Quote:
Originally Posted by Tom90deg
Really? That seems...poorly planned. "Ok, look. We've got this new tech! It's amazeing. And the masterstroke? We'll legally agree to NOT sell it for cheaper than the established brand!" Is it just me or does that seem rather...stupid?
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I don't think I made myself quite clear. Mobipocket created the .mobi format. They license it to other companies for publishing their books. They have a store where they also sell books but have a deal not to undercut other stores. The main revenue is from licensing the format and its DRM. Amazon bought them quite some time ago. Years pass. Amazon develops the Kindle. They make a "new" format that does not directly compete with Mobipocket to avoid violating this agreement. This allows them to undercut as much as they like with .azw books and gain market for the Kindle in the US. Mobipocket remains a thriving file format in the rest of the world where Kindles are not available.