Dive Brief:

• The Wall Street Journal last week cited “people close to the company” in reports that Amazon.com Inc. is developing a free, ad-based streaming entertainment service. The company quickly denied the reports.

• The e-retail giant already offers an ad-free streaming service to its Prime members, which (as of a recent price hike) will pay $99 annually and also get free two-day shipping on many items for sale there.

• Amazon has been developing an advertising unit that could reach $1 billion in sales this year.

Dive Insight:

Amazon spokesperson Sally Fouts quickly denied the Wall Street Journal report last week, but that might not put the end to the rumors that the e-commerce giant may be planning yet another major shake up. “We’re often experimenting with new things, but we have no plans to offer a free streaming-media service,” Fouts emailed curious reporters. The rumor seems plausible, not just because Amazon has been willing to disrupt e-commerce and entertainment throughout its lifetime, but also because it so often floats crazy ideas about its future plans on its own. All we can say on this one is: Stay tuned.