Amazon Can’t Cancel Rings of Power Without Hefty Financial “Kill Fee” to Tolkien Estate

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Ever since it began, fans of Tolkien have been asking Amazon to cancel Rings of Power. Their reasons include the show’s high production costs and the fact that fewer and fewer people are watching. However, actually canceling the show is proving to be much more difficult than people thought.

When Amazon Prime Video released The Lord of the Rings: The Rings of Power, Amazon hoped it would be as successful as Game of Thrones. However, the show has become incredibly expensive-a financial burden that keeps taking money away from other projects and restricting what else Amazon can create.

As reported by The Ankler, the initial season cost more than $465 million to produce. This doesn’t include the $250 million Amazon spent to acquire the rights to Tolkien’s stories, nor does it factor in the significant amount-hundreds of millions of dollars-invested in marketing. By the time viewers began forming their opinions, Amazon had already spent over $750 million simply to launch the show.

However, data indicates that just 37% of Prime members in the US finished watching the first season. Completion rates internationally weren’t much higher, at 45%. To give you some perspective, Amazon considers a 50% completion rate to be disappointing. Basically, less than half of viewers stayed engaged through to the end of the season. This highlights a significant drop-off in audience attention.

The Cost of Quitting

The harsh reality is that Amazon might be stuck with Rings of Power, even if they decide to end it. A clause in their agreement with the Tolkien estate means that stopping production on any incomplete season will cost them an extra $20 million. Since season three is already being filmed and they initially agreed to five seasons, the company is essentially locked into continuing the show.

That’s why Amazon is still moving ahead with the project – not because Rings of Power is a success, but because stopping it now would likely cost even more money than continuing to produce it.

Despite its big goals, The Rings of Power has become a prime example of wasteful spending: a hugely expensive project that’s weighing Amazon down. Unless things turn around quickly, the only remarkable thing about this show will be how quickly it continues to lose money.

The Numbers Don’t Lie: Rings of Power Has Collapsed

Rather than improving things, the second season of The Rings of Power actually saw a significant decline in viewership. According to the 2024 Luminate TV and Film Report, Season 2 performed a striking 60% worse than the first season. Despite Amazon trying to present a positive outlook, it seems a large part of the audience stopped watching the billion-dollar series, solidifying its place as one of the most expensive failures in entertainment history.

The numbers are stark. Season 1 attracted almost 8 billion minutes of viewership, a statistic Amazon heavily publicized as evidence of its success. However, season 2 saw a significant decline to roughly 3 billion minutes-a dramatic drop indicating that most viewers who tried the first season weren’t interested in continuing. This clearly demonstrates a loss of audience. The decrease is quite substantial.

The poor response to the first season led to quick changes. Prime Video cut hundreds of jobs at both Prime Video and Amazon MGM Studios. Despite this, Jennifer Salke, who was then the head of Amazon Studios and the person who developed the plan for this series, remained firm in her beliefs. She didn’t back down, even with the negative feedback and job cuts. It was a difficult time for everyone involved.

During interviews, Salke stated: “More than 55 million people have interacted with the show now that season two has been released.”

She also claimed that more than 150 million people had “watched and engaged” with the show in total. However, that statement didn’t seem genuine when looking at data from Nielsen and Luminate, which showed that interest and viewership were actually decreasing.

Salke remained consistent with the company’s official stance, stating, “This is a long-term investment in that franchise,” and repeating Amazon’s plan for five seasons. However, she carefully avoided confirming the widely discussed commitment for 50 episodes, which implies that concerns might already be growing among Amazon’s leaders.

Industry Sees a Failure

Hollywood insiders aren’t sugarcoating the situation.

One experienced literary agent suggested that Amazon should simply cancel The Rings of Power and focus on other projects, telling The Ankler that the company “wildly overpaid” for the rights to the series.

One industry insider stated directly, “When people consider Amazon’s most successful shows, Lord of the Rings doesn’t usually come to mind. They think of Fallout, Reacher, and Summer – all of which were produced at a much lower cost.”

Here’s the reality: Amazon’s highly-promoted flagship shows are actually being outwatched by lower-cost, genre-focused content that viewers are completing.

The Salke Spending Legacy

A lot of the problems stem from the time Jennifer Salke was in charge, a period those familiar with the situation call a time of unrestrained spending. Insiders describe it as an era where money wasn’t carefully managed, and this contributed to the current difficulties. Essentially, her leadership is seen as a key factor in the unfolding issues.

Amazon spent around $20 billion on content in 2024, and Rings of Power took up a significant portion of that spending. One experienced showrunner remembered feeling unable to compete for resources.

They explained that all of the available funds are being used for Lord of the Rings, which makes you question whether you’ll have enough resources to create your program. They stated, “All of their money is taken up with Lord of the Rings, and you’re left wondering if you’ll be able to get what you need in order to produce your show.”

Even people who used to work at Amazon now acknowledge that Salke’s risky approach to managing money slowed down other initiatives, leading the company to be more cautious when approving new content.

Essentially, the money spent – in the billions – on Rings of Power might have stopped Amazon from creating its next big success, and many people believe Jennifer Salke is to blame.

Conclusion: The Price of Pride

Amazon desperately wanted to control the world of Middle-earth, and for a short time, it appeared they would pay whatever it took to achieve that goal. Now, the company is stuck with a show that most viewers haven’t embraced, and they’re bound by agreements that make canceling it almost as expensive as continuing to produce it.

What was once predicted to be the most successful streaming service has unfortunately become a warning to others-showing that having a lot of money doesn’t guarantee popularity or make people interested, no matter what.

While other Amazon shows like Fallout and Reacher have become hits at a much lower cost, The Rings of Power remains a very expensive project – costing over a billion dollars. If the people in charge don’t decide to stop investing in it, the series might be known less for its connection to Tolkien’s world and more for being a costly mistake for Amazon.

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2025-10-03 20:59