Recently, Amazon.com Inc. announced to its online sellers, via an email, that starting Oct. 29, the company will ban the sale of Apple TV and Google Chromecast. But what's the real reason behind this surprising move?
According to a report from Bloom Berg Business, the Seattle-based online retailer cited that they will stop offering the two best-selling streaming boxes currently in the market because they are not compatible with their own video service.
The Verge states that this move from Amazon is "not surprising" as tech companies, such as Google, Apple, Facebook, etc., have always been trying to "outmaneuver each other" and maintain their own controlled market. By not granting access to Apple and Google, Amazon can control the sales of these products within its environment, and, hopefully, increase the sales of its own streaming hardware, Fire TV.
Bloomberg Business further notes that Amazon is obviously willing to play hardball by sacrificing products from popular brands, especially just before the holiday season, where shopping significantly increases. It is also speculated that Amazon might feel "threatened" by the sales of Apple TV and Googlechromecast, as per Forbes.
However, in a statement released by Amazon's PR team, the company denied such speculations, saying, "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."
This is not the first time that Amazon has implemented stricter rules in its sales, it can be remembered that last year, it implemented a new contract for publishers, where books will go on sale for $9.99 and Amazon will have a 30 percent cut from it, as per a separate report from The Verge. This left retailers baffled, especially U.S. publisher Hachette that endured months of dispute against Amazon.
With the recent upgrades in the new Apple TV along with the huge marketing that comes with the brand, The Verge notes that Apple TV will feature all the features that Fire TV has to offer such as games, a universal voice search and an app store. And because of this extreme likeness, Amazon is exhausting all its means so that the competition will not have the upper hand in the market, including using its "biggest leverage," it's online retail website. Adding Google Chromecast in the mix is just a "post hoc justification."
Media analyst Dan Rayburn shares his thoughts on the matter, stating in a report from Wired, “It’s interesting that they do it right after a brand new Apple TV is announced. Right after new Chromecasts are announced. Right after they announce their own, upgraded Fire TVs and sticks."
"I find that a little suspicious," he added.