Amazon boss Jeff Bezos is plotting a full-scale invasion of the living room.
After rolling out a streaming video service and pushing into original programming, Amazon is getting ready to unleash Kindle TV for piping content into homes, according to a report.
The Seattle-based e-commerce giant, which is set to release first-quarter results today, wouldn’t comment on a Bloomberg BusinessWeek report that it’s prepping the gadget for a fall launch.
Amazon’s streaming- video service is already available through an array of set-top TV boxes that are on the market, but selling its own device would put its Prime Instant Video service and library of TV and film content front and center, analysts said.
“The issue is the Amazon user interface,” Albert Fried analyst Rich Tullo told The Post. “Amazon is a search engine with e-commerce functionality, but if you search for content, it’s awkward. You might be offered a poster rather than a movie. This really integrates the marketing of retail and turns it into a media experience.”
Kindle TV would have to jostle for position in a crowded field that includes Apple TV, set-top box devices such as Roku and Boxee, and gaming consoles like Microsoft’s Xbox and Sony’s PlayStation.
However, analysts say Amazon has a potential leg up on the competition because it has the streaming-video service. The e-commerce giant could offer discounted or free Prime subscriptions to customers to entice them to purchase the box.
“It presents them with an opportunity to upsell Prime memberships, probably at a discount for the first year, since the customer is already streaming for free,” Wedbush analyst Michael Pachter, who is initiating coverage of Amazon, said.
If Kindle TV proves popular, it could bolster its challenge to Netflix, which also offers its popular streaming service via third-party devices.
“The clear loser is Netflix,” said Pachter.
Set-top TV boxes hold a treasure trove of information about consumer viewing habits and interests. If it controlled the device, Amazon would be able to mine that data to pitch consumers on other products in addition to content.
For instance, it could help Amazon improve its nascent advertising network, which places pitches for big marketers based on its own consumer data. Tullo suggests that consumers might also be served an ad for something they recently searched for — say, a pair of shoes.