Amazon is becoming a multimedia powerhouse – Kindle Fire will be a real player in the tablet business

So I logged in to Amazon to buy a book and look what I saw..

A message stating that Amazon just inked an agreement with Disney-ABC to add 800 titles to Amazon’s streaming catalog.

They claim this will bring their collection of new titles to a whopping 13,000!

All this for $79 a year which breaks down to less than $7 a month!

In America, that’s really really affordable.

Microsoft have to be watching this with some level of trepidation because Amazon are looking to hit the ground really hard this fall with the Kindle Fire.

You do realize that the Kindle Fire is going to sell one gazillion copies this Christmas?

kindle fire

kindle fire

Amazon will have the books, the tablets, the media and the devices and to make things even sweeter will make the price of their service dirt cheap.

Whatever R&D loss Amazon took in the previous quarter will pale compared to the amount of money they will make in the next 12 months.

Less important than the money is the way they are planning to put their stamp on the sub $200 tablet space. Amazon plan to make you forget that you have a choice when it comes to buying any tablet for less than $200 and they may well succeed.

The Microsoft development team is working hard on Windows 8 to make it smooth and usable but Amazon only serves to remind them that this is the big game.

Any company or product that stumbles during this critical period may find themselves psychologically shut out from their respective markets for a while.

Remember when RIM was know for making geeky phones? Now, they’re the company that’s widely viewed as:

  1. Not being able to keep their network reliably working
  2. Stale and probably going out of business soon.

Amazon have a very grand plan that they are implementing. We’ll have to see what this means for Microsoft in the long term.

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