Amazon.com, Inc. (AMZN.US) will close its ad-supported free streaming TV service Freevee and integrate it into Prime Video.

According to sources, Amazon.com, Inc. (AMZN.US) will be closing its free, ad-supported streaming service Freevee and merging it into the subscription-based Prime Video product. Sources reveal that Amazon.com, Inc. plans to transfer some employees and programs from Freevee to Prime Video. Due to contract restrictions, some programs must remain in a free format, and Amazon.com, Inc. is trying to continue offering these programs on its main website. The service was launched in 2019 as a derivative product of its movie data website IMDb. The website gained some popularity with original programs, such as "Bosch: Legacy" adapted from Michael Connelly's popular police detective series. Earlier this year, Amazon.com, Inc. released several expensive series that failed to connect with viewers, prompting the company to review the program costs in its entertainment product portfolio. Prime Video is included in Amazon.com, Inc.'s delivery service, with the ad-supported version charging $14.99 per month. The company has been expanding its online advertising business. The ad-free version of Prime Video requires an additional fee. Free streaming services have been popular, with some services experiencing strong growth, including FOX Corporation's Tubi, ViacomCBS's Pluto TV, and Roku's Roku Channel. While free services typically rely on many older movies and TV shows, consumers do seek fresh content, which can be both expensive and risky for operators. Under the leadership of CEO Andy Jassy, who took office in 2021, Amazon.com, Inc. has been cutting costs by closing down dozens of redundant or unprofitable projects, from future delivery service Siasun Robot & Automation to niche cloud computing services. Jassy has also been scrutinizing some of the company's major expenses, including its devices business and Amazon.com, Inc. Studios.