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Amazon to launch a new Set Top Box

By Ritij Khurana on Saturday 5th of Oct 2013

Having marked its presence into the world of digital content selling through its Kindle Fire tablet, world’s largest online retailer Amazon is now gearing up for releasing a set top box for streaming videos and running apps. The device will also host the existing video streaming service from Amazon.

In the initial days, the set top box may be used to sell Amazon’s in-house content which is currently sold on PCs, Kindle and some other traditional platforms. However, when running full fledged, it will support games, movies, songs, third party apps and a variety of content from other sellers as well. It will also allow the company to get more real time about consumer preferences.

Although the company has not confirmed this whole development, hot news is that it has been conducting in-camera meetings with cable television service providers, application developers and other involved parties to ensure that the device is rolled out just in time for the festival season.

As usual for Amazon, any new addition to their ecosystem is to support the core business. Even in this case, the key idea behind launching such a device is to give a boost to its prime membership. When hooked to the device, the members may be exposed to many offers and schemes which lure them to pick up more stuff from the Amazon store, hence giving further up thrust to their core business.

While launching such a device will not be difficult for the company, the tough part will be to see through the competition. Currently, Apple, Samsung, Intel, Google and many others are mulling over their plans to strengthen their presence in the online video streaming. The market seems ever expanding at present with more than 5 million set top boxes in the US alone and the growth forecast is of more than 20% CAGR for the next half a decade. So, there is ample scope. Just hit the sweet spot with your content and you are right into the game.


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