Amazon is leaving the video-streaming market and is instead focusing on virtual reality, according to people familiar with the company’s plans.
The move comes after a string of high-profile failures and a series of acquisitions that have slowed Amazon’s progress.
Amazon’s stock is down more than 7% in after-hours trading, and analysts are warning investors that the company will miss its first quarterly profit in nearly four years.
“The company has made clear its intention to focus on creating value by providing better, more personalized content to its customers, and Amazon has made it clear that it intends to focus its efforts on the virtual reality market,” said John McAfee, a cybersecurity analyst at FBR Capital Markets.
Amazon’s move comes as the company has been trying to attract more video-delivery customers to its service.
In recent months, it has made a number of acquisitions aimed at building a broader video service.
Amazon also recently announced that it will launch a video streaming service in partnership with Uber.
The company will be partnering with the ride-hailing company to offer a virtual reality experience that will allow riders to choose a different driver and drive their car through a virtual parking lot.
Amazon is also planning to add a “video-first” experience to its streaming service, according a person familiar with those plans.
The person asked not to be identified because the announcement was not yet made public.
“We are committed to bringing a seamless, high-quality, personalized experience to customers,” the company said in a statement.
“We are also looking at bringing other services to the market including video, social, video-on-demand, and live events.
Our goal is to continue to build on our core strengths and create new and exciting services that make people more engaged, and that will improve our customer experience.”