Amazon will ban sales of Apple TV & Google Chromecast (1 Viewer)

[satam55]

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Amazon will ban sales of Apple TV and Google Chromecast

Chris Welch October 1, 2015 01:47 pm

Amazon plans to discontinue sales of Apple TV and Google Chromecast, two enormously popular streaming devices that compete with the company's own Fire TV and Fire TV stick. Bloomberg Business first reported on an Amazon memo dispatched to all merchants on the e-commerce site, warning that both products will disappear on October 29th. New listings for either device are no longer permitted. "Roku, Xbox, PlayStation, and Fire TV are excellent choices," the company said in a statement.

Amazon's reasoning, which is sure to come under a firestorm of criticism, is that it wants to sell living room devices that are fully compatible and optimized for its Amazon Prime Video service. "Over the last three years, Prime Video has become an important part of Prime," Amazon told vendors in an email. "It’s important that the streaming media players we sell interact well with Prime Video in order to avoid customer confusion."

Apple TV and Chromecast users are not presently able to purchase movies and TV shows directly from Amazon's digital store. Amazon has long refused to hand over a percentage of content sales to Apple (iOS) or Google (Android), which would allow convenient in-app purchases on both platforms. (For example, on iOS, Amazon's video app will only show you movies you've already purchased or rented plus content that can be streamed for free as part of Amazon's Prime service.) An Amazon Video app for Apple TV has also yet to materialize.

The move may harm Google's living room ambitions more than Apple's; Chromecast has steadily been a top seller in the electronics category since its debut — and Google just announced a brand new model. Consumers will still be able to purchase it from the Google Store, Best Buy, and other third-party retailers. Apple too is preparing to release an updated version of the Apple TV box later this month through its own store and via a slew of authorized retailers.

Amazon will ban sales of Apple TV and Google Chromecast

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[Robert Crawford]

Amazon is getting too big for its britches.

 

[Mark-P]

It goes both ways. Apple refuses to let Amazon instant video into its Apple TV platform, so Amazon will refuse to sell Apple TV. Both companies are very stubborn.

 

[Josh Steinberg]

I have to wonder whether this really matters in the end. If you're someone who wants to buy an AppleTV, I have to imagine that you'll end up buying an AppleTV, whether it's in person at the Apple Store or Best Buy, or online at Apple's website or another retailer's. The AppleTV is a pricey enough device that it usually qualifies for free shipping regardless of where you're getting it from.


I have Amazon Prime. I also have Apple devices, including an AppleTV. I'm a supporter of both services, but I wouldn't blink twice at this.

 

[Patrick Mason]

Odd reasoning and timing considering Apple just opened up their box to third party developers. Guess that means they will not be creating an app for it? That is a shame, would be nice to finally have all of the major video services in one place.


I hope Amazon reconsiders and puts full Prime video support on the new Apple TV in the future.

 

[KeithAP]

It goes both ways. Apple refuses to let Amazon instant video into its Apple TV platform, so Amazon will refuse to sell Apple TV. Both companies are very stubborn.

Where did you hear that Apple refused to let Amazon Instant Video onto AppleTV?


What I have read more or less goes along with what this story says, that is that Amazon refuses to pay Apple their cut so Amazon made the decision not to sell or rent things through Apple's devices. It is Amazon's decision not to be on the platform not Apple's.


-Keith

 

[Josh Steinberg]

I was under the impression - and now that I'm typing this, I can't remember how/when I heard this so I could be completely wrong - that Apple basically banned apps for all non-iTunes movie rental/purchase apps on Apple TV, so that customers would be locked into using the iTunes Store. So you can't get Amazon Prime on there, but you also can't get Vudu or Flixster. That those services aren't available either led me to think Apple wasn't singling out Amazon but just not supporting anyone that would compete with iTunes on the device.

 

[Patrick Mason]

That's the way the current Apple TV works, certainly. There is access to subscription stuff like Netflix and Hulu, but nothing to compete with purchases and rentals through iTunes. But the new Apple TV releasing later this month has a full App Store, so anyone including Amazon can create an app for the new device.


I'm sure there are similar terms as with iOS that prevent them from offering purchases directly through the Apple TV without giving Apple a cut, but that hasn't stopped Amazon from offering Prime instant video and existing library access through existing iOS devices, so I'm not sure why it would be any different.

 

[DaveF]

I was under the impression - and now that I'm typing this, I can't remember how/when I heard this so I could be completely wrong - that Apple basically banned apps for all non-iTunes movie rental/purchase apps on Apple TV, so that customers would be locked into using the iTunes Store. So you can't get Amazon Prime on there, but you also can't get Vudu or Flixster. That those services aren't available either led me to think Apple wasn't singling out Amazon but just not supporting anyone that would compete with iTunes on the device.

With the new AppleTV allowing for third-party apps (and so content), Apple is opening the doors wide to subscription streaming services. It remains to be seen if there are any barriers to non-streaming services.


