October 7, 2009

New Kindle to Download Books Beyond U.S.
By BRAD STONE
NY Times

http://www.nytimes.com/2009/10/07/technology/companies/07amazon.html?_r=1&ref=technology&pagewanted=print


Amazon’s Kindle electronic reading device is going global.

The company announced on Tuesday evening that it would soon begin 
selling a new version of the Kindle that can wirelessly download books 
both in the United States as well as in more than 100 other countries.

The move pits Amazon.com, based in Seattle, against a range of other 
players in the growing global market for digital reading. The rivals 
include iRex, a division of Royal Philips Electronics, the Dutch 
consumer electronics company; Sony; and China Mobile, the world’s 
largest mobile carrier, which said last month it would soon begin 
selling several kinds of electronic reading devices.

The new Kindle is physically identical to Amazon’s current Kindle, with 
its slender profile, six-inch black-and-gray screen and angular 
keyboard. The main difference: it will use the wireless networks of AT&T 
and its international roaming partners, instead of Amazon’s existing 
wireless partner for the Kindle, Sprint. Sprint’s network is 
incompatible with most mobile networks outside of North America.

The new Kindle will sell for $279. It begins shipping on Oct. 19.

“We regularly ship millions of English-language books to non-English 
speaking countries and people have to wait for the delivery,” said 
Jeffrey P. Bezos, Amazon’s chief executive. “Now they can get books in 
60 seconds. That is a pretty exciting part of what we are announcing.”

In addition, Amazon also announced a price cut for the United 
States-only Kindle, which will continue to be sold alongside the new 
global Kindle. The domestic Kindle is now $259, down from $299. Amazon 
previously dropped the price in July, from $359, to stimulate demand and 
to match the prices of rivals like Sony, whose least expensive e-reader 
now costs $199. Amazon also sells the larger-screen Kindle DX for $489.

International users of the new Kindle will have a slightly smaller 
collection of around 200,000 English-language books to choose from, and 
their catalogs will be tailored to the country they purchased the device 
in. Amazon said it would sell books from a range of publishers including 
Bloomsbury, Hachette, HarperCollins, Lonely Planet and Simon & Schuster.

Among the apparent holdouts: Random House, which is owned by 
Bertelsmann, the German media conglomerate. Stuart Applebaum, a Random 
House spokesman, said the company’s “discussions with Amazon about this 
opportunity are ongoing, productive and private."

One challenge for publishers is navigating complex foreign rights 
issues: Books are often published by different companies and bear 
different prices in each country.

Though exact sales numbers are hard to come by, it appears electronic 
reading devices are having a breakout year. In a report being released 
on Wednesday by Forrester, the research firm revised its prediction for 
the industry, saying that three million e-reading devices would be sold 
in 2009, up from its previous estimate of two million.

Mr. Bezos declined to offer specific information about Kindle sales. But 
he said Kindle titles were now 48 percent of total book sales in 
instances where Amazon sold both a digital and physical copy of a book. 
That was up from 35 percent last May, an increase Mr. Bezos called 
“astonishing.”

“This has grown much faster than any of us ever anticipated,” Mr. Bezos 
said.

-- 
================================
George Antunes, Political Science Dept
University of Houston; Houston, TX 77204 
Voice: 713-743-3923  Fax: 713-743-3927
Mail: antunes at uh dot edu

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