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Why Is Amazon Deciding Not to Sell Rival Streaming Devices?

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Apple TV and Google Chromecast not compatible with Amazon’s Prime Video

Amazon (AMZN) has been trying to be an aggressive player in the video streaming device market. According to a report from Bloomberg News, Amazon would bar the sales of Apple (AAPL) TV and Google’s (GOOG) Chromecast streaming devices from its own platform. The reason cited by the company was that these devices were not compatible with its own Prime Video service. The sales of other rival streaming devices such as Roku, Microsoft’s (MSFT) Xbox, and Sony’s (SNE) Playstation will not be affected.

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Amazon is doing this as the stakes in the market for streaming, or connected, devices heat up. According to a Q2 2015 report from the Adobe Digital Index, the share of connected TV devices used for TV Everywhere, or authenticated streaming, has increased from 10% in 1Q14 to 21% in 1Q15. The iOS platform continues to lead this market with a share of 50%.

Connected TV devices becoming popular

The popularity of TV Everywhere is due to a number of reasons. It provides convenience and schedule flexibility, allowing consumers to skip commercials and watch multiple episodes sequentially. The growth of TV Everywhere has directly benefited the growth of connected TV devices.

To get exposure in Amazon, you can invest in the PowerShares QQQ Trust, Series 1 (QQQ). The ETF has 4.9% of its holdings in Amazon.

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