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Amazon (AMZN) to Terminate Sales of Apple TV, Chromecast

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E-commerce giant Amazon.com Inc.AMZN just stepped up its rivalry with tech giants Apple AAPL and Google GOOGL by banning the sale of their video-streaming devices on its platform.

Following the announcement, the stock rose 1.72% to $520.72.

Amazon, via an email to sellers on its online marketplace, said that it will stop selling Apple TV and Google's Chromecast. It will remove the existing inventory by Oct 29 and no new listings for the products will be posted.

These devices are not completely compatible with Amazon's streaming video service, Prime Video, which has gained popularity and is a vital element of the $99 annual Prime loyalty membership program. Microsoft says that "It's important that the streaming media players we sell interact well with Prime Video in order to avoid customer confusion."

Amazon will however continue selling its own Fire TV devices, Roku devices, Microsoft Corp.'s MSFT Xbox One and Sony Corp.'s Playstation, because all these devices support Prime Video.

The step indicates that the e-commerce giant wants to prevent its customers from buying stuff from its competitors via its own platform and may be wants to force the two companies to support its streaming video service like others.

Competition in the online digital streaming space is intensifying. Amazon's latest move is an effort to push its own streaming services including the Fire TV set-top box and a plug-in stick.

But a few analysts like Paul Verna, an analyst at eMarketer feel that the move will only hurt customers and will not significantly affect the businesses of any of the involved companies. Users who want to purchase an Apple TV or Chromecast can easily approach other retailers, including Apple and Google themselves, which vend these streaming devices directly.

All the companies are trying to get the maximum share of the market and steps such as these indicate that Amazon wants to be the winner in the digital streaming space.

Amazon has a Zacks Rank #3 (Hold).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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