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Amazon Prime already delivers strong value, and now the company is reportedly preparing to expand its subscription offering by launching a broadband service. The move would bundle internet access with the growing suite of Amazon services, including its video streaming and music offerings.
According to sources cited by The Information, Amazon is planning to introduce an internet service that helps customers access its expanding library of digital services, such as Amazon Video and Amazon Music Unlimited. The initial rollout is expected to target the United Kingdom, with plans to extend into other parts of Europe over time.
Industry observers say the UK is an attractive starting point because setting up a new internet service provider (ISP) can be simpler there than in many other European markets. Rather than build a new physical network—an expensive and time-consuming undertaking—Amazon would likely partner with an existing network operator and resell connectivity over infrastructure maintained by third parties, similar to approaches used by John Lewis and the Post Office.
With Amazon’s sizeable customer base and the many millions of Prime subscribers, the company would enter the ISP market from a position of significant strength. It remains unclear whether the broadband offering would be included in Prime subscriptions or offered as a discounted add-on—mirroring how Amazon treats some of its other services—but analysts expect it would more likely be a discounted option for Prime members rather than fully bundled at no extra charge.
The prospect of Amazon moving into broadband should be of concern to incumbent ISPs, as the company’s brand power and large existing subscriber base could quickly make it a major market participant. However, reports indicate discussions are still at an early stage, so any public launch may be some time away, if it happens at all.
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