Arabella Asis Tech 02.22.2024 01:Feb AM EST

Amazon Plans Freevee app Closure to Support Ads on Prime Video

Amazon is reportedly shutting down its free ad-supported video streaming app Frevee to give way to the arrival of ads in Prime Video.

The closure was first reported by AdWeek, stating that a person familiar with the situation revealed that Amazon has no plans to pursue two ad-supported services.

(Photo : Amazon)

Amazon Could Shut Down FreeVee by April

According to the source, Freevee's shutdown will be part of Amazon's effort to shift its advertising efforts on Prime Video. The report also revealed that closure could start in April.

In 2022, Amazon launched Freevee as a revamped version of iMDB TV. The streaming app retains its services for free through the ads that are shown to the viewers. However, the start of 2024 saw the changes with Prime Video.

Previously, Prime Video was advertised as an ad-free streaming service, making it the exact opposite of Freevee. Moreover, both streaming services often share content.

"If the question is whether or not Amazon will persist with two stand-alone streaming services... I'm certain the answer is no," one person familiar with the situation stated.

Amazon Pushes Ad Tier on Prime Video Subscribers

The Prime Video subscription often comes with Amazon Prime membership. With the introduction of ads in the platform, members will now by default see ads while streaming. Members who opt for an ad-free experience would have to pay an additional $2.99 per month on top of their base subscription.

According to the sources, placing ads on Prime Video led to confusion among viewers and ad buyers. However, Amazon is reportedly weighing the data from the first month of having ads on Prime Video.

Amazon could delay closing Freevee if customers fight back or if many customers will be converted to the ad-free plan. For now, the company clarified that Freevee is not going away yet.

"Amazon Freevee remains an important streaming offering providing both Prime and non-Prime customers thousands of hit movies, shows, and Originals, all for free," the company wrote.