Amazon Announces 70-Percent Revenue Share Terms Now Available for Kindle Magazine and Newspaper Publishers

Amazon.com, Inc. (NASDAQ: AMZN) today announced that magazine and newspaper publishers will soon be eligible to earn a larger share of revenue from each title they sell in the Kindle Store (www.amazon.com/kindlestore). For each magazine or newspaper sold, publishers will be able to earn 70 percent of the retail price, net of delivery costs. These new 70-percent royalty terms will become available on December 1, 2010.

“We are constantly working at improving the Kindle magazine and newspaper experience for both customers and publishers,” said Peter Larsen, Director of Kindle Periodicals. “Building on the recent introduction of Wi-Fi-enabled Kindles and the upcoming availability of newspapers and magazines on Kindle Apps, we’re pleased to add an increased revenue share and a great new tool for making Kindle better and easier than ever for publishers.”

For orders delivered to Kindles using Amazon’s Whispernet service, delivery costs are shared between Amazon and the publishers (see www.amazon.com/kppinfo for more information).

To qualify for the 70-percent royalty terms, newspapers and magazines must satisfy several customer experience requirements, including:

• Customers can read the title on all Kindle devices and applications.
• Customers can read the title in all geographies for which the publisher has rights.

These new terms do not apply to blog publishers because existing terms are generally more advantageous for them.

Amazon also announced the Beta release of the Kindle Publishing for Periodicals tool, which allows publishers to more easily add their newspaper or magazine to the Kindle Store. Publishers can quickly create their account, add content and preview Kindle formatting prior to making their titles available for the fast-growing base of Kindle customers.

To learn more about the new royalty terms for publishers and Kindle Publishing for Periodicals, visit www.amazon.com/kppinfo.

Kindle is in stock and available for immediate shipment today at http://www.amazon.com/kindle.

About Amazon.com

Amazon.com, Inc. (NASDAQ: AMZN), a Fortune 500 company based in Seattle, opened on the World Wide Web in July 1995 and today offers Earth’s Biggest Selection. Amazon.com, Inc. seeks to be Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online, and endeavors to offer its customers the lowest possible prices. Amazon.com and other sellers offer millions of unique new, refurbished and used items in categories such as Books; Movies, Music & Games; Digital Downloads; Electronics & Computers; Home & Garden; Toys, Kids & Baby; Grocery; Apparel, Shoes & Jewelry; Health & Beauty; Sports & Outdoors; and Tools, Auto & Industrial. Amazon Web Services provides Amazon’s developer customers with access to in-the-cloud infrastructure services based on Amazon’s own back-end technology platform, which developers can use to enable virtually any type of business. Kindle and Kindle DX are the revolutionary portable readers that wirelessly download books, magazines, newspapers, blogs and personal documents to a crisp, high-resolution electronic ink display that looks and reads like real paper. Kindle and Kindle DX utilize the same 3G wireless technology as advanced cell phones, so users never need to hunt for a Wi-Fi hotspot. Kindle is the #1 bestselling product across the millions of items sold on Amazon.

Amazon and its affiliates operate websites, including www.amazon.com, www.amazon.co.uk, www.amazon.de, www.amazon.co.jp, www.amazon.fr, www.amazon.ca, and www.amazon.cn. As used herein, “Amazon.com,” “we,” “our” and similar terms include Amazon.com, Inc., and its subsidiaries, unless the context indicates otherwise.

Forward-Looking Statements

This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Actual results may differ significantly from management's expectations. These forward-looking statements involve risks and uncertainties that include, among others, risks related to competition, management of growth, new products, services and technologies, potential fluctuations in operating results, international expansion, outcomes of legal proceedings and claims, fulfillment center optimization, seasonality, commercial agreements, acquisitions and strategic transactions, foreign exchange rates, system interruption, inventory, government regulation and taxation, payments and fraud. More information about factors that potentially could affect Amazon.com's financial results is included in Amazon.com's filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and subsequent filings.