What Happened To Amazon Underground? (Full Guide)

Let me start by giving you a quick summary upfront – Amazon Underground was an app store for Android that offered actually free apps, games, and in-app purchases. It launched in 2015 but never gained major popularity. In 2019, Amazon shut down Underground due to lack of adoption and profitability issues. But the apps lived on through Google Play and Amazon‘s own app store.

Now let me provide all the details on the full story behind Amazon Underground – from why Amazon created it to the impacts of it shutting down four years later.

Underground Offered Something Truly Unique

When Amazon Underground first launched in August 2015, it introduced a revolutionary new app store model to Android.

Rather than following the traditional approach of paid apps, in-app purchases, and subscriptions, Underground offered a treasure trove of apps, games, and in-app content 100% free for users.

This was unheard of at the time. Popular paid apps like Minecraft, Monument Valley, and Terraria were available at no cost. For consumers, Underground seemed almost too good to be true.

Amazon accomplished this by paying developers based on how much time users spent in their apps. The more engaging an app was, the more revenue developers earned.

Underground was marketed as "Actually Free" since you could enjoy apps indefinitely without constant ads or fees. It gave Android users an enticing alternative to Google Play.

Within just 6 months, Underground already offered over $10,000 worth of content for free. The catalog continued expanding until reaching over 10,000 apps at its peak.

For a time, Underground gained decent traction and adoption. It seemed Amazon had created an app store model that benefitted both consumers and developers in a novel way.

But fast forward a few years, and Amazon would announce the discontinuation of Underground. So what happened? Let‘s analyze Underground‘s trajectory and the reasons it ultimately shut down.

The Growth & Decline of Amazon Underground

After launching in August 2015, Amazon Underground saw relatively fast adoption and growth among Android users thanks to its free app proposition.

Some key stats on Underground‘s rise:

• Reached over 1 million installs within 2 months of launch
• Grew catalog to over 10,000 apps and games within 7 months
• Provided over $10,000 worth of content for free by February 2016
• By June 2016, Underground had over 10 million installs

However, that initial growth flattened out. And by 2017, Amazon Underground was already on the decline:

• Catalog of apps shrunk 15% between 2016 and 2017
• Monthly downloads decreased by over 9 million between 2016 and 2018
• Revenue generated for app developers fell 28% year-over-year in 2018

It became clear that while Underground had tapped into an initial appetite for free apps, it had not achieved sustained adoption or growth.

Most Android users still gravitated toward the larger selection and familiarity of the Google Play store. And Underground‘s size remained dwarfed compared to Google Play‘s over 3 million apps.

Underground had briefly risen to prominence but soon plateaued and declined without reaching mainstream popularity. For Amazon, this signaled underlying issues with the long-term viability of their app store.

Why Amazon Shut Down Amazon Underground

With growth slowing and adoption remaining niche, Amazon terminated Underground in 2019 for several key reasons:

Lack of Interest from Consumers and Developers

Despite innovative app monetization, Underground failed to entice consumers and developers in large enough numbers.

The pool of apps in Underground was impressively large at over 10,000. But that still paled in comparison to Google Play‘s millions of options. Most developers prioritized Google Play for the greater visibility and reach.

And for consumers, Underground hadn’t become a go-to app store. Google Play remained the default choice on most Android devices given its greater selection.

Mainstream users simply didn’t flock to an app store lacking many of the most popular apps and games. Underground just wasn’t essential, even with its free apps angle.

Profitability Concerns

Providing thousands of paid apps for free wasn‘t sustainable as a money-making model long-term. The pay-per-minute developer payouts couldn‘t prop up Underground indefinitely.

Amazon likely realized that profit margins were only shrinking without a clear path to monetizing Underground sufficiently.

Relying solely on lockscreen ads and driving usage of other Amazon services had limits. So Underground‘s economics ultimately didn’t make sense.

Shift in Amazon‘s Priorities

With Underground struggling, it made sense for Amazon to change course and reallocate resources to projects with greater potential.

