Amazon has abandoned its plans to launch an online streaming service bundling U.S. broadcast and cable networks because it believes it cannot make enough money on such a service, people familiar with the matter told Reuters.
According to the report, the company has also been unable to convince key broadcast and basic cable networks to break with decades-old business models and join its a la carte Amazon Channels service, the sources said. An Amazon spokeswoman declined to comment.
Video has become an important market for Amazon. According to analysts, the company plans to spend USD 4.5 billion on video programming this year.
Amazon originally aimed to offer a “skinny bundle” with popular broadcast and cable networks for a set fee. But sources told Reuters that 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.