Amazon goes global with Kindle and launches an international version in 100 countries. This will dramatically change the e-reader market in Europe and push publishers to act. Here are some predictions.
For some publishers it was a surprise. Others had seen it coming. But all of a sudden, well in time for the Christmas sale, Amazon presented an international version with free 3g connection for USD 279. Included is the possibility to buy from a selection of 350.000 books as well as numerous newspapers, magazines and blogs.
Although there are some local players, like Bookeen in France and Irex in the Netherlands, the e-reader market in Europe generally has been lagging compared to the USA.
The introduction of Kindle to Europe will, after the tremendous success Amazon has had with the device in the USA, change this.
Here are some of my predictions:
- There will be a rush of new devices to the market. Many manufacturers probably have planned to enter the US market first. We should expect that some of them now will put more focus on the European market trying to stop Amazon from getting as strong as it is in the US.
- Publishing and media houses will also probably proceed faster with their e-reader plans in order to position themselves in the emerging market. Many will work together trying to build a more publisher-friendly business model around e-readers.
- Expext that also mobile operators will try to get their piece of the cake, being inspired by the opportunities in offering 3G connection as part of en e-reader. Some mobile operators may offer bundles together with device manufacturers.
- Trying to build alternative business models we will see a number of different alliances between e-reader manufacturers, content providers and mobile operators. All alliances will be driven by the need to both have a huge selection of content as well as 3G connection.
- In some small-language markets Amazon may be at an disadvantage because of lack of local content. In such markets it is easier for publishers to agree not to be present on Kindle and instead choose more publisher-friendly partners. Kindle might still have a market in these countries due to the enormous supply of English-language content.
- Amazon will eventually be forced to open up its platform. Using their own proprietory technology has been a good business model for Amazon building a new market. But readers are bound to reject it at some stage, protesting that they cannot move their Kindle books to other devices if they choose. Also readers will expect to be able to buy books from other vendors at some stage, especially if Amazon is not able to provide enough content in the local language.
For publishers and media houses the big discussion will be about business models. It is well known that Amazon only offers newspapers around 30 per cent of the subscription income. Many publishers hesitate about entering into such business arrangements, also because Amazon is said to give the publishers little control over essential parts of their product, such as design and presentation.
Of course it remains to be seen how big success Kindle will become internationally. Some argue that it will loose to the rumored Apple tablet which might be launched in a few months. Others speculate that e-readers like Kindle work well for books, but will not be preferred for newspapers and magazines.
However it might be, I am sure that today’s international launch of Kindle has introduced a whole new dynamic into this market in Europe. That will be exciting and interesting to follow for everyone involved in publishing content.