Netbooks slip under tablet shipments, achieve has-bEeen status originally appeared on Engadget on Tue, 25 Oct 2011 02:34:00 EDT. Please see our terms for use of feeds.
With Amazon only charging $200 per Kindle Fire, it’s widely assumed the company is taking a major loss on each device sold.
That might not be the case, after all, according to a new estimate of the cost of Kindle parts by UBM TechInsights, which says the Kindle Fire’s parts are $150 in total. This would suggest Amazon is breaking even, or turning a profit on each Kindle sold.
Obviously, a Kindle Fire is more than parts. It has to pay people to put to them together, it has to pay for shipping, storage, etc. UBM TechInsights doesn’t have an estimate for those costs.
For a point of comparison, UBM estimates the iPad’s components cost $270 for a wireless version, and the BlackBerry PlayBook’s components cost $170 for a 16GB version.
Here’s the breakdown from UBM:
- The Kindle Fire Is Already Amazon’s Number One Best Seller In Electronics
- Amazon Will Lose Millions Selling The Kindle Fire, But That’s The Point
- Here’s The Full, Unedited Kindle Fire Keynote From Jeff Bezos
Netflix has more subscribers than any single cable company, a number that is up 10 million from last year. That’s impressive.
But perhaps not as impressive as the 80 million the major cable companies boast as a collective. That figure could explain why Starz walked away.
“For now, they may be in a better position to make Starz money than Netflix is — even if Netflix reportedly offered more than $300 million per year for Starz content,” Dan Frommer writes.
In the coming months, we will see if Starz made the right call.
- CHART OF THE DAY: iPads May Soon Cost More Than Big Screen TVs
- CHART OF THE DAY: Here’s Why Tumblr Can Raise So Much Money At A Huge Valuation
- Here’s How Normal People Really Feel About Netflix’s Price Hike
Microsoft turns to crowdsourcing service to swat away patent trolls originally appeared on Engadget on Wed, 01 Jun 2011 05:54:00 EDT. Please see our terms for use of feeds.
This is a problem for Google because it still gets the vast majority of its profits from search. Yes, the overall search market continues to grow, as does revenue per search. But, it’s clear Google is not going to completely dominate the search market.
If Google’s stock is ever going to start soaring again, Google will have to prove it has a second real profitable business beyond search.
Meanwhile, Microsoft’s Bing search engine has managed to pick up a few percentage points of search share in the last year. But it’s paying an unbelievable amount for those few points of share, and it’s taking away share from its partner, Yahoo.
Kiip, the seven month-old mobile ads startup, is finally coming out of stealth today and revealing an entirely new model for in-game advertising, one that offers users value instead of fighting an uphill battle for their attention.
Going beyond the banner and text ads used by industry leaders iAd and AdMob, the team behind Kiip has thought long and hard about the way people actually play games and has come to conclusion that the moments when players experience in-game achievements like upping a level, completing a challenge or accumulating a certain number of points are the most valuable in terms of providing the most user engagement.
Unlike Tap.me, Kiip doesn’t just show an ad when those moments are achieved. What it does instead is pretty interesting: Kiip has partnered up with big brands like Sephora, popchips, Homerun.com, Sony Dash, Vitamin Water, 1-800-Flowers, Dr. Pepper, GNC, Carl’s Jr and Hardee’s to offer players actual in-game rewards like a voucher for six bags of popchips, a lipstick sample or a complimentary smoothie when they complete gaming milestones.
“Achievements are the universal currency for accomplishment and every game in the world has achievments,” 19-year-old Kiip co-founder Brian Wong tells me, explaining what he calls the “Achievement Moment.” “The achievement itself isn’t the cool thing, it’s the moment. We realized that the moment was worth something. The natural evolution is to put something there that actually matches the achievement.”
Wong emphasizes that Kiip (pronounced Keep) isn’t a conventional ads network but a “Rewards Network”. Hmmm … It depends on what you consider an ad. Offering players custom-tailored rewards is basically lead generation. It’s an easy away for advertisers to associate their brand with a positive moment, almost diabolical in its simplicity; “Driving for customer acquisition when players are happy.”
As of midnight tonight the Kiip Rewards Network will be rolling out rewards in over 15 games, reaching 12 million monthly active users (Wong wouldn’t tell me which games they were involved with so if anyone sees a Kiip ad please let me know). Brands will pay up when a user signs up for a reward, from 25 cents to $3 per cost per engagement.
The rewards themselves are actually targeted algorithmically based on the game demographics, for example if no girls play a game there will be no offers for lipstick. If someone ends up with something they don’t want they can always gift it.
Kiip is also complimentary to other mobile ad networks as it only provides rewards for achievements and doesn’t get into banner ads or the real estate business. Says Wong, “People have been too focused on real estate and pieces of the screen being part of the advertising equation, but they’ve completely overlooked the notion of moments, moments where you’re happy, moments when you engage. These moments are worth something.”
Co-founded by former Digg employees Wong, Courtney Guertin and Sequence’s Amadeus Demarzi, Kiip pocketed $4 million in Series A funding from Hummer Winblad and True Ventures just last week. Wong tells me the team has got a lot more up its sleeve, and as always, you’ll read about it first here.
In days of old, advertisers had to buy TV airtime, magazine placements, or radio spots to send their ads out to reach customers. Usually one of the largest chunks of cost is the media placement, followed by “creative” development and content creation.
What if there was a way to cut out most or all of the media cost? And what if we could also substantially reduce the cost of “creative development” and “content creation?” Look at the JetBlue example below. On Twitter, JetBlue has nearly 600,000 followers. Each of these followers has basically “opted in” to receive their updates, often multiple times a day (“costless media”). There is no “media cost” for getting these messages out. Compare this to what it would cost to air a TV ad that reaches 600,000 viewers (assuming all the viewers wanted to receive the ad, and were sitting there in front of the TV watching the ad when it was aired).
Also, the cost of content is nearly zero too. JetBlue has their customer service people (and fans) help create content by tweeting. These tweets range from customer service (“twitter customer service”) , to service notices (e.g. dense fog in NYC area airports causing delays, etc.), to tips from frequent travelers. This type of content is more “real,” valuable, and trusted than an advertisement. And there is no cost of “creative development” because the content does not need to be dressed up into a glossy ad for TV or print — it’s just 140 characters of text at a time. It’s more effective AND lower cost?! Imagine that!
Finally, notice in the “bio” area on the upper right of the screen shot that it reports who is currently on duty — “Morgan and Lindsey” — this gives the normally faceless customer service system a name and a face and perhaps even a personality. JetBlue’s twitter is a great example of social marketing done awesome!