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Old 07-24-2014, 06:35 PM   #13
mgmueller
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Posts: 3,308
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Join Date: Nov 2008
Location: Augsburg (near Munich), Germany
Device: 26 Readers, 44 Tablets
Quote:
Originally Posted by markbot View Post
Does someone have an explanation for why Amazon doesn't have their Instant video offering on Android smartphones? I don't understand the logic. Amazon sells devices in order to get the customers to use the Amazon store. They lose money on the device as it is heavily subsidized. Isn't it better for users to use a third-party device for Amazon's services? Yet prime video is on iphones.

My only rationale is that Amazon thinks they lock in customers who buy the devices into Amazon services. I will never buy an Amazon smartphone or tablet, except perhaps for a child, but I definitely might one day stop using their Prime service.
Pure speculation:
It's a well known fact, that Amazon still is operating on slim margins.
Market share being the goal, not short-term profits.
And they don't own the content, their margin in this segment will be slim as well.
And I can imagine, Google and the likes want to see their share. If some movie is streamed over their OS, they probably want to participate.
Why can't you purchase Kindle books in the app, but will be directed to the website?
When operating on, let's assume, 6% Gross margin, there's not much room to share.
I don't have any specific figures, but this simple theory would explain a lot.
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