The Kindle Fire Is Giving A Big Boost To Amazon's Revenues From Digital Media

Amazon keeps expanding its reach. Video has been among Amazon’s biggest pushes recently. The company has begun creating original content for Amazon Prime Instant Video, and more recently, rumours are circulating that a streaming device to rival the Apple TV will debut from Amazon in March.

Where does this leave the Kindle Fire amid all this fast-paced media expansion?

The device has been losing market share lately, and looking less relevant to Amazon’s overall strategy.

But according to a report from BI Intelligence, the Kindle Fire is actually a critical component of Amazon’s monetization of its digital media services.

Instead of squeezing a margin from its hardware sales, Amazon generates revenue from Kindle Fire users in other ways. It encourages them to download from Amazon’s vast digital library of apps and media, view ads, and access related services like e-commerce.

In the report, we dig into available data on Amazon’s unique mobile strategy. Amazon has achieved respectable results in terms of app downloads and app revenue on Kindle Fires, and yet is often left out of mobile platform analyses that focus on Apple, Google, and Microsoft.

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Here are some of the key takeaways on the Kindle Fire ecosystem:

The report is full of charts and data that can be easily downloaded and put to use.

In full, the report:

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Disclosure: Jeff Bezos is an investor in Business Insider through his personal investment company Bezos Expeditions.

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