Amazon has struck a major deal with the New York City public school district, the country's largest, to provide e-books to its students. According to a report in the Wall Street Journal, the deal, worth $30 million, will see the e-tailer selling titles through an internal marketplace. The agreement will not see students using Amazon's hardware, such as its suite of Kindle devices.
There are over 1 million students in the New York City public school system and now, with the Department of Education having signed the three-year agreement, Amazon could make upwards of $34.5 million on the contract, which also has the option of a two-year extension.
Although Amazon has been edging into the education market, this deal represents its most significant foray to date, especially in the high school market.
In the college market, where Amazon has been slightly more active, the company has established a handful of co-branded (with the university) online storefronts. In 2015, at Purdue University, Amazon set up its first bricks and mortar college store.
For the e-book purchases from the New York City schools, Amazon will earn a commission between 10%-15%. The school system estimated that it plans to make $4.3 million in e-book purchases during the first year of the agreement, which takes effect in the forthcoming school year, and ramp up to $17.2 million in the third year.
