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.

Despite Freevee's shutdown, its spirit will live on over at Prime Video, as the main Amazon streaming platform will soon offer a "Watch for Free" section that will allow non-Prime subscribers to watch from the platform.

Amazon.com Inc. is closing Freevee, the free-to-watch, advertising-supported streaming service, folding it into the subscription-based Prime Video product, according to people with knowledge of the matter.