But let's be real -- none of these are game-changers, not to the extent Netflix or even Apple should be fearful. I had read where Fire TV was going to be revolutionary. Netflix most certainly was paying attention.
As I've said, Fire TV will support Netflix. The way I see it, this is yet another means for Netflix to gain subscribers, not lose them. Netflix ended the recent quarter with 44 million global subscribers and the company projects 4 million more will be added this fiscal year.
While Fire TV will most certainly cater first to Amazon's own digital library, it only comes back to an issue of who has the better content. Remember, even though Amazon has offered Prime to its customers for free, Amazon hasn't been able to steal away any Netflix subscribers. Prime is just not as sticky.
Amazon's approach has always been to sell devices at/near breakeven as it seeks to build a critical mass. It has that now. It has built it and people have come.
But it's time for investors to start demanding more profits. All told, Fire TV itself is meaningless. Where it matters to Amazon the most is in value. Other than throwing its name into a crowded market, I don't see what Fire TV brings to the table.