The company is said to be scrapping plans for an online streaming service bundling popular U.S. cable and broadcast networks because Amazon doesn't think the venture would be profitable enough, according to a report from Reuters citing unnamed sources.
Amazon has been unable to convince top broadcast and cable players that moving to their Amazon Channels service from old-school business models would be a good idea. The company has reportedly given up their efforts of persuasion with big names in television.
Amazon Channels would have offered a "skinny bundle," or a package with a few key networks that goes for a set fee. It would have expanded from Amazon's own programming through Amazon Prime Video.
Amazon has pivoted hard to focus on growing its own programming, and is on track to spend as much as $4.5 billion on video this year. Offering access to top-rated shows and programs has helped drive $99-per-year Amazon Prime subscriptions.
This "skinny bundle" offer would have been a solid way to attract younger cord-cutting viewers who are no longer interested in dishing out a hefty monthly cable payment. But according to insiders who spoke to Reuters, Amazon recognized that the profit margins on such a service would be too thin to move forward.
Amazon stock tipped lower 0.56% to $1,130.50 premarket Wednesday.
Amazon may not have a "skinny bundle" but that doesn't mean cord-cutting is going away:
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