Arriving as a shock to the industry, online retail giant Amazon.com has announced a ban on Apple TV and Google’s Chromecast. As reported by Bloomberg, Amazon.com shared the news that they will be removing all existing listings by October 29th 2015, and allowing no new listings of devices featuring media-streaming from Google Inc. and Apple Inc. It was stated that those devices do not “interact well” with Amazon’s streaming media service, Amazon Prime Video.
Less-than-satisfactory compatibility blamed
It was also explained that Prime Video is not fully functional on their competitors’ hardware. It should be expected that Amazon will protect their own interests, seeing that they have invested heavily into Prime Video, as they do with all content services. Even though only 20% of Amazon customers are also subscribed to Prime Video, Amazon has decided to remove Apple and Google devices, making a dent in their marketplace. Will this in time net them more Prime Video viewers? They appear to think so, whilst setting an example as firm players in global retail by standing up to Apple and Google.
Another product that Amazon is surely hoping to sell more of thanks to the hole in their market, self-made, is the Fire TV set-top-box inclusive of 4K support. Apple TV may not feature 4K but this new standard in digital content is yet to be expanded, it is simply not yet in demand. Apple TV may be making the intelligent decision by not yet adopting this bandwidth-heavy standard. Apple Inc. already has many exciting products in high demand and will most likely feel a impact from this daring move by Amazon, but not one big enough to shake them.
Amazon bans Apple TV and as a result could see more damage done to their own income, than to that of Apple. Amazon.com has employed similar tactics in the past, although the resultant effect was a drop in favorable customer opinion and loyalty. Let’s hope for their sake that this, too, do not backfire.