But as Amazon Prime is a subscription streaming service like Netflix of HBO Go, it seems unlikely that Apple has intentionally blocked Amazon from the upcoming AppleTV. But who knows? Amazon might be making its own power move, intentionally not developing an app and not selling the aTV in an effort to undercut Apple and sell its own services and devices. I eagerly away to see what happens, and the ensuing rumors

Some of the apps available on the Apple TV at launch include HBO, Showtime, Hulu, Netflix, NBA, NHL, MLB, ABC, CNN Go, Fox Now, YouTube, PBS Kids, PBS, Disney, and Watch ESPN, all with custom interfaces and abilities designed to take advantage of tvOS. As on the third-generation Apple TV, many of these services require a subscription to access content.
http://www.macrumors.com/roundup/apple-tv/

 

[Patrick Donahue]

The other side of it too is if apps want to be on Apple TV even if they're allowed, as Apple takes a 30% cut of purchases. I have a feeling if apps like Vudu are on there it will be a lot like their iPad app where you can watch content but have to make purchases elsewhere. The Amazon Kindle app does this, too.

 

[DaveF]

The other side of it too is if apps want to be on Apple TV even if they're allowed, as Apple takes a 30% cut of purchases. I have a feeling if apps like Vudu are on there it will be a lot like their iPad app where you can watch content but have to make purchases elsewhere. The Amazon Kindle app does this, too.

This would be a non-issue for Amazon's Prime streaming service, as with iPhone and iPad. Users can buy their membership online, and stream through the app. And Amazon won't have to pay Apple's 30% fee.



For the other services, it depends on how important it is for users to be able to buy products in app vs the 'friction' of pushing them off to another device. It might be worth the 30% to take advantage of impulse purchases (that would be lost if the user has a moment to think about it between couch and computer room).

 

[Patrick Donahue]

Here's something else to turn on - it turns out for Apple TV, Apple gets 15% of purchases, not 30%. And it actually WANTS you to buy through services, because that's the only way it can insure it gets its cut.

http://www.macrumors.com/2015/04/13/apple-15-percent-cut-apple-tv-apps/

 

[[email protected]]

Amazons video service has a "prime feature" which works like Netflix for subscribers but, Amazon also rents and sells movies, just like itunes....The App on ios is neutered, only giving the "prime" subscription part. On other devices, Amazons App allows for prime viewing along with sales and rentals. Besides Apple wanting a cut, my guess is Apple is only allowing the neutered app to be on Apple tv. Let's see if ANY competing Apps (not talking subscription services) show up in the Apple tv app store...then we will know.

 

[Sam Posten]

It goes both ways. Apple refuses to let Amazon instant video into its Apple TV platform, so Amazon will refuse to sell Apple TV. Both companies are very stubborn.

As I said, it's entirely Amazon's fault because they are being stupid and acting against their consumer's best interests:

https://t.co/BuUwuhBbyW

 

[Patrick Donahue]

If that's true that Apple said "all are welcome" then I can at least take from that hope that Apple will get Vudu

 

[[email protected]]

I believe there is more to this than Amazon not wanting to be on Apple tv.



"Many are quick to point out that it’s Amazon themselves who have decided to not bring Prime Video support to the banned devices and that it’s fully in Amazon’s control which devices fall under the ban reasoning. While, on the surface, it’s true that Amazon can technically add Prime Video support to the banned devices at any point, there are actually underlying restrictions put in place by Apple and Google, which prevent a full featured implementation of Amazon Instant Video on the banned devices from being a financially sound option for Amazon."



http://www.aftvnews.com/understanding-the-reasoning-behind-amazons-ban-of-the-apple-tv-chromecast-and-nexus-player/

 

[DaveF]

I'm not current on Amazon prime...if I'm paying $85/yr for Prime, what in app purchases are there that I must pay more money to stream my free tv and movies?

I thought Prime was same concept as Netflix.

 

[Patrick Donahue]

I'm not current on Amazon prime...if I'm paying $85/yr for Prime, what in app purchases are there that I must pay more money to stream my free tv and movies?
I thought Prime was same concept as Netflix.

You are correct. Where it gets murky is that Amazon bundles it's Amazon Instant store with the Prime subscription service in the same app, so you can't currently have one without the other...

 

[Sam Posten]

That that article fails to mention the simple and obvious concept of "Don't include the facking store with your media player" makes my brain hurt. Amazon could have a Prime Media player with about 2 hours worth of work if they just don't bundle their store with it, which is how their Kindle book reader works on iOS and every other media and book player works on iOS and Android. They want to have their store built into Apple's ecosystem and Apple won't let them. That other putative walled gardens lets them get away with it is irrelevant.

 

[[email protected]]

I'm thinking Amazon offers prime video in part to get sales and rentals for there store. If the only way they can do that is to give Apple the profits from said rentals and purchases, I think they are saying...pass. Can you blame them?