I’m a big fan in general of ebooks as a concept and to a lesser degree a fan of Amazon and its Kindle ebook reader. I trust Amazon to deliver a good user experience, but I think open standards and a diverse marketplace are the best way to move forward. With that said, I follow the ebook business with interest as it such a newly vital market. We can credit Amazon and the Kindle with much of the recent vitality.
With the acquisition of Lexcycle, the producer of the iPhone ebook app Stanza, Amazon is consolidating its lead in ebooks. They are also signaling that it’s less about the device you use to read ebooks and more about distribution. Distribution is where the real profits lie. People buy a Kindle once, but they may purchase thousands of dollars worth of ebooks and e-periodicalsover their lifespan as a consumer. This is where Amazon wants to be. Not in making hardware, but in selling digital goods and controlling a large portion of the marketplace. The only reason Amazon really needed the Kindle was to create the marketplace. Once people are accustomed to buying their ebooks from Amazon, the device becomes irrelevant.