The Financial Times reports a story here about the Taiwanese screen-maker for Amazon’s Kindle, Prime View International, cutting a check to buy E Ink, the US company that owns key tech for making the screens. The $215 million purchase is going to get North American and European publishers howling about monopolies…especially since they’re all seeing a digital future as the only future. This will get the pot boiling, yah?
And Google’s jumping into the game as a direct competitor to Amazon.com, now opening up its services to publishers for direct sales to consumers. They’re not interested in controlling format (like Amazon’s Kindle-only reads and purchases) and are leaving the pricing open to the individual publishers. (Something analysts say will get more publishers into the game because they can start jacking their prices up again). Read the full story here.
Again, I hate to say it, but all of these players keep leaving the key component of new (digital) market forces out of the equation. The article suggests Google’s move will start a pricing war that will force the price of eBooks up. Perhaps, in the beginning, as greedy publishers try to force the digital world to accept their old bricks and mortar business model. But we know that overpriced digital content just encourages piracy and diminishes sales in the long run. The true nature of these digital market forces, as has been proven with digital content like music, is to drive the price down while pushing product availability and market size through the roof.
That’s good for readers and authors. (Especially those who communicate directly.) And it will be grand for publishers and resellers that have the vision to leave the past behind and embrace the broad scope of the digital age.Â
This is going to be brutal but fun to watch.