Published on November 15th, 2017 | by Brad Gibson0
Amazon nixes plans for bundled TV service, report says
Amazon has scrapped plans to launch a bundled streaming video service similar to Sling TV or DirecTV NOW saying it believes it cannot make such a service profitable.
Reuters reported Wednesday that people familiar with the matter said the online retailer was “unable to convince key broadcast and basic cable networks to break with decades-old business models and join” an Amazon streaming service.
Amazon has been looking to offer live television channels through Prime TV. It originally aimed to offer a limited bundle of key broadcast and cable networks for a set fee. But Reuters reported the company, “decided not to move ahead with a service on the grounds that it would yield too low a profit margin and did not necessarily indicate the direction the TV business will eventually go.”
Amazon could still decide to change course and introduce a ‘skinny bundle’ of channels, but the talks are over and the company is willing to wait, the sources said.
The biggest problem in making the business plan for Amazon work, according to Reuters sources…content providers wanting to stick to the traditional cable bundle instead of offering smaller bundles or channels a la carte.
In recent years, Apple has shown interest in launching a similar type of service, but like Amazon has struggled to strike deals with cable networks and make the service profitable.
Apple’s head of internet software and services, Eddy Cue, suggested at a technology conference last October that Apple was no longer interested in negotiating with content owners to build an Apple-made live TV package that would be delivered over the internet to Apple devices. “The real opportunity for us is to make it easier to get access to all this content,” he said.