The playbook: why Amazon’s Fire TV is a guaranteed hit | The Verge

The Verge:

“Amazon doesn’t innovate by crafting new product categories, like Apple does. It also doesn’t make much money selling its hardware. Instead, it takes all the data it gathers as the world’s biggest online retailer, breaks down exactly what’s available and what consumers want, then produces a piece of hardware that it can sell cheaply in order to bring consumers into its ecosystem. Just as Netflix created House of Cards to satisfy the particular tastes of its viewers, Amazon made the Fire TV because millions of buyers are already looking for it. To understand the Fire TV is to take one glance at Amazon’s best-selling electronics list: two Roku models, Google’s Chromecast, and the Apple TV are the only non-Amazon devices in the top 10. The world’s largest online retailer just took on all three.”