Amazon kicks out streaming devices made by Apple and Google

Steven Loeb · October 1, 2015 · Short URL: https://vator.tv/n/4075

The company says Chromecast and Apple TV don't work well with Prime

With so many video streaming sites out there now, from Netflix to Hulu to Amazon Prime to a number of others, there is obviously going to battle over which one gets to deliver what content. Netflix, for example, has decided that it wants nothing to do with any content that isn't exclusive. It seems like a natural development as there is a limited number of hours that people can actually spend watching these shows.

Now that fight seems to have begun extending beyond only what content is available, and into what devices through which users can access it. And it's getting a little ugly. 

Amazon has some power over its rivals, as it actually sells devices made by its rivals and now it has decided to flex that muscle, by banning the sale of video streaming devices from Google and Apple, the company has confirmed to VatorNews.

No new listings for the products will be allowed and and postings for existing inventory will be removed on October 29.

The company's reasoning: Google's Chromecast and Apple TV, which users can user in order to stream multiple content providers, including Hulu and Netflix, directly onto their televisions, are not easily compatible with Amazon’s video service, Amazon Prime. Therefore, they apparently had to go, despite the fact that not everyone who buys from Amazon actually uses Prime. Actually, far from it: As of March 2015, 175 million users visited Amazon's websites per month; the number of Prime users is estimated to be may be around 50 million, or 28% of those active users. 

Amazom would, of course, rather customers by it's own products, including its Fire TV stick, which plugs into an HDMI port to connect televisions with streaming services. It is the company’s best-selling electronic device.

To be clear, the company is not banning all other streaming devices outright, as it is still allowing Roku hardware, Microsoft's Xbox, and Sony's PlayStation, all of which work with Amazon’s video service, to remain on the website. It's just those that it claims do not easily allow their users to stream Prime. 

"Over the last three years, Prime Video has become an important part of Prime. It’s important that the streaming media players we sell interact well with Prime Video in order to avoid customer confusion. Roku, XBOX, PlayStation and Fire TV are excellent choices," an Amazon spokesperson told me.

This is a gutsy move on Amazon's part and one that, I predict, many of its customers will be quite upset about.

For those who don't subscribe to Prime, what do they care if their Apple TV streams it? Amazon is the largest retailer in the world, and while it's not the only place where people can buy Chromecast or Apple TV, Amazon is, essentially, using its position to try to determine winners and loser in this space, with the ultimate winner being itself. By effectively eliminating its own competition, this move comes across as an abuse of Amazon's power.

It is also surprising since, for the last 18 months, Google has had an SDK that enables any developer, including Amazon, make their apps work on Chromecast. So to say that Amazon does not work on the device seems disingenuous.

When it comes to companies offering video-streaming products, Amazon, Apple and Google are all powerhouses.

Amazon was the third largest manufacturer of media-streaming devices in 2014, behind only Roku with 34% of units sold in 2014 and Google with 23%, according to a report by Parks Associates.  The company came out ahead of Apple for the first time last year, and not it seems obvious that it has Google in its sights next. 

Amazon stock went up 1.72% to $520.72 a share on Thursday.

This news was first reported by Bloomberg.

VatorNews has reached out to Apple for confirmation and comment on this report. We will update this story if we learn more. 

(Image source: diginomica.com)

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