Amazon to Ship Video-Streaming Device in April
Amazon.com Inc. will begin shipping its long-awaited video-streaming device in early April, through its website as well as retailers including Best Buy Co. and Staples Inc., said people familiar with the company's plans.
Context & Ripple Effects
Amazon has been building its video business since its 2006 TV and movie service launch, while reports in 2013 repeatedly pointed to a dedicated television device. A March 11 report added Netflix and Hulu Plus to the expected software mix, making the reported retail rollout an attempt to put Amazon's video offering on a living-room screen rather than only in its online store.
First-order effects
- If the reported early-April plan proceeds, Amazon gains a direct hardware sales channel alongside Best Buy and Staples, while those retailers become physical outlets for its streaming device.
- The previously reported Netflix and Hulu Plus support would give those services another route to reach viewers through Amazon's hardware.
Second-order effects
- Selling through Best Buy and Staples would make retail placement part of Amazon's distribution strategy, not merely an Amazon.com transaction, giving the device access to shoppers already buying consumer electronics.
- Amazon's device would tie its existing video catalog more closely to a purpose-built screen, increasing the value of a single Amazon-controlled entry point for video discovery and purchase.
Third-order effects
- The move points toward online video sellers using low-friction hardware distribution to control the television interface as well as the underlying catalog.
- If Amazon pairs retail hardware with third-party video apps, the competitive unit shifts from a standalone streaming service to the combination of device placement, interface, and content access.
The trend: Digital video providers are extending from online catalogs into dedicated living-room hardware to own more of the customer entry point.