Amazon.com, Inc. (NASDAQ:AMZN) is very likely to unveil its streaming device at a NYC event next week. Though not much information is known about the device, a report from WSJ does reveal some information on the strategy behind the company’s new offering.

Win for Amazon and users

The report claims that the product will include a free, ad-supported streaming service. The service will not only be available to Amazon Prime subscribers, but users willing to watch ads could also enjoy the service.

If the report is true, it would create a win-win situation for both Amazon.com, Inc. (NASDAQ:AMZN) and the users. For the online retailer, the move will provide it with a potential opportunity, and users could now have something that would get them rid of the cable. The service will, also, include both original and licensed programming, according to the report, but the details of the content is not known.

The device from Amazon.com, Inc. (NASDAQ:AMZN) is expected to be a small dongle, which could be similar to Chromecast and the new Roku Streaming device. Amazon’s latest offering is expected to run on a modified version of Android, which will be similar to Amazon’s Kindle Fire tablets. There have been some reports claiming that the device could also focus on video gaming.

More innovative approach required

As of now, there is no information if the service will be launched along with Amazon’s living room streamer, but if launched, it would be a right move giving a boost to the company’s effort. The report claims that the device would receive the backing of streaming services including Netflix, Pandora and HBO Go, but this will not be enough as the market is already filled with many players.

If somehow, Amazon is able offer Hulu-like service, and makes it more affordable, then the service could become very popular among the masses, as the users will have a strong alternative for pay TV.

Amazon will hold the event in New York at 8 a.m. PDT. The event will be led by Peter Larsen, vice president of the company’s Kindle division. The invitation from the online retailer read, “”Please join us for an update on our video business.”

On Wednesday, Amazon.com, Inc. (NASDAQ:AMZN) shares closed at $338.47 down 1.44%.