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Originally Posted by cheesejunkyard
Am I right in thinking that Amazon subsidise the books that they sell?
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Originally Posted by emellaich
If they are heavily subsidizing ebooks to get to the 9.99 price that certainly isn't helping their profits....
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Originally Posted by junkyardwillie
Well Amazon is already subsidizing the price of its eBooks and the reader to push for market share, why would they further increase their losses by giving a subsidy on the price of ebooks with ads?
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Kindle Books do not subsidize the Reader, or vice versa.
The Kindle Reader and Kindle Books are separate business units, and both aim to generate profits. Amazon is not releasing figures, but has said that they are making money on both. Hence, the high costs of the Kindle Reader, as well as making the Kindle for iPhone widely available. The only exception are best-sellers, which apparently do not turn a profit for paper versions either.
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Originally Posted by griffonwing
Blocking someones kindle-book access due to non-books related returns, abilities to go into your device and delete stuff. They are losing sales, so they try and find a way to get some of those profits back via ads. I only assume they are losing sales. Negative publicity always makes people think twice.
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1) Amazon isn't publishing numbers. But I seriously doubt Amazon is genuinely losing sales because of a few forum posts. Most of this "negative publicity" is a blip (if even that) in the media.
2) Patent application != implementation.
3) Again, the revenue from ads would be tiny.