Amazon plans to shut down its ad-supported streaming service, Freevee, and merge it into its subscription-based Prime Video service. Informed sources indicate that some employees and content from Freevee will be transferred to Prime Video due to these changes. Amazon is working to keep certain programs in a free format on its main website due to contract restrictions.
Launched in 2019, Freevee was an offshoot of Amazon's movie database site, IMDb, and gained some traction through original programming. However, earlier this year, Amazon released several high-budget series that failed to attract viewers, prompting the company to reassess the cost of its entertainment offerings.
Prime Video is part of Amazon's delivery service, with an ad-supported version available for $14.99 a month. The company is also expanding its online advertising business, and its ad-free version requires an additional fee.
Free streaming services have been popular, with some experiencing strong growth, such as Fox's Tubi, Paramount Global's Pluto TV, and Roku's Roku Channel. While these free services often rely on older films and TV shows, they must offer fresh content, which can be costly and risky for operators.
Under CEO Andy Jassy, who took over in 2021, Amazon has been cutting costs by closing unprofitable projects, such as delivery robots and niche cloud computing services. Jassy has scrutinized some of the company's high-expense divisions, including its device business and Amazon Studios.
