Amazon.com's Kindle is iPod for Books
Amazon.com recently launched its Kindle eBook reader, and I think its brilliant, but not in the way you might expect.
Much has been said about the amazing readability and battery life of the eInk display, which has been available in Sony's eBook Reader for some time. But as far as Kindle goes to emulate the experience of reading a book, it faces a major problem:
I love books. I love building my library, and I love being surrounded by my books. That's how I personalize my space. So, when I first heard about Amazon.com's new Kindle eBook reader, I didn't give it much thought. Until they come with something to put on my bookshelf and admire, I'm probably not going to invest in too many eBooks.
However, in addition to the 90,000+ books that are already available in Kindle format, Kindle versions of major newspapers and magazines are also available, and although I read many newspapers and magazines, I do NOT collect and archive those. I wouldn't mind replacing those with digital versions, but I don't want to deal with the hassle of downloading to my computer and then syncing to another devise. Its easier just to grab my paper from the mailbox and throw it in my backpack.
But here is where I think the Kindle could be a real breakthrough: Kindle includes free, wireless broadband, so that you can purchase reading materials directly from the device and it will download your reading materials automatically while you sleep -- no computer or syncing required!
Think of it: I can have my Wall Street Journal, along with a few blogs and maybe a magazine or two, delivered right to my briefcase, ready to read, by the time I wake up. No rain soaked Front Page when the little plastic baggy gets torn from an overzealous throw by the delivery boy. No more stack of dead processed trees accumulating in the garage to feel guilty about. And it weighs less, too! :)
I'm not sure Amazon imagined the Kindle as a replacement for periodicals, but I doubt I'm the only person for whom this particular value prop seems compelling. In fact, a lot of people like books... Why would Amazon.com invest so heavily in creating creating a 90,000+ volume library of Kindle books (including 100 of the 112 current best selling) instead of getting more publishers of periodicals lined up?
Simple: The Kindle could transform Amazon.com's business model and dramatically increase its profitability.
Amazon.com was on the vanguard of companies that did away with the storefront, and all its associated costs: real estate, insurance, labor, excess inventory, theft. Their virtual store allows them to offer lower prices and a broader selection than any other merchant in their market. But they still have massive central warehousing, inventory management, and shipping costs to deal with.
The Kindle has the potential to eliminate all this. Amazon.com's book business could end up looking a lot like Apple's iTunes, with similar margins. Taken in this light, Amazon's generosity in picking up the tab for integrated wireless service and heavy investment in accumulating content for the Kindle make a lot of sense.
Much has been said about the amazing readability and battery life of the eInk display, which has been available in Sony's eBook Reader for some time. But as far as Kindle goes to emulate the experience of reading a book, it faces a major problem:
I love books. I love building my library, and I love being surrounded by my books. That's how I personalize my space. So, when I first heard about Amazon.com's new Kindle eBook reader, I didn't give it much thought. Until they come with something to put on my bookshelf and admire, I'm probably not going to invest in too many eBooks.
However, in addition to the 90,000+ books that are already available in Kindle format, Kindle versions of major newspapers and magazines are also available, and although I read many newspapers and magazines, I do NOT collect and archive those. I wouldn't mind replacing those with digital versions, but I don't want to deal with the hassle of downloading to my computer and then syncing to another devise. Its easier just to grab my paper from the mailbox and throw it in my backpack.
But here is where I think the Kindle could be a real breakthrough: Kindle includes free, wireless broadband, so that you can purchase reading materials directly from the device and it will download your reading materials automatically while you sleep -- no computer or syncing required!
Think of it: I can have my Wall Street Journal, along with a few blogs and maybe a magazine or two, delivered right to my briefcase, ready to read, by the time I wake up. No rain soaked Front Page when the little plastic baggy gets torn from an overzealous throw by the delivery boy. No more stack of dead processed trees accumulating in the garage to feel guilty about. And it weighs less, too! :)
I'm not sure Amazon imagined the Kindle as a replacement for periodicals, but I doubt I'm the only person for whom this particular value prop seems compelling. In fact, a lot of people like books... Why would Amazon.com invest so heavily in creating creating a 90,000+ volume library of Kindle books (including 100 of the 112 current best selling) instead of getting more publishers of periodicals lined up?
Simple: The Kindle could transform Amazon.com's business model and dramatically increase its profitability.
Amazon.com was on the vanguard of companies that did away with the storefront, and all its associated costs: real estate, insurance, labor, excess inventory, theft. Their virtual store allows them to offer lower prices and a broader selection than any other merchant in their market. But they still have massive central warehousing, inventory management, and shipping costs to deal with.
The Kindle has the potential to eliminate all this. Amazon.com's book business could end up looking a lot like Apple's iTunes, with similar margins. Taken in this light, Amazon's generosity in picking up the tab for integrated wireless service and heavy investment in accumulating content for the Kindle make a lot of sense.
posted by Charles Ames at 12:05 AM
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