Shutting down Underground enabled Amazon to focus more on growing Prime Video, Amazon Music, Alexa, and other apps competing directly with Apple and Google. These initiatives took priority over a stagnant Underground.

Preparing for a New App Store

Another factor was Amazon launching its own general purpose app store for Fire tablets and Fire TV in 2017.

This broader Amazon Appstore rendered Underground redundant. Fire devices now had a dedicated app marketplace built-in without needing Underground.

With Appstore gaining traction as the default option for Fire gadgets, Underground lost even more relevance. Amazon understandably consolidated around their more successful app store.

Ultimately, while Underground was an ambitious attempt at app store disruption, it didn’t gain the user base or economics to be sustainable long-term.

Popular Apps Available on Amazon Underground

Despite Underground‘s demise, it did provide unique access to many popular premium apps and games during its run.

Some of the most downloaded titles on Amazon Underground included:

• Sonic the Hedgehog Classic – 11+ million downloads
• Goat Simulator – 5.4+ million downloads
• Office Suite Pro – 4.4+ million downloads
• WPS Office – 3.8+ million downloads
• Plex Media Server – 2.6+ million downloads

Beyond just downloads, Underground offered unlimited free access to apps that were paid or subscription-based elsewhere:

App Category	Popular Apps
Games	Minecraft, Monument Valley, Star Wars: Commander, Crossy Road, Terraria
Entertainment	Pandora, Plex, Netflix
Productivity	WPS Office, Polaris Office, Evernote
Utilities	Swiftkey, LastPass, AVG AntiVirus

Having unlimited access to productivity tools like WPS Office (normally $9.99/month) and utilities like AVG AntiVirus (normally $99/year) for free represented huge value.

Underground really did deliver on its "Actually Free" promise by unlocking full premium app experiences.

How Did Amazon Generate Revenue from Underground?

You might be wondering – how did Amazon monetize Underground while giving away apps for free?

They used several strategies:

• Underground‘s developer payout model – Amazon paid developers based on user time spent in apps. This incentivized super engaging, “sticky” apps.

• Lockscreen ads on Android devices. Amazon sold lockscreen ad space to major brands.

• In-app ads within certain Underground apps brought in ad revenue.

• Driving purchases for other Amazon services. More Android app usage translated to more Amazon retail sales.

• Collecting and selling usage analytics and data from Underground apps.

So Amazon managed to offset Underground‘s free apps through other means. But eventually, these revenue streams proved insufficient to support the ballooning catalog size.

Maintaining 10,000+ free apps was just too costly despite the supplemental income sources. Underground couldn‘t last forever under that model.

Analyzing the Pros and Cons of Amazon Underground

Underground offered clear benefits but wasn’t without some downsides:

Pros for Users:

• Access to actually free apps, not just “freemium”
• Paid apps for productivity, utilities, etc. available at no cost
• Popular games like Minecraft free on Underground
• Saved money compared to buying apps elsewhere
• No ads or in-app purchases to disrupt enjoyment

Cons for Users:

• Smaller app selection vs Google Play and App Store
• Missing many of the top apps and hottest new releases
• Forced to switch stores just for exclusive Underground apps
• Discontinued in 2019 so free access not permanent

Pros for Developers:

• Revenue from Amazon based on user engagement time
• Focus on great app experiences over monetization
• Exposure to Amazon‘s large user base
• Useful for user acquisition and scaling an audience

Cons for Developers:

• Limited availability just to Amazon Underground
• Much smaller reach than Google Play and App Store
• Lower revenue over time as Underground declined
• Forced to switch back to paid models after shutdown

Analyzing it holistically, Underground delivered genuine value especially in its early days. But the limitations ultimately outweighed the benefits for sustaining growth.

