Details about how Amazon Prime affects purchasing behavior: http://www.quora.com/Who-invented-Amazon-Prime-What-impact-h...
I've toyed with getting a Kindle, but while I would buy the books I don't really want to shell out on the Kindle and not like the feel of it....
So from my perspective this would be killer.
Unfortunately in the UK we don't get the same deal as others, we have no movies on demand (which is a shame), but free kindles would seriously disrupt the ebook market here.
Amazon makes future money on Kindle owners because they're avid book readers and they buy a lot of eBooks. If Amazon were to give away Kindles for free a lot of non-avid readers would pick them up just to have one, which would kill the model. I think a $99 price point (maybe $49 with Prime) makes a lot more sense.
And thats considering i paid 4$ more than the real one would have cost... so until they produce more quality in these things i stick to Project Gutenberg and read the classics.
Sure, if they buy their books from Amazon. I tend to buy from brick-and-mortar stores (a habit I should perhaps get out of, since there doesn't seem to be a store with a decent selection within 100 miles).
But, unlike consoles, provided a kindle doesn't need the latest, fastest technology, they can keep getting cheaper, til it's negligible relative to the benefits of acquiring a customer.
The company that uses the revenue model of making money of the device and selling the content for a negligible profit is Apple. That's how they run the iPod department for one. Devices are sold at a high margin but almost all the revenue for itunes sales go to the content providers.
If it was viable to charge more money for the device, I'm sure they would but they need those (or some other) devices in people's hands. Therefore, they can't charge more for the device. That is my point, they don't know how to make more money with it without totally changing their strategy.
Fitting points to a time line and drawing it out to infinity is a pointless and erroneous predictor. Read Proofinesss by Seife. He talks about these and other mistakes made by people trying to back up their arguments with error prone data and approaches.
Even if Arrington's idea is a year and not a week old it certainly would seem to make sense, especially with Amazon adding free video to free 2day shipping with Prime.
I fully intend to take delivery of a Kindle once a day or so instead of working. It's gonna be pretty sweet.
"last week" == Feb 2010?
"But last week Michael Arrignton at TechCruch reported..."
(I guess this is true for other 'small' countries, too)
However, USPS is slow even for short distances. I presume it is optimized for mean shipping time of all US destinations instead of minimum shipping time of individual packages. And population density in the US is slightly smaller than in Germany, so shipping is more bound to be slightly less efficient.
I guess Canada has a considerably lower population density, so shipping gets more expensive. Maybe the Canadian postal service does not offer fast shipping at attractive prices?
Free 3G-Kindle for a 30$/12 months contract that includes 2 books a month and a newspaper subscription. Seems a pretty good deal to me.
180$ for the Kindle at current price, 100$ for royalties to publishers and Amazon will keep 80$ and the money extra the user spends on buying extra books.
So the price of the comparable Kindle today is $189 although the graph predicts $100.
How do you drastically lower the price of something (or make it free) without pissing off all the previous customers?
If it weren't for the fact that many users wouldn't use a FREE Kindle, they probably should give Kindles away. Buy 10 eBooks and get a Kindle free would be a good strategy.
Why do we need Amazon anymore?
If anyone can write a book and make an ebook and accept payment and distribute the book... why do you need an amazon?
Could I buy a reader for $500, pay $5 for ebooks, and the author and publisher still make more money?
It seems like giving away the reader for free with a proprietary format is just an attempt to lock in readers and create need for a service that isnt really needed.
By creating a reader for their content library, they’re actually providing a different service than just books: ease of use. The consumer doesn’t have to worry about seeking out the book, trying to figure out if it’ll run on their device (Yes, this can be screwed up), trying to buy it, and then trying to locate the file to install it.
So a reduction from 300 to 100 is 66% off, while a reduction from 300 to 140 is a little bit over 50% off. If your guess is 66% off and actual is on the high end of 50%, that's not a bad guess in my book.
However, the free movie streaming actually convinced me to sign up for Prime (comparably priced to Netflix streaming, plus I get free two day shipping on all my Amazon purchases). I think that Amazon could potentially get a lot of new people to buy prime if they give away a free Kindle, which would probably be a net win for them.
(Don't ask me)
It is an ultimate blow for all of the other book readers (Nook, Sony's readers). Amazon is in iPod territory here: their readers are better and cheaper than the competition and likely to remain so, at least for the short-term (next 2-3 years).
I can pick up the Kindle and use it just as I would use a paper book but I'd never use it to surf the web even if it was possible.
To make matters worse, I bought one of the hard covers from a Best Buy which caused power shorts, then I called Amazon and got a replacement with a light from Amazon for free. Then I returned the lightless hardcover back w/receipt back to Best Buy. I wasn't trying to get a $60 cover for free, but this method works, no social engineering even required.
Loss leader indeed.
I guess that actual data ruins the beautiful line?
I'd rather pay for it up-front and actually have an open e-book market on the back end. As opposed to having to root/jailbreak it and/or go through painful file conversion processes to read other e-books.
It simply doesn't implement competing DRM schemes.
In my experience, every DRM-free ebook store I've dealt with has been happy to sell me a .mobi.
If Amazon Kindles were starting to appear in schools, iPads and Apple would be right there. Apple has always been good about getting computers into schools.
The textbook industry got so crazy that most kids have TWO of each now because they need them for school and home, because the 5-6 2 inch thick books of outdated materials are too heavy. So what is more kludgey and when could you ever really write in books themselves? I never wrote in textbooks even though I bought them and never took the time to sell them. Can't people take notes outside the book?
Plus if you have Kindle accounts/books you can also pull these on other devices (maybe now) and especially laptops and PCs.
Although I will say I do remember kids taking notes in pencil in the margins.
Also - two textbooks? seriously? I can't imagine any school springing for that added expense, or even parents for that matter.
I can't imagine the cost/waste of all those textbooks and how silly it will look when we look back on how we do it now.
here is the results of the court case: http://www.ada.gov/case_western_univ.htm
However, a general interface to a Braille display is necessarily one which transmits the letters of the book in reading order, so I don't see how they can implement that without opening up a big gap in their DRM.
I expect that is more likely to make a bigger difference since it has buy-in from the publishers, BN effectively runs most the college bookstores, you can type faster with a keyboard, and most students don't want to carry a ton of books. Would be nice if it supported Latex for Math/Physics notes.
To win the ebook market big time they WILL have to win the reader market, which will amortize to giving away free readers.
It seems to me that Amazon is desperate for you to have Prime, but as what is basically a loyalty program, it doesn't work for them if they simply give it away. The customer has to feel engaged somehow, either by paying for it, or feeling like they're getting something really valuable for some promotional reason. I personally suspect that as the Amazon Mom's year ends or the student's year comes up that the announcement will be made that out of the goodness of their heart, Amazon has decided to simply extend the program for another year or something, and that as they can work out reasonable excuses to give you a free Prime subscription they will continue to do so. Just my best guess based on the business situation.
So students and moms probably won't get Kindles for "essentially-free or even straight-up free."
Amazon Prime isn't available everywhere.
What about the International markets? Or is this just a US thing?
Most Netflix Streaming titles are something you'd find on VHS in your mom's basement.
BTW, most Amazon streaming titles are something you'd find on VHS in your mom's basement. I just checked and the first movie they tempted me with was "Contact" from _1997_.
The cost of producing a Kindle is much greater than $0 right now. Consider if that cost (plus the net revenue of a few books) would ever hit $0. Do you guys seriously see a sustainable revenue model here? How about a winning e-book strategy?