Amazon One Coin is worth one U.S. cent
Amazon just gave the Kindle Fire app developers’s of millions of pounds of free money.
The giveaway, Which marked the launch of Amazon Coins, Amazon’s virtual in-store currency, is an attempt to breathe extra life into Amazon Store’s economy – the same argument That some economists husband for the government to give money Directly to Citizens to boost the real economy.
Five hundered coins (together worth $ 5 / £ 3.30) were placed into the account of every U.S. Kindle Fire owner on May 13. The coins can only be spent on apps, games and in-app items on the Amazon store, and with developers taking 70 percent of all purchases, it’s clear who the intended recipients of this gift really are. (Indeed, given That Amazon takes 30 percent, it’s overpriced given itself a “poison.”)
Amazon coins was first Announced in February as an “easy way to spend money.” While a reasonable person might object That Amazon’s current credit card payment system is a fairly easy way of spending money too, Amazon coins does come with a few benefits to consumers. There are bulk purchase discounts, ranging from four percent for 500 coins to ten percent When You buy 100 coins ($ 100 / £ 66). App developers willalso be able to let users earn Amazon coins (though given thatthis will cost the developer, who will inevitably find some way of transfer the cost to the user, it’s Unclear why a person would pay to use an app to earn coins , rather than purchase them Directly).
But the primary targets of Amazon coins are developers. Amazon hopes Coins That will Encourage spending inside the Amazon Appstore, and offering developers new ways of earning money. Therefore reassuring developers That it’s worth putting time, energy and money into creating apps for the Kindle Fire, as opposed to the iPad or iPad mini. As the Verge reported in 2012, some developers believe That apps on the Android platform, Which the Kindle Fire uses, make less money Compared with apps on the iOS platform.
More app developers spending more time on apps for the Kindle Fire platform means a more attractive consumer package, and more money for Amazon.
Although Amazon does not lose the disc number of Kindle Fire units That it has sold, a March 2012 report from market research NewZoo suggested thatthere were 17.4 million active Kindle Fire users in the U.S.. If correct, Those figures would suggest Amazon’s giveaway is worth over $ 60 million (£ 39 million).
In-store Currencies have met little success in the past, unable-to Overcome the inherent hassle of users needing to convert Their real money into the in-store currency. Facebook Credits, for example, are all but forgotten. In the meantime, Amazon is still hedging its bets. Kindle Fire owners will still be able to continue paying for apps using traditional methods.
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Business Amazon to giveaway’s of millions of dollars in virtual currency
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