It is reported that Amazon will close the ad-supported free streaming TV service Freevee and integrate it into Prime Video
Amazon will shut down its ad-supported free streaming service Freevee and integrate it into Prime Video. Some employees and programs will be transferred to Prime Video, while some programs will remain free due to contractual restrictions. Freevee was launched in 2019 and gained attention for its original programming. Amazon is reviewing the costs of its entertainment portfolio and is cutting expenses
According to informed sources, Amazon (AMZN.US) will shut down its ad-supported streaming service Freevee, integrating it into the subscription-based Prime Video product. Amazon plans to transfer some employees and programs from Freevee to Prime Video. Due to contractual restrictions, some programs must remain in a free format, and Amazon is working to continue offering these programs on its main website.
The service was launched in 2019 as a derivative of its movie data website IMDb. It gained some traction through original programs, such as "Bosch: Legacy," adapted from Michael Connelly's popular police detective series. Earlier this year, Amazon released several expensive series but failed to connect with audiences, prompting the company to reassess the program costs in its entertainment portfolio.
Prime Video is included in Amazon's delivery service, with the ad-supported version charging $14.99 per month. The company has been expanding its online advertising business. The ad-free version of Prime Video requires an additional fee.
Free streaming services have been quite popular, with some services experiencing strong growth, most notably Tubi from Fox (FOX.US), Pluto TV from Paramount Global (PARA.US), and Roku Channel from Roku (ROKU.US). While free services typically rely on many old movies and TV shows, consumers do seek fresh programming, which can be both costly and risky for operators.
Under the leadership of CEO Andy Jassy, who took office in 2021, Amazon has been cutting costs and has shut down dozens of redundant or unprofitable projects, from future delivery robots to niche cloud computing services. He has also closely examined some of the company's major spending areas, including its devices business and Amazon Studios