Comments on: Amazon’s Bezo losing faith in books? E included? http://www.teleread.org/blog/2007/08/22/amazons-bezo-losing-faith-in-books-e-included/ News & views on e-books, libraries, publishing and related topics Thu, 20 Nov 2008 18:32:34 +0000 http://wordpress.org/?v=2.6.2 By: David Rothman http://www.teleread.org/blog/2007/08/22/amazons-bezo-losing-faith-in-books-e-included/#comment-503665 David Rothman Wed, 22 Aug 2007 20:01:24 +0000 http://www.teleread.org/blog/?p=6988#comment-503665 Joscha: News flash! One can be a capitalist and still value certain "socialist" institutions (humor alert) such as good public library systems--digital and physical. I absolutely agree with your analysis. While the Amazons and Googles serve a purpose--for maximum freedom expression and maximum choice, we need the private sector--they will be no substitute for well-stocked national digital library systems. In other words, we're on the same page about the need not to regard Googlzon as the all-encompassing solution. We need a mixed approach. Thanks for your comments. David Joscha: News flash! One can be a capitalist and still value certain “socialist” institutions (humor alert) such as good public library systems–digital and physical. I absolutely agree with your analysis. While the Amazons and Googles serve a purpose–for maximum freedom expression and maximum choice, we need the private sector–they will be no substitute for well-stocked national digital library systems. In other words, we’re on the same page about the need not to regard Googlzon as the all-encompassing solution. We need a mixed approach. Thanks for your comments. David

]]> By: Joscha Bach http://www.teleread.org/blog/2007/08/22/amazons-bezo-losing-faith-in-books-e-included/#comment-503602 Joscha Bach Wed, 22 Aug 2007 18:29:05 +0000 http://www.teleread.org/blog/?p=6988#comment-503602 You make it sound as if we should be a tad disappointed. Amazon and Google are not after the societies interests, but after shareholder value - they are companies, after all. As such, they have to deliver growth and profit. Both companies can be considered to be on the side of light. But whenever there is a decision to be made between sheer benevolence and economic success, they will necessarily have to choose the latter or face dire consequences. At the moment, Google is scattering the place with lots and lots of amazing and free gizmos. And yet, they will have to justify this to their shareholders with the creation of opportunities for further income. One day, somebody is going to have to pay up. There are many things to be said about the book market - but probably not that it is an area of hot growth. Ebooks are going to grow, but they will probably do so by cannibalizing the Pbook market, with an overall shrinkage on consumer spending as a driving force behind Ebooks. The number of books being sold via Amazon has grown for a while, but they have done so primarily at the cost of smaller bookstores. Amazon's initial business model was very successful by optimizing the cost per sale - now they are going to reduce the margins of the publishers to realize further growth. Eventually, Amazon's book business will stagnate. Even if it stagnates at a nice level: who is going to buy stagnant stock? So Jeff Bezos is right with considering to move on. Even if it would turn out not be in the best interest of the society at large. Such are the perils of capitalism ;) You make it sound as if we should be a tad disappointed. Amazon and Google are not after the societies interests, but after shareholder value - they are companies, after all. As such, they have to deliver growth and profit. Both companies can be considered to be on the side of light. But whenever there is a decision to be made between sheer benevolence and economic success, they will necessarily have to choose the latter or face dire consequences. At the moment, Google is scattering the place with lots and lots of amazing and free gizmos. And yet, they will have to justify this to their shareholders with the creation of opportunities for further income. One day, somebody is going to have to pay up.

There are many things to be said about the book market - but probably not that it is an area of hot growth. Ebooks are going to grow, but they will probably do so by cannibalizing the Pbook market, with an overall shrinkage on consumer spending as a driving force behind Ebooks. The number of books being sold via Amazon has grown for a while, but they have done so primarily at the cost of smaller bookstores. Amazon’s initial business model was very successful by optimizing the cost per sale - now they are going to reduce the margins of the publishers to realize further growth. Eventually, Amazon’s book business will stagnate. Even if it stagnates at a nice level: who is going to buy stagnant stock? So Jeff Bezos is right with considering to move on. Even if it would turn out not be in the best interest of the society at large. Such are the perils of capitalism ;)

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