Have you been wondering why recently Amazon’s Fire TVs have almost always been on sale? You are not alone, as many have been wondering the same thing.
For example, the Fire TV Stick 4K Max list price is $59.99 but finding it for $39.99 on Amazon is very common. A quick search online shows that in 2024 the Fire TV Stick 4K Max has been listed at $39.99 almost as often as it has been at the full price of $59.99.
So, why has Amazon recently been selling its Fire TVs so inexpensively? It seems that Amazon is trying to buy market share from Roku and to get more ad revenue.
Amazon has heavily leaned into advertising on its Fire TV to make a profit. This means Amazon is willing to sell its Fire TVs at a low cost. The more people who own a Fire TV the more ads they see, which means the more revenue Amazon makes.
The other major issue is that Roku is continuing to dominate the world of cord cutting. 1 in 3 smart TVs sold in the United States are Roku. Also, Roku is the most sold streaming player in the United States.
Amazon is hoping by dropping its price to compete better with Roku it will attract potential new customers. This is, in short, buying market share to be able to take on Roku in streaming players and the streaming ad market.
Will this trend continue? No one honestly knows how long Amazon will keep this effort to undercut the competitors on price. For now, it seems Amazon is willing to accept less on its streaming players to get more people to start using a Fire TV.