Amazon is shuttering Freevee and some insiders fear layoffs could be coming in the tech giant's entertainment arm

• Amazon is phasing out Freevee and integrating its content into Prime Video.
• Freevee struggled with identity and financial losses while competing with Prime Video for resources.

Amazon is phasing out its free-to-watch streaming service Freevee as insiders speculate about potential layoffs in the tech giant's entertainment arm.

Amazon said Freevee's shows, including new episodes and library originals of shows like "Bosch," "Jury Duty," and "Judy Justice," would be available for free to non-Prime members on Prime Video. A sampling of other popular library originals also will be available for free, including the first season of "The Summer I Turned Pretty" and the first three seasons of "The Boys," which could help entice non-Prime members to eventually subscribe to the paid version.

The Freevee phase-out is expected to take place over the coming weeks.

"To deliver a simpler viewing experience for customers, we have decided to phase out Freevee branding," an Amazon rep said in a statement. "There will be no change to the content available for Prime members, and a vast offering of free streaming content will still be accessible for non-Prime members, including select Originals from Amazon MGM Studios, a variety of licensed movies and series, and a broad library of FAST Channels — all available on Prime Video."

The phase-out comes as three Amazon insiders told BI they believe MGM Studios could soon be hit by layoffs as the company looks for cost cuts. Amazon said no Freevee employees were laid off as part of the phase-out as they were absorbed into other entertainment teams but didn't comment on the potential for broader layoffs. Speculation has centered on former Freevee employees as well as MGM Studios' development and unscripted teams. Amazon already cut hundreds of jobs across Prime Video and MGM Studios teams earlier this year. Amazon spent $18.9 billion on video and music in 2023, up 14% over 2022 (though that increase is lower than the 28% jump it had the year prior).

Before this latest move to shutter Freevee, Amazon had quietly been winding down the service for months, even as the company publicly denied it would completely shut down. It stopped greenlighting new Freevee originals and had been moving some Freevee employees to other parts of MGM Studios. Lauren Anderson, who headed up content for Freevee, moved in May into a role helping sell sponsorships and developing brand-supported originals for Prime Video.

Freevee began in 2019 as IMDb TV and rebranded in 2022 as it ramped up original content production. It was part of a trend of free streaming TV services along with Fox-owned Tubi and Paramount's PlutoTV.

The service had struggled to carve out an identity for itself and lost money, people familiar with the business previously told BI. It's produced few hits except for James Marsden-starring "Jury Duty," which was nominated for two Emmys. It also competed for resources with Prime Video and created brand confusion with some viewers.

When Amazon launched ads across Prime Video in January, throwing a splashy upfront event to pitch them, it brought further questions about ad-supported Freevee's future as a stand-alone service.