From the humble beginnings of an online bookstore to its present mega-product-discount presence on the Internet, Amazon.com has also tested the waters for developing and producing consumer electronics for its vast audience of shoppers.
The latest tidbit coming from insiders today, according to Bloomberg, is the news that Amazon may be venturing into making its own TV top-box for streaming video content.
The competition
The most recognized video box players are Apple TV and Roku. These little devices act as gateways to sources for streaming video such as Netflix, Vudu, and Hulu.
Amazon.com already has an ample library of streaming video for sale, and has thousands of free videos for subscribers of its Amazon Prime service. By entering the video streaming top-box business, it can use its tremendous leverage as an online retailer to drive streaming video rentals and sales.
The present consumer base
The Amazon Prime subscription has a $69 annual fee and gives its members free two-day shipping on the majority of products sold on Amazon.com, plus access to thousands of free television shows, movies, and documentaries on its Prime video streaming service, plus thousands of streaming movies for rental or purchase.
If Amazon releases a top-box of its own, how will this affect subscribers of Amazon Prime? And more to the point, will buyers of the Amazon Box be offered a discount or free subscription to its Prime service?
If so, this may create a customer backlash from loyal Amazon Prime customers who not only had to buy a competitor’s streaming video box, but also paid full price for the Amazon Prime service. If the company wants to keep its present clientele from screaming “unfair!” it may have to figure out a way how to “reward” or appease its loyal constituency.
Via Bloomberg
via Examiner National Edition Gadgets & Tech Channel Articles http://www.examiner.com/article/amazon-will-go-head-to-head-with-roku-and-apple-with-its-own-streaming-video-box?cid=roadrunner