Media streamers have met the market with limited success over the years. Roku, Boxee, Apple TV, Google TV and Chromecast have all done relatively well but none of them really have hit what could be considered "critical mass." Sure, a lot of devices have been sold but Amazon's Jeff Bezos knows it's not about selling devices, it's about enabling more users with convenient, easy access to content and services that you can charge for that brings profits. Cord cutters love media streamers. There's little doubt that breaking from the monopolistic tendencies, lack of freedom of choice and high prices that come with major cable TV operators, has huge broad market appeal.
There's obvious low-lying fruit here, but it's not about getting customers to cut the cord, it's what you do with them once you've got them that is core to the business opportunity of the competitive media streamer market. And if there's one company that has the ecosystem in place to potentially kill it in this space, it's Amazon.
Amazon's Fire TV media player was recently launched with mostly positive but occasionally mixed reviews from those of us in Tech media. The device has some innovative features including voice search, gaming and a dedicated gaming controller. At its competitive $99 MSRP it's actually a compelling low-risk addition to any home entertainment system. However, what could potentially be the real hook with Fire TV likely won't be some whiz-bang technology or feature but Amazon's content network and delivery infrastructure that sets it apart. Sure, the product offers access to the standard Internet streaming services like Hulu Plus, Netflix, Vevo, Vudu and Crackle but you also get access to Amazon Prime Instant Video, TV and Movie content as well as Amazon MP3 and Cloud player services, not to mention a growing, Android-infused gaming library.
Apple TV has done well over the years because of Apple's iTunes ecosystem as an initial attraction for consumers, but Apple and even Google don't currently have the TV and movie content and services in place that Amazon has. It’s not as if Amazon has a massive lead in video content but the company paved a similar road in e-books and they own that space now. Further, Roku, Boxee and other stand alone streamers that rely solely on third party services to serve content--their days are numbered. It's about rights to content and being able to host it that justifies the internet streaming media player market. Without that, big cable and networks are going to eventually crush you like a bug as Internet TV and movie services continue to evolve.
And just this week Amazon tipped its collective hand on their next move that makes a lot of sense. The company may in fact be "on a mission to make its Amazon Prime service the end-all-be-all package for entertainment and convenience." As it turns out, Amazon recently signed agreements with major record labels to bring music content to Prime customers for on-demand streaming as well. So, on one platform, you have competitive services to Hulu, Netflix, Pandora and many more. Oh and the box also has those services as well of course. It makes you wonder about the Apple-Beats deal, doesn't it? Google could make a run at it but Google is more focused on devices, software, infrastructure and services, rather than content.
Eventually, streaming music, video, TV, e-books, gaming and original programming will all be available on the Fire TV with the ability to cast a Kindle Fire tablet to it as well. In total, it's a compelling product and services bundle that has potential to be very disruptive in the market.
In fact, Amazon's challenges may come from service providers that might not be as cozy about teaming up with the company due to its ability to compete and offer a similar product or content on their own. Or is that a challenge? Amazon may not even care much eventually, with the content rights in place and 800 pound gorilla-like infrastructure to host it.
