Is Amazon closing freebies? Here's what we know so far

Is Amazon closing freebies? Here's what we know so far

When we think of the best streaming services, we often don't think of the best free streaming services. But many people watch free ad-supported TV instead of paying for streaming services or cable TV alternatives, and Amazon Freevee is one of the best.

However, Freevee may not be around much longer; according to Adweek, sources say that Freevee will end "within a few weeks." Specifically, the target date for Freevee's closure is sometime in the second quarter of this year, as early as late April.

Amazon, for its part, has denied the rumors, saying in a statement to Adweek and others, "There will be no changes to Freevee...Amazon Freevee is an important, all-free offering of thousands of hit movies, shows, and original productions for Prime and non-prime members alike. It remains an important streaming service that offers thousands of hit movies, shows, and originals all for free to Prime and non-Prime members alike."

Prior to this year, the distinction between Freevee and Prime Video was simple: Freevee was an ad-supported free streaming service, while Prime Video was an ad-free paid streaming service.

In January, however, Amazon added ads to Prime Video. This created three tiers of Amazon's streaming service: freebies (free with ads), Prime Video (included with Prime membership), and Prime Video ($2.99 per month on top of Prime membership).

This seems to create redundancy, at least according to Adweek's reporting sources. According to these sources, Amazon does not really need the two ad-supported tiers and may not even want them.

One source told Adweek, "Prime Video wants customers who are only interested in free. They couldn't convert them from Freevee"

.

Furthermore, you don't need Freevee to watch Freevee content. It can be viewed on Prime Video. Therefore, the reported strategy of turning Freevee content into free Prime Video content as a way to entice people to subscribe to Prime Video through advertising makes a lot of business sense.

Ultimately, this will come down to whether Amazon thinks the Freevee brand is worth keeping alive, and whether it needs to make Freevee a standalone service to do so. Freevee is a Prime Video Freevee It could easily be rebranded or swallowed whole by Prime Video, but if customers don't like the change, it will hurt Amazon.

Internally, that is reportedly not the case. Amazon has reportedly not seen any significant pushback from users - lawsuits notwithstanding - about the change in strategy for streaming content.

My guess? The timeline may change, but Freevee as a streaming service will disappear; the Freevee brand may survive for free, ad-supported content, but that content will live on in Prime Video. When is the question.

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