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Amazon Planning Ad Supported Streaming ServicePoised and ready to challenge the likes of Netflix, Roku, and Apple TV, rumor has it that Amazon will announce – possibly as early as next week – a new service that could shake things up in the war for living room loyalty.

Sources in the know confess that the online retail giant is actively preparing an advertising-supported streaming television and music-video service.

These reports surfaced just hours removed from Amazon’s distribution of a media invite to select reporters for a press event the company will hold next Wednesday, April 2nd in New York City.

Amazon will only say that the event will deliver an “update on our video business.” The invite, however, portrays a living room setting, clearly hinting at a home entertainment product or service offering.

Just yesterday, Peter Kafka of re/code suggested that Amazon would launch a set-top box comparable to the Apple TV or Roku.

“Amazon’s device will compete with offerings from Apple, which has sold 13 million units of its Apple TV box, Roku, which has sold 8 million units, and Google, which has said it has sold ‘millions’ of its Chromecast sticks,” Kafka reveals.

Given that Amazon spent an estimated $1 billion last year to secure the rights to a broad array of digital content spanning television programs to movies, it comes as no surprise that Amazon is now looking to find a newer, more interesting ways to engage consumers with this bountiful content.

“The proposed ad-supported service and Amazon’s streaming device may be an effort to entice customers to upgrade to Prime, which offers unlimited streaming video and two-day package delivery service,” sources tell The Wall Street Journal.

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