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	<title>Comments on: A Kindle in the wind: Amazon&#8217;s strategic dilemma</title>
	<atom:link href="http://counternotions.com/2009/05/08/kindledx/feed/" rel="self" type="application/rss+xml" />
	<link>http://counternotions.com/2009/05/08/kindledx/</link>
	<description>Musings on strategic design by Kontra, a veteran design and management surgeon, perennially in search of complex problems to operate on.</description>
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		<title>By: Malka Dapvaala</title>
		<link>http://counternotions.com/2009/05/08/kindledx/#comment-3363</link>
		<dc:creator><![CDATA[Malka Dapvaala]]></dc:creator>
		<pubDate>Thu, 28 Jan 2010 18:16:58 +0000</pubDate>
		<guid isPermaLink="false">http://counternotions.wordpress.com/?p=826#comment-3363</guid>
		<description><![CDATA[]]></description>
		<content:encoded><![CDATA[<p>I still wonder if we won¡¦t see a flip in the ¡§publishing¡¨ model, too, where, rather than the publisher basically ¡§hiring¡¨ a stable of writers, if we tend to won¡¦t see a stable of writers pool their resources to hire an editor, marketer/publicist, and copyeditor/designer (and, presumably, some reasonably accountant).</p>
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		<title>By: Steven</title>
		<link>http://counternotions.com/2009/05/08/kindledx/#comment-2826</link>
		<dc:creator><![CDATA[Steven]]></dc:creator>
		<pubDate>Thu, 21 May 2009 03:25:53 +0000</pubDate>
		<guid isPermaLink="false">http://counternotions.wordpress.com/?p=826#comment-2826</guid>
		<description><![CDATA[I believe that AppleTV is just a placeholder until the direction that computer/living room entertainment will take becomes clearer.  Apple is not betting on any particular configuration because there are too many unknowns and too many players right now.  When the definitive direction and technology emerges and stabilizes, Apple will already have a template product in place which they can alter to fit the trend.]]></description>
		<content:encoded><![CDATA[<p>I believe that AppleTV is just a placeholder until the direction that computer/living room entertainment will take becomes clearer.  Apple is not betting on any particular configuration because there are too many unknowns and too many players right now.  When the definitive direction and technology emerges and stabilizes, Apple will already have a template product in place which they can alter to fit the trend.</p>
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		<title>By: Steven</title>
		<link>http://counternotions.com/2009/05/08/kindledx/#comment-2799</link>
		<dc:creator><![CDATA[Steven]]></dc:creator>
		<pubDate>Wed, 13 May 2009 07:27:30 +0000</pubDate>
		<guid isPermaLink="false">http://counternotions.wordpress.com/?p=826#comment-2799</guid>
		<description><![CDATA[You know, I never quite understood how Sony, given the tremendous head start it enjoyed, completely fell by the wayside with respect to portable music.  But now it makes perfect sense.  Sony owned plenty of content it wanted to sell, while Apple had none.  This led to completely different ways of approaching the business.  Sony&#039;s approach led to disaster and embarassment.  Meanwhile, we all know Apple&#039;s story.]]></description>
		<content:encoded><![CDATA[<p>You know, I never quite understood how Sony, given the tremendous head start it enjoyed, completely fell by the wayside with respect to portable music.  But now it makes perfect sense.  Sony owned plenty of content it wanted to sell, while Apple had none.  This led to completely different ways of approaching the business.  Sony&#8217;s approach led to disaster and embarassment.  Meanwhile, we all know Apple&#8217;s story.</p>
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		<title>By: Daveed</title>
		<link>http://counternotions.com/2009/05/08/kindledx/#comment-2797</link>
		<dc:creator><![CDATA[Daveed]]></dc:creator>
		<pubDate>Tue, 12 May 2009 15:56:58 +0000</pubDate>
		<guid isPermaLink="false">http://counternotions.wordpress.com/?p=826#comment-2797</guid>
		<description><![CDATA[Amazon has made Kindle books available through an iPhone app last february.  It is entirely possible that the growth of the Kindle-portion of Amazon&#039;s book sales (from 13% to 35%, according to your report) is in fact mostly due to the iPhone app (anecdotally, I&#039;m reading my ninth Kindle book on my iPhone). 

