Amazon is starting to look desperate in the war for content control against Apple. The online retailer has now reportedly threatened to pull content from two more publishers (the first was Macmillan) if they don’t agree to three year pricing contracts for ebooks. The contracts are designed to guarantee that consumers will get the lowest possible price on ereader content in Amazon’s Kindle store. It’s not anything new. In fact, Apple is trying to lock up the same deal.

The deal is undeniably bad for publishers, though. It gives them no flexibility for change as the market matures, which it certainly will over the next three years. The New York Times article didn’t say which two publishers were being threatened, but you can bet no one wants these kinds of contracts. The fact that Amazon is actually going forward with such aggressive measures says only one thing: this is the last resort. If there were other, more suitable alternatives for both parties you can bet Amazon would have explored them. It would garner a lot less press attention and make the company seem far less money hungry and desperate in the eyes of the consumer.

Source: New York Times

The day Apple announced the iPad, Amazon was calling newspapers and publishers before Steve Jobs had even left the stage. As the New York Times’ Bits blog has it, Amazon wanted to hear what Apple had offered. Amazon had been trying for more than a month to sign deals with publishers that would give Amazon customers the best prices anywhere, either by matching or beating the prices given to other dealers.

Amazon tried to sweeten the deal by offering publishers bigger revenues than in the past. Unfortunately, Apple was willing to budge on a much larger issue: price. With Apple, publishers had a bit more flexibility than Amazon would give, which in turn gave publishers bargaining power over Amazon. See, Amazon will do just about anything to stay competitive with Apple.

In fairness to Amazon, it’s not like publishers want to upset that distribution channel. Amazon pretty much pioneered the ebook scene – it certainly made ebooks as popular as they were likely to become before some sort of wonder device came along – which leaves publishers keen to cater to the existing subscribers in Amazon’s marketplace until either the iPad gains enough ground or Amazon releases a new reader.

That last point is very important. If Amazon doesn’t release a new reader within the next year or so, it will pigeonhole itself into becoming solely a content provider, a position I wouldn’t think Bezos wants to be in considering he started the Kindle. Rarely would a company of Amazon’s scale introduce a middling product only to do away with it in a couple years.

Source: Bits

Amazon is starting to see the writing on the wall, it seems. There isn’t a compelling reason for people to buy a Kindle anymore. Other ereaders offer the same price on books with more features and the latest wave of tablet PCs make the hardware look obsolete. So what does Bezos do? He releases a Kindle app for yet another piece of hardware: the Blackberry.

Amazon recently opened the floodgates with Kindle support for the iPhone, iPod Touch, and Windows machines. Today we get Blackberry support and the company says it’s headed for Macs and iPads next. If that doesn’t sound like admitted defeat, I don’t know what does. It’s funny too, considering the publisher problems Amazon has had since the iPad announcement.

“Since the launch of our popular Kindle for iPhone app last year, customers have been asking us to bring a similar experience to the BlackBerry, and we are thrilled to make it available today,” said Amazon’s Kindle VP, Ian Freed. There is at least one difference between the two; the Blackberry version doesn’t support creating annotations from within the app.

Official Site

An article in the New York Times today suggests Apple may have a little more control over low ebook prices than initially thought. Publishers were turning to Apple and its iPad to save them from the clutches of Amazon and the $9.99 Kindle price point. While Apple does offer more flexible pricing options, it has also made provisions for lowering the prices of the most popular books, back to that $9.99 figure the publishers so hate.

The Times cites “at least three people with knowledge of the discussions,” as the source for the news. It’s not just bestsellers, either. Apple expects publishers to reflect discounted book prices, books sold below the typical $26 hard cover price, in their ebook pricing as well, regardless of bestseller status.

This has to make you wonder what really had the publishers upset with Amazon. Obviously they’re aware of the things Apple laid out in its contract, so what’s the issue? Do they just want some extra income from less popular titles? Are there other Amazon policies that turn publishers away or is it really just a lack of flexibility?

