3 ms·
I'd agree except that it's fairly well established that Amazon doesn't make much money from the content either. They are trying to grow marketshare and build t
by huxley 14y ago
I'd agree except that it's fairly well established that Amazon doesn't make much money from the content either.
They are trying to grow marketshare and build the ebook market, but investors should know that Amazon has razor-thin margins on content and no-margins at all on hardware sales.
- allwein 14y agoI'd hardly call 30% a "razor-thin" margin. That's what Amazon's cut is ever since the publishers pushed them into the Agency model.
- huxley 14y agoMost of the publishers dropped the agency model: http://www.readwriteweb.com/biz/2012/09/ebook-settlement-big-win-for-amazon-consumers.php http://www.readwriteweb.com/biz/2012/09/ebook-settlement-big... Edit: additionally, Amazon has their Prime service which gives additional discounts to subscribers who tend to be big purchasers. Free shipping, online movies and TV shows are $0 while many ebooks are heavily discounted. All of that contributes towards Amazon having razor-thin margins for Kindle content.