But the real prize is content  

But make no doubt about it, the real prize for Amazon will be content sales. With Netflix NFLX -0.16% turning in their first billion dollar quarter, Amazon knows the over-the-top service providers are now legitimately competing with traditional facilities based operators for the consumer entertainment dollar.

Could they do it? If their recent history is any indication, yes. Amazon owns a commanding share of the e-book market, where they were the first to really tie together a low-price device with a hugely popular commerce platform for digital sell-through. On the Kindle Fire – a market where they didn’t enjoy first-arriver advantage – they have innovated through a curated model and heavy enticements to core customers (read Amazon Prime).  And now with TV, they’re been actively developing a studio with their own original content. The kind of content that would be perfect for their own set-top.

Bottom line: TV is being reinvented right before our eyes, and Amazon wants in.

We can use Amazon Prime with any Android tablet or iPad, too.