Wednesday, February 11, 2009

Kindle's Significance

I'm not recommending this product but only because of the price.

As a device, it is delivers books, magazines, newspapers, and blogs far better than paper. It is smaller and lighter than a paperback book; the screen is easier to read than a paperback; and the fonts are adjustable. Most importantly of all, it can hold thousands of books in memory. Its wireless capability allows periodicals (such as newspapers) to be constantly updated.

As a business model, it is a device to drive sales of books, magazines, newspapers, and blogs. To the consumer it offers convenience (instant purchase from anywhere), portability (Kindle's small size), and price (no ink or paper). The convenience and pricing solves the problem that newspapers and other periodicals (including blogs) face from the internet: advertising alone does not produce enough revenue. Consumers have to pay to get their favorite periodicals on their Kindle. T

In the future, these subscription revenues can and eventually will be the salvation of the publishing industry, especially the periodical sector of it. In the same way tha manufacturers of computer printers make more money from the sales of ink cartriges than they ever do from the initial sale of the machine, so will it be from electronic book readers such as Kindle. They just have to realize that Kindle is a marketing machine, not an end product.

And this is why the asking price is too high.