The Impact of the Amazon Underground Shutdown

When Amazon announced Underground‘s closure in 2019, it had ripple effects:

For consumers:

• No more free access to apps previously accessible through Underground
• Reverting to paying for apps they’d been getting for free
• Less incentive to choose Amazon products over Apple and Google
• Decreased purchasing power and app enjoyment

For example, if you’d been enjoying ad-free Pandora and unlimited WPS Office for free via Underground, now you lost access or had to pay.

For developers:

• Lost a unique distribution channel and revenue stream
• Forced to shift back to conventional paid models
• Lower download numbers without Amazon‘s reach
• Less incentive to create highly engaging apps without Underground‘s usage-based payouts

Developers like Moonlite who earned steady income through Underground usage faced disruption. Relying solely on Google Play downloads caused major declines.

While shutdown impacts weren‘t catastrophic since Underground hadn’t reached ubiquity, it still removed an app ecosystem many relied on. Users and developers had to adjust.

Does Amazon Underground Still Work in 2022?

No, Amazon Underground is completely defunct now. If you search for it, you won’t find it available for download anymore on any app stores.

The Underground app itself was removed from both Google Play and Amazon Appstore in 2019 after the shutdown announcement. Its servers were fully deactivated as well.

So Underground is no longer functional or supported in any form. When it closed down, that was the end of Underground as an app store.

The good news is that the individual apps you acquired through Underground previously can still work. Developers had to list their Underground apps separately on Google Play before the shutdown.

This ensured users wouldn’t lose access to the content even if Underground went away. The apps live on – just the app store itself is gone.

Could Amazon Ever Resurrect Underground?

Given Underground‘s failure to achieve sustained success the first time around, it seems unlikely Amazon would ever attempt reviving it.

The name still carries brand recognition. But relaunching Underground could confuse consumers and complicate Amazon‘s more prominent app stores.

Rather than fracturing efforts, Amazon seems intent on improving their Amazon Appstore pre-installed on Fire tablets and Fire TVs. This broader store has already succeeded where Underground failed.

Reinvesting resources into Underground would be seen as a step backwards for Amazon‘s app ecosystem. The company has shown no hints of reconsidering Underground after years since its quiet demise.

Barring a dramatic change in Amazon‘s app store strategy, Underground will probably remain relegated to a curious footnote in the company‘s history. Coming back from the dead seems like a long shot.

The Core Lesson from the Underground Saga

Analyzing the trajectory of Amazon Underground reveals a cautionary tale of how even the most innovative ideas can flounder.

On paper, Underground should have revolutionized the app store model. Finally, consumers got access to paid apps for free in an all-you-can-eat buffet. Developers got paid based on engagement rather than chasing ads and in-app purchases.

But Underground flamed out fast after failing to escape its niche appeal. At the end of the day, consumers and developers go where the users are. And Underground never reached critical mass.

Amazon learned that an app store needs to meet many conditions to thrive – a solid revenue model, massive inventory, smooth user experience, and constant improvement. Meeting just one or two criteria isn‘t enough.

Underground remains a footnote as an ambitious experiment before Amazon achieved broader app store success. Its story demonstrates that even the most innovative app store models are no guarantee of success.

The Bottom Line on Amazon Underground

Here are the key points to remember on the rise and fall of Amazon Underground:

• It offered a truly unique app store model with free apps and pay-per-minute developer payouts when it launched in 2015

• The catalog grew quickly to over 10,000 apps and saw initial adoption success

• But Underground failed to gain mainstream popularity long-term compared to Google Play

• Declining growth, profit issues, and shift in Amazon priorities prompted its closure in 2019

• Users and developers took a hit losing access to Underground‘s free app ecosystem

• The Underground app itself shut down but the individual apps live on through Google Play

• Resurrecting Underground years later seems highly unlikely at this point

While Underground burned bright for a few years, its long-term legacy failed to match its lofty ambitions. But the service gave us a glimpse of what an app store looks like when taken to a radically “free” extreme.

I hope this guide helped explain exactly what happened to Amazon Underground and why such an innovative idea faded into obscurity just a few years after launching. Let me know if you have any other questions!