Friday, November 04, 2011

How Amazon Can Afford to Give Away Books, Free - Technology Review

Check the link below for more analysis of Amazon’s new free (to Amazon Prime customers using Kindle devices) loan service

But how can Amazon afford to give away all this free (albeit digital) media? As Slate Technology columnist Farhad Manjoo pointed out, Amazon customers who join Prime increase their spending on the site on average $500 a year, presumably because of the free shipping.

But that's just one of the many interlocking dynamics behind the business strategy of this announcement. Here are the rest.

How Amazon Can Afford to Give Away Books, Free - Technology Review

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