Amazon adds 1 free book rental a month for Kindle users with Amazon Prime
amazon.com
amazon.com
I'm close to signing up. I tried the month free trial and enjoyed the shipping, but barely used the on demand video because there wasn't that much recent stuff on there that I could actually rent for free. I imagine that Amazon is quite committed to changing that.
Not to mention that the inhibition to purchase drops significantly. Before activating Prime I knew there was an invisible $25 Super Saver free shipping barrier that I had to break before I would complete an order on Amazon. Now with Prime, I activated One-Click Buy and haven't looked back. It's addicting having a new package arrive at your door every day or two.
<Obvious warning about irresponsible spending unrelated to the business angle of this discussion />
There are synergies here I'm fairly certain I don't understand -- I look forward to seeing what Amazon can do over the next 5-10 years.
Options:
1. wait to see if cloud based gaming catches on, and move on that market, maybe together with trying to control the TV.
2. online banking/insurance services(maybe?). uses cloud + trust + credit cards. Those are industries are on a verge of disruption to a much more efficient and automated model, need complex automation, and are consumer facing.
3. Control the e-book distribution market worldwide,
4, Get a larger part of the content creation ecosystem(movies, publishers, maybe music or educational content)
5. An online advertising move using the kindle fire silk browser and amazon browsing history. They would combine that with their general retail savvy to create highly effective service
6. Groupon like service - have a cut of every local commerce transaction. Again superior customer knowledge helps recommend offers, and they could find a way to advertise to small business owners in their site.
But their main goal is :
Sell move stuff , more groceries / CPG and more heavier stuff. They could do all this based on the success of prime and new logistics build for it.
Prime initially increased my overall spend because it was so damned easy. Particularly as here in the UK I can order a book up to about 7pm and have it arrive next day. My record, I think, is ordering about 9pm and having it arrive at 9:30am :D
Amazon Prime was a genius idea.
It also means Amazon is the first place I check for just about anything I buy online: over time I've found that it's highly unlikely that the difference in price (esp. with shipping) is going to be enough to cover the potential hassle of ordering somewhere else.
Prime is a huge win for Amazon. They take loyal customers, increase order volume and push the customers into ordering from a wider range of categories. More dollars from those customers end up going to Amazon, and the customers become less price sensitive as well.
It's hard to evaluate just how valuable this will be without being able to browse the selection from a computer.
That alone is pretty good - and for a "power user" of Amazon like me (who used to spend multiples of the £50 prime membership in delivery a year) it rocks.
But we don't get any of this good stuff (streaming/books).
Which is a shame because I suspect it would finally convince me to buy a Kindle :)
Licensing videos and books is surely very complex legally, so starting more than one country at a time would undoubtedly be very hard.
I'd hardly call that "bittersweet".