Amazon (AMZN - Free Report) recently forayed into the promising automotive market on the back of technical innovations in its streaming device, Fire TV.
The company has unveiled Fire TV Edition for Auto that allows direct integration of Fire TV into in-vehicle entertainment system.
Notably, Amazon strives to deliver the living room TV experience in the vehicle by providing access to rich content and shows from streaming services by utilizing vehicle’s Wi-Fi or LTE connection, mobile hotspot or any WAN-enabled device.
Further, users will get access to shows recorded with Fire TV Recast. Also, Fire TV in vehicles will be available with Alexa and touch screen interface.
The latest move of Amazon marks a breakthrough in the in-vehicle entertainment space.
Strategic Partnerships Hold Promise
The e-commerce giant is on a partnership spree with the automakers in a bid to explore opportunities for Fire TV in the in-vehicle entertainment market, which is poised to witness sustainable demand and increasing flow of investments.
Moreover, the company has collaborated with automobile companies like BMW and Fiat Chrysler Automobiles (FCAU - Free Report) to introduce Fire TV in their cars. Moreover, these cars will be the first ones to feature Fire TV.
Further, Amazon has joined forces with VOXX International owned VOXX Automotive, which is known for its rear-seat entertainment. The companies together will develop solutions and services in a bid to build development cycle of Fire TV for automakers.
Additionally, VOXX has signed a supply agreement with one of the largest automobile companies in order to integrate Fire TV into the latter’s vehicles by 2021.
Furthermore, Amazon is working with Garmin (GRMN - Free Report) to accelerate the Fire TV development cycle in vehicles.
We believe all these strong endeavors are likely to bolster Amazon’s footprint in the in-vehicle entertainment market.
Fire TV Portfolio Strength: A Key Catalyst
Amazon has been banking on its strengthening Fire TV offerings to reinforce presence in the streaming device market. We note that the company has exceeded 40 million active users for Fire TV, which can be considered a huge success.
Apart from Fire TV Edition for Auto, the company introduced Fire TV Edition for Soundbars that power over 50 TV and soundbar models in more than 10 countries.
Further, the company is working with several device manufacturers on soundbar solutions. Moreover, it is likely to introduce features like HDMI switching, Dolby Atmos support, compatible device control and far-field voice control on Fire TV Edition soundbars in the later part of this year.
Additionally, Amazon unveiled Fire TV Edition for Operators, which allows television and telecommunication operators to offer Fire TV Edition devices to their customers. It is currently available in North America, Europe, India and Japan.
We believe expanding Fire TV Edition program will continue to strengthen market position. Moreover, improving Alexa skills on Fire TV remains a major positive.
Further, the expanding global footprint of Fire TV is a tailwind. Several third-party brands are likely to come up with Fire TV Edition smart TVs in the United States, Canada, India, Germany, Austria, Italy, Spain, United Kingdom, Ireland and Mexico.
Currently, Amazon Carries a Zacks Ranks #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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