Is Amazon Kindle DX using the right business model?

DaleDe · 05-07-2009, 11:50 AM

Here is a article in Computer World.
http://www.computerworld.com/action/..._AM_2009-05-07

Quote:

Amazon's newest Kindle raises more questions than answers about how the e-book market might evolve.

"If it had the right business model, it would be a no-brainer," Michael Gartenberg, an analyst at Interpret, said of the new device.

On Wednesday, Amazon unveiled the Kindle DX, the third in its line of e-book readers, and this one is designed for the display of newspapers and magazines. The larger-screen device is also being targeted at students, who can use it to read textbooks.

Well what do you think?

Dale

daffy4u · 05-07-2009, 11:58 AM

Students have been begging to be able to get textbooks on a Kindle over on the Amazon forums. Having a larger form Kindle that can not only hold those textbooks and PDFs on a sharper display *and* still have access to the regular Amazon catalog is a great thing.

As far as newspapers and magazines, it's still a good thing for folks who can't deal with a format that is too different from paper.

doctorow · 05-07-2009, 12:14 PM

Interesting question. Also asked here:

Kindle DX: Has Amazon Misread the Student Market?

Quote:

In a nutshell, Amazon is trying to make a four-year total cost of ownership case to an audience that just doesn’t have the attention span. So-called “super seniors,” or those on the five and six year college plans, may find some return.

and

Quote:

The Kindle DX is tailored for students that happen to have Wi-Fi in every campus corner. This miscalculation means Amazon has overpriced its big Kindle—to pay for wireless service—and may leave growth on the table. A cheaper Kindle DX that only uses Wi-Fi is the student ticket. Amazon missed the mark.

sirbruce · 05-07-2009, 12:25 PM

A good article, but:

1. I don't know many kids who graduate in 4 years these days. I don't know the actual statistics, though, so I assume the majority are still in 4 years.

2. It misses the convenience factor of carrying the KDX instead of lots of books.

Treadstone71 · 05-07-2009, 12:31 PM

I think Amazon has made some mistakes in this roll-out.

First, for the student market, the 6 school trial is limited to 300 students total (50 per school). If you're going to have such a small trial, shouldn't you maybe do that before you launch the product? If they had already done small trials, surely rumors would have leaked out before this?

For the newspaper market, I was really hoping to hear details of the subsidized models. If it was something along the lines of $200 + $20/month for 2 years, I may already have put in a pre-order. However, the only detail I've been able to find is that the subsidized version will only be available where home delivery of the paper is not available. One of the reasons I don't subscribe to any newspaper is that I don't want to deal with the physical artifact on a daily basis.

I'm also a bit concerned with the fact that it's not releasing until "summer". I remember the Sony PRS-500 was announced at CES as available in "spring", but was delayed until September. But, that will actually help me, as I can see if Apple announces anything at WWDC next month, and maybe Sony or B&N will have something new in the next couple months. It makes me wonder if Amazon knows something beyond the rumors and wanted to be first out of the gate and to try to lock up pre-orders.

Really, I'm more likely to upgrade my Sony to the 505 and wait to see if Apple really does have a media-pad planned than to get either Kindle.

rcuadro · 05-07-2009, 12:56 PM

I dont think that having a text book on the DX will be an advantage. WHile it will be much much easier to have text books with you, I think that having a physical book to study from may be easier. It is easier to scan pages really quikly... if you use a highlighter, you can thumb through quickly to locate the highlights.
Not only that, I am looking forward to seeing how many companies will discount the electronic version of their texts books when they are already making a killing on pBooks.
Maybe a purchase the pBook, get the eBook free would be an idea to look into.

I know that when I look through a reference book I sometimes look for something to key me into the right information and the search function may or may not work... especially if I am looking for a picture or graph.

lilac_jive · 05-07-2009, 12:59 PM

I think they're missing the biggest thing here targeting the student market = buying back textbooks. Students at the end of the semester sell their books back to bookstores, which helps with the cost of them (or booze, whichever). When I was a student, they had a few books available as ebooks, but the price was only $5 or so less (for a $200+ textbook). I think a lot of students will pass on that.

