With the launch of Fire TV, Amazon — the ostensible e-commerce company — is moving even deeper into the media business.
Amazon actually already makes a good deal of revenue from its digital media business, which until this point has been largely supported by Kindle Fire users. Now, Fire TV users will also help boost digital media sales, as well as encourage Amazon Prime subscriptions.
With the Fire TV, Amazon is expanding the scope of its ecosystem and increasingly looking to digital media as a core service.
Here are some of the key takeaways on the Kindle Fire ecosystem:
The Kindle has not managed to achieve real scale globally: The Kindle line, including e-readers, took only a 2% share of global tablet shipments in the third quarter of last year, according to BI Intelligence estimates. Due to competition from low-priced Android tablets, Kindle isn't likely to be more than a slice of the tablet market.
The Amazon Appstore is also generating strong revenue results. Popular Kindle Fire apps are generating 59 cents of revenue for every dollar earned by top apps in the Google Play store, according to a Distimo study. Download volumes are about half those on Google Play for top app titles — impressive considering how many more Android devices are in circulation.