Will Amazon.com, Inc (NASDAQ:AMZN)’s “Cinnamon” spice-up your TV?
News has it that Amazon.com, Inc (NASDAQ:AMZN) is all set to release a set-top box. This box will stream online-video to televisions. This device has been dubbed “Cinnamon”. It will have apps that can be used to stream music, video and play games, not just from Amazon but from other companies as well. This device is slated for a holiday season release.
The crowded market
Today, there is a slew of internet content streaming providers like Netflix, YouTube, Hulu and Apple TV, amongst others. There are the PS3 and Xbox 360 for the hardcore gamers and Blu-ray players and DVR’s can be used for streaming video too. Even Google ended up entering the space with its Chromecast release. What this simply means is that there is no dearth of service providers in this segment of the industry
A great strategy
But for Amazon.com, Inc (NASDAQ:AMZN), generating revenue is not the only aim of launching a set-top box in this crowded space. The company’s Chief Executive Officer, Jeff Bezos said that the company sells the Fire tablets and Kindle readers at cost. Its revenues from that area come in only from what consumers buy by using those devices and having another place where people can purchase content and products makes a whole lot of business sense. Having a set top box of their own will automatically help in attracting more subscribers to Amazon Prime. This is the annual service that comes at $79 and provides customers 2 days of free shipping on literally millions of different products. This subscription covers access to its streaming video-service, Amazon Prime Instant Video which is a Netflix rival.
Thursday’s trading session
In Thursday’s trading, Amazon.com, Inc (NASDAQ:AMZN) dropped by 1.79%. The shares opened at a price of $320.39, climbed to an intraday high of $322.92 and dipped to a close of $314.76.