Heh, if you think Amazon is bad, textbook companies are way way way worse

daffy4u · 05-07-2009, 01:08 PM

Quote:

Originally Posted by lilac_jive

I think they're missing the biggest thing here targeting the student market = buying back textbooks. Students at the end of the semester sell their books back to bookstores, which helps with the cost of them (or booze, whichever). When I was a student, they had a few books available as ebooks, but the price was only $5 or so less (for a $200+ textbook). I think a lot of students will pass on that.

Heh, if you think Amazon is bad, textbook companies are way way way worse

Do you think the Kindle version will cost as much as the paper version? If they cost significantly less, there may be no need to re-sell.

Now that I think about it, I wonder if sharing books on the same account will work with the DX or if textbook licensing will prohibit that. It would be cool if students could group together on one account and share textbooks (provided they share many of the same classes).

DaleDe · 05-07-2009, 01:13 PM

Quote:

Originally Posted by daffy4u

Do you think the Kindle version will cost as much as the paper version? If they cost significantly less, there may be no need to re-sell.

Now that I think about it, I wonder if sharing books on the same account will work with the DX or if textbook licensing will prohibit that. It would be cool if students could group together on one account and share textbooks (provided they share many of the same classes).

So far PDF support does not include DRM and most textbooks are currently PDF.

Dale

lilac_jive · 05-07-2009, 01:14 PM

Quote:

Originally Posted by daffy4u

Do you think the Kindle version will cost as much as the paper version? If they cost significantly less, there may be no need to re-sell.

Now that I think about it, I wonder if sharing books on the same account will work with the DX or if textbook licensing will prohibit that. It would be cool if students could group together on one account and share textbooks (provided they share many of the same classes).

I'm just speaking from previous experience. The chances are extremely likely that the prices will only be 5-10% off. Textbook companies are the greediest publishers of the bunch. They have a billion dollar used book market to fight off, but even if these pick up, they won't drop prices much.

If they do sell them significantly less, I will eat my shoe.

daffy4u · 05-07-2009, 01:16 PM

Quote:

Originally Posted by lilac_jive

If they do sell them significantly less, I will eat my shoe.

Mmmmm. Fiber.

lilac_jive · 05-07-2009, 01:26 PM

Quote:

Originally Posted by daffy4u

Mmmmm. Fiber.

Nom nom nom

catsittingstill · 05-07-2009, 01:53 PM

IF the textbooks are mobi/azw it should work okay. If the textbooks are pdf (as people seem to be speculating here that they will be) I think not being able to highlight or annotate will be a problem for many students.

rhadin · 05-07-2009, 02:01 PM

Quote:

Originally Posted by rcuadro

Not only that, I am looking forward to seeing how many companies will discount the electronic version of their texts books when they are already making a killing on pBooks.

This, I think, is the killer question: Will etextbooks cost considerably less than the p version? The other questions have to do with whether the textbooks "expire". Currently some of the etextbooks are priced within 10% of the p version and self-destruct after x number of months (sometimes as few as 4). Plus there is no resale market for the etextbook, which is a market a lot fo students rely on -- both as sellers and buyers.

No matter what, it will be interesting to see how it works out.

Elfwreck · 05-07-2009, 02:30 PM

They're missing the market for the DX--students don't have money for a $500 book reader (especially given the prices of digital textbooks, and how many aren't available as legal PDFs), but lawyers and paralegals do.

However, to really tap *that* market, they'd need other aspects... like a memory card (so they can put all the documents for a single case on a single card) or folder support.

Similar Threads
Thread	Thread Starter	Forum	Replies	Last Post
Agency model, Apple and Amazon in the UK	Ben Thornton	News	24	08-19-2010 05:05 AM
Did the Agency Pricing Model + Kindle Apps => Amazon Victory?	poohbear_nc	General Discussions	34	07-23-2010 04:00 PM
The new publishing business model	Steven Lyle Jordan	General Discussions	97	03-30-2010 08:37 PM
Interview: Matt Mason on piracy as a business model (Spark)	Nate the great	News	0	01-14-2010 11:36 AM
Amazon following the Apple Model?	daffy4u	Amazon Kindle	6	03-10-2009 12:02 PM

05-07-2009, 11:58 AM	#2
daffy4u I'm Super Kindle-icious Posts: 6,734 Karma: 2434103 Join Date: Apr 2008 Location: Long Drive, Calinadia Candafornia Device: KDXG, KT, Oasis	Students have been begging to be able to get textbooks on a Kindle over on the Amazon forums. Having a larger form Kindle that can not only hold those textbooks and PDFs on a sharper display and still have access to the regular Amazon catalog is a great thing. As far as newspapers and magazines, it's still a good thing for folks who can't deal with a format that is too different from paper.

