Amazon is dropping the idea of launching an online TV service bundle aimed at competing with other live "skinny bundles" on the market, Reuters reported on Wednesday, citing sources with knowledge of the company's decision. The plan whose supposed existence was originally reported in late 2016 is said to have been scrapped for several reasons, the biggest one of which was profitability. The Seattle, Washington-based tech giant didn't feel that the endeavor would be profitable enough to justify the expenses, sources said. It's presently unclear what kind of a profit margin was Amazon targeting with the service and whether it was planning for it to operate in the black from the start.
Another seemingly insurmountable issue that the company encountered while planning the service was getting enough broadcast and cable networks on board with the idea, insiders claim. Traditional media companies proved to be a tough audience for Amazon, with the conglomerate ultimately being unable to convince enough of them to join its now-scrapped service. The development was partially also prompted by Amazon's belief that the media industry won't be centered around lightweight TV bundles in the long term, as suggested by one insider. While the company's ultimate vision for the media industry remains unclear, it appears that compilations of live TV channels may not be a part of it.
The tech giant's recent effort to expand Amazon Channels was also met with some resistance from the media industry, according to new reports which claim that Amazon opted for some unconventional negotiating tactics that simply didn't work. The idea of dropping the cable giants' weaker channels and only paying for the strongest performers that Amazon tried to push ultimately fell flat, with the negotiating parties being unwilling to compromise. While no new big names will be joining Amazon Channels in the near future, the e-commerce company is reportedly willing to play the waiting game and see the decline in pay-TV subscriptions prompt more firms to reconsider its proposal, according to one source. Amazon's Prime Video streaming platform appears to be more defined than the firm's other video ambitions, with its primary goal still being attracting Prime subscribers.