Many industry observers were taken aback by Amazon’s announcement to quietly shut down its standalone Freevee streaming app in August. Freevee Originals, licensed movies and Live TV users will have to switch to Prime Video – which is still free with no subscription and heavily supported by advertisers. The statement implies that Freevee will not be an independent app in the fall.
The statement is not merely an app closure, but also a declaration of how Amazon views the future of streaming. With a new name of IMDb TV and relaunch in 2022, Freevee established skepticism among budget-conscious consumers who didn’t want to pay monthly subscriptions. The content and reach of Freevee have made it a quiet success, with comparatively high viewership in the US and Europe. Amazon decided on consolidation instead of disintegrating. The content is all under the Prime Video banner, neatly categorized in a “Watch for Free” section and rapidly streamed through FAST (Free Ad-supported Streaming Television) channels.
It may provide relief to those who are seeking deals and casual viewers. No more juggling apps or struggling with multiple logins. In the face of streaming exhaustion, simplifying platforms can be advantageous in retaining audiences and decreasing churn. Users can now access Prime Video’s premium subscription content and a comprehensive free version without having to switch ecosystems.
Despite this, I am convinced that we are missing out on something crucial. Freevee was more than just a streaming app, as it served as an entry point for those who were unable to afford Prime. Customers had the option to browse Originals like Jury Duty and Bosch Legacy without reserving a subscription from Amazon. The distinction becomes indistinct when Freevee departs. Although Amazon asserts that it will offer all Freevee content for free in Prime Video, they anticipate that users may access them as well. That’s a big transactional and discoverability bet to place on a new audience.
There is some worry that the added complexity of installing a new app or updating to an updated Prime experience may cause users to feel alienated. Take into account older adults or individuals who have access to basic smart TVs, workplace restrictions, or extensive use of common mobile features. Small tweaks in the interface can have a significant impact on user confidence, particularly those who are not tech-savvy.
The strategic direction of Amazon entails streamlining operations. The existence of two distinct platforms with overlapping content can result in duplicated expenses, such as storage, marketing, and user support. Amazon’s centralization process under Prime enables a more distinct funnel, where free users can transition to paying subscribers. The integration of ads into Prime Video’s subscription tiers in early 2024 is consistent with their global strategy, as it indicates an interest in merging ad-based and subscription-derived monetization models.
This trend is not exclusive to Amazon. We see consolidation happening in the industry. ViacomCBS has merged with Pluto TV, leading Paramount Global to close down its app. In certain markets, Netflix is testing “Netflix Free”. A common message is that streaming companies acknowledge that fewer apps with more satisfying experiences are better than soiled platforms.
But there’s a trade-off. Freevee was a platform that offered an eclectic mix of games, old-school TV series and documentaries alongside original content. Prime Video offers free content that is often buried behind paywalls and premium recommendations. Without a dedicated Freevee interface, there’s a risk free content becomes the forgotten child of the Prime family.
My opinion is that Amazon is doing what is financially viable. It’s reducing costs and simplifying UX, as well as investing more in Prime Video. By retiring Freevee, Amazon forfeits a distinct standalone asset that was entirely free. If discoverability slips inside Prime, viewers won’t find the value they had. Watching great shows like Bosch Legacy shouldn’t require hunting through menus.
Not only could Amazon merge, but they had other options available. They could introduce a distinct “Freebrosed” tab inside Prime, execute targeted advertising campaigns, or develop specialized “lite” Prime apps for emerging markets where data costs are still incredibly expensive.
By centralizing content, efficiency and user experience can be enhanced, but only if Amazon is efficient. Freevee’s ease and audience must be maintained, even within Prime. For now, I’m watching closely. Amazon’s management of the transition could affect both the meaning and audience of “free streaming” in the future of on-demand entertainment.