During News Corp’s quarterly earnings conference call, Rupert Murdoch finally revealed his true feelings about the deal between HarperCollins, which News Corp owns, and Amazon for ebooks in the Kindle Store. “We don’t like the Amazon model of $9.99….we think it really devalues books and hurts all the retailers of hardcover books.”

That pretty much says it all. Now that the company has an option coming with the iPad, it no longer needs to succumb to Amazon’s demands. Things are just the opposite, in fact, thanks to flexible pricing options from Apple. The competition is forcing Amazon to renegotiate prices with publishers for fear of losing market share or publisher support altogether.

It’s tough to say that increased ebook prices actually preserves the value of the book, particularly after prices have been so low. Fortunately for publishers, the ebook reading population was small enough that the rest of the world might not know to care about the difference.

Following a very public feud over ebook pricing, Amazon has caved to Macmillan, giving the publisher it’s desired $14.99 price point for ebooks. The switch came after Macmillan threatened to pull all future publications from Amazon’s Kindle Store if it wasn’t given flexibility with regard to price.

Amazon announced the news to its customers with the following statement:

Dear Customers:

Macmillan, one of the “big six” publishers, has clearly communicated to us that, regardless of our viewpoint, they are committed to switching to an agency model and charging $12.99 to $14.99 for e-book versions of bestsellers and most hardcover releases.

We have expressed our strong disagreement and the seriousness of our disagreement by temporarily ceasing the sale of all Macmillan titles. We want you to know that ultimately, however, we will have to capitulate and accept Macmillan’s terms because Macmillan has a monopoly over their own titles, and we will want to offer them to you even at prices we believe are needlessly high for e-books. Amazon customers will at that point decide for themselves whether they believe it’s reasonable to pay $14.99 for a bestselling e-book. We don’t believe that all of the major publishers will take the same route as Macmillan. And we know for sure that many independent presses and self-published authors will see this as an opportunity to provide attractively priced e-books as an alternative.

Kindle is a business for Amazon, and it is also a mission. We never expected it to be easy!

Thank you for being a customer.

I can’t help but feel Amazon is making an irrelevant appeal to the Kindle consumer base. By and large these will be people with more money to spend on books, considering they’ve dropped a couple hundred bucks up front to gain access to the titles. If they really want one of the books, would the consumer base really not buy because of a $15 price tag, one that’s still far cheaper than the hardback option? Probably not.

As a writer, I’m reassured to see publishers taking the reins on this one.

Source: Amazon

At some point yesterday Amazon pulled any ebooks from publisher Macmillan due to a pricing dispute, according to the New York Times. Apparently Macmillan wanted to raise prices from $9.99 to $15 and Amazon didn’t approve.

You might remember the same thing happening as iTunes was starting to get its legs. Apple used its massive marketshare to strong arm media companies to the $.99 price point, which most everyone felt was too low. Obviously that model has worked out in Apple’s favor, if not in the favor of most record labels, a few of which were able to strike more flexible deals.

There is one major difference – Macmillan has somewhere to go. Apple is just about to open the iBook Store for its new iPad, which, in all likelihood, is going to outsell the Kindle by quite a bit. Most estimates put the Kindle’s installed base around 3 million. The iPad could easily have that by the end of this year.

I would be pretty surprised, though, if Jobs was willing to give Amazon the price advantage in the ebook war.

Source: http://bits.blogs.nytimes.com/2010/01/29/amazon-pulls-macmillan-books-over-e-book-price-disagreement/

It’s not a revolutionary concept. You want some visibility so you offer what would normally be a paid service or product for free. As word of mouth grows, you bump the price back to normal levels, occasionally higher, and profit. Easy enough.

That’s what many book publishers are starting to do with titles on the Kindle, the New York Times reported this weekend. The article focuses on Maureen Johnson, an author whose young adult fiction has climbed as high as number three on the Kindle best-selling charts. It’s being run for free on the device to drive interest in her upcoming sequel, which will release this February.

