Amazon.com, Inc. (NASDAQ:AMZN) has revived its business policy, and has come up with a sales model followed by few of its peers such as Netflix and Spotify. While Netflix allows its users to get unlimited online access to the TV shows and movies, Spotify offers for music. A new program from Amazon, called Kindle Unlimited offers access to about 600,000 titles in the Amazon Kindle format
Not all books on offering by Amazon
The users can subscribe to this at a price of $9.99 per month. The devices that can be used by the subscribers for gaining access to the e-books include not only the Kindle tablets, but also other devices such as iPads, iPhones, Android OS devices and Windows OS devices with the help of an Amazon app. The Kindle Unlimited service will, also, include audio books available through the Audible service.
While the books available for access are huge in number, but would not include most of the new and bestselling books for which Amazon does not has the rights of including in the subscription package, informs Forrester Research analyst James McQuivey. The store will comprise majorly of those books that are Amazon.com, Inc. (NASDAQ:AMZN)’s in-house publications and those from small and independent publishers. It could be possible that at a later stage, the major publishers make available their books falling prey to the market power of Amazon.
Big readers to benefit most
The subscription model from Amazon is not welcomed by publishers as it would lead to a cutting down the books prices and royalties paid. “If you’re a publisher and a big one, you don’t want the world to think the new Dean Koontz novel is free,” McQuivey said. “You’re already mad that Amazon discounts it. The big publishers don’t want the price pressures.”
The subscription plan is bound to lure big-readers and will be welcomed by them, says McQuivey. The analyst, further, says that Amazon.com, Inc. (NASDAQ:AMZN) is good at knowing its customers and makes irresistible offers to its regular readers based on their taste for specific kinds of books. While it will appeal to a specific group of readers, others might not benefit much from it and hence will remain disinterested.
“If you’re a one book a month reader and a best seller person, this isn’t going to work for you,” McQuivey said.
The price charged for the monthly subscription is very nominal, as less as the cost of a single e-book and this is why Endpoint Technologies Associates analyst Roger Kay feels that this new system from Amazon will bring about changes in the economic model for publishers and authors.