Retail Rivals Best Buy and Amazon Team To Sell TVs

Posted April 21, 2018

Amazon has announced an exclusive partnership with the big box retailer Best Buy, where the pair of companies will work together to sell Fire TV Edition smart TVs.

Notably, this announcement also implies that Insignia TVs (Best Buy's house brand) may drop software from Roku in favor of Amazon's, though Roku TVs from other manufacturers will surely still be sold. "Clearly, Amazon has been a leader in the bolt-on business with the Fire TV sticks and boxes, but they were behind a little bit in getting out to televisions".

"Amazon and Best Buy have a long history of working together, and today we take our partnership to a new level". The included Voice Remote with Alexa lets you easily launch apps, search for TV shows, play music, switch inputs, control smart home devices, and more, simply by using your voice.

In the coming years Best Buy executives said they will introduce other brands and models in various price points that will be integrated with Fire TV.

Amazon CEO Jeff Bezos boasted that the new TVs will "deliver lovely visuals and all the movies and TV shows you love, with an experience that gets better every day with Alexa".

Amazon has started to open its own physical stores throughout the country and bought grocer Whole Foods previous year as well.

At this time Amazon is giving very little details about the new Fire TV Edition Smart TVs. It's unclear if Best Buy will pay a standard commission as an Amazon merchant, or whether a different deal was negotiated. The TVs can also be paired with any Echo device. Roku shares fell 7% Wednesday as a result. What works for Best Buy is customers still seem to want to buy large items such as TVs from physical stores.

Best Buy CEO Hubert Joly said the new Fire TVs will provide customers with a "incredible user experience".

This is all great news for Best Buy.

The move will make Best Buy a preferred third-party seller on Amazon.com, but one might wonder how far Amazon will push this deal in their favor.