Initially reported in The Information, which quoted people familiar with the situation, Amazon has its eye on a $70 billion TV (€60bn) advertising market.
Amazon is already running ads on NFL games seen on its Prime Video streaming service and is expected to introduce commercials on Prime Video in Europe, which this week is screening coverage of US Open Tennis.
Prime Video has also purchased a limited number of Premier League matches from the start of next season’s rights round.
The Fire TV proposal would be separate from Prime Video, which is positioned as a premium video service in competition with Netflix, and in addition to movies and some original production, also includes basic thematic channels.
Initially dubbed ‘Free Dive’, Amazon’s channel would be similar to the Roku Channel, from another streaming service that is blurring the boundaries between hardware and software.