Marketplace sellers received an e-mail from Amazon Seattle-based Web retailer saying that they will stop selling the Apple TV and Google’s Chromecast. “Amazon would likely say otherwise since it will still sell streaming devices that do support Amazon Instant Video such as Roku, the Xbox, and Sony PlayStation”.
But most observers saw the move as an attempt by the Seattle-based retailer to advance its stake in the increasingly competitive world of digital streaming by boosting its own Fire TV set-top box and plug-in stick.
“Amazon probably wants to teach Apple and Google a lesson about not making their devices more compatible”, Mr. Grunes said.
Comprising 86 percent of all media-streaming units sold in the USA are devices from Roku, Google, Apple, and Amazon past year, an August report from Parks Associates stated.
Apple and Google declined to comment. Amazon has invested heavily in online content, including producing its own exclusive shows such as the award-winning transgender comedy Transparent, as a way to attract new Prime subscribers, who pay $99 a year for speedy shipping and access to video and other services.
Amazon on Friday said it will stop selling Apple TV and Google Chromecast devices that compete with the online retail titan’s own media-streaming hardware. As a competitor, the online retailer is using its store and while it can not stop the soaring sales of its rivals’ products, it does not have to contribute to them.
“Amazon should be allowed to sell whatever they want, just like any other store”, he said.
Many market analysts were surprised about Amazon’s announcement.
Amazon’s decision to limit selection “sends the wrong signal to consumers”, and the company’s explanation that Prime Video doesn’t work well with its rivals’ products is “especially weak”, said Michael Pachter, an analyst at Wedbush Securities in Los Angeles. But Apple TV and Google’s Chromecast will be not be sold. But it’s a surprising move for Amazon, which often sells products that compete with its own, such as tablets that battle for business with the Fire tablet.
A report in The New York Times said Google’s Chromecast is a huge success. Amazon unveiled the Kindle Paperwhite and the Kindle Fire HD in 7 and 8.9-inch sizes.
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Amazon was a late arrival in the connected TV market but is swiftly seeking to catch up. Amazon updated the line in September, adding an option for a voice-activated remote control.
“I can understand them pushing hard into this space”, said Colin Gillis, a tech analyst at BGC Partners.