Amazon has recently announced that they will no longer be selling any media-streaming devices from Google and Apple that are incompatible with Amazon’s video service. This is one of their recent efforts to implement their own retailing strategy.
Actions have been taken, and Amazon has already sent out emails to its sellers that it will stop all sales of Apple TV and Google’s ChromeCast as of October 29, 2015. The email went on to explain the reason behind this ban , “Over the last three years, Prime Video has become an important part of Prime,” Amazon said in the e-mail. The ban was created because these devices do not play Amazon Prime very well, a complication with software. However, they are a few companies that are safe from this ban including; Microsoft’s XBox, Sony’s Playstation, Roku Inc.’s set-top device. The amazon equivalent to the ban is the Amazon firestick, which is a jump drive that connects to television with the streaming services that include netflix and prime video.
This move was strategically implemented weeks before the holiday season in hopes in boost the amazon media-streaming devices. Although Google and Apple devices are among the top sellers, Amazon is confident that this the best move for their retailing strategy. This ban does not violate any laws because consumers still have the option to purchase these products in other places.
Although Amazon feels very confident about this ban, but they are skeptics that base their side on facts. Fewer than 20 percent of amazon customers are amazon prime members, so it is clear to see where the other 80 percent stands.
Article: http://www.bloomberg.com/news/articles/2015-10-01/amazon-will-ban-sale-of-apple-google-video-streaming-devices
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