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Old 06-29-2010, 01:16 PM   #1
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Jeff Bezos's mission: Compelling small publishers to think Big

http://tech.fortune.cnn.com/2010/06/...-to-think-big/

Quote:
Fortune: In the past, you've been a big proponent of lower prices for ebooks and an open opponent of the book publisher agency model, which allows the publisher to set the final retail price whether there's an intermediary retailer or not. Now that you've switched to an agency model, will ebookstores like Amazon's get hurt?

Bezos: No. First of all, there are a bunch of publishers of all sizes, and they don't all have one opinion. There are as many opinions about what the right thing to do is as there are publishers. So you're seeing that some of them are being very aggressive on prices, pricing their books well below $9.99.

Others are trying to do everything they can to make prices as high as possible. And what you're going to see is a share shift from one group of publishers to this other group of publishers.

Fortune: Do you expect a significant share shift? When do you see that happening?

Bezos: It's a significant shift and we're seeing it already.
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Old 06-29-2010, 03:16 PM   #2
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The Free Market at its best. Price them how you want and we'll buy the ones that are reasonably priced.
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Old 06-29-2010, 06:24 PM   #3
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Quote:
Originally Posted by jasonfedelem View Post
The Free Market at its best. Price them how you want and we'll buy the ones that are reasonably priced.
Yep, sounds pretty fair to me.
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Old 06-29-2010, 07:35 PM   #4
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I for one won't be buying high priced ebooks if some publishers don't watch it they will price themselves out of the game.
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Old 06-29-2010, 09:48 PM   #5
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From the interview ...

Bezos on strategy:

Our strategy with the ebookstore is 'buy once, read everywhere.' If you want to read on your iPhone, if you want to read on your BlackBerry. We want people to be able to read their books anywhere they want to read them. That's the PC, that's the Macintosh. It's the iPad, it's the iPhone. It's the Kindle. So you have this whole multitude of devices and whatever's most convenient for you at the moment.

Bezos as missionary:

We think of it as a mission. I strongly believe that missionaries make better products. They care more. For a missionary, it's not just about the business. There has to be a business, and the business has to make sense, but that's not why you do it. You do it because you have something meaningful that motivates you.

Bezos in the shower (and thinking about innovation):

When I wake up every morning, during my shower time, what I'm thinking about is new things that we can do.

We've got Amazon Prime. Customers love that. How can we make that program even better? What kind of inventions can we do to reduce our cost structures and our fulfillment centers so we can afford to sell products for even less? Those kinds of things are incredibly motivating for me, and I like the rate of change, I like the opportunity, the "canvas" upon which we can invent new things. And I am not alone in Amazon in that regard. We have a big team of people who are genetically predisposed to have fun while inventing new things. It's sort of in our DNA.


Bezos on why Amazon is different than almost every other consumer products company:

I would hope people would say that Amazon is earth's most customer-centric company, and that we work backwards from customers. Many companies sort of look at what their skills are and they work forward from their skills. They say this is what we're good at, and this is what we'll do. It's a very different approach from saying here is what our customers need, and we will learn whatever skills we need.

It was a pretty interesting interview, all in all.
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Old 06-29-2010, 10:15 PM   #6
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I will say he's about the only one pushing lower prices. BN wants to push them UP.
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Old 06-29-2010, 10:47 PM   #7
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Thanks, interesting read.

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Old 06-30-2010, 11:41 AM   #8
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To compete, B&N will have to be reasonable about prices. But at least the company is investing in the digital future. And it's taken a big hit in the stock market as a result. Still, it was a smart move. The Nook and the B&N e-book store may be all that's left of the company someday.
L.J.
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Old 06-30-2010, 11:50 AM   #9
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Quote:
Originally Posted by SensualPoet View Post
Bezos on why Amazon is different than almost every other consumer products company:

I would hope people would say that Amazon is earth's most customer-centric company, and that we work backwards from customers. Many companies sort of look at what their skills are and they work forward from their skills. They say this is what we're good at, and this is what we'll do. It's a very different approach from saying here is what our customers need, and we will learn whatever skills we need.

It was a pretty interesting interview, all in all.
Interesting. This may be the reason Amazon has become so successful. They listen to their customers and work from there. I like that a lot.
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Old 06-30-2010, 03:38 PM   #10
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My first thought was that the Headline was a bit of a stretch.
"Compelling?" Too strong. "Encouraging", maybe.
Then *this* came out:
http://techcrunch.com/2010/06/30/ama...text-platform/

Okay, compelling sounds about right.
"You want 70% royalties? Then do the right thing for the customers. And yourself."

To get the higher royalty the publisher needs to price the ebooks at least 20% cheaper than print, limit geo-restrictions, *enable* TTS...

Some may say its heavy-handed (and it is) but sometimes you just have to hit the mule with the two-by-four.

Hopefully enough smaller publishers will play ball and, in the process, become bigger publishers.
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Old 06-30-2010, 05:03 PM   #11
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Wow, 70%. I think it's safe to assume where Jeff Bezo's mind is at for Amazon, at least in terms on books. This is great news for eReader users as well as publishers.
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Old 06-30-2010, 08:36 PM   #12
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What? A CEO that understands his business? Heaven forbid!
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Old 07-01-2010, 12:52 AM   #13
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What? A CEO that understands his business? Heaven forbid!
In this day and age I'd thought it was forbidden!
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