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While today’s rumors indicate an Amazon set-top might be imminent, the analysis is decidedly one-dimensional when it comes to what that box will do.
But as I wrote today at NextMarket, we shouldn’t expect Amazon’s box to be a one trick pony.
I’ve talked to quite a few folks who think Amazon will get into the smart home game, and give that the Amazon net-top chief Malachy Moynihan dived fairly deep into smart home when he was running connected home for Linksys, I wouldn’t be surprised to see Amazon go into smart home in a big way.
There are numerous reasons to think Amazon would find smart home and home automation attractive. I summed up the main one point this way:
I also believe it’s a market that is a much better fit for Amazon’s core commerce business. Sure,the company sells lots of digital content, but unlike video, there are no massive and complicated licensing deals and release windows to think about. Imagine an Amazon partner program under which a bunch of third party home system providers are featured prominently on the company’s website and the TV itself. I have a feeling companies like Westinghouse would love to work with Amazon to sell Wi-Fi thermostats, and am pretty sure Amazon would sell billions of dollars in home systems in the coming years.
Amazon already sells billions of dollars of home systems, white goods and electronics every year. Why wouldn’t they try to control a bigger part of the market with a platform that would truly differentiate their set-top?