Only thing I find disturbing with this Amazon "predatory pricing" is that because they have their own closed system, as long as they can lure in lot of people to buy kindle and get some books there, they are unlikely to move away again or at least they'd have to keep their old kindle if they want to read their books still. And at that point they can increase prices when they know their customers can't shop anywhere else.
If the playing field was open (ie. no DRM) it should be relatively easy and cheap to start new ebook store. You don't need to invest in huge piles of books and storage and logistics etc, just make contracts with the publishers. So there would always be new competition once the pricing settles to acceptable rate.
|