Tech giant Amazon (AMZN) is shutting down its free streaming service, Freevee, next month in order to combine all of its video content under Prime Video. Freevee, which started in 2019 under IMDb (a movie and TV site that Amazon bought in 1998), offered free, ad-supported shows and movies, including some original content and titles from Prime Video. It was mainly accessed through a separate app. However, starting in August, the Freevee app will no longer be available. Instead, viewers can continue watching Freevee’s shows, movies, and live TV directly on Prime Video without needing a paid Prime membership.

In a message to users, Amazon said, “Prime Video is the new exclusive home for Freevee TV shows, movies and Live TV,” confirming that all Freevee content will now live on one platform. This change isn’t surprising, as Amazon signaled last November that it would eventually phase out Freevee in order to make the viewing experience simpler.

The decision also follows the launch of ads on Prime Video in January 2024. Currently, Prime Video comes with a $15/month Prime membership or can be purchased separately for $9/month. Users who want to watch without ads can pay an extra $2 each month. Interestingly, though, when it comes to TV ads, Amazon, along with other major streamers, seems to be flooding the market. Indeed, according to The Information, Amazon has struggled to fill its ad slots, with about 20% reportedly going unsold.

Turning to Wall Street, analysts have a Strong Buy consensus rating on Amazon stock based on 47 Buys and one Hold assigned in the past three months. Furthermore, the average AMZN stock price target of $243.32 per share implies 10.6% upside potential from current levels.

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