Is Amazon Working on a Pay-TV Service?

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Jan. 22 (Bloomberg) -- Jon Erlichman reports on whether Amazon is building a pay TV service. He speaks on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

So, they are building drones but not up pay tv service?

Should we believe them?

Amazon says, you're right, we are now working on a pay-tv service, but sources have told bloomberg and other media outlets conversations have taken place.

I think when you look at what amazon has become, there is logic to them at least having conversations on this front.

They spend a lot of time on tv.

They obviously have value in making tv and movies available through their instrument -- instead video -- instant video service that members are consuming through amazon prime.

Lubricant is reported that they are working -- bloomberg has reported that they're working on their own apple tv device.

Jeff bezos, the ceo of amazon, a very smart person who thinks a lot about the consumer.

And when you look at the frustration a lot of consumers have with the pay-tv experience, amazon is a company i'm sure a lot of people are looking to for ideas.

How difficult would it be for amazon to cut a deal with other content companies?

Content companies know they have got a good thing going.

It becomes a key hurdle, getting the media players on board.

Our understanding is they are happy to sell content to amazon, for example.

Whether they can get that same pricing for what traditional pay-tv players are paying is another story.

Something that we highlighted last night on the late edition of "bloomberg west," likely they would have to have a few players on board so everybody feels like, ok, we are all jumping into the ring together.

All right, a story we will continue to follow.

This text has been automatically generated. It may not be 100% accurate.

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