Amazon, does have the data identifying the device on which their books are read.  In fact, I believe that they can even identify what fraction of a book gets read over multiple devices if a customer does so (e.g., one might read 40% of a book on an iPhone while attending to activities outside the house, while the other 60% might be read on a Kindle device at home).

They may be waiting to have confidence in the stats they acquire before making a definitive decision regarding whether they want to profit from the razors or the blades.]]></description>
		<content:encoded><![CDATA[<p>Amazon has made Kindle books available through an iPhone app last february.  It is entirely possible that the growth of the Kindle-portion of Amazon&#8217;s book sales (from 13% to 35%, according to your report) is in fact mostly due to the iPhone app (anecdotally, I&#8217;m reading my ninth Kindle book on my iPhone). </p>
<p>Amazon, does have the data identifying the device on which their books are read.  In fact, I believe that they can even identify what fraction of a book gets read over multiple devices if a customer does so (e.g., one might read 40% of a book on an iPhone while attending to activities outside the house, while the other 60% might be read on a Kindle device at home).</p>
<p>They may be waiting to have confidence in the stats they acquire before making a definitive decision regarding whether they want to profit from the razors or the blades.</p>
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		<title>By: Daveed</title>
		<link>http://counternotions.com/2009/05/08/kindledx/#comment-2796</link>
		<dc:creator><![CDATA[Daveed]]></dc:creator>
		<pubDate>Tue, 12 May 2009 15:48:24 +0000</pubDate>
		<guid isPermaLink="false">http://counternotions.wordpress.com/?p=826#comment-2796</guid>
		<description><![CDATA[A nit:
&quot;It not only boasts a 275,000-book digital storefront, itâ€™s also a leading mover of consumer electronics.&quot;

I think this is meant to say that Amazon has 275,000 Kindle books for sale, but I read it as saying Amazon (&quot;it&quot;) has an catalog of 275,000 book titles (no matter what format) on its web site (&quot;digital storefront&quot;): That would be incorrect (it has millions of traditional books for sale).

    Daveed]]></description>
		<content:encoded><![CDATA[<p>A nit:<br />
&#8220;It not only boasts a 275,000-book digital storefront, itâ€™s also a leading mover of consumer electronics.&#8221;</p>
<p>I think this is meant to say that Amazon has 275,000 Kindle books for sale, but I read it as saying Amazon (&#8220;it&#8221;) has an catalog of 275,000 book titles (no matter what format) on its web site (&#8220;digital storefront&#8221;): That would be incorrect (it has millions of traditional books for sale).</p>
<p>    Daveed</p>
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		<title>By: Kontra</title>
		<link>http://counternotions.com/2009/05/08/kindledx/#comment-2795</link>
		<dc:creator><![CDATA[Kontra]]></dc:creator>
		<pubDate>Tue, 12 May 2009 06:01:39 +0000</pubDate>
		<guid isPermaLink="false">http://counternotions.wordpress.com/?p=826#comment-2795</guid>
		<description><![CDATA[You&#039;re right that the AppleTV strategy is suboptimal, to say the least. There are two primary constraints here: availability of bandwidth and content. Bandwidth is slowly improving.

Like music, Apple wanted to offer via iTunes &lt;em&gt;popular&lt;/em&gt; content, not (just) indie or long-tail content. That means accommodation with the studios in terms of availability window, price, HD version, (lack of) DVR, etc. Clearly Apple doesn&#039;t have as strong a hand in negotiating with studios as it did with the labels for iTunes earlier. And allowing another company to dominate videos/movies would be detrimental to iTunes store in general, so a lot of negative factors coalesce here.

