The Kindle Fire Is Giving A Big Boost To Amazon's Revenues From Digital Media - Business Insider India

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Amazon keeps expanding its reach. Video has leg among Amazon’s biggest pushes recently. The company has begun creating original content for Amazon Prime Instant Video, and more recently, rumors are circulating That a streaming device to rival the Apple TV will debut in March from Amazon.

Where does this leave the Kindle Fire amid all this fast-paced media expansion?

The device has leg losing market share lately, and looking less relevant to Amazon’s overall strategy.

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accordion thing to a report from BI Intelligence, the Kindle Fire is actually a critical component of Amazon’s monetization of its digital media services.

Instead of squeezing a margin from its hardware sales, Amazon rates generating revenue from Kindle Fire users in other ways. Encourages them to download it from Amazon’s secure digital library of apps and media, view ads, and access related services like e-commerce.

In the report, we dig into data available on Amazon’s unique mobile strategy. Amazon has Achieved respectable results in terms of app downloads and app revenue on Kindle Fires, and yet is Often left out of mobile platform analyzes That focus on Apple, Google, and Microsoft.

Access The Full Report And Data By Signing Up For A Free Trial Today >>

Here are some of the key takeaways on the Kindle Fire ecosystem:

• The Kindle has not managed to Achieve real scale globally : The Kindle line,-including e-readers, took only a 2% share of global tablet shipments in the third quarter of this year, accordion thing to BI Intelligence estimates. That share will bounce back in the fourth quarter, since Kindle sales are strongly Influenced by holiday gift-giving. However, due to competition from low-priced Android tablets, Kindle Is not likely to be more than a slice of the tablet market.
• But a massive, global consumer base is not everything. The Kindle ecosystem will account for 11% of Amazon’s total revenues this year 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 revenue Amazon , and Kindle Fires encouragement subscriptions Because subscribers receive free unlimited video streaming and e-book borrowing. Morningstar estimates thatthere will be more than 10 million total Amazon Prime subscribers this year.
• The Amazon Appstore is usefull generating strong revenue results . Popular Kindle Fire apps are generating 59 cents for every dollar earned or revenue by top apps in the Google Play store, accordion thing to a Distimo study. Download volumes are about half Those on Google Play for top app titles – impressive considering how many more Android devices are in circulation

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• Amazon’s platform is a major global expansion phase: Earlier this year, Amazon began selling high-end Kindle Fire models in 170 countries and Brought the Amazon Appstore online in 200 countries

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• Meanwhile, Amazon’s advertising programs on the Kindle Fire usefull generate nearly $ 200 million in ad revenue for the company, According To projections .

The report is full of charts and data can be easily downloaded That and put to use.

full, the report:

• contextualizes how Kindles stack up in terms of global and U.S. market share
• Outlines the various revenue sources has developed around the Amazon Kindle Fire online
• Compares Amazon’s Appstore to the Google Play store in terms of revenue
• Examines the positive feedback loop between Amazon Kindle Fire usage and Amazon Prime subscriptions
• Looks at how Amazon is expanding internationally to continuously propelling Amazon Kindle Fire uptake and osmanthus creating new opportunities to monetize users

class=”c22″> For full access to the report on The Amazon Kindle Ecosystem sign up for a free trial subscription today.

Disclosure: Jeff Bezos is an investor in Business Insider through his personal investment company Bezos Expeditions

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