While some publishers – Random House and Scholastic for two – embrace the free model, others, like Hachette, find it “illogical.” They believe the price of ebooks is already too low, so why go any lower? In fact, a lot of publishers delay ebook publication for a few months after a book’s release to capitalize on hardcover sales.

Obviously, as time goes on, we’re going to see publishers get more and more creative to keep profits up in the face of lower prices for retail media.

Amazon announced today that the Kindle would be opening up for development of third-party apps. It’s getting everything too, not just weather widgets and email browsers. You want games? You got ‘em. Though, you’ll probably hate most of them on that e-ink display.

Really, this has to be a future-proofing move for Amazon. I can’t imagine many developers will be clamoring to get apps on the device, especially with the limitations in place. Free apps have to be less than 1MB and use less than 100KB of data per month. Paid apps are under the same usage limit but can be as large as 100MB, though anything over 10MB has to be downloaded via USB.

It’s hard to imagine the kind of apps that could be successful on a Kindle. The screen refresh works for ebooks, but imagine trying to play a game. It’s just not going to work out. The real benefit, it seems, will be to get developers involved before the release of some sort of color Kindle with a real screen. Until then, I’m pretty sure the “apps” will just be ebooks that serve specific markets.

Everyone’s saying it. I’m jumping on board. Whatever your feelings about tablets – they should exist, they shouldn’t, they’re pointless, they’re great – there’s no denying the potential market impact of a quality tablet. Quality is the key factor here. Much like ereaders, which no one cared about until the Kindle came around, tablets need a frontrunner, something to rally around and aspire to beat. My bet, like so many others, is on the Apple tablet.

It’s not just that I trust Apple, which I do, but that the market is so ripe for a Apple created device. The world has fallen in love with the iPhone and the iPod Touch, the App Store continues to grow at alarming rates, and everyone is imitating multi-touch wherever it makes sense and in plenty of places it doesn’t. Imagine your iPod Touch on ‘roids, powerful enough to run 1080p video, do some simple editing, and wirelessly post to YouTube. Did I mention you can surf the web and read your ebooks? How much would you pay for a device like that? $500? $600? More?

Amazon and Barnes & Noble don’t think the consumer’s financial tolerance is so high. I do. I think people would be willing to spend as much as a grand on an Apple tablet because it could potentially do everything I mentioned above. In the face of that kind of device, the Kindle starts to look a lot like the Peek, specializing in a service handled just as well, if not better, by a more versatile device.

The one thing that could stall tablets for another year is premature release. Everyone knows the tablet is the next big thing, but if it gets rushed, consumers could see the failed device as a reason to buy an ereader. Wait until the tablet people get it right before diving in.

What do you think? Is this the beginning of the end for ereaders? Will they still have their place in the market? Can they get cheap enough to stay relevant?

The magazine industry has finally announced what people have speculated for months now: several publishers will collaborate to introduce a digital format for existing print magazines. The project includes Time Warner, Hearst, Meredith, Condé Nast, and News Corp. and will exist as its own entity, replete with a full corporate infrastructure, including a new CEO.

The most glaring problem with this plan is distribution. The unnamed venture hopes to control publishing, something neither Amazon or Apple can possibly like. This new venture has to keep both those companies in mind as it’s their devices this media will release to.

And then there’s the issue of value. Are people really going to pay for this kind of content? I’d say it’s doubtful at best, and the odds go down if it can’t be tied into an existing Amazon or iTunes account. I’d say the target for this sort of project already has their online subscriptions to sites that offer high value per dollar. Can the same be said for a digital version of Condé Nast Travel? I don’t think so.

Source: All Things D

Either the Nook is set to become more popular than the Kindle or Barnes & Noble is having very serious trouble with manufacturing the device. This morning the bookseller changed the next ship date available for its ereader to January 15th, up from January 11th.

For those of you who have already pre-ordered, it’s no big deal. Existing ship dates should not be effected. Anything from here forward, though, will be subject to the new date. It’s not terribly unsettling news, but it does make you wonder just what sort of further delays to expect. People are already waiting on pre-orders that were placed shortly after the device was announced.