I don&#039;t know their longer-rage plans for AppleTV, but it very much looks like an interim product, a hobby. :)]]></description>
		<content:encoded><![CDATA[<p>You&#8217;re right that the AppleTV strategy is suboptimal, to say the least. There are two primary constraints here: availability of bandwidth and content. Bandwidth is slowly improving.</p>
<p>Like music, Apple wanted to offer via iTunes <em>popular</em> content, not (just) indie or long-tail content. That means accommodation with the studios in terms of availability window, price, HD version, (lack of) DVR, etc. Clearly Apple doesn&#8217;t have as strong a hand in negotiating with studios as it did with the labels for iTunes earlier. And allowing another company to dominate videos/movies would be detrimental to iTunes store in general, so a lot of negative factors coalesce here.</p>
<p>I don&#8217;t know their longer-rage plans for AppleTV, but it very much looks like an interim product, a hobby. :)</p>
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		<title>By: Kontra</title>
		<link>http://counternotions.com/2009/05/08/kindledx/#comment-2794</link>
		<dc:creator><![CDATA[Kontra]]></dc:creator>
		<pubDate>Tue, 12 May 2009 05:46:32 +0000</pubDate>
		<guid isPermaLink="false">http://counternotions.wordpress.com/?p=826#comment-2794</guid>
		<description><![CDATA[In &lt;a href=&quot;http://www.nytimes.com/2009/05/12/technology/internet/12digital.html&quot; rel=&quot;nofollow&quot;&gt;Print Books Are Target of Pirates on the Web&lt;/a&gt; &lt;em&gt;New York Times&lt;/em&gt; acknowledges the piracy issue we outlined in the Kindle piece above.]]></description>
		<content:encoded><![CDATA[<p>In <a href="http://www.nytimes.com/2009/05/12/technology/internet/12digital.html" rel="nofollow">Print Books Are Target of Pirates on the Web</a> <em>New York Times</em> acknowledges the piracy issue we outlined in the Kindle piece above.</p>
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		<title>By: Michael</title>
		<link>http://counternotions.com/2009/05/08/kindledx/#comment-2793</link>
		<dc:creator><![CDATA[Michael]]></dc:creator>
		<pubDate>Tue, 12 May 2009 05:46:19 +0000</pubDate>
		<guid isPermaLink="false">http://counternotions.wordpress.com/?p=826#comment-2793</guid>
		<description><![CDATA[&quot;One of the critical mistakes Sony made was to rely on its own propriatery Atrac audio compression technology instead of the popular MP3 format. Sony has been a major music label and it wanted to make money on both ends of hardware and content sales, so it crippled its players in various strategic ways until it was too late.&quot;

Correct me if I&#039;m wrong but what Sony did wrong with their portable music strategy seems just like what Apple is currently doing with it&#039;s video strategy (Apple TV).  The device can only play MPEG-4/H.264 video content (yes, I know they&#039;re open formats but wait for the next part) and can only buy/download video (protected) through the iTunes Store (besides YouTube).  This seems like such an obvious mistake that I can&#039;t believe Apple is making it blindly.

One of the main reasons the iPod was a success was that it allowed you to play content from various sources: ripping your already-owned CD&#039;s, illegal MP3 downloading and buying from the iTunes Music Store.  It allowed people to transition into an all-digital music collection.  The Apple TV only allows the iTunes Store.  Sure, you can rip your DVD&#039;s and convert downloaded DivX files, but it&#039;s a pain... who (beside the techie crowd) wants to go through all that work.  The only &quot;convenient&quot; way to acquire video on the device is through iTunes.

Isn&#039;t this exactly the mistake Sony made... trying to control both ends (hardware and content)?  The iPod strategy worked so well because Apple was mostly concerned with making money on the hardware sales of the iPod.  With the Apple TV, it seems like they are concerned with selling the hardware AND content through iTunes instead of the latter complimenting the former.  

