Amazon to Fund e-Books for NYC Schools
Amazon continues to display its dedication to books, reading and education with various new business developments. The latest is a deal made with New York City schools – on Wednesday, Amazon signed a 3-year $30 million dollar agreement to provide e-Books to students in public New York City schools. The contract goes into effect in September 2016. Once the three years are finished, the NYC Department of Education may choose whether they would like to extend the contract two more years for an additional $34.5 million.
This deal makes Amazon a major supplier of digital textbooks, innovative educational technology and other items to the NYC school district. The three-year contract with the Department of Education’s Panel for Educational Policy will take effect in the coming school year.
The NYC School District was prepared to sign the contract last year, but the process was put on hold when organizations for blind students raised the issue that these materials would not be handicap accessible, making them useless for visually impaired students. However, in March, the National Federation for the Blind agreed to work in conjunction with Amazon to boost the unique educational material they provide.
Once again, Amazon has inched its way into a new market – and this one is major. Second to Los Angeles, the New York City school district is the largest school district in the US with over 978,000 students. With this deal, Amazon will take a significantly lower commission (about 10%-15%) on each sale.
We know that it is Amazon’s intention to make a business acquisition in every possible market. Now, with this contract, the company is returning to its roots – Amazon.com began as a small online bookstore in 1994. Though book sales are at the root of Amazon’s success, the New York City school district will be a major test for the platform.
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