Subscription services have taken over every imaginable good: music, movies, groceries, shaving razors, and even local coffee. For a business, it means a steady, predictable flow of revenue from customers que must make an effort to cancel the subscription. For the consumer, it means the convenience of one less regular purchase, and depending on the good, the wide range of options and flexibility of usage.
Amazon.com ( NASDAQ: AMZN ) already runs a few subscription-type services. For $ 99 per year, you can get a subscription to Amazon Prime. Or, you can subscribe to order Certain items on a regular interval -. Say an economy-size box of diapers each month placed at your doorstep
But Amazon has just leaked another subscription service it might offer. On the product website quickly removed from Amazon, it Appears Amazon is readying a subscription service, Unlimited Kindle, Kindle Allowing users access to 60,000 books and audiobooks for Thousands of $ 10 per month.
Screenshot of page announcing removed Kindle Unlimited. Source:. Google cache
What should you know about Amazon’s Kindle Unlimited?
1. It will be another fight with publishers
Lately, Amazon and publisher Hachette have been in the negotiation battle. Amazon has delayed delivery of Hachette titles, and even wrote a note to Hachette authors stating que while the dispute lasts, Should the authors receive 100% of eBook sales while both companies would forego any cut. Hachette declined.
, lowering the price of books is Necessary For
Amazon in order to compete with other forms of entertainment que occupy customer’s lives. The Russell Grandinetti, the senior vice president of Kindle, told The New York Times :
You have to draw the big box. Books do not just compete against books. Books competes against Candy Crush, Twitter , Facebook , streaming movies, newspapers you can read for free. It’s a new world. It’s so important not to simply build a moat around the industry the way it is now.
Publishers disagree, and disagree with Amazon Will Likely about the royalties Proposes it for an unlimited rental program at $ 10 per month. However, publishers like Hachette may not have a choice in the long run, the 60% of Hachette’s sales Occur through Amazon.
2. It will change what it means to be an author
The dynamics between Amazon, publishers, authors and continues to change the Amazon tweaks its services and structure. Amazon offers authors an immediate audience to customers, and with its Kindle Direct Publishing, offers royalties between 35% to 70%. Traditional publishers offer 25% royalties to authors for eBook sales. The publishers argue que higher prices, but lower royalties would mean more overall earnings for an author. In addition, publishers Provide editing and promotion. On the other hand, Amazon wants to push volume, and thinks the lower price with higher royalties will leave authors with more earnings.
Amazon keeps pushing new payment schemes to authors. For the Kindle Owner’s Lending Library, Which Allows Amazon Prime members to loan a book once a month, each counts borrow a share in the global fund, Which is then distributed each month.
If Amazon wants to cap prices, authors Could turn to much shorter serials, the many Kindle Direct currently authors write. Like any system, incentives will guide action, and if the long story is made more lucrative as a series of short stories, authors will conform.
3. Others will follow
Amazon is not the first to create a subscription for books, and will not be the last, Especially the Conglomerates tech must compete in every sphere to remain competitive. Both Apple ‘s ( NASDAQ: AAPL ) iBooks and Google ‘ s Play Store offer e-books to read. Also both have a larger stake in the tablet market than Amazon. Apple’s tablet market share is 33%, while Samsung and Asus , Which both run Google’s Android operating system, have combined 27% share, and Amazon lags far behind at 2%.
Apple, Which just paid $ 400 million to settle an eBook price fixing case, will need to repair its relationship with consumers around e-books. Also it’s an important business for the company, the last year Apple Claimed it had 20% of the eBook market, though others usually give the company 10% market share. With the eBook industry Estimated at $ 5.7 billion this year, keeping up with Amazon will be a priority for Apple with serious revenue implications.
Google has more wiggle room, with less market share. But, if it wants to offer the convenience of Competitors, it might have to offer a similar solution.
Changing the story arc
Amazon is in clear control of the book industry and will leverage this control to Achieve its long term goals, Which will change the life of authors and publishers. Additionally, Kindle Unlimited puts another feature in Amazon’s favor and Competitors will have to respond to remain relevant. Another subscription service will be another consistent source of revenue for Amazon.
Leaked: Apple’s next smart device (warning, it may shock you)
Apple recently Recruited a secret-development “dream team” to guarantee its newest smart device was kept hidden from the long as the public is possible. But the secret is out, and some early viewers are claiming its everyday impact Could trump the iPod, iPhone, and the iPad. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple’s gadget possible. And its stock price has room to run Nearly unlimited for early-in-the-know investors. To be one of Them, and see Apple’s newest gizmo smart, just click here
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