MAY 5, 2009

Amazon to Launch Kindle for Textbooks

By GEOFFREY A. FOWLER and BEN WORTHEN
Wall Street Journal

http://online.wsj.com/article/SB124146996831184563.html#mod=testMod


Amazon.comInc. on Wednesday plans to unveil a new version of its Kindle 
e-book reader with a larger screen and other features designed to appeal 
to periodical and academic textbook publishers, according to people 
familiar with the matter.

Beginning this fall, some students at Case Western Reserve University in 
Cleveland will be given large-screen Kindles with textbooks for 
chemistry, computer science and a freshman seminar already installed, 
said Lev Gonick, the school's chief information officer. The university 
plans to compare the experiences of students who get the Kindles and 
those who use traditional textbooks, he said.

Amazon has worked out a deal with several textbook publishers to make 
their materials available for the device, Mr. Gonick added. The new 
device will also feature a more fully functional Web browser, he said. 
The Kindle's current model, which debuted in February, includes a Web 
browser that is classified as "experimental."

Five other universities are involved in the Kindle project, according to 
people briefed on the matter. They are Pace, Princeton, Reed, Darden 
School at the University of Virginia, and Arizona State.

An Amazon spokesman declined comment. On Monday morning, the Seattle 
company sent out invitations to a press event to be held Wednesday at 
Pace University in New York City.

The moves are the latest by Amazon to promote the Kindle, which is the 
company's first consumer-electronics device. The e-commerce company, 
which has seen sales of media slow in recent years, has invested in 
digital distribution of music, video and books. Amazon hasn't said how 
many Kindles it has sold since introducing the device in 2007, but in an 
earnings report last month it said that Kindle sales had "exceeded our 
most optimistic expectations."

Amazon has invited several newspaper and magazine publishers, including 
the New York TimesCo. and Time WarnerInc.'s Time Inc. magazine division, 
to the announcement Wednesday about the new Kindle, say people familiar 
with the matter. Times Co. Chairman Arthur Sulzberger Jr. is expected to 
share the stage with Amazon Chief Executive Jeffrey Bezos at the event, 
according to a person familiar with the matter. A New York Times 
spokeswoman declined comment.

Dozens of newspaper and magazines subscriptions for Kindle are sold 
through Amazon, but some publishers have concerns about the arrangement. 
Amazon controls the relationship with subscribers and dictates pricing. 
In addition, the current version of the Kindle doesn't display ads, 
which newspaper and magazine companies rely on for revenue.

That has spurred some publishers to back Kindle alternatives and to 
pursue mobile reading options for smartphones and other portable 
gadgets. Hearst Corp. is investing in a start-up that's developing an 
e-reading device, and News Corp., owner of Wall Street Journal publisher 
Dow Jones & Co., is mulling a possible investment in a Kindle 
competitor. Plastic Logic Ltd. said that it will conduct a trial launch 
of its 8.5-by-11-inch reading device this summer with the Detroit Free 
Press and Detroit News, daily papers that recently stopped delivery of 
their print versions most days of the week.

A larger-screen Kindle would enable textbook publishers to better 
display the charts and graphs that aren't particularly well suited to 
the current device, which has a screen that measures just six inches 
diagonally. But digitizing academic books could also hurt the thriving 
market for used textbooks on college campuses.

-- 
================================
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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