Amazon ‘may scale back’ Channels

Amazon may be looking to scale back its à la carte Channels offering as new competitors enter the space, according to The Information.

Amazon is scaling back its ambition to expand the service as Apple, Roku and Facebook all look to add third party content on their platforms, according to the news service.

The tech giant has informed entertainment companies that is going to be more selective about which video services it adds to the function. The offering currently includes around 200 services, from small paid video services like Acorn TV to major platforms such as HBO Now and Showtime.

As the streaming market gets increasingly competitive such bundling strategies are becoming more common. This January The Roku Channel revealed that it will offer premium subscriptions from Showtime, Starz and Epix as well as 12 other services and give consumers the ability to pay for all premium content in one monthly bill.

Facebook is also said to be looking to add pay TV channels such as HBO, Showtime and Starz to its platform, along with Apple which is looking to sell third-party video subscriptions.

Amazon’s move arrives despite success in the space. In December, BMO Capital Markets revealed that Prime Video Channels would have pulled near $1.7bn of revenue for the tech company in 2018, more than double that of 2017.

The financial services firm says that around 25%-45% of total OTT users depend on the channel to access their standalone SVOD services. “We believe [Prime Video Channels] is a material driver of standalone subscribers for many entertainment companies,” BMO analysts Daniel Salmon and William Lowden said in a report.