Thursday, May 15, 2008

Amazon Kindle a $750 Million iPod-Like Business By 2010

I don't yet own a Kindle. I do own an iPod. I don't know anyone yet that owns a Kindle or hear anyone buzzing about it on my daily commute in and out of NYC. I always see someone with an iPod. If timing is everything, Amazon hasn't delivered the goods yet. If I were Barnes and Noble, I would be partnering with a company like Apple to create a more user friendly reader device with the same software friendliness that Apple has created with iTunes.

As newspapers and magazines see their print editions decline, and book retailers see their sales hurt, it is time for them to adapt to the same changes in digital download that is affecting audio and video. In essence, start to change or die. Borders chose the latter. And the trends of consumption are moving away from physical to electronic. While printed reading material will always exist, newer generations will feel more comfort with digital reading. The cost savings in manufacturing will enable higher profit margins in publishing. It may even allow advertising to invade book sales and provide an extra opportunity to target readers.