On the heels of its big earnings miss and other disappointments, Amazon on Monday took a big step into TV. The company launched the Amazon Fire TV Stick, a streaming device to rival Google’s Chromecast. At $39, it’s a big price drop from Amazon’s $99 Fire set-top box unveiled earlier this year. It’s also slightly more expensive than Google’s Chromecast, but less than Roku’s $50 Streaming Stick, and has more bells and whistles than either. For the one payment price, users will be able to stream everything from Netflix to WatchESPN to Hulu Plus, and of course Amazon Instant Video. There’s the ability to use voice search and Whispersync, and it also supports gaming. It all comes down to getting more people to subscribe to Amazon Prime. The company is courting Amazon Prime subscribers because once they’ve committed the $99 a year to get unlimited free shipping, they’re more likely to buy more stuff via the retailer.
Amazon is pushing ahead because it sees its devices as a critical part of its plan to sell more digital content to its customers.
Joshua Brustein, Businessweek