Dive summary:
- Amazon is developing another product to the expanding Kindle line, a TV set-top box that will allow users to stream Amazon Instant Video service directly to your TV.
- The market for this type of product is quite crowded after the proven popularity of DVR; Apple, Google, Roku and Boxeee all have similar products that already stream Amazon Instant Video, among other programming.
- One reason Amazon may be getting into the TV device area is to help expand user ship for Amazon Instant Video; Amazon's strategy is similar to the release of the original Kindle -- give users a lower cost option with access to a large library of content.
From the article:
"Despite the dominance of vanilla DVR, it's the up-and-comers that have consumers licking their chops. Apple sold 5 million Apple TVs last year, while Google has a wide range of hardware partnerships for Google TV. Since launching the platform in 2005, Microsoft has shifted 77.2 million Xbox 360 units, while Sony does brisk business with its PlayStation 3. (Both consoles are expected to release next-generation versions later this year.)"