# Amazon Closes Freevee: A Strategic Move to Concentrate on Prime Video with Ads
Amazon is embarking on a major shift in its streaming approach by discontinuing Freevee, its free ad-supported streaming television (FAST) service. This decision aligns with the company’s increasing efforts to monetize Prime Video via a subscription model that incorporates ads, which has shown to be more financially rewarding for the tech leader.
## The Rise and Decline of Freevee
Freevee, initially released as IMDb Freedive in 2019, represented Amazon’s initiative to provide free, ad-supported streaming content. The platform enabled viewers to enjoy numerous movies, TV shows, and Freevee originals without the requirement of a subscription. Over time, the service saw several rebranding efforts, transitioning from IMDb Freedive to IMDb TV, and eventually to Freevee in 2022.
Despite its initial promise, Freevee’s end is now imminent. A *Deadline* report suggests that Amazon is winding down Freevee in the forthcoming weeks, yet a specific shutdown date has not been revealed to the public. An Amazon spokesperson elaborated on the rationale behind this action, indicating that the company seeks to “offer a more streamlined viewing experience for customers.” The spokesperson also reassured that the content available to Prime members would remain unchanged, and non-Prime members would continue to have access to a substantial array of free streaming content via Prime Video.
### The Rationale Behind Freevee’s Closure
The choice to discontinue Freevee stems from various factors, chiefly the escalated relevance of Prime Video’s ad-supported subscription tier. Starting in January 2024, the Prime Video ad tier enables Amazon to earn revenue from both subscription fees and advertisements, allowing this combined revenue model to render Prime Video with ads a more profitable endeavor compared to Freevee, which depended exclusively on ad revenue.
By unifying its streaming offerings under the Prime Video label, Amazon can simplify its services and diminish confusion for both viewers and advertisers. *Adweek* noted that having two distinct ad-supported services—Freevee and Prime Video with ads—was creating misunderstandings among subscribers and ad purchasers alike. This overlap made it progressively challenging for Amazon to rationalize the maintenance of both platforms.
### The Fate of Freevee Originals
Freevee featured several original productions, including *Jury Duty* starring James Marsden, *Judy Justice* with Judge Judy Sheindlin, and *Bosch: Legacy*, a continuation of the acclaimed Prime Video series *Bosch*. These series, along with other Freevee originals, are anticipated to stay accessible on Prime Video even after Freevee closes. Notably, viewers won’t need a Prime Video or Prime subscription to view these shows, as they will still be available for free on Prime Video.
As per a report from *Bloomberg*, some Freevee original content may remain free to viewers due to existing contractual commitments. However, the future of these shows once those contracts expire remains uncertain.
### The Larger Context: Consolidation in the Streaming Sector
Amazon’s move to shut down Freevee occurs amid considerable shifts within the streaming industry. As competition escalates and subscription costs continue to climb, streaming providers are finding profitability increasingly elusive. Numerous industry experts predict additional consolidation within the streaming landscape as companies seek methods to refine their services and maximize revenue.
Amazon’s decision to concentrate on Prime Video with ads aligns with a broader trend in the industry. With streaming services exploring new revenue-generating avenues, numerous providers are adopting ad-supported models. For instance, both Netflix and Disney+ have rolled out ad-supported tiers in recent years, with other platforms likely set to follow.
### The Outlook for Prime Video
Looking forward, Amazon intends to amplify the number of ads aired on Prime Video by 2025. This strategy is projected to significantly enhance the platform’s profitability, as advertisers are inclined to pay a premium to connect with Prime Video’s extensive and engaged audience. By consolidating its streaming services and focusing on Prime Video with ads, Amazon is positioning itself to take advantage of the burgeoning demand for ad-supported streaming content.
The termination of Freevee further enables Amazon to streamline its streaming ecosystem. By transitioning Freevee’s content to Prime Video, Amazon can more efficiently monitor viewer engagement and utilize that data to enhance its recommendations and advertising strategies. This, in turn, may assist Amazon in attracting additional viewers to its Prime Video platform and boosting revenue through its e-commerce endeavors.
### Amazon’s Expanding Product Graveyard
The closure of Freevee signifies yet another addition to Amazon’s expanding “product graveyard.” In recent years, the company has phased out several other products and services, such as the Astro for Business robots, Amazon Halo fitness trackers, the Alexa Built-in smartphone app, and the Amazon Drive file storage service.
As Amazon continues to adapt its business model, it is evident that the company is prepared to make challenging decisions to focus on its most lucrative enterprises. By discontinuing Freevee and intensifying its commitment to Prime Video with ads, Amazon is wagering that the
