Report: Amazon Kindle May Drive Subscriber Growth For Sprint, But Only Sees $2 A Month In Revenues
Sprint said that during the first quarter, Amazon’s e-reader, the Kindle, drove a majority of the wireless carrier’s 394,000 new wholesale subscribers. But the big unknown is how much is Sprint getting for each one of those users?
Roger Entner, SVP, Nielsen’s Head of Research and Insights for Telecom, has released his best guess in a blog post, which pegs the average revenue per user at a mere $2 a month, putting into question how much Kindle-like devices could become a healthy new subscription model for Sprint (NYSE: S). In comparison, a direct postpaid Sprint subscriber has an ARPU of $56 a month. Entner cautions: “Because Kindle is included in Sprint
$2 per every user is quite a small amount of increase. Still, the minimal increase can be a great help for the company even if the amount can only cover some company's cost.