Report: Amazon testing in-app purchases on Kindle Fire


Amazon is testing different ways to make in-app purchases within applications downloaded to its Kindle Fire tablet.  Having in-app purchasing capability will bring the device in line with Apple's (NASDAQ:AAPL) iPad and tablets powered by Google's (NASDAQ:GOOG) Android operating system.

Bloomberg reports the Amazon trial supports both à la carte purchases within apps as well as subscription options. Participants include Skimble, which develops fitness-themed apps and derives much of its revenues from in-app sales of workout regimens. The firm sells three-month memberships to its fitness programs priced at $24.99 as well as individual workouts costing an average of $9.99 each; Skimble co-founder Maria Ly said it is offering both packages to Amazon consumers.

Ly added that Amazon plans to claim 30 percent of all revenues generated from in-app sales, the same percentage it takes on downloads of premium-priced applications. Amazon did not return a request for comment.

Amazon first confirmed plans to bring in-app purchase capabilities to the Kindle Fire in October 2011, weeks after the tablet began shipping to consumers. Two months later, Amazon signed an agreement with mobile payment and analytics firm Bango, fueling speculation that Amazon's Appstore for Android also would introduce carrier billing services. Bango CEO Ray Anderson recently told TechCrunch that Amazon will roll out its services "in due course."

Developers generate substantially greater revenues per user in Amazon Appstore for Android than in the rival Google Play storefront, according to new data published by app store analytics firm Flurry. For every $1 generated by Apple's pacesetting App Store for iOS, Amazon Appstore yields an average of $0.89 per user, while Google Play earns developers just $0.23 per user, Flurry reports. It credits Amazon Appstore's success to the company's digital retail expertise, noting that Google's strengths are its search tools and advertising technologies.

In-app purchases are on pace to generate 64 percent of total mobile application revenues in 2015, up from 39 percent in 2011, IHS Screen Digest forecasted in January. The firm adds that in-app purchase revenues will rise to more than $5.6 billion in 2015, compared to $970 million a year ago.

For more:
- read this Bloomberg article
- read this TechCrunch article

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