05-07-2009, 12:25 PM	#4
sirbruce Provocateur Posts: 1,859 Karma: 505847 Join Date: Feb 2009 Location: Columbus, OH Device: Kindle Touch, Kindle 2, Kindle DX, iPhone 3GS	A good article, but: 1. I don't know many kids who graduate in 4 years these days. I don't know the actual statistics, though, so I assume the majority are still in 4 years. 2. It misses the convenience factor of carrying the KDX instead of lots of books.

05-07-2009, 12:31 PM	#5
Treadstone71 Member Posts: 15 Karma: 132 Join Date: Feb 2009 Device: Sony PRS-300, iPhone 4, iPad 1, Kindle 3rd Gen., Kindle Fire, Nook STR	I think Amazon has made some mistakes in this roll-out. First, for the student market, the 6 school trial is limited to 300 students total (50 per school). If you're going to have such a small trial, shouldn't you maybe do that before you launch the product? If they had already done small trials, surely rumors would have leaked out before this? For the newspaper market, I was really hoping to hear details of the subsidized models. If it was something along the lines of $200 + $20/month for 2 years, I may already have put in a pre-order. However, the only detail I've been able to find is that the subsidized version will only be available where home delivery of the paper is not available. One of the reasons I don't subscribe to any newspaper is that I don't want to deal with the physical artifact on a daily basis. I'm also a bit concerned with the fact that it's not releasing until "summer". I remember the Sony PRS-500 was announced at CES as available in "spring", but was delayed until September. But, that will actually help me, as I can see if Apple announces anything at WWDC next month, and maybe Sony or B&N will have something new in the next couple months. It makes me wonder if Amazon knows something beyond the rumors and wanted to be first out of the gate and to try to lock up pre-orders. Really, I'm more likely to upgrade my Sony to the 505 and wait to see if Apple really does have a media-pad planned than to get either Kindle.

05-07-2009, 12:56 PM	#6
rcuadro Wizard Posts: 1,686 Karma: 874275 Join Date: Nov 2008 Location: Virginia Beach, VA Device: Kindle DX	I dont think that having a text book on the DX will be an advantage. WHile it will be much much easier to have text books with you, I think that having a physical book to study from may be easier. It is easier to scan pages really quikly... if you use a highlighter, you can thumb through quickly to locate the highlights. Not only that, I am looking forward to seeing how many companies will discount the electronic version of their texts books when they are already making a killing on pBooks. Maybe a purchase the pBook, get the eBook free would be an idea to look into. I know that when I look through a reference book I sometimes look for something to key me into the right information and the search function may or may not work... especially if I am looking for a picture or graph.

05-07-2009, 12:59 PM	#7
lilac_jive Grand Sorcerer Posts: 5,870 Karma: 27376 Join Date: Dec 2008 Location: Pennsylvania Device: PRS-505	I think they're missing the biggest thing here targeting the student market = buying back textbooks. Students at the end of the semester sell their books back to bookstores, which helps with the cost of them (or booze, whichever). When I was a student, they had a few books available as ebooks, but the price was only $5 or so less (for a $200+ textbook). I think a lot of students will pass on that. Heh, if you think Amazon is bad, textbook companies are way way way worse

05-07-2009, 01:53 PM	#13
catsittingstill Guru Posts: 643 Karma: 551634 Join Date: Dec 2007 Device: Kindle 1.0.8, iPod Touch, Kindle Keyboard	IF the textbooks are mobi/azw it should work okay. If the textbooks are pdf (as people seem to be speculating here that they will be) I think not being able to highlight or annotate will be a problem for many students.

05-07-2009, 02:30 PM	#15
Elfwreck Grand Sorcerer Posts: 5,185 Karma: 25133758 Join Date: Nov 2008 Location: SF Bay Area, California, USA Device: Pocketbook Touch HD3 (Past: Kobo Mini, PEZ, PRS-505, Clié)	They're missing the market for the DX--students don't have money for a $500 book reader (especially given the prices of digital textbooks, and how many aren't available as legal PDFs), but lawyers and paralegals do. However, to really tap that market, they'd need other aspects... like a memory card (so they can put all the documents for a single case on a single card) or folder support.

Advert

Advert