Amazon reportedly cancels plans to offer a cable TV service

Sling TV popularized the “skinny bundle” of cable networks when it launched in 2015 and numerous services, such as PlayStation Vue, DirecTV Now, Hulu TV, and YouTube TV, have followed suit. Amazon has long been rumored to jump on the bandwagon with their own bundled TV service, but now it sounds like they’ve scrapped those plans, according to a report from Reuters.

Amazon is said to have initially wanted to offer “a limited bundle of key broadcast and cable networks for a set fee” but decided not to move forward because the profit margin on such a service would be too low. Their efforts to unbundle networks in order to offer them a la carte as Amazon Channels resulted in too much resistance.

Many companies, most notably Apple, have hit similar resistance and have given up when trying to change the decades-old business models used by cable networks. The issue seems to always be an unwillingness to unbundle unpopular channels from popular ones.

This resistance is likely why the current landscape of streaming services aimed at cord cutters so closely resembles traditional cable. Despite having more over-the-top streaming options than ever, nearly all of them still require customers to pay for channels they don’t want in order to get the channels they care about.

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7 comments
  1. clocks says:

    “Despite having more over-the-top streaming options than ever, nearly all of them still require customers to pay for channels they don’t want in order to get the channels they care about.”

    Yep! And exactly why I still have not subscribed to one of these services.

  2. Mewtwo says:

    It is the same in the movie industry where certain pet projects are green lit and are dead on arrival and are paid by the revenue from blockbusters and should never have gone past the proposal stage.

  3. Jim says:

    When has making a sufficient profit ever stopped Amazon from doing something? :)

  4. Norman Penn says:

    Continue to invest in Original Content and purchasing quality network programming. Essentially creating a TV network worth watching. The bundled cable TV, 90% not worth watching. Sports, buy the package required. Potential for cost savings, if not, quality over quantity anyday.
    Good move Amazon!

  5. Tony Ramirez says:

    Who cares as linear TV is so linear. All these channels show are daily marathons of the same shows over and over again.

  6. clocks says:

    I basically want AMC, FX, and History. And for < $10/month. And maybe a ESPN add-on during a couple months of the year.

  7. Jim says:

    We are inundated with Commercials. It’s ridiculous at how many are being pushed during a show. The audio decibel of a show is lowered to allow the commercials to blare.

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