According to Zhìtōng Finance, according to insiders, Amazon (AMZN.US) is going to shut down the free, ad-supported streaming service Freevee, merging it into the subscription-based Prime Video product. Insiders revealed that Amazon 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 is working on continuing to offer these programs on its main website.

Launched in 2019, the service is a derivative product of its movie database website IMDb. The website gained some traction with original programs such as "Bosch: Legacy" adapted from Michael Connelly's popular police detective series. Earlier this year, Amazon released several expensive series but failed to connect with the audience. Subsequently, Amazon began to review the program costs of its entertainment product portfolio.

Prime Video is included in Amazon's delivery service, with an ad-supported version costing $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 always been popular, with some experiencing strong growth, the most famous being Fox's Tubi, Paramount Global's Pluto TV, and Roku's Roku Channel. While free services typically rely on many old movies and TV shows, consumers do seek fresh content, which could be both expensive and risky for operators.

Under the leadership of CEO Andy Jassy, who took office in 2021, Amazon has been cutting costs. It has closed dozens of redundant or unprofitable projects, from future delivery robots to niche cloud computing services. Jassy has also closely examined some of the big spending areas of this frugal company, including its devices business and Amazon Studios.