Kindle + College Textbooks = A Huge Opportunity for Amazon

Amazon.com (AMZN) has apparently been telling analysts that it will soon offer college textbooks on Kindle. This may be the move that flings Kindle into the mainstream.

If nearly all textbooks wind up on Kindle, then paying $400 for a Kindle would turn into almost a no-brainer decision for college students. (A discussion group on Amazon's site seems to make that clear.) A single textbook can cost $150 new -- and still maybe $100 or more used, with the chance that the used book is a different version from the one assigned. If e-book versions cost even 25% less, that's a huge savings when talking about sticker prices that high.

And then there's the sheer convenience of having all those bulky books in one little device. Imagine the back problems the Kindle could prevent.

Textbook publishers should be intrigued. They hate the used book market. It cuts deeply into new book sales and forces them to continually published "revised" versions to force students to buy newer versions. With e-books, students can't easily resell the textbooks, while at the same time publishers could charge less so students have less incentive to buy used books anyway. This could be good for everyone involved -- except the college bookstores.

Comments

[Scott Berry]

The logic seems a bit flawed here.

Student buys a $150 book, sells used for maybe $75. Net $75 (with some risk they can't sell it, admittedly). Or student buys a discounted ebook (let's say $110, to be charitable). Net $110. That doesn't include the cost of the Kindle device. Where's the incentive for the student?

So e-textbooks would have to be much more sharply discounted for this to work. But the price of textbooks isn't driven by production/distributio... it's driven by information value and "lock in". Where's the incentive for the publisher? What are typical discounts currently on electronic versions of textbooks?

Curing the backache factor will certainly help, though I can't recall lugging my engineering texts around that much. (BTW, do students still highlight textbooks?).

I certainly see some daylight for the Kindle here, but the case has to be a bit better. We'll see.

2008 Aug 26 10:18 AM

[YenKenZen]

Scott,

What Kevin didnt explain was that students need to buy more than one book - typically 8+. So now you can do the math.

I would love to see this happening even for my high-schooler. There are challenges, but this can work and could be big if students catch up on Kindle.

2008 Aug 27 10:35 PM

[Scott Berry]

@five, read my comment again. Are you saying kids will pay $35 more per book (net) using a Kindle, but that's OK because they'll make it up on volume?

2008 Aug 28 08:42 AM

[Dogmaw]

Yes, the publishers would get it back on volume. Say half of all texts get resold. By doing away with that market, the publisher sells twice as many books, and so does make it up in volume.

2008 Sep 12 08:56 AM

[Bakersfield Bankruptcy Atto...]

This is an EXCELLENT idea. The entire textbook system is ridiculous. The rising cost of tuition and other associated costs with attending college right now are astronomical in most areas, and thats before you factor in buying textbooks each quarter or semester. I recently wrote an eBook that describes some creative solutions for students who want to get Free Online Textbooks

2009 Mar 24 01:50 AM

[cdgmalone]

ok, i'm a college senior and i have paid over 10,000 in text books. i wish the kindle would have been around when i was entering college. even if i hadn't paid for all those books i think the fact that i didn't have to carry 4 800 page books would have been enough for a kindle.

2009 Apr 05 05:38 PM

[lundyt]

Ok, so has this happened yet. Are the college text book publishers on board with this? My daughter is a freshman in college this year and I am definitely going this route if it's ready.

2009 Jun 08 10:01 AM

[liberal arts]

I have a Kindle and I am a college professor. Printing costs have come down substantially, and college text are often glassy paperback, not hard cover, but the price has risen because the students are a captive audience. Publishers figure in 2-4 semesters per edition, then come out with a new one at a higher cost. E-books save the publisher a bundle on printing costs. Some books are currently available as e-books for substantial savings. Example: a popular textbook I use is now $110; the e-version is $47. However, many faculty do not even use textbooks anymore, but may use popular books (depending on the discipline). I would rather have students read 2-3 books available on amazon for $18-$20 new, used $10 or less. Saves them money and they get more perspectives than a single textbook author. Kindle would be a wise investment in this example. Another issue not mentioned is the weight of carrying around 3-4 textbooks everyday. Have you seen kids and their backpacks lately? Kindle will save a few aching backs.

2009 Sep 13 10:13 PM

[EdMac]

Schools already rent small refrigerators/microwaves and even some laptops. Why not rent/lease kindles. Students would register for class the needed resource books would be preloaded on their kindle which would then be made available to the student. Compared to other costs room and board and tution this fee and the abiltiy for all students to have access to the correct resources would be a real bargain.

2009 Dec 15 11:22 AM

[Todd-E]

My students bought a $75 stats book and were offered less than $10 buy back. The $135 History of Psych book was worth $25 in buy back. My PhD text book for Organizational Psychology was $140 new and $85 for my Kindle. I can easily spend the cost of Kindle in a single quarter of textbooks.

The incentive is in the money. Students get very little back for a used book and can make up the cost of the Kindle very quickly. Plus, I can carry multiple "textbooks" with no extra weight in my briefcase. Plus, I can read/study almost anywhere. Plus I can create PDFs of my class notes for lecture or for students to put on their Kindles.

Once you understand the economic realities of textbook sales, the incentive is clear.

Todd (Psychology Instructor and PhD student)


On 2008 Aug 26 10:18 AM Scott Berry wrote:

> The logic seems a bit flawed here.
>
> Student buys a $150 book, sells used for maybe $75. Net $75 (with
> some risk they can't sell it, admittedly). Or student buys a discounted
> ebook (let's say $110, to be charitable). Net $110. That doesn't
> include the cost of the Kindle device. Where's the incentive for
> the student?
>
> So e-textbooks would have to be much more sharply discounted for
> this to work. But the price of textbooks isn't driven by production/distributio...
> it's driven by information value and "lock in". Where's the incentive
> for the publisher? What are typical discounts currently on electronic
> versions of textbooks?
>
> Curing the backache factor will certainly help, though I can't recall
> lugging my engineering texts around that much. (BTW, do students
> still highlight textbooks?).
>
> I certainly see some daylight for the Kindle here, but the case has
> to be a bit better. We'll see.

2009 Dec 21 10:38 PM