Advice for Amazon on How to Get Serious About the Kindle [View article]
Bzzzt! Wrong answer, Michael.
Kindle's problem isn't the business model, it's the product concept, which just isn't compelling enough. Once it begins to fundamentally change the reading experience (instead of simply replacing paper), it'll catch on.
In any case, you're assuming Amazon's making its money on the ebooks. If that business is so good, then they could simply give away the Kindles.
Can you imagine how unprofitable Apple would be if it made no margin on iPods but counted on iTunes sales to make money?
Kindle + College Textbooks = A Huge Opportunity for Amazon [View article]
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.
Music Downloads: You Can't Regulate One Industry and Leave Another Alone [View article]
I'm with Fred here. Content providers can solve their problems by providing what their customers want, instead of forcing them to buy things they don't. (This applies to supplying singles vs. albums, and single episodes of TV shows vs. paying $50 or more to get a "season".)
It's unfortunate that it's taking piracy to get media firms to see that truth. Most other industries figure that out on their own via competition (and let's face it, piracy is just a form of competition here.)
As for the iTune burn/rip two-step, yes it can be done but it's a huge pain. Instead of a choice between restricted transfer and a major hassle, how about just selling the music without either?
Amazon: Forget Analysts, Kindle Still Irrelevant [View article]
@mktnovice08: Thanks, some good points. Areas underserved by actual books surely have a need, as do students or others who need something more affordable.
On the other hand, that's one more way the ebook falls short--lending. I sometimes lend books to friends; better than donating since I often never get them back anyway. :-) But what about libraries? You can't borrow an ebook (yet). Fixing that issue may help break the dam.
The point isn't that Kindle 1.0 isn't the ultimate device, the point is that the concept is flawed. Technology doesn't stimulate demand, need stimulates demand. What problem does the Kindle solve?
Vijay, I don't disagree with your assessment of Bezos, and I agree that bold is better. These guys think outside the box. But I believe Kindle is an example of a bold failure that Amazon will "celebrate", not a successful innovation.
Amazon: Forget Analysts, Kindle Still Irrelevant [View article]
@RealBill -- Thanks for the career advice. :-)
You may be right in the end, of course. Perhaps the value proposition and barriers to adoption will change enough in coming years to make my argument moot.
But your comments prove my point. Early adopters always are usually predisposed to like a new concept (though they may pan specific implementations). Whereas those who are skeptical won't buy at all.
"The kindle...will succeed, but you'd have to try one for a few weeks to find that out, and why." Exactly. Why would anyone buy a $400 device they don't think they need just to verify they didn't like it?
Tell you what, buy me a Kindle, and if I like it I'll recant publicly. What do you say?
Kindle + College Textbooks = A Huge Opportunity for Amazon [View article]
Advice for Amazon on How to Get Serious About the Kindle [View article]
Kindle's problem isn't the business model, it's the product concept, which just isn't compelling enough. Once it begins to fundamentally change the reading experience (instead of simply replacing paper), it'll catch on.
In any case, you're assuming Amazon's making its money on the ebooks. If that business is so good, then they could simply give away the Kindles.
Can you imagine how unprofitable Apple would be if it made no margin on iPods but counted on iTunes sales to make money?
Back to square one.
Kindle + College Textbooks = A Huge Opportunity for Amazon [View article]
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.
Music Downloads: You Can't Regulate One Industry and Leave Another Alone [View article]
It's unfortunate that it's taking piracy to get media firms to see that truth. Most other industries figure that out on their own via competition (and let's face it, piracy is just a form of competition here.)
As for the iTune burn/rip two-step, yes it can be done but it's a huge pain. Instead of a choice between restricted transfer and a major hassle, how about just selling the music without either?
Amazon: Forget Analysts, Kindle Still Irrelevant [View article]
On the other hand, that's one more way the ebook falls short--lending. I sometimes lend books to friends; better than donating since I often never get them back anyway. :-) But what about libraries? You can't borrow an ebook (yet). Fixing that issue may help break the dam.
The Case for Amazon.com [View article]
The Case for Amazon.com [View article]
seekingalpha.com/artic...
Amazon: Forget Analysts, Kindle Still Irrelevant [View article]
You may be right in the end, of course. Perhaps the value proposition and barriers to adoption will change enough in coming years to make my argument moot.
But your comments prove my point. Early adopters always are usually predisposed to like a new concept (though they may pan specific implementations). Whereas those who are skeptical won't buy at all.
"The kindle...will succeed, but you'd have to try one for a few weeks to find that out, and why." Exactly. Why would anyone buy a $400 device they don't think they need just to verify they didn't like it?
Tell you what, buy me a Kindle, and if I like it I'll recant publicly. What do you say?