from 300,000.Vak