This device is
subsidized by content.
A few years ago it would have made sense for another retailer to try and gain some momentum with a free device that's
subsidized by a content purchase commitment.
Not exact matches
«Amazon will increasingly
subsidize Echo
by bundling
content (think music, video) with the device,» Husson says.
(Amazon apparently wanted to
subsidize content prices, in part, so that it could move e-reader hardware and spur the adoption of e-books
by mainstream users.)
Yes, my view of the Fire isn't so much that it's a tablet subsided
by content sales as much as it's an Amazon home - sales kiosk
subsidized by the consumer.
Bottom line... Amazon will build an ecosystem, BUT... one limited to the US... to consuming media categories which can prosper on small format screens supported
by minimal feature sets... and a business with permanent low margins as a result of aggregating
content owned
by others on top of a device they must
subsidize, not just for launch, but quite possibly long term.
Why can't a device vendor go with more of a cell phone model, where the low price of the device is
subsidized by the longer - term commitment to buying
content?
«Amazon will increasingly
subsidize Echo
by bundling
content (think music, video) with the device.