The online service giant already offer a subcription service through Prime Video, but they are said to be looking to add to its content on other platforms - such as IMDb and Twitch - as it looks to run commercials during some of its programming.
According to The Information, the service - called Free Drive - would be separate from the Prime Video service, which has no adverts and features original content alongside network TV shows and movies, and rivals the likes of Netflix.
It's thought that Amazon is working with studios in order to license older TV shows for viewers on Free Drive, which would make sure it competes with the Roku Channel.
Roku and Fire TV are close competitors in the streaming device market, with the former offering free, ad-supported content on its products.
It's thought that this year, around 32 percent of TV users in the US will use Roku, with roughly 26 percent using Amazon Fire TV.