Amazon plans to shut down Freevee, its free, ad-supported streaming video service, according to AdWeek.
Update: Amazon called the AdWeek report inaccurate, and said there were no changes to Freevee.
The company could sunset the service during the second quarter, although the exact timing is still up in the air, according to the report.
Freevee’s end comes shortly after Amazon introduced advertising to its main Prime Video service. The company wants to focus its efforts on working with advertisers on its main video service, which boasts the third-largest streaming audience behind YouTube and Netflix, according to Nielsen.
The introduction of ads in Prime Video had already raised questions about where Freevee, which offers a similar lineup of content, would fit. The service was created out of Amazon’s rebrand of IMDB TV in 2022, and acted as a sort of a gateway to other Amazon services. Unlike other aspects of Amazon, you didn’t need a Prime subscription to access the stream.
The fact that both Freevee and Prime Video would contain adds created a level of redundancy and ultimately led to the decision to end the service, AdWeek reported, citing unnamed sources. Having the two similar services led to some confusion, especially from potential sponsors.
A spokesperson for Amazon wasn’t immediately available for comment.
The shutdown runs counter to where a lot of companies are headed, with more launching their own free, ad-supported streaming service. There are now a myriad of free options for cord cutters looking to watch content without a subscription. Walmart on Tuesday said it was acquiring Vizio for $2.3 billion partly to get access to its WatchFree+ free streaming service.
Non-Prime subscribers, however, will lose out on one option.
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