Amazon is rumoured to be launching a free, ad-supported  video streaming service separate from Amazon Prime, according to The New York Post.

The report comes from a potential advertiser on the service that said the aim of the service would be to increase its market share against Netflix.

According to the report, the service would run alongside the Amazon Prime Instant Video service and would be used to tempt users into subscribing to Prime.

In response, Amazon has issued a Statement saying it had “not announced any plans to offer an ad-supported video streaming service”.

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