The news: Amazon is shutting down its standalone free ad-supported streaming television (FAST) platform, Freevee, in August. All Freevee content—including original series and live TV—will migrate to Prime Video, where users can access it without needing a Prime subscription, per CNBC.
This comes after Amazon incorporated ads into Prime Video last year and as it pushes to unify content, streamline viewing, and boost ad revenue.
It also follows the consolidation trend among connected TV (CTV) providers looking to centralize their ad inventory. Here are similar consolidation moves by other providers:
Platforms like Hulu, Paramount+, and Peacock have already integrated free ad-supported and paid tiers within a single app.
This trend has pushed Netflix and Disney+ to expand ad tiers, and Amazon is now consolidating all video-on-demand (VOD) under Prime Video. The challenge will be in how effectively platforms can retain their ad-supported audiences in larger, unified services.
Advertisers take heed: As streaming giants consolidate, ad buyers might see fewer platforms but more fragmented audiences. This centralization of inventory boosts scale but narrows options for niche targeting.
Our take: Amazon and its rivals are bundling content into fewer apps to boost ad revenue and reduce churn. But for advertisers, viewer behavior is splintering as audiences jump between services each month, chasing new shows, deals, and lower costs.
Advertisers should map churn cycles and diversify ad spend to align with viewing habits and consumer behavior while prioritizing media plans that follow content, not just platforms.
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