The big gorilla is firing up


by - April 19th, 2012


The Kindle Fire.

Amazon looks set to give the Australian book market a mighty shake-up.

The Sydney Morning Herald has reported that Amazon is seeking warehouse space in Australia.

The Australian’s IT section has this week run a piece outlining rumours that the Kindle Fire’s arrival in Australia is imminent.

It seems the greatest of all the ebook industry gorillas (so-named by Scribe founder Henry Rosenbloom during a speech he gave at an Australian Publishers Association conference last November) is finally setting up shop in Australia.

The SMH says Amazon.com.au changed its name to Amazon Corporate Services last year, and “has appointed two vice presidents of the American parent – Michael Deal, associate general counsel, and Jason Bristow, the online retailer’s treasurer – to the local company’s board”.

It also reports that several marketing staff have been hired here.

If it’s true that Amazon is about to make a big push into this market, what will this mean for us readers and for the rest of the industry?

In my view, it will be very bad news for any ebook retailer that has not already established a niche for itself here – I’m thinking about the Copia-powered Australian Publishers Association/Bowker Titlepage Plus solution here, but also any of the independent booksellers yet to implement an ebook strategy, and those who will have to rethink existing strategies in coming months, like Booktopia and Dymocks, who learnt just before Easter that their supplier Google was pulling out of reselling.

Kobo’s Malcolm Neil reflected at a Copyright Agency Limited event earlier this year that while Kobo still has strong market share, this had fallen as new players including Apple and Google set up shop here. Kobo was a pioneer in the Australian market, selling local ebook titles via its own site and partner retailer RedGroup for some time (starting in May 2010) before entrants like Booku, Booki.sh, ReadCloud, Apple and Google joined the fray.

Amazon’s Australian ebook stocks were limited when Kobo launched, but they had the advantage of offering the Kindle device, locked into the Kindle store, to this market for seven months before the Kobo and iPad arrived.

With a dedicated, local marketing presence and the prospect of local multimedia content (music and video in particular) becoming available via the affordable and portable 7inch Kindle Fire colour tablet here, Amazon would have the power to shake up not just the book industry, but the television, film, music and gadget market too.

Given the outcome of international legal action on book pricing has gone in Amazon’s favour, a local push will likely see further drops in ebook prices here. This will benefit consumers in the short term but will hit publishers’ bottom lines hard and is unsustainable. The greatest risk it brings is that consumers’ expectations on price will be locked in at these unsustainable levels, impacting on the future viability of many of our beloved book publishers and booksellers.

Me? I’m anti-Amazon because of this pricing strategy, and because I like to be able to choose to buy my ebooks from whichever retailer I like, be that a gorilla, Kobo or (and this is always my first preference) a local indie like Booku and those who have partnered with Booki.sh and ReadCloud.

But I have to say I’m tempted by the Kindle Fire. After nearly two years of lugging my iPad around in my handbag, I have finally given up. It stays home. My Sony Reader comes out to play. A device that has been designed for reading and offers many of the benefits of the iPad in a smaller form has definite appeal – not as much allure as the mythical iPad mini (of which there are rumours again), but a little more than the Kobo Vox, which had plenty of pluses but didn’t quite nail it for me. The rumoured Google Nexus tablet would be worth a look too.

Meanwhile, Bookseller + Publisher has a couple of big ebookish stories this week.

The first wraps up the ongoing legal stoushes in the US and Europe over the agency pricing model used by Apple and major book publishers. B+P points readers to this piece in The Bookseller.

B+P also reports that Kobo is expanding into new international markets and is set to launch its global self-publishing program within months.


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Charlotte Harper (54 Posts)

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6 Responses to “The big gorilla is firing up”

  1. Jon Page Says:

    It might be great news for local retailers if Amazon sets up here. They will then have to pay local taxes like GST, pay local wages and local rents. They will also have to comply with our archaic parallel import restrictions on books. It would make competing against them more even.

    Which is why I think the story is a complete beat up. They would be much better served having a warehouse in South East Asia where they can access those much larger markets. NZ would even be a better prosepect than Australia!

  2. Charlotte Says:

    Thanks Jon. It will be very interesting to see how they deal with those implications of setting up here if the reports are on the money.

  3. Jon Page Says:

    It might be great news for local retailers if Amazon sets up here. They will then have to pay local taxes like GST, pay local wages and local rents. They will also have to comply with our archaic parallel import restrictions on books. It would make competing against them more even.

    Which is why I think the story is a complete beat up. They would be much better served having a warehouse in South East Asia where they can access those much larger markets. NZ would even be a better prosepect than Australia!

  4. Charlotte Says:

    Thanks Jon. It will be very interesting to see how they deal with those implications of setting up here if the reports are on the money.

  5. Martin Taylor Says:

    @Jon, great idea re Amazon setting up in NZ where life is laid back and copyright rules are just as relaxed – we need the jobs and our labour rates are 30% lower, too:) Might help stem the flow of Kiwis heading your way:)

  6. Martin Taylor Says:

    @Jon, great idea re Amazon setting up in NZ where life is laid back and copyright rules are just as relaxed – we need the jobs and our labour rates are 30% lower, too:) Might help stem the flow of Kiwis heading your way:)