BII
And the Kindle Fire offers an important example of how Amazon is locking users into its ecosystem of products, services, and digital content.
In a recent report from BI Intelligence, we take a close look at the Kindle Fire to understand how Amazon uses digital media and other services to earn revenue off of hardware that the company sells at cost. [1]
Here are some of the key takeaways on the Kindle Fire ecosystem:
- The Kindle has not managed to achieve real scale globally [2] :Â The Kindle line, including e-readers, took only a 2% share of global tablet shipments in the third quarter of last year, according to BI Intelligence estimates. Due to competition from low-priced Android tablets, Kindle isn't likely to be more than a slice of the tablet market.
- But a massive, global consumer base isn't everything. The Kindle ecosystem accounted for 11% of Amazon's total revenues in 2012 [3] , according to Morgan Stanley, including revenues from digital content streaming and downloading, app purchases, and advertising revenues.
- Amazon Prime subscriptions are another key source of Amazon revenue [4] , and Kindle Fires encourage subscriptions because subscribers receive free unlimited video streaming and e-book borrowing. Morningstar estimates that there were more than 10 million total Amazon Prime subscribers in 2012. [5] Â
- The Amazon Appstore is also generating strong revenue results [6] . Popular Kindle Fire apps are generating 59 cents of revenue for every dollar earned by top apps in the Google Play store, according to a Distimo study. Download volumes are about half those on Google Play for top app titles â€" impressive considering how many more Android devices are in circulation.
- Amazon's platform is in a major global expansion phase: Amazon is now selling high-end Kindle Fire models in 170 countries and brought the Amazon Appstore online in 200 countries. [7] Â
- Meanwhile, Amazon's advertising programs on the Kindle Fire also generate nearly $200 million in ad revenue for the company, according to projections [8] .
Access The Full Report And Data By Signing Up For A Free Trial Today >> [9]
The report is full of charts and data that can be easily downloaded and put to use [10] .Â
In full, the report:Â
For full access to the report on The Amazon Kindle Ecosystem sign up for a free trial subscription today [11] .
Disclosure: Jeff Bezos is an investor in Business Insider through his personal investment company Bezos Expeditions.
Links
- ^ In a recent report from BI Intelligence, we take a close look at the Kindle Fire to understand how Amazon uses digital media and other services to earn revenue off of hardware that the company sells at cost. (intelligence.businessinsider.com)
- ^ The Kindle has not managed to achieve real scale globally (intelligence.businessinsider.com)
- ^ But a massive, global consumer base isn't everything. The Kindle ecosystem accounted for 11% of Amazon's total reve nues in 2012 (intelligence.businessinsider.com)
- ^ Amazon Prime subscriptions are another key source of Amazon revenue (intelligence.businessinsider.com)
- ^ more than 10 million total Amazon Prime subscribers in 2012. (intelligence.businessinsider.com)
- ^ The Amazon Appstore is also generating strong revenue results (intelligence.businessinsider.com)
- ^ Amazon is now selling high-end Kindle Fire models in 170 countries and brought the Amazon Appstore online in 200 countries. (intelligence.businessinsider.com)
- ^ Amazon's advertising programs on t he Kindle Fire also generate nearly $200 million in ad revenue for the company, according to projections (intelligence.businessinsider.com)
- ^ Access The Full Report And Data By Signing Up For A Free Trial Today >> (intelligence.businessinsider.com)
- ^ The report is full of charts and data that can be easily downloaded and put to use (intelligence.businessinsider.com)
- ^ For full access to the report on The Amazon Kindle Ecosystem sign up for a free trial subscription today (intelligence.businessinsider.com)
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