Earlier this week, rumors about an ad-supported video service from Amazon began to circulate. Amazon selectively denied that rumor, but a new report from Reuters claims that Amazon was working on a YouTube TV-like service until very recently.
According to the report, Amazon wanted to provide a limited bundle of key broadcast and networks for an unknown fee. It would have been very similar to YouTube TV and Hulu with Live TV. However, the company decided to not move ahead with the service, citing low profit margins.
Instead, Amazon has been working to build its own Amazon Channels service, which allows Prime customers to integrate subscriptions from HBO, Showtime, Starz, and other networks into the Prime Video app. However, growth has stalled as entertainment companies have butted heads with Amazon.
Reportedly, Amazon asked for special provisions, like discounts based on the volume of subscribers it brings in, which companies like Viacom and 21st Century Fox were uninterested in. Sources told Reuters that Amazon is willing to wait, as it believes entertainment companies will become more willing to negotiate as the trend of cord-cutting continues.