Monday, February 15, 2010

Amazon Prime Subscribers To Get Free Kindles?

Late last week the guys over at TechCrunch reported that Amazon is pondering the idea of giving a free Kindle to Amazon Prime subscribers. The subscription based service, currently priced at $79 per year, offers free two day shipping and $3.99 next day shipping on orders shipped by Amazon.

TechCrunch points out that Amazon Prime subscribers are generally the companies very best customers – the ones who tend to make multiple purchases per month. So they are likely to be the customer that would buy multiple books per month on their Kindle devices. If those users buy enough books, and Amazon gets the production costs of the Kindle down enough, Amazon can get Kindles into “millions” of people’s hands without much loss.

The approach is simple and really nothing new. Take a small up front hit by giving away the device hoping that once you get the Kindles out there to the people who would likely order lots of books you'd make all your money back plus on the back-end.

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