Its streaming video service is scrapping plans to launch cheap bundles of cable and broadcast channels, sources say. As Fred Katayama reports, it comes days after it bought the TV rights to ''The Lord of the Rings''.
Sources tell Reuters Amazon is scrapping its bundled video service. It had planned to offer what's called a "skinny bundle" - a limited group of broadcast and cable networks for viewers that's cheaper than traditional cable and satellite subscriptions. Reuters correspondent Jessica Toonkel: SOUNDBITE: JESSICA TOONKEL, CORRESPONDENT, REUTERS, (ENGLISH) SAYING: "Amazon has decided that while everyone in the world is doing skinny bundles - cause they see it as the way to get to millennial cord-cutters - Amazon is saying, 'No. We looked at it, we're not doing it, we don't think this is the future, we think it's a low-margin business - we're gonna look at other ways to dominate the U.S. TV market." What's more, sources say Amazon was not able to convince networks to join its a la carte Amazon Channels. That service would've allowed Amazon Prime members to subscribe to invididual networks. The development comes days after Amazon wowed Hollywood by nabbing the global TV rights to "The Lord of the Rings". It hopes to pull in more members to its streaming club Prime by launching a multi-season series based on the epic novel.