Amazon (AMZN.US) is reportedly closing its free streaming television service Freevee and integrating it into Prime Video.
1min read Zhitong Finance learned that Amazon.com (AMZN.US) will close its free, ad-supported streaming service Freevee and merge it into its subscription-based Prime Video service, according to people familiar with the matter. Amazon plans to move some employees and shows from Freevee to Prime Video, according to people familiar with the matter. Some shows must remain in the free format due to contractual restrictions, and Amazon is working to continue offering them on its main website.
Launched in 2019, it was a spinoff of its movie database site IMDb. The site gained some traction through some original shows, such as "Bosch: Legacy," which is based on Michael Connelly's popular police detective series. Earlier this year, Amazon released several expensive shows that failed to connect with viewers, and it has since been reviewing the cost of its entertainment programming.
Prime Video is included in Amazon's shipping service, and the ad-supported version costs $14.99 a 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 popular, with some growing rapidly, most notably Tubi from Fox (FOX.US), Pluto TV from Paramount Global (PARA.US) and Roku (ROKU.US)’s Roku Channel. While free services typically rely on many older movies and TV shows, consumers do seek fresh programming, which can be expensive and risky for operators.
Under the leadership of CEO Andy Jassy, who took over in 2021, Amazon has been cutting costs, closing dozens of duplicate or unprofitable projects, from future delivery robots to niche cloud services. He has also closely examined some of the company's big-spending departments, including its devices business and Amazon Studios.