I&#039;m interested in hearing people&#039;s thoughts on this matter (perhaps a future Counternotions article???)  Apple is smart and obviously knows that their strategy with the Apple TV is very different (I would say more limiting) than their iPod strategy.... is this a smart move or are they missing the opportunity of increased hardware sales and establishing a larger footprint in the living room market?]]></description>
		<content:encoded><![CDATA[<p>&#8220;One of the critical mistakes Sony made was to rely on its own propriatery Atrac audio compression technology instead of the popular MP3 format. Sony has been a major music label and it wanted to make money on both ends of hardware and content sales, so it crippled its players in various strategic ways until it was too late.&#8221;</p>
<p>Correct me if I&#8217;m wrong but what Sony did wrong with their portable music strategy seems just like what Apple is currently doing with it&#8217;s video strategy (Apple TV).  The device can only play MPEG-4/H.264 video content (yes, I know they&#8217;re open formats but wait for the next part) and can only buy/download video (protected) through the iTunes Store (besides YouTube).  This seems like such an obvious mistake that I can&#8217;t believe Apple is making it blindly.</p>
<p>One of the main reasons the iPod was a success was that it allowed you to play content from various sources: ripping your already-owned CD&#8217;s, illegal MP3 downloading and buying from the iTunes Music Store.  It allowed people to transition into an all-digital music collection.  The Apple TV only allows the iTunes Store.  Sure, you can rip your DVD&#8217;s and convert downloaded DivX files, but it&#8217;s a pain&#8230; who (beside the techie crowd) wants to go through all that work.  The only &#8220;convenient&#8221; way to acquire video on the device is through iTunes.</p>
<p>Isn&#8217;t this exactly the mistake Sony made&#8230; trying to control both ends (hardware and content)?  The iPod strategy worked so well because Apple was mostly concerned with making money on the hardware sales of the iPod.  With the Apple TV, it seems like they are concerned with selling the hardware AND content through iTunes instead of the latter complimenting the former.  </p>
<p>I&#8217;m interested in hearing people&#8217;s thoughts on this matter (perhaps a future Counternotions article???)  Apple is smart and obviously knows that their strategy with the Apple TV is very different (I would say more limiting) than their iPod strategy&#8230;. is this a smart move or are they missing the opportunity of increased hardware sales and establishing a larger footprint in the living room market?</p>
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		<title>By: Kontra</title>
		<link>http://counternotions.com/2009/05/08/kindledx/#comment-2792</link>
		<dc:creator><![CDATA[Kontra]]></dc:creator>
		<pubDate>Mon, 11 May 2009 06:13:18 +0000</pubDate>
		<guid isPermaLink="false">http://counternotions.wordpress.com/?p=826#comment-2792</guid>
		<description><![CDATA[Excellent point, which will be driven home by the end of this summer with iPhone apps taking advantage of this. The gap between the Apple touch platform and others will then be seen for what it is: a moat. :)]]></description>
		<content:encoded><![CDATA[<p>Excellent point, which will be driven home by the end of this summer with iPhone apps taking advantage of this. The gap between the Apple touch platform and others will then be seen for what it is: a moat. :)</p>
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		<title>By: james katt</title>
		<link>http://counternotions.com/2009/05/08/kindledx/#comment-2791</link>
		<dc:creator><![CDATA[james katt]]></dc:creator>
		<pubDate>Mon, 11 May 2009 06:09:48 +0000</pubDate>
		<guid isPermaLink="false">http://counternotions.wordpress.com/?p=826#comment-2791</guid>
		<description><![CDATA[Once Apple&#039;s iPad comes out, Kindle is dead.  Apple can sell millions of iPads.  Amazon can&#039;t sell millions of Kindles.

Apple&#039;s micropayment capability for iPhone Apps - which will be able to run on the iPad - will allow content providers to write their own Apps and sell content.  This would be great for books and newspapers.]]></description>
		<content:encoded><![CDATA[<p>Once Apple&#8217;s iPad comes out, Kindle is dead.  Apple can sell millions of iPads.  Amazon can&#8217;t sell millions of Kindles.</p>
<p>Apple&#8217;s micropayment capability for iPhone Apps &#8211; which will be able to run on the iPad &#8211; will allow content providers to write their own Apps and sell content.  This would be great for books and newspapers.</p>
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