[fjtorres]

Everybody focuses on the Kindle ebook format(s) and DRM when looking at the Kindle ecosystem and neglect to factor in the rest of the system. Whispernet and KDP are as important to the success of Kindle as their ebookstore interfaces, review system, and customer policies. And more so than their (optional) DRM and supported formats.

KU is a new piece of the system but its long term viability hinges on how it fits into the entire package, not what it does by itself. You can't just pick and choose what parts you want because the viability of the entire system hinges on the total package.

KU is almost certainly going to be a money loser for Amazon for at least the first three months because of the trial subscribers and Audible credits. What makes it a worthehile investment for Amazon is that since KU is kindle exclusive, it will strengthen the total Kindle ecosystem and draw in new customers both from ebook fence-sitters, who haven't bought ereaders yet, and from phone/tablet readers who might otherwise be tempted to go with iBooks or play. Supporting people unwilling to commit to the Kindle ecosystem would be a waste of money and, instead of strengthening the system would weaken it. Amazon isn't in business to provide free reads, they're in business to make money for themselves and their suppliers.

Everything in life is tradeoffs of one kind or another--so here's one: you want access to unlimited Kindle books? Get a Kindle device or app. It's not an unreasonable deal.