Blunder or Clever Business Strategy: Amazon to stop selling Apple TV, Google Chromecast

Amazon.com Inc., a Seattle-based Web retailer, is going to discontinue selling media-streaming devices from Google and Apple that are not compatible with its video service.

The online retailer sent an e-mail to its marketplace sellers that it will stop selling the Apple TV and Google’s Chromecast since those devices don’t "interact well" with Prime Video, Bloomberg reported. It further said that new listings for the products would not be allowed and existing inventory will be removed Oct. 29. Prime Video doesn’t run easily on its rival’s hardware.

"Over the last three years, Prime Video has become an important part of Prime," Amazon said in the e-mail, which was sent to sellers yesterday. "It’s important that the streaming media players we sell interact well with Prime Video in order to avoid customer confusion."

It seems Amazon is willing to sacrifice sales of the best-selling media streaming devices from Google and Amazon, to boost its own video-streaming service. The retail giant has been investing heavily in online content of late, to attract new Prime subscribers.

Apple, with its own stores, is likely to be less affected by Amazon’s strategy as compared to Google. The move may also cost Amazon sales as this will divert purchases of these devices to its rivals such as Best Buy Co, Bloomberg said.

"This has the potential to hurt Amazon as much as it does Apple and Google," said Barbara Kraus, an analyst at Parks Associates. "As a retailer, I want to give people a reason to come to me. When I take out best-selling brands, I take away those reasons."