Stay on Top of Emerging Technology Trends
Get updates impacting your industry from our GigaOm Research Community
Although it seems pretty cut and dry, there are folks in tech media that feel Amazon shouldn’t actually stay competitive, as businesses tend to do to survive.
Case in point: Amazon doesn’t like that neither the Apple TV nor Google’s Chromecast provide easy access to its Prime Video service, so it’s taking steps over the next month to stop businesses from selling the products through its website.
“Over the last three years, Prime Video has become an important part of Prime,” Amazon said in an email to employees. “It’s important that the streaming media players we sell interact well with Prime Video in order to avoid customer confusion.”
This means that products which play nice with Amazon’s streaming video service — like most game consoles, Roku’s set-top boxes, and the company’s own FireTV — will remain available on Amazon. Apple and Google are the only ones being booted.
It’s hard to be too upset about this. Could this frustrate Apple and Google? Maybe. Will it be annoying for Amazon Prime customers who expect to be able to purchase anything through the company’s marketplace? A little, I guess. But that’s about it.
But let’s not pretend this is going to hurt Apple or Google that much. Apple has the highest sales per square foot of any retail store in the United States, and it can easily promote its products by emailing the hundreds of millions of people who gave the company their email addresses so they could download stuff from the App Store.
As for Google? Well, running the world’s most popular search engine has its perks. It can also put ads for the Chromecast on YouTube, in Gmail, and basically anywhere else it desires through its advertising platforms. Sure, it won’t offer free two-day shipping, but I doubt most people are in a rush to purchase a new dongle.
Could this be the start of a worrisome trend? Maybe. I guess it would be a problem if Amazon stopped selling e-readers that don’t support the Kindle Store, given that it’s all-but-synonymous with the product category. But those competitive devices are still listed on the company’s site, and that seems unlikely to change any time soon.
At this point, the only entity harmed by this action will be Amazon. It’ll frustrate people who want to make it their one-stop-shop for all things commercial, and it makes the company seem like a petulant child stomping its feet because the other, more popular kids don’t want to play with it. Does that seem like a stable company?
This move reeks of desperation. Amazon might be the biggest online retailer in the United States, but it’s not the only place where people can buy these products. It would’ve been better off allowing them to be listed on its site, if only to keep up its appearances, than to plan the products’ downfall to serve its own selfish purposes.
But we’re only discussing this because of the companies involved. Remove the brands and this becomes a lot less interesting. A retailer pulled some items from its virtual shelves. There are other stores, and luckily for anyone with a decent Internet connection, it only takes a few seconds to visit them and buy those items.