Amazon- Too Big or Doing it Right with Chromecast and Apple TV?

Recently, Amazon has been in the news for their decision to not carry the Google Chromecast and the Apple TV device.  Now, in the past, Amazon has carried these devices and probably sold quite a few of them for their “competition” but now, since Amazon is pushing their Prime TV service, which may be the motivating source behind this move.  There is a lot more going on with this situation than just Amazon choosing to not carry these devices by Apple and Google.  A lot more.

Amazon sells a lot of stuff, not just books.  They have Prime that gives members free 2 day shipping, and access to streaming television (and rentals of both TV and movies).  That is the key to this, Prime TV.  I believe that Amazon’s push with their Prime TV on the Fire Stick and Fire TV is the reason they are pulling the Apple TV and Google Chromecast.  Sure, as many have pointed out, they could simply submit their app to Apple for inclusion on the Apple TV and the same for Google and the Chromecast.  They won’t do that though.

If they submit their Prime TV app to either competitor they will have to pay fees on sales through those services.  That cuts into the profit that Amazon sees, which depending on the buyer of those devices could outstrip the profit Amazon sees from selling those devices in the first place.  It is a no win for Amazon to keep carrying the Apple TV and Google Chromecast in their store.  They would be supporting the competition when they have a platform of their own that they are trying to promote people to buy- Fire TV and Fire Stick.

Amazon sells their Fire Stick and Fire TV’s which are capable of running Prime Streaming services.  That is profit two ways for Amazon, initial sale and then sale of the Prime service.  Why would Amazon want to share that with Apple or Google?  There are many concerns that if Amazon is going this because their Prime Streaming service is not on those two devices then why not remove other things that don’t come with Prime Streaming installed, or supported by default.  That is a simple question to answer.

While Amazon sells TV’s that are note Prime Streaming enabled, they are capable of being coupled with a Fire Stick.  Amazon does this regularly when you are shopping on their site, they offer “bundles” somewhere on the page showing other items that complement the item you are currently viewing- such as a Fire Stick when looking at televisions.  This is how they upsell customers.  They cannot upsell a Google Chromecast with a Fire Stick.

At the end of the day, it is all about profit.  That is what is motivating Amazon to remove Apple TV and Google Chromecast from their lineup.  This is just basic business activity.  You don’t see Google offering Android phones from, say, Samsung, on the Google Play store but you do see them offering the Nexus line, or they did in the past if not today.  Same for Apple.  Visit one of their stores and see if you notice Windows computers on the shelves, even though there is a version of iTunes for the Windows platform, Apple makes more selling you an Apple device then selling you content through their iTunes store.  It wouldn’t make much sense to push the competition so they don’t.

The same goes for Amazon.  This is purely financial motivation at the end of the day.  I doubt the loss of sales of Apple TV and Google Chromecast will affect Amazon’s bottom line all that much.  It might actually push more sales of their Fire line of options.

Carl Williams

It is time gaming journalism takes its rightful place as proper sources and not fanboys giving free advertising. If you wish to support writers like Carl please use the links below.

More Posts - Website

Follow Me:
TwitterFacebookPinterestGoogle PlusFlickrStumbleUponYouTubeReddit

%d bloggers like this: