With the Kindle, it gets the serial number registered to your Amazon account when it ships. This ties the device to the account automatically, and the store/DRM servers all work based on this serial number. The upside to this scheme is that it is very 'out of your way' unless you gift a Kindle... then that person needs to figure out how to activate the Kindle onto their Amazon account (which is still pretty simple). The downside is that because authorization is on the server side, people will start losing access to their content after the servers die (say your Kindle dies, you find a replacement, but it can't be authorized).
With the nook, the DRM is based on the book itself. You enter one username/password once per device, and purchasing/downloading from the nook via your B&N library will even let you skip that. You will only ever need to enter it again on a different device, or if you change your CC# with B&N. And with B&N working with Adobe to include this scheme with ADE (Content Server, the device SDK, and the desktop app), it will be possible to take this content to other devices that get the updated SDK in the next year. Sony's Reader, iRex's stuff, the Plastic Logic device, and others will all be able to open this stuff up if they update to the latest device SDK.
It is a trade-off in both cases. Amazon comes across as a bit more confident in this case, as they are expecting to stick around in the market, and want the ease of use they can bring by making more of the process automatic. B&N comes across as being less restrictive, and more willing to play in an open market where a buyer has a choice of where to get their content from, or what device to put the content on (Sony is now showing that they are willing to do the same as well).
The question I have is: will the Kindle and Amazon be enough of a powerhouse that them playing in their own sandbox for the most part is not a drawback? Or will the market opening up and competitors willing to untie their content stores and devices pressure Amazon into joining in?
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