Report: Amazon gives up on TV bundles


Reuters: Inc has scrapped plans to launch an online streaming service bundling popular U.S. broadcast and cable networks because it believes it cannot make enough money on such a service, people familiar with the matter told Reuters.

The world's largest online retailer has also been unable to convince key broadcast and basic cable networks to break with decades-old business models and join its a la carte Amazon Channels service, the sources said and has backed away from talks with them.

Amazon could be shifting strategy, but more likely the news demonstrates the entrenchment of cable content and cable companies. Bundling drives big profits through forcing customers to pay for content and also cross-promotional value across properties.

Given it's the golden age of TV content, it probably makes the most sense to focus on original programming rather than trying to break into the distribution business.