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The set-top box is going to used to push Amazon's streaming services. It sounds like a rival to Apple's current Apple TV, or the Roku box.
Amazon has been producing hardware since it launched the Kindle in 2007.
Unlike Apple, which makes a lot of money on hardware, and a little bit on digital media and apps, Amazon tries to make a little bit of money on hardware and a lot of money on digital media and apps.
A video streaming box would help push Amazon's video, and potentially apps.
If this is simply a box that streams video, it's a bit of a head scratcher.
Amazon's streaming service is built directly into most new TVs. It's also in Roku boxes. Apple TV doesn't have Amazon video, but it's not that big of a seller. If Apple were to open up Apple TV to apps, we're sure Amazon would be welcome.
We would assume Amazon is basically going to give away the Kindle video box, which would give it some advantage, though not much.
Truth of the matter is that people don't really want another box to plug into their TV. Since most TVs come with apps now, they don't need to, anyway.
We haven't seen the product, or heard of Amazon's plans, but based on this report, an Amazon video box feels like a small-time, me-too product.
But, if Amazon has big ambitions to create a family of products, a video box is a nice complimentary piece for a growing eco-system.
The Amazon video box is due in the fall, says Stone.
Disclosure: Jeff Bezos is an investor in Business Insider through his personal investment company Bezos Expeditions.