Quote:
Originally Posted by SteveEisenberg
And talking of price, how much would Amazon have to pay Bezos for this?
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A lot less than most people would guess, going by the per-unit costs of (full function) software bundled with PCs. (Full copies of Word Perfect Office were licensed for $5-7 to system builders.)
I could see Amazon bundling a year of WP for new Kindles for maybe $50M. Which might be as low as $2 per device.
Three reasons this would be fair is:
1- WP gets the ad revenue from the Kindle edition.
2- Some users would choose to upgrade to ad-less and stay subscribed after the year is over. Others would pay a lower rate to renew the ad-bearing subscription.
3- Kindle would be taking the WP to people who otherwise would not have thought of subscribing and many of those will end up increasing the subscriber base.
How good a deal it might be for both sides would depend on the ad rates the WP might command for the Kindle edition and the conversion rate to paid subscriptions. They might chose to do a shorter free period for a lower payment but if they do such a deal it needs to be at least 3 months to get users properly hooked.