Book publishers scrambled to get their wares into ebook publication format and Amazon led the way with inexpensive e-readers and formed a rapidly growing monopoly which forced publishers into a pricing mechanism not in their favor.
Amazon is Goliath, and Apple is David. How?
Slay The Beast!
Amazon has become an abusive monopolist, and now owns over 70-percent of the e-book industry. Besides Apple and iBooks, name another player?
It’s a crowded field, but only two players are big enough to slug it out on the battlefield.
Amazon is Goliath, a hulking beast which yields undue power over publishers and pricing, often selling e-books lower than cost.
That’s good for the consumer, right? Except that kind of predatory pricing also inhibits competition. Once competitors are gone, Amazon is free to price e-books however they want.
Apple came in to change the e-books model, but was convicted of colluding with publishers to fix prices. Apple actually wanted the publishers to make money. The U.S. government doesn’t think that’s a good idea, so David is struggling to dislodge Amazon’s e-book monopoly.
Quick Bible question. David slew Goliath with his slingshot and single shot to the head. How many rocks did David pick up before the confrontation with Goliath?
The e-books market is important– for customers moving from print to electronic devices, for publishers moving from the print model, and for those who control distribution.
Apple still has time to deflect Amazon’s growing threat against the publishing industry and against competitors. Amazon itself is a mostly U.S. operation while Apple has a strong international presence with booksellers and customers, though barely 20-percent of the e-book market.
Unless courts intervene it is unlikely Apple as David will slay the beast of Amazon as Goliath, but it is important that Apple remain a large and important player. Choice is good. Apple provides choice. Amazon does not want choice and bullies publishers into submission.