Amazon just kicked both the Google Chromecast and Apple TV out of the Amazon online store entirely in a rare move for an “everything store.”
Google Chromecast, Amazon Fire TV, and Apple TV are ways to wirelessly stream videos from Netflix, Amazon, YouTube, Hulu, iTunes and other places straight to your HDTV using a little HDMI stick (or unit in the case of Apple). They are hugely popular making up the top items sold online the past 18 months.
Using a panel of millions of online consumers, 1010data took a deep dive into the streaming TV space to determine the effect this bold move by Amazon will have on Google and Apple and overall online sales of tv streaming devices.
We estimate that in the U.S. in the past 12 months nearly 10 million of these units have been purchased online for a total of $420M and an average price of $45.
In retailer share, Amazon dominates sales for the TV Stick category with 93% of dollars spentSince Amazon is the biggest retailer with special ability to promote its own branded TV Stick, it’s no surprise that Amazon owns 75% of dollars spent on TV sticks.
Chromecast online sales amounted to $67M over the past 12 months. Apple TV sold $42M worth. For Google $60M (90%) came through Amazon and for Apple $25M (60%) came through Amazon.
This is just the cost of the devices. Both Google and Apple make a lot of money from advertising (Google) and content purchases (Google & Apple) that are consumed through these devices. This will likely be a major blow to those sales too.
Through Amazon alone, Google and Apple did about $85M the past 12 months. Factoring in growth and the likely continued popularity of these devices, Google and Apple could easily have done over $100M in sales of streaming TV devices on Amazon over the next 12 months.
It will be interesting to watch how Chromecast and Apple TV will fare without their primary online sales channel, Amazon. We can however bet that Amazon Fire TV for the foreseeable future will dominate the TV sticks market from a share perspective.
Google is now promoting Chromecast on its own store and on Best Buy, Walmart, and other mass retailers that do much less volume than Amazon online. Apple will be doing most of its TV sales on Apple.com now.
1010data’s Ecom Insights panel consists of millions of online shoppers in the U.S. who allow 1010data to anonymously track their online behavior for market research purposes, including e-commerce activity.
1010data applies advanced, proprietary statistical modeling, machine learning, and data science techniques to ensure that its panel is representative of the Internet Browsing Population in the U.S. and suitable to extrapolate observations to the broader population.
Retailers measured include the top 100 online mass retailers in the United States that – according to 1010data’s estimates – make up over 95% of hard line goods ordered online Total Spent. In this analysis the Google Store was not included.
See more at: https://www.1010data.com/company/blog/detail/amazon-google-and-roku-are-fighting-with-sticks#sthash.w6SeXSz2.dpuf