AMZN is reportedly offering to give customer information to digital partners. Apple refuses to share customer data with partners. I think customers will react to AMZN's tactics because they place a high value on their privacy. Check this story, 7 paragraphs down. Apple will point this out aggressively. If this is true, Amazon is subsidizing the price of their tablet by selling customer data. Not good; I think it backfires.
The paragraph you refer to is:
"Amazon is working to distinguish itself from Apple, which has grated on media companies by demanding 30 per cent of media sales through its iTunes store and been reluctant to share data about consumers. According to people familiar with the deals, Amazon will freely share subscriber data with magazine and newspaper publishers."
I also noticed in the article:
“The good news for Amazon is that, unlike everyone else who has tried to compete, they have spent a lot of time building out the services before they launched the device,” said Michael Gartenberg, Gartner analyst.
Amazon’s long history in ecommerce will also give it a competitive advantage as it seeks to increase its digital media sales. “They have millions and millions of credit cards,” said Mr Gartenberg. “It becomes really easy to charge for these services. One click and you can rent a movie.”
Sounds like a buy to me! Thanks for the article.