This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Why I'm Tuning Out Amazon's Fire TV


NEW YORK ( TheStreet) -- There was plenty of speculation leading up to Wednesday's unveiling of Amazon's (AMZN) video streaming device, which we now know as Fire TV. The device will allow users to stream video to their television sets from Amazon's video library.

For weeks, the retail giant had hinted about its ambitions to take over the living room. But what company doesn't want to do the same? With existing streaming devices from Apple (AAPL), Hulu and Google (GOOG), the living room is already a crowded space. Everyone has planted a flag.

Given the relative success of Amazon's Prime movie service, which has gone toe-to-toe with Netflix (NFLX), we know (at the very least) Fire TV won't be a dud. CEO Jeff Bezos doesn't enter markets to lose.

The more pressing question is, can Amazon make any money? Bezos's "razor blade" business model has focused on building an empire with the hope of making the profits down the road. But each year "down the road" gets even more distant.

Given that the device will support external content from Hulu, YouTube and even Netflix, I don't get Amazon's thinking that Fire TV will be different enough to stand on its own. Google's Chromecast already looks too tough to beat.

What's more, Apple's recent deal with Comcast (CMCSA) to reinvent the way consumers watch television revealed the leverage that Apple's set-top box, currently known as Apple TV, will have in the living room. The reports suggest both Apple and Comcast are negotiating a joint streaming-television service. Apple has demanded special access on Comcast's public line to prevent congestion.

So, all things considered, how will Fire TV stand out when it's possible consumers have already settled in with Chromecast or video game consoles like Microsoft's (MSFT) Xbox and Sony's (SNE) Playstation consoles? These carry similar features. And let's not forget about Smart-TVs from the likes of Samsung (SSNLF) that can essentially do the same thing as Fire TV.

From what I've seen and read, Fire TV does have some nice features. The device has voice recognition to accept commands by speaking into the remote. The image storage, which is cloud-based and allows for an instant slideshow, is a nice tool to have. That it supports music apps and will offer complimentary free games will appeal to a lot of people. Fire TV's movie selections apparently also load much faster.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs