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Amazon Prime’s Missed Opportunity

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  • by Cyrus
  • in News
  • — 28 Feb, 2011

In case you missed it, Amazon recently launched a video service to offer Amazon Prime members a decent selection of free movies, TV shows, and other video content. Amazon Prime is an exciting program that makes the shipping cost for most Amazon.com products free. Amazon was rumored to be planning to offer Amazon Prime members a free Kindle just a year ago (as reported by TechCrunch):

A reliable source tells us Amazon wants to give a free Kindle to every Amazon Prime subscriber. Just as soon as they can work out how to do it without losing money.

Perhaps, Amazon has gotten to a point that it does not need to offer Prime customers a free Kindle to strengthen its product. After all, Amazon is already dominating the e-reader market with its superior products and pricing strategy. Nevertheless, the e-reader market could change quickly. Giving Prime customers a free Kindle could not only make the program more popular, it would encourage more Amazon customers to invest in e-books instead of paper books. Amazon could have also introduced an e-book subscription plan under its Prime program. Our guess is that will be the case in the future.

So Amazon Prime customers will not get a free Kindle. It’d be interesting to know how many of them would opt for a free Kindle instead of free movies given the option.

 


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