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Originally Posted by Andy Baird
It's clear that Amazon, having decided that they can't wait for the hidebound publishing industry to wake up to reality, are taking a loss on these books in order to prime the pump and get Kindle (and the whole ebook concept) off the ground. It's a risk, but they have the deep pockets to do this for as long as it takes; Sony doesn't.
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I think you're right. And I'm glad Amazon has done this - it's a bit like Google finally just deciding to drag the book industry into the digital age kicking and screaming. I really think this will be good for the ebook industry as a whole. We're already seeing the "halo effect" from the Kindle - someone in this thread mentioned they bought a Reader after all the excitement from the Kindle. And for some reason, the press is now talking seriously about ebooks and ebook devices, as if Amazon created the market (and perhaps they did, with their content).
Quote:
Originally Posted by Andy Baird
And Amazon is 100% committed to this venture, risk or no. Jeff Bezos says: "This is the most important thing we've ever done." That's not just hype. I'm convinced he's right.
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I'm a little skeptical. It hasn't been so long since Amazon first started making a profit in general. This is a big risk in many ways (subsidizing content, subsidizing connectivity, getting into electronics manufacturing... Not to mention just the general risk of the ebook market.) They're obviously taking the right steps, showing that they know and understand what the risks are, but it's still risky. I think if it goes badly, they might be forced to pull out.
Quote:
Originally Posted by Andy Baird
In the long run, I think Sony's best bet is to stick to their knitting--meaning selling sleekly designed hardware--by licensing the Kindle platform. I think once Kindle gets going, Amazon will be only too happy to offer licenses to other hardware makers. After all, they are in the content business... so the more readers out there, the better, as long as they all tie into Amazon for purchases.
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*sigh* I hope you're right, both that Sony will be willing to license the platform, and that Amazon will be willing to have others develop their electronics. It really would be a great combination, and reduce the risk for both parties, while highlighting their strengths.
But Sony has been so incredibly stubborn in the past, especially when it comes to selling content. They seem to think they can be a content powerhouse all by themselves, leading to acts of incredible hubris.
And you wrote above about Bezos' very personal attachment to the idea and the device. The man thinks it's beautiful, in fact - it's like his child. Would Amazon really be willing to license out the device construction? If so, why wouldn't they have partnered with someone for the Kindle 1.0? They either want to control every aspect of it, or they have aspirations of entering the hardware business (Kindle == iPod?). Either way, they're not going to want to let go.
For the sake of the ebook market, I hope they do partner up, though.