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Amazon Pages: Booster Shot for Books Online
November 2005

Amazon’s just-announced program to sell book content on a component or “pay-per-view” basis is the latest in a series of events moving books at last into the digital content business. “Amazon Pages” is a new service enabling customers to buy parts of books – sections, chapters, and individual pages – just as iTunes lets consumers buy individual songs rather than an entire music album. Immediate uses of the service could be in selling portions of travel books, home and auto repair books, and cookbooks. Business and professional users also could benefit by being able to discover relevant nuggets of content that heretofore were hidden inside of books. The ability to buy selected parts of books also might be attractive to students, much as has already been seen via Amazon’s e-docs program, where selected educational publishers have reconstituted book chapters into study guides.

Pricing is not yet disclosed, although Random House announced its own program for selling book content at 5 to 25 cents per page. Google is working with publishers on a similar initiative. Publishers have reacted favorably to Amazon’s plans, and for good reason. While books are a rich source of content, users cannot easily find relevant content that may be hidden inside of an entire work. The availability of free content on the internet threatens the book market, so giving consumers more choice makes sense defensively. And if history is a guide, publishers are likely to make more money by letting users buy what they want. At a time when publishers are concerned about the protection of their intellectual property online, Amazon has been careful to make its program both voluntary and non- exclusive, while giving publishers control over the pricing of their digital content.

While component or pay-per-view models long have been discussed in the book industry, Amazon’s move is significant for several reasons. First, Amazon’s backing (and soon Google’s) provides a strong marketing channel for bringing the concept to millions of potential users. With its e-commerce systems, Amazon is in a strong position to create an easy buying experience. While Google is much less experienced in e-commerce, it, too, is well-positioned by virtue of its dominance as a search engine. Second, by providing a searchable database of content from many books, Amazon is transforming the very utility of book content. One of the main reasons that eBooks have failed is that they put print books into electronic containers without giving users any ability to search across them to discover unknown content. Finally, Amazon’s move emphasizes the value of paid content on the internet where many consumers still regard content as largely free.


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