I’m really impressed with Amazon’s Kindle and ebook strategy.  A recent L.A. Times interview with their VP of Kindle Content, Russ Grandinetti, highlights their long-term goal, which is to make “every book ever written in any language, in print or out of print, all available within 60 seconds.”

That’s a pretty impressive objective, and based on what I’ve seen they’re well on their way to achieving it.

As many of you know from my Facebook posts, I’ve been a Kindle lover since 2007, and I’m still happy with my old, clunky 1st generation Kindle (see included photo). Why? Because it does all I need it to do, which is to enable me to buy and enjoy books from my favorite authors. I now have over 80 books on my Kindle, and I’m betting that I’ve read over a hundred ebooks on the device over the years.

And I’m obviously not the only person out there who’s made ebooks a significant part of their lives. According to the same article, over the last three years Amazon has sold more than 7 million Kindle devices. Furthermore, this year’s sales of Kindle devices and ebooks are projected to hit nearly $2 billion, up 342% from 2009.

Add to that the fact that they currently control 76% of the U.S. ebook/ereader market, and even the most ardent skeptic (and from the comments I get on Facebook I know you’re out there) has to admit that Amazon must be doing something right.

I encourage you to read the article for yourself, but below are some answers from Grandinetti addressing some of the sensitive issues that Amazon has dealt with over the years and, which in my opinion, serve as little nuggets of foresight and wisdom that explain how Amazon has successfully created and maintained their dominant position in the ebook revolution.

On ebook prices being too low:

We think digital books should cost somewhat less than their print counterparts. When we controlled the pricing, we built the business around $9.99. A small group of publishers have taken control of their pricing, and they’ve raised the prices. It’s not surprising that publishers who are raising prices are losing market share relative to publishers who decided to keep prices low. Customers aren’t stupid. Ultimately, the market will drive prices…

On selling ebooks at a loss:

Taking a loss on bestselling books is different than taking a loss on your overall book business. We may lose money on bestsellers, but across the breadth of our catalog, we run a profitable, sustainable book business.

On Amazon’s role:

We think the efficiencies of selling digital books should not only accrue to publishers but should also accrue to authors. That means that the middlemen standing between authors and readers need to get more efficient, and they need to pass those savings along. The 70% [royalty] rate we offer is a way to pass those efficiencies along.

I hope you find the article insightful–I certainly did–and please let me know where you think the world of publishing might be headed. One thing’s for certain–it won’t be boring.

Thanks, and till next time–keep publishing!

Henry Hutton
PublishandSell.com
hhutton@publishandsell.com
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