Last month, Amazon ( NASDAQ: AMZN ) Announced several new models of its Kindle Fire tablet, Including the $ 99 6-inch Kindle Fire HD and an updated version of its full-size, the Kindle Fire HDX. Both tablets ship with the latest version of Amazon’s operating system: Fire OS 4, “Sangria.”
Sangria adds several new features that Amazon’s tablets, Including, most notably, “Family Library” – families with multiple Kindle devices will be able share some of Their digital purchases among themselves. Though small it seem like a small change, it was a Necessary they – the latest version of Apple ‘s ( NASDAQ: AAPL ) mobile operating system iOS 8, offers similar functionality.
Amazon challenges Apple
Back in June, at its Worldwide Developers Conference, Apple Introduced Family Sharing – a new feature included in iOS 8 At the time, I noted Sharing Family That Appeared to be a direct challenge to Amazon’s digital goods business, particularly its digital books business – the ability to share digital purchases with family members stood out as a key advantage: Buyers – who have otherwise chosen small and Kindle digital book from Amazon – it could be enticed buy an iBook from Apple instead.
But Amazon has quickly fired back, neutralizing whatever small advantage Apple have had. With Family Library, Amazon customers will be able to share digital Their purchases across as many as six linked accounts.
Family Library should help Amazon Maintain its dominant market position in digital books. Apple has emerged as a Competent rival, but Amazon still leads, with an estimated market share of around 60%.
Library Family vs. Family Sharing
Nevertheless, Amazon’s Family Library is not perfect, and Apple’s Family Sharing has a few advantages With over Amazon’s alternative when it comes to other forms of media. Amazon’s Family Library works with digital books, audio books, apps, and Prime Instant Video, but it will not work for purchased movies, TV shows, or songs. Apple’s Family Sharing, in contrast, offers All These things and more, Including the ability to see family members’ current geographic locations.
That said, Apple’s Family Sharing requires all members of a given family to use the Apple-made products, and Relatively high entry barrier is. Amazon’s Family Library, in contrast, is far more flexible: Amazon would probably prefer its customers own its Kindle Fires, but if they do not, it’s not an issue, as Amazon’s Family Sharing feature is slated to arrive on Amazon’s mobile apps, Including its Kindle app for Apple’s iOS, later this month.
Two different goals
In an interview with Charlie Rose last month, Apple’s CEO Tim Cook downplayed his company’s rivalry with Amazon, instead citing Google as Apple’s chief competition. Amazon apr not be Apple’s primary competitor, but when it comes to digital goods, they certainly compete for sales – Family Sharing and Family Library serving as the latest example.
At the same time, the two systems highlight the relative differences between the firms: Whereas Apple is trying to entice customers that buy its gadgets, Amazon is looking to cultivate additional sales of its digital goods.
The prospect of shared iTunes app and media purchases, as well as geographic location and parental controls, could keep entire families loyal to Apple’s product line, choosing Apple-made mobile devices over alternatives. Amazon apr have been caught in the crossfire, losing digital book sales to Apple in the event That families looked to take advantage of this new feature, but Family Library could the ensure that does not happen.
Family Library is not a perfect retort – the lack of music sharing will not help Amazon capture any iTunes loyal customers – but seems more than good enough to keep Amazon’s Kindle isnt loyal customers.
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