>> Amazon may have upended the retail business but it's finding the TV industry is a tougher nut to crack. Its streaming video service scraping plans to launch what's known as a skinny bundle, an industry term for a select group of networks offered at a cheaper price than larger cable and satellite packages.
Reuters media correspondent, Jessica Toonkel.>> So Amazon has decided while everyone in the world is doing skinny bundles and coming out with these skinny bundles, cuz they see it as the way to get to millennial cord cutters, Amazon's 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 US TV market.>> It's also been unable to sign up key broadcast networks for its a la carte channel service, through which Amazon Prime members can subscribe to individual networks such as HBO, Showtime, or Starz.
Amazon bumping up against the same obstacle that has stymied competitors Apple and Verizon. Media firms that own multiple networks, such as Viacom or Disney, typically require distributors to take their weaker channels along with the stronger ones. Amazons best defense, at least for now may not be reshaping how viewers watch but what they watch, as evidenced by this week's mammoth purchase of the TV rights to The Lord of the Rings, a multi-season epic that's sure to draw more viewers and members to its prime platform.