Is The Amazon Fire TV Being Sold at a Loss?

Discussion in 'Fire TV' started by GeorgeB, Apr 5, 2014.

  1. GeorgeB

    GeorgeB Staff Member Community Manager

    Oct 23, 2012

    Just wanting to get a conversation going about the economics and business side o the Fire TV equation. Everything I've been reading suggests that it's not and I'd tend to agree considering the price point at launch.

    It does make me wonder however, why they didn't? Don't get me wrong, I think $99 is the perfect price for this product. It sticks a pencil in the eye of Roku by matching them directly on price and, let's face it, from the looks of hardware specs alone you get more bang for your buck with the Fire TV.

    Then again, won't the Fire TV sales also help sell a buttload more Prime subscriptions? Seems they may have had some wiggle room to undercut competitors on price but perhaps chose not to because it might cheapen the product in the eyes of the consumer like Google did to the Chromecast?
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  3. cobywill

    cobywill Well-Known Member

    Dec 14, 2013
    East Coast, USA
    One issue these devices are going to start to hit is that eventually everyone who wants a streaming box in their house is going to have one already. For me personally, my Roku 3 is running fine and voice search and a faster processor isn't going to make me part ways with $99
  4. GeorgeB

    GeorgeB Staff Member Community Manager

    Oct 23, 2012
    I agree that these new devices are for the most part copying each other and not offering anything ground breaking enough to make your average consumer (who cut the cord to save money in the first place) want to go out and buy one. However, I don't see market saturation being a problem at all.

    Most every home has a computer too.
  5. Jory

    Jory Founding Member Founding Member

    Apr 8, 2014
    Gonna have to say that those are some boss specs there. Not needed really, and infact the gaming controller which you pretty much need in order to play games is an extra $30+ dollars. Looks like those specs are just going to increase power consumption, or just go unused.


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