Amazon would reportedly owe the Tolkien estate $40 million to cancel Rings Of Power

That fee, while enormous, would be less than the streamer paid to make three episodes of season 1.

By Emma Keates | October 2, 2025 | 11:22am

Photo: Prime Video

TV News The Lord of the Rings: The Rings of Power

Amazon would reportedly owe the Tolkien estate $40 million to cancel Rings Of Power

The Rings Of Power has been an undeniable bomb for Prime Video, which is a huge bummer for the streamer that invested an estimated $1 billion to get it made. First season episodes cost $20 million apiece, but a good chunk of them went unseen by a huge fraction of the fans who initially tuned in. Only 37 percent of the show’s domestic viewers completed the first season, The Ankler newsletter reports, with slightly better results (45 percent) overseas. Viewership numbers were even lower for season two, though internal sources report that of the subscribers who did watch, 10 percent more saw it all the way through. You could certainly say it has underperformed.

All of this begs a pretty obvious question: Why is Prime Video still making this show? Season three is currently in production, though the streamer hasn’t revealed a timeline for its release as of this writing. “They should cancel it and move on,” said one veteran literary agent interviewed by The Ankler, who opined that Amazon “wildly overpaid” for the rights to the property. The streamer is now “a few executives removed” from that initial decision, they added. “Who are you worried about embarrassing?”

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In reality, the answer may be more financial than emotional. If it canceled the show, Amazon would have to pay the Tolkien estate a $20 million per season kill fee, the newsletter reports. Since the company initially signed a five-season deal, that would come out to $40 million total. On one hand, that’s the price of a mere two episodes from season one. Due to tax incentives from relocating the production out of New Zealand, however, The Ankler reports that costs on seasons two and three have been “dramatically reduced” from that initial price tag. Either way, $40 million certainly isn’t nothing.

Whatever Amazon ends up deciding about Rings Of Power going forward, it sounds like the show has already generated its fair share of strife internally. “All of their money is taken up with Lord Of The Rings,” an unnamed “prolific showrunner who spent time on an Amazon production” told the newsletter. “You’re left wondering if you’ll be able to get what you need in order to produce your show.” It sounds like the expensive series really has become the one ring to rule them all.