ISI Sees Amazon's 'Prime Ecosystem' Thriving with Fire TV
In a report published Thursday, ISI analyst Gregory Melich commented on Amazon.com's (NASDAQ: AMZN) press release and presentation on Fire TV.
On Wednesday, Amazon announced the launch of Amazon Fire TV. Fire TV enables Android, console, and PC development developers to bring apps and games to the Amazon platform. Some developers on board include "2K, AOL, Bloomberg, Clear Channel, Disney, EA, ESPN, Gameloft, Hulu, Mojang, Pandora, SEGA, SHOWTIME, Telltale, Ubisoft, and Vevo." In addition to apps, Fire TV supports second screen experiences with DIAL. Fire TV will be priced at $99 with a game controller for $39.99.
ISI Group highlighted Amazon's "Prime ecosystem." Gregory Melich commented, "We believe Fire TV is another way for Amazon to increase the loyalty of its Prime members and to tie all its existing and potential customers further into its ecosystem."
On March 16, ISI published its most recent eCommerce survey. The Survey describes that 43 percent of prime members said that the main reason they subscribe is for unlimited free streaming. The data also suggests that Primes overall renewal intention is approximately 85 percent and paying Prime member renewal intention is 98 percent. The survey showed that long-term Prime members (more than three years) cite their membership as the number one reason for shopping on Amazon.
Shares of Amazon closed at $341.96 on Wednesday. The stock is currently down 2.916 percent at $332.27.
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