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Originally Posted by NullNix
I get the rest (I do wish the Kindles had better typography by default, for instance), but I don't really understand this bit. Of course they're device specific: it's the *device* that is the thing that was bought for a reduced cost in exchange for viewing ads, not the account. Both the ability to have multiple Kindles on one account, some with ads (bought at reduced cost), others not, and the ability to reregister a device to different accounts whenever you like, means the with-ads flag *must* be device specific.
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I'm not sure that I agree with all your reasoning. AFAIK Amazon is able to differentiate between multiple devices under one account, and is therefore able to apply and transfer individual settings to specific devices. As such, if a user pays for ads-free on one device, then buys a new device, Amazon are able to remove the ads-free option from the old device and then apply it to the new device. But that way, Amazon will ultimately make less money. Under the current system, Amazon will make more money as users renew older devices because the ads-free option will "wear out".