Saturday, April 14, 2012

"Amazon has a history of investing hundreds of millions of dollars in loss-leading products and..."

“Amazon has a history of investing hundreds of millions of dollars in loss-leading products and ventures solely to build market share. For AMZN, the big six insistence on DRM on ebooks was a windfall: it made the huge investment in the Kindle platform worthwhile, and by 2010 Amazon had come close to an 85% market share in the ebook sector (which was growing at a dizzying compound rate of 100-200% per annum, albeit from a small base). And now we get to 2012, and ebooks are likely to hit 40% of total publishing sales by the end of this year, and are on the way to 60% within five years (per Tim Hely Hutchinson, CEO of Hachette UK). In five years, we’ve gone from <1% to >40%. That’s disruption for you!”

- What Amazon’s ebook strategy means

Posted on infosnack.

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