Here’s Why Amazon Doesn’t Need to Care if E-Book Sales Are Declining

September 25, 2015 - Kindle Unlimited

NEW YORK (TheStreet) — The jury is still out on either imitation is dead. Some are assured e-books are holding over, others are certain that imitation is as clever as ever. Either way, one thing is certain — Amazon (AMZN – Get Report)  doesn’t need to be too worried.

An article in The New York Times this week claimed that “print is distant from dead,” indicating to a new investigate from a Association of American Publishers that showed disappearing e-book sales. The study, that collected information from 1,200 publishers, found that e-book sales fell by 10% in a initial 5 months of 2015. The implications of a investigate could be that e-books will not cannibalize imitation book sales, as was formerly believed.

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Many argued with The New York Times’ conclusion, explaining that a AAP’s investigate only looked at a Big Five publishers (Penguin Random House, Macmillan, HarperCollins, Hachette and Simon Schuster), and unsuