Amazon (AMZN, Financial) announced it will end its standalone free streaming service, Freevee, next month and integrate its content into the Prime Video platform. Launched in 2019 through IMDb, Freevee offered ad-supported video content, including original series and some Prime Video resources. Users will soon access these shows and movies on Prime Video without needing a Prime membership. The transition aims to provide a more streamlined viewing experience, as initially revealed by Amazon in November last year.
This change comes just six months before Prime Video's planned inclusion of ads in January 2024. Currently, Prime Video is available as part of the $15 monthly Prime membership or as a standalone service for $9, with an additional $2 to remove ads.
Amazon's stock has seen minimal movement this year, rising only 0.4%, trailing the S&P 500's 5.7% increase. However, analysts are optimistic about potential stock growth with the upcoming Q2 earnings report, expected around July 31. The annual summer Prime Day event from July 8-11 could also boost sales. Truist Securities analyst Youssef Squali raised Amazon's target stock price from $226 to $250, indicating a 13% upside from the recent closing price of $220.46, maintaining a "buy" rating due to anticipated stronger-than-expected Q2 performance.
