Three years ago, Amazon entered the ad-supported video streaming market. The product will have a new name later this month.

The company said the name Amazon Freevee better reflects the free nature of the service.

The ad-supported video-on-demand space has caught fire in recent years, as consumers streamed more movies and shows. Paramount Global's Pluto TV is one of the competitors.

Both sides of the market are being played by Amazon. The Prime Video service is available through a monthly subscription of $9 or as part of the full Prime membership. Some of the other services that compete with Amazon have free ad-supported tiers.

Ad-supported offerings are gaining ground in the streaming space. 34% of US households used ad-supported streaming services in January 2021.

Amazon bought the film and TV site IMDb in 1998 and launched the free-to-stream service in 2019. The product has seen tremendous growth over the past two years, tripling its monthly active users.

In May, Amazon said it has 120 million monthly active users across all of its ad-supported video content, which includes IMDb TV.

The company said it expects to grow Freevee's roster of original TV and movies later this year.

We are excited to establish Freevee as the premier AVOD service with content audiences crave, and are looking forward to building on this momentum with an increasing slate of inventive and broadly appealing originals.

NBCUniversal is the parent company of CNBC. NBCUniversal is owned by Comcast.

Amazon Prime Video is at the South by Southwest festival.