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Amazon and Apple make the money on the device not on the consumable currently. This is the reverse of the razor blade model. The key difference is that the consumable is digital and is pirated....thus the price expectations are low on the book/music. Another difference is that AMazon doesn't control the content....so it wants the content cost to be as low as possible so it can sell devices. I think in the future, that Amazon will in fact start making money on selling the actual ebooks.
In video games. Microsoft and Sony have control over content and extract a $10 fee per game....this is why they follow the razor blade model.
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