Amazon, Apple, and the Priority of the Platform

The federal antitrust lawsuit initiated late last month against Apple and major publishers is indeed the boon to Amazon that most view it as. As a book publishing analyst put it in a NY Times article on the story, “Amazon must be unbelievably happy…Had they been puppeteering this whole play, it could not have worked out better for them.” He and others from the publishing industry see this, however, as not just a boost for Amazon but a development that portends darker days for publishers and ultimately for the reading public: “Publishers and booksellers argue that any victory for consumers will be short-lived, and that the ultimate effect of the antitrust suit will be to exchange a perceived monopoly for a real one. Amazon, already the dominant force in the industry, will hold all the cards.”

Such a suggestion, I think, is misplaced because it underestimates the depth of the changes now afoot in the publishing industry. Lower eBook prices may be one effect of Amazon’s successful drive to dominate the market for eReader devices, but the company’s comprehensive distribution platform (which includes the capacity to create and manage content) helps to raise the very question of what it means to be a publisher. “Content is king” is the cliché so often used by owners of content, and new media businesses have turned that on its head. Distribution, the “platform,” now takes priority—for a sufficiently developed and mature one will attract the highest quality content available. We’re already at the point where authors, collaborators, editors—people who create content generally—no longer require the independent services of a publisher to achieve their goals. These needs—editing, distribution, marketing—can now be handled by the distribution companies themselves, as Amazon has already demonstrated with the launch of CreateSpace and its related Kindle Publishing arm. And as supportive as Apple has been of traditional publishers, it also now operates its own self-publishing unit, ibooks Author, designed especially with the educational textbook market in mind. Publishers and their analysts may one day look at this period, in which they’re worried about pricing controls within the context of traditional publisher and bookseller relations, as the last of their halcyon days.

Amazon will be dominant, to be sure, but it certainly won’t “hold all the cards.” Instead, a multiplicity of channels will emerge that allows all kinds of content creators, and the infrastructure that supports them, to have direct access to their readers and users. As announced yesterday, Barnes & Noble has enticed Microsoft to work together toward this end. While there’s good reason to be skeptical about the fruitfulness of this particular partnership, there will clearly be alternatives to Amazon. This is good news, not only for readers but for creators of content and their supporters, and for those who are excited to see human creativity channel itself into new forms of expression, as it is now beginning to do.

  • Comments (1)
  1. Cynthea Wellings,
    This is an interesting comment that focuses strongly on the monoliths of technology - who are currently USA-based. However, there are robust new publishing business models emerging. For example, Pottermore has demonstrated exceptional success in its first few weeks of trading utilising a new business model built on its own technology platform that does not (from what I can see) have any need for the Amazon model. I am located in Australia. From my perspective, I see Asia now as a hotspot of youth, technology, education and resources with immense markets driving them - markets that are hungry for knowledge. An incubator for breathtaking creativity and new business models. Inevitably, we are going to see an array of new technology-centred business models emerging from our region that will leap frog all that has gone before. What an exciting time it is to be in publishing!

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