Amazon drops Apple, Google products: Who loses more?

Amazon drops Apple, Google products: Who loses more?

The popular e-commerce company Amazon has made the decision to no longer sell Google and Apple streaming media players that aren’t easily compatible with its own streaming service.  

 

Amazon Prime Video menu

Prime Video has become a driving force behind Amazon customer decision to subscribe to a Prime membership. (digitaltrends.com)

According to Amazon, the Google Chromecast and Apple TV video streaming devices have compatibility issues with the company’s media-streaming service, Prime Video. Amazon sent an email to its marketplace sellers letting them know they will no longer sell these devices starting Oct. 29.

 

“Over the last three years, Prime Video has become an important part of Prime,” said Amazon’s email. “It’s important that the streaming media players we sell interact well with Prime Video in order to avoid customer confusion.”

 

This move will likely affect Apple less than Google, since the company has its own stores to sell Apple devices out of. With the newest Apple TV model coming in 2016, Amazon may be missing out on potential financial gain. According to J.P. Morgan analyst Rod Hall, Apple is expected to sell 24 million new Apple TV models next year.        

 

Apple TV dock

Apple TV is set to launch next year. (universityherald.com)

“This has the potential to hurt Amazon as much as it does Apple and Google,” said Parks Associates’ analyst Barbara Kraus. “As a retailer, I want to give people a reason to come to me. When I take out best-selling bands, I take away those reasons.”

 

Amazon loses more than just financial gain by selling its competitors’ products. Forrester Research’s Amazon analyst James McQuivey said that the company will have “to forgo the amazing market knowledge it gains by selling competitive devices.”   

 

It may seem like Amazon is only losing out with this recent decision, but it could result in a win for the e-commerce company. If Apple and Google feel the effects of not having their devices sold on Amazon, then it may force them to make their products more compatible with Prime Video. Apple and Google have yet to comment on how they will react to Amazon’s decision.     

 

How will Google and Apple react to Amazon’s move? Was Amazon’s decision likely to be the correct move to make? Leave a comment or talk to me on Twitter @Karbowski_Devon.

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