Amazon recently introduced its Fire TV Stick
According to Amazon (AMZN), Kindle Fire TV is now the best-selling streaming box on its own site. Fire TV is a device used to stream videos from content providers such as Netflix (NFLX), Google’s (GOOG)(GOOGL) YouTube, and Hulu. It also comes with access to Amazon’s own Instant Video service and access to music service from Amazon MP3, Pandora (P), and TuneIn.
Recently, Amazon also introduced Fire TV Stick, which is a smaller and slower version of Fire TV. You can buy Fire TV for $79 and Fire TV Stick for $39 from Amazon’s own site. Fire Stick is similar to Roku’s streaming stick and Google’s Chromecast. However, one difference between Fire Stick and Roku is that you can’t access HBO GO from Fire Stick.
Time Warner (TWX) has been trying to popularize its HBO GO service, which means we could see this service with Fire Stick very soon. Read Why international markets are a big opportunity for Netflix to understand Time Warner’s efforts to popularize its HBO GO service.
The video streaming device market has huge growth potential
Irrespective of competition for Amazon in the video streaming device market, there’s potential for overall fast growth. This is evident from a report from comScore, which mentions that the preferred mode of watching Netflix is through Internet-connected TV devices such as Apple (AAPL) TV and Google Chromecast. As the chart above shows, 44% of people preferred Internet-connected TV devices for watching Netflix. Next came desktop and laptop preference, gaming console or Blu-ray device preference, and mobile device preference.