By far the worst part, if you were hoping to catch a Nook in stores, is that no in-store purchases will be available. Barnes & Noble has committed itself to fulfilling the pre-orders that have already been placed. How very…noble.

If you didn’t pre-order your Nook, you won’t be seeing a holiday arrival. Barnes & Noble announced today that it had sold through the initial order and wouldn’t have more before the holidays are out.

“While we increased production based on the high consumer interest, we’ve sold out of our initial Nook allotment available for delivery before the holidays,” said a company statement. It’s not a huge delay – any order placed from today forward will be filled on January 4th. Anyone who pre-orders up to that date will receive a holiday certificate. Sometimes those are the best gifts. Right when you thought the festivities were over there’s a package on your doorstep.

B&N announced the delay after Sony did the same for its “Daily Edition” ereader yesterday. Despite the high price of ebooks and still limited functionality, ereaders seem to be one of the hottest items on the world’s gift list. Amazon’s Kindle and Kindle DX are both in stock and ship immediately.

Source: Reuters

Amazon today quietly confirmed that it would start selling the Kindle DX in international markets in the near future. The news isn’t really a shock after the GSM Kindle announcement. As you may recall, the DX is the bigger version designed for textbooks and newspapers. It’s the model that was offered to Princeton students free of charge. The model those same students hated.

According to SlashGear, Amazon has only said “next year” with regard to a date and won’t say anything about pricing. The international Kindle 2 runs $20 above the states-only version. I’d guess the DX will be about the same, giving Princeton the unique opportunity of subsidizing $20 toward even crappier AT&T service for the rest of us. Thanks guys!

Amazon is cutting the price of the Kindle once more, this time hoping for a holiday rush. When the Kindle 2 launched it was $359. It dropped to $299 in July and has now cut another $40, bringing the world’s most famous e-reader to an almost reasonable $259 ($199 and we’ll talk, Bezos).

With the price cut also came news that wireless download capabilities have been added internationally in 10 different countries. That’s a big update for a feature that was previously only available stateside. The updated wireless also comes with a carrier change, from Sprint to (gasp!) AT&T. Yes, AT&T will be handling wireless communications for the internationally capable device in the US and abroad, which makes me wonder, does AT&T want to bury itself under a mountain of complaints? Of course, there are so few Kindles in the wild compared the newly VoIP over 3G enabled iPhones that this is probably a molecule in the vast ocean of AT&T’s wireless demands.

Remember that pilot program for the Kindle DX? Yeah, that thing at Princeton where Amazon subsidized some of the cost of a Kindle DX for a small group of students and Princeton paid the rest. Despite the early rutting from everyone involved, it looks like the Princeton side of the deal is none too happy. One student is so displeased with the device that he called it a “poor excuse of an academic tool.” Snap!

The e-readers have been in student hands for two weeks across three classes. The Daily Princetonian claims many students are “dissatisfied and uncomfortable” with the Kindle DX. Most students cite the lackluster annotation features, though a lack of page numbers has also proven a bit of a setback. One professor added concerns for transitioning from physical to digital forms. His own texts are riddled with highlights and scribbles for noteworthy passages. Transferring those notes to the Kindle would take days.

Despite the inconvenience, students have not yet decided to opt out of the pilot program.

In case you missed it yesterday, Amazon dropped the price of the Kindle to $299. Rumor has it the price drop comes as a result of increased competition from other manufacturers eager to enter the market.

Ross Rubin, a consumer analyst at NPD group had some disparaging remarks. “While it is a significant drop both in terms of the overall percentage of the price as well as getting under the $300 barrier, it is still not going to be enough to break it out of its niche,” he said. For the most part I agree. Getting under $300 probably means a few more people will pick up the device, but the price of the media hasn’t changed, and neither have the DRM issues, so it’s tough to see the Kindle really “take off” as a result of the cut.

