CIO Today

CIO Today Network Sites:   Top Tech News  |   CIO Today   |   Mobile Tech Today   |   Data Storage Today
Daily Briefing for Technology's Top Decision-Makers
Wednesday, April 23rd 
The future of tape is here.
This ad will display for the next 20 seconds. Please click for more information, or scroll down to pass the ad, or Close Ad.
Trending Topics:   Security Heartbleed Big Data Cloud Computing Windows XP Data Centers OS X Mavericks
Home
Enterprise Software
Enterprise Hardware
Big Data
Network Security
Cloud Computing
CRM Systems
Data Storage
Operating Systems
Communications
CIO Issues
Mobile Tech
Chips & Processors
World Wide Web
Business Briefing
After Hours
Press Releases
 
Free Newsletters
Top CIO News
 
Mobile Tech Today
 

Business Briefing

Amazon Offers Discount Coins To Boost Kindle App Sales

Amazon Offers Discount Coins To Boost Kindle App Sales
May 13, 2013 2:05PM

Bookmark and Share
The availability of Amazon Coins comes as a Kindle Fire competitor, Barnes and Noble's Nook HD, is getting an upgrade to the full, unforked Android operating system, with access to the myriad offerings of Google Play for apps, games and media.

BMC is redefining the relationship between I.T. and business. Now I.T. can provide easy access to business services, support and applications -- anywhere, anytime, and from any device. Meaning a more efficient business and an even more innovative I.T. Learn more here.

Since its inception in 1994, Amazon.com has made quite a bit of coin on the Internet. Now, the nation's biggest online retailer, based in Seattle, Wa., is offering a virtual coin currency that users can buy and use for discounted payments via the Kindle Fire tablet for in-app and other purchases.

Amazon Coins were first announced in Feburary, but visitors to the site on Monday (May 13) were greeted with a message from founder and CEO Jeff Bezos that Kindle Fire owners have been awarded a credit of 500 coins, worth a penny each.

Discounts For Users

"You can use the coins to buy apps and games, as well as items inside apps and games," writes Bezos. "And if you want to purchase additional coins for yourself or your family, you get to do so at a discount."

As an incentive, Amazon offers a more substantial discount when you buy larger increments of Coins, beginning with a four percent discount off a 500 coin purchase ($4.80), 5 percent off 100 ($9.50), 8 percent off 2500, and capping at 10 percent off 5,000 and 10,000 virtual coins ($5 and $90, respectively).

The availability of Coins comes as a Kindle Fire competitor, Barnes and Noble's Nook HD, is getting an upgrade to the full, unforked Android operating system, with access to the myriad offerings of Google Play for apps, games and media.

"I'd say this salvo is aimed directly at Google and the Play Store," Charles King, principal analyst at Pund-IT told us.

"In essence, Amazon is selling its 'currency' as up to a 10 percent discount over real money but is still selling apps at full cost and guaranteeing its app developers their 70 percent revenue share. That means the difference is coming out of the company's pocket."

Essentially, King adds, it's the same strategy of a "loss leader" used by supermarkets when they sell eggs or toilet paper for a price that is lower than the cost of those goods, to lure customers into the store.

'Fork' In The Road

The problem, he said, is that it sends a message that an incentive is needed because things aren't going very well.

"The trouble for Amazon may be that the company's decision to 'fork' Android, bypass Google and develop its own outlet for Kindle apps is not paying hoped-for dividends," said King. "Despite the Kindle's popularity as an ereader, the biggest and best market for Android apps and developers remains Google's Play Store. That reality seems to be having a direct effect on Amazon's bottom line."

In announcing Coins on its developer blog in February, Amazon told its partners "For you, it's another opportunity to drive traffic, downloads, and increased monetization. Plus, there's no integration required--you'll get paid the same 70 percent revenue share whether the customer chooses to use Coins or their own money."

Tell Us What You Think
Comment:

Name:

Flipping Gorilla:

Posted: 2013-05-18 @ 10:05am PT
Amazon has the best prices on all of the Kindle Models!



 Business Briefing
1. AT&T in $500M Net Video Partnership
2. High Court To Hear Aereo Dispute
3. Aereo CEO Speaks Out on Future
4. Uber Meets Local Lookalikes in Asia
5. Otherworldly Ambitions of Elon Musk




 Most Popular Articles
1. BlackBerry Drops T-Mobile After Nasty Spat
2. Cisco, IBM Launch Internet of Things Consortium
3. Salesforce CRM Gets Industry Specific for Internet of Customers
4. Intel Bets on Cloudera for Big Data Analytics
5. SAP HANA Data Warehouse App Gets Faster Analytics

Have an informed opinion on this story?
Send a Letter to the Editor.
We want to know what you think.
Send us your Feedback.

 Related Topics  Latest News & Special Reports

  Hortonworks, Concurrent To Partner
  Microsoft, BMC Targeting VMware
  AT&T in $500M Net Video Partnership
  Verizon Report Exposes Cyberthreats
  Samsung: $2.2B Too Much for Apple

 Technology Marketplace
Business Intelligence
Get real-time, cloud-based information services with Neustar.
 
Cloud Computing
Next Generation Data Center Is Here! Vblock™ Systems from VCE
 
Contact Centers
HP delivers the future of the contact center with HP Qfiniti 10.
 
Data Storage
Next Generation Data Center Is Here! Vblock™ Systems from VCE
Barium Ferrite (BaFe) is the future of tape.
2.5" Enterprise-class SATA & SAS SSDs for server & storage applications
 
Enterprise Hardware
Barium Ferrite (BaFe) is the future of tape.
2.5" Enterprise-class SATA & SAS SSDs for server & storage applications
 
Hardware
Protect your network with APC Smart-UPS battery backup
 
Network Security
Protect your network with APC Smart-UPS battery backup
 

Network Security Spotlight
Verizon Data Breach Report Exposes Top Threats
Beyond Heartbleed, there are cyberthreats vying to take down enterprise networks, corrupt smartphones, and wreak havoc on businesses. Verizon is exposing these threats in a new report.
 
Where Do Web Sites Stand, Post-Heartbleed?
A security firm says the vast majority of Web sites have patched themselves to protect against the Heartbleed bug, but now there are questions raised on the reliability of open-source programs.
 
White House Updating Online Privacy Policy
A new Obama administration privacy policy explains how the government will gather the user data of online visitors to WhiteHouse.gov, mobile apps and social media sites, saying much is in the public domain.
 
Navigation
CIO Today
Home/Top News | Enterprise Software | Enterprise Hardware | Big Data | Network Security | Cloud Computing | CRM Systems
Data Storage | Operating Systems | Communications | CIO Issues | Mobile Tech | Chips & Processors | World Wide Web
Business Briefing | After Hours | Press Releases
Also visit these Enterprise Technology Sites
Top Tech News | CIO Today | Mobile Tech Today | Data Storage Today

Services:
FreeNewsFeed | Free Newsletters | XML/RSS Feed

About CIO Today Network | How To Contact Us | Article Reprints | Services for PR Pros (In partnership with NewsFactor) | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 CIO Today. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.