Amazon is the market leader in streaming video

According to a report issued by a consumer market research organization, Amazon has moved from last to first in the video streaming pack in six short years.

Parks Associates stated in its annual study of the smart TV and streaming box industry that Amazon, which had a 12% share of the streaming video market in 2015, jumped to a 36% share in the first quarter of this year.

Amazon is tied for first place with Roku, which has 36% of the market, followed by Apple (12%), Chromecast (8%), and all others (six percent). Although Amazon's fortunes have improved since 2015, Google's Chromecast's have fallen from a high of 21% in that year.

Chromecast's position, on the other hand, might shift. "Our results were first-quarter survey results," Parks analyst Paul Erickson stated.

"The new Chromecast for TV won't be available until the end of the year, so it's too soon to tell how it will affect Google's customer base. That impact may not be felt for a quarter or two "

"The statistics we're seeing are highly US-centric, which is a source of strength for Amazon. It could be different if we were looking at Europe or another continent "He issued a warning. He went on to say that Amazon's strong marketing has contributed to the company's climb in the streaming ranks. 

"They also manage one of the world's largest e-commerce sites. It's a massive market for them to promote their products in "He stated.

"With these gadgets, they're not only collecting their Prime subscriber base," he continued. "They're catching a large number of ordinary customers who buy on Amazon and see the gadgets provided at a discounted price or combined with something they want at a discounted price."

Keys to Success

According to IDM analyst Adam Wright, Amazon's success in the streaming market is due to three factors: its content and services strategy, its hardware strategy, and its leveraging of its larger smart home ecosystem and brand.

"Over the past few years, Amazon has done an excellent job in building out a user-friendly streaming platform that delivers a wide range of channels and content -- to the point where any previous major competitive edge or difference between Amazon and competitors like to say Roku has been whittled down,"

But, he noted, Amazon's success extends beyond the Fire TV streaming platform and streaming content. Amazon has done an excellent job creating its own hardware, which is continually upgraded with new features like as 4K capability, HDR, and Dolby Atmos for improved picture and sound quality.

Furthermore, he continued, it has been extremely aggressive in its pricing strategy, to the point where we see frequent and significant discounts on Amazon Fire TV streaming players, as well as a lot of bundling of these streaming sticks and streaming boxes with other smart home devices, which helps to drive sales and grow their user base.

Inadequate Competition

Furthermore, Amazon has built a very broad and robust ecosystem of smart home devices, including smart speakers, smart displays, smart plugs, smart appliances, smart security solutions, smart lights, and many more, which has generated spillover effects and is helping to drive sales of Amazon's streaming players, according to Wright.

Tight integration of Amazon's digital assistant, Alexa, is also helping the company's streaming gadgets succeed.

"The ability to use voice commands to manage TV functions or search for content, or even to pull up a live view of a video doorbell or operate a light somewhere in the home, is a huge appeal for many customers," Wright asserted.

"Google never offered much of a range or updates when it comes to the hardware, only recently receiving some revitalization with the launch of its new Chromecast with Google TV,"

New Growth Prospects

Other rivals, like as Roku, are always seeking for new ways to expand.

"A lot of the volume of streaming device producers these days is in licencing," said Ross Rubin, senior analyst at Reticle Research, a consumer technology consultancy business based in New York.