Prime was given a huge leg up by Seven at the start of the new millennium, having the rights to broadcast the Sydney Olympic Games in 2000. This relationship between Prime and its programming supplier was further strengthened throughout the decade, with an unsuccessful rebrand to '7onPrime' and even further cuts to local production.

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Directly after the Olympics, Prime relaunched and adopted identifications from Channel Seven featuring the coloured 'blocks-in-tights'. This only lasted a few months though, as on 11 February 2001 Prime launched a new marketing campaign complete with a new logo, new music from Australian band The Go-Betweens, and partly-new name: 7onPrime. The concept was that during any local productions the station would be referred to as Prime, but with any networked Channel Seven programming it would be known as 7onPrime. Sound confusing? Well it was, and the 7onPrime name was soon phased out.

At around 9.30am on Friday, 8 June 2001, Prime management informed 37 staff working on local news services in Canberra, Wollongong and Newcastle that they had already produced their last news bulletin and would now no longer be required. Management said they wanted to save staff "the trauma of having to wind a news service down very publicly", so instead of allowing a final bulletin to be broadcast on Friday, Sydney's Seven News and Today Tonight were shown from 6pm instead. Management named declining ratings and the cost of switching to digital broadcasting as reasons for the closure, although in Wollongong, staff blamed management's decision to switch a signal on the NSW Far South Coast, so that news from Canberra instead of Wollongong was broadcast to those south of Batemans Bay, for that decline in ratings.

In 2003, an investigation by the Australian Broadcasting Authority concluded by imposing new conditions on regional television broadcasters to show a minimum amount of local content per region. Prime was forced by the new regulations into redeveloping news services for those areas where it had axed local news bulletins two years before, beginning generic news updates read by a single presenter with little to no visual content at all.