Amazon’s choice to shut down Freevee and move its content to Prime Video is probably due to the growing similarities between the two platforms. With the ad-supported tier now in place, Prime Video and Freevee have become much more alike, making the latter’s unique appeal less necessary.

Amazon's FAST service seemed redundant after Amazon launched the Prime Video ad tier in January. With the subscription tier making money from subscription fees and ads shown on Prime Video with ads, it made little sense for Amazon to continue with Freevee, which only has the latter revenue stream.

While specific viewership data remains undisclosed, Amazon reported a tripling of Freevee's monthly active users between 2020 and 2022, reaching 65 million. That substantial user base will be added to the platforms existing audience. This will only strengthen Prime Video's position in the streaming market.