Amazon will be offering consumers a $60 credit if they purchased a Kindle in the last 30 days. The Kindle DX, which sports a larger screen, remains at the $489 price point. For now, anyway.

A couple days back I made a post about what it would take for me to get a Kindle. I’m looking for cheaper access to ebooks on more devices, and according to Jeff Bezos, I should be getting one of those wishes in the near future.

At a conference this week, Bezos laid out his plan for Amazon’s Kindle brand in full detail.

The device team has the job of making the most remarkable purpose-built reading device in the world. We are going to give the device team competition. We will make Kindle books, at the same $9.99 price points, available on the iPhone, and other mobile devices and other computing devices.

The good news, obviously, is that we’ll start to see ebooks on more portable and more versatile devices. The Kindle App for the iPhone is a great example of this, bringing the books to a device you’ll have with you regardless, not requiring you to lug something like a Kindle around.

As for bad news I can’t help but wonder, what’s the lifespan of the Kindle? Bringing ebooks to devices that have more features than the Kindle means one thing – the Kindle is going to die. Purpose-built devices have been disappearing for decades as consumers look for that all-in-wonder device. Cellphones, portable gaming systems, digital cameras, and digital camcorders have now all been wrapped up into one device. We went from word processors to computers to laptops to laptops with built in fingerprint readers and webcams and anything else you can imagine. Purpose-built devices are a dying breed, at least for the consumer-level use, and particularly in the case of the Kindle.

Unfortunately, Bezos’ $9.99 price point is still too rich for my blood. I rarely buy books at that price, and for the new releases I’ll splurge on, I want more than a restrictive file format to show for it. As Amazon’s eBooks get more popular and become available on more devices I know prices will go down, but I doubt Amazon will loosen restrictions.

With the release of the Kindle DX, plenty of folks have been asking the same question: will you get one? For me, the answer is no. I like the feel of a physical book in my hands too much to let a Kindle take its place. I also love used book shopping, where I can pick up classic (and sometimes new) titles for less than a buck.

It was this post over at Crave that really made me wonder, what would it take to get me interested in a Kindle? For me that question has a simple translation. When is it more convenient to have a Kindle than a book? The Kindle doesn’t have enough features outside book reading to make it compelling for reasons other than book reading, so I’m going to ignore them. For me, it comes down to convenience and the emotional experience I get from reading a book.

I like the reasons Stein gives for his own experience. Pulling a book out on the subway is much more cumbersome than flipping to the Kindle app on his iPhone. The appeal is the same in my life, but paying full book price for something I can only read on a Kindle or an iPhone seems ridiculous.

What I could really use is both – something like movie studios have been doing recently to attempt to combat downloads – adding a digital copy to the physical media. As it currently stands, downloading books from the Kindle store is incredibly restrictive, and if you lose your Amazon account, you lose your books as well. Offering an option to download the book when I purchase the physical media could change that, giving me control of the storage (and yes, distribution) of my media.

Obviously there are pirating concerns for Amazon, and they lose the sweet deal they have going now whereby they reap most of the profit from selling digital copies. It’s hard to imagine, though, that they wouldn’t see increased usage from this sort of change. The iPhone Kindle App becomes a lot more appealing when it means I can continue my reading without lugging a book around but still have the option to kick back and fill margins with notes when I get the urge.

For now, a Kindle is the wrong device for me. I can’t help but think I’m paying a fee to relinquish control of my purchase, and that just doesn’t feel right.

As soon as the Kindle hit the market, people started talking about a full color version, but according to Jeff Bezos, they’ll have to wait. Years. He can’t say how many.

I’m not entirely surprised. The e-ink screen technology doesn’t directly adapt to a color format, which means developing a new display medium for the device. We all know how long that can take. Most concepts for such a display are just that: concepts. Perhaps the best one from Philips is still FAR from production, particularly in something like a Kindle.

Bezos has also reconfirmed that Amazon will not release any specific sort of sales numbers for the Kindle. It’s obviously not because they don’t care. I guess they just don’t want us to know.