Amazon will stop selling Apple TV and Google Chromecast by Oct. 29th ,since these devices cannot work with Prime Video, Amazon’s in-house streaming video service. Amazon will continue to sell other companies’ devices, as long as these devices are compatible with Prime Video.
Richard Windsor, an analyst at Edison Investment Research, disagrees with Amazon’s behavior. He said that Amazon was narrowing customers’ options, thus customers might be dissatisfied with Amazon’s services. The value proposition of Amazon could diminish. Under that situation, Amazon might backfire and weakens its competitiveness.
In the opposite, I consider that Amazon’s action towards Apple TV and Google Chromecast is insightful. By banning the sell of Apple TV and Google Chromecast, Amazon prevent users from accessing services which are from its competitors. In this way, Amazon actually becomes more competitive. Also, it is better for Amazon to limit these devices which are incompatible with Prime Video, because Amazon cannot make profits from hardware services and content services of these ‘incompatible’ devices.
Whether the decision made by Amazon is good or not, I think time will tell.
Sources:
- http://www.bbc.com/news/business-34421804
- http://www.techhive.com/article/2988560/home-players/amazon-wont-sell-apple-tv-and-chromecast-hardware-bans-marketplace-partners-from-selling-them-too.html