Amazon Considering Online Pay-TV Service

Citing anonymous sources, this piece in the Wall Street Journal claims that Amazon has been approaching media companies hoping to score content for a proposed over-the-top cable TV service:

Several other tech companies are pursuing similar initiatives, including Sony Corp. and Google Inc. Intel Corp. said Tuesday it has sold its Internet TV-related technology to Verizon Communications Inc., which could use it to offer an online pay-TV service in the future.

The new entrants hope their services will appeal to consumers who have dropped their traditional pay-TV connections or are looking to do so—whether out of frustration with outdated technology or rising bills.

Amazon is still in the early stages of discussions with media companies, and it isn't clear it will move forward, the people familiar with the matter said. Amazon is also developing a set-top box to stream video, much like a Roku player, The Wall Street Journal previously reported.

After initially declining to comment, Amazon said in a statement late Tuesday, "We continue to build selection for Prime Instant Video and create original shows at Amazon Studios, but we are not planning to license television channels or offer a pay-TV service."

Amazon has approached at least three big media conglomerates seeking rights to distribute their channels online, people familiar with the matter said.