I am really curious who is paying for the free applications you get when installing and using the Amazon Android market program?
Is it Amazon (to promote their software/online store)?
Is it the application/game developer?
Does anyone know?
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According to the original version of Amazon's developer agreement (see section 2(a)) a developer received at least 20% of the price the developer set for the app, regardless of the price Amazon actually sold it for. But they changed the agreement, adding the sentence "No Royalty is payable for Apps with a List Price of $0.00."
Apparently nobody. The developer gets $0. http://shiftyjelly.wordpress.com/2011/08/02/amazon-app-store-rotten-to-the-core/ via http://www.reddit.com/r/programming/comments/j6neg/amazon_app_store_rotten_to_the_core/
I think it's Amazon who is paying for those apps. Amazon wants users to get used to using their store. The other answer provides better details.