Should Amazon build a set-top box?

Today, rumors are circulating around the web regarding Amazon. It is nothing new — the online retail giant has long been subject to such babble. Rumors of an Amazon phone still appear on a regular basis. Thanks to the success of the Kindle Fire, everyone seems to expect a handset to be the logical follow-up.

Today’s rumor is different though — there is no phone involved, but instead a set-top box. While I have no real interest in moving from a Nexus phone to a Kindle one, a living room device intrigues me.

I am a recent convert to Google TV and I love the platform. But I am also a Prime subscriber. I replaced Netflix with the Amazon service sometime back because it is not only a bit cheaper, but offers more upside with, not only the streaming video, but also free two-day shipping and a Kindle lending library.

Prime for Google TV has been greatly improved recently, with the app now being native, as opposed to opening a browser window. Thus I imagine an Amazon set-top box to bring Prime to the forefront and make it the focus of the device. And that does not feel like a bad thing.

If the device were Kindle Fire-like, in that it ran a version of Android customized for the big screen, then this could compete with the likes of Roku and Google TV in today’s growing environment of cord-cutters. Xbox may remain the front runner, but the power and financial backing of Amazon could present a real competitor in the market, and that would be good for all consumers.