Monday, January 9, 2012
Jeff Bezos Owns the Web in More Ways Than You Think | Magazine
Jeff Bezos Owns the Web in More Ways Than You Think | Magazine: While users of the iPad and the Fire will engage in many of the same activities—watching movies, reading books, playing Angry Birds—the philosophy behind the two tablets could not be more different. Apple is fundamentally a hardware company—91 percent of its revenue comes from sales of its coveted machines, compared to just 6 percent from iTunes. The iPad’s design, marketing, and product launches all emphasize the special character of the device itself, which the company views as a successor to the PC—complete with video-chat capabilities and word-processing software. Amazon, on the other hand, is a content-focused company—almost half of its revenue comes from sales of media like books, music, TV shows, and movies—and the fire-sale-priced Fire is designed to be primarily a passport to the large amount of that content that’s available digitally. The gadget comes preloaded with customers’ Amazon account information, and anyone who signs up for Amazon Prime, the company’s $79-a-year shipping service, will be able to access more than 12,000 (and counting) movies and TV shows on the Fire at no extra charge.