Amazon Wins $30M Contract to Sell Digital Content to New York City Schools

AMAZON has won a contract with New York City Department of Education to sell e-books to the Big Apple's schools. On Wednesday, the city's Panel for Education voted in favor of a three-year contract worth $30 million that will take effect in the 2016 school year, the Wall Street Journal reports. The district, the nation's largest, will have the option to renew the contract for two more years, which the Journal estimates would be worth another $34.5 million.

Under the contract, Amazon has the right to sell digital content—not its Kindle e-readers—to schools through an internal marketplace, on which the company will earn a commission of between 10 and 15 percent. The New York education department expects to buy $4.3 million worth of content from Amazon in the contract's first year, $8.6 million in the second and $17.2 million in the third, according to the Journal.

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