Amazon Reportedly Working On Set-Top Box
Bloomberg is reporting that Amazon has plans to release its own television set-top box later this year. The device will stream video over the internet from Amazon's video service catalog. From the article:
"Amazon Chief Executive Officer Jeff Bezos is pushing the company into a broadening array of hardware, including tablets, electronic readers and a planned smartphone. ... The set-top box is being developed by Amazon’s Lab126 division, based in Cupertino, California -- the city that’s also home to Apple. Lab126 has toyed with building connected television devices for several years, the people familiar with the effort said. ... Plans for pricing couldn't be determined. Amazon’s typical strategy is to sell hardware at competitive prices, sometimes at a loss, with the intent of making up for discounts through sales of content, including books and movies. Amazon could also use the set-top box to promote its online store.
No one I know would be interested in a device dedicated to a single provider's service. Everyone I know who uses Internet-based delivery for some of their media uses more than one source, and none of them would have any desire to have multiple devices. Perhaps if this was the only way to consume Amazon's video offering... but it isn't.
There's already a number of devices (Roku, PS3, XBox, a variety of DVD/Blu-Ray players, etc.) that allow access to Amazon's Instant Video as well as Netflix and a host of other media services. I can't see how Amazon thinks it's a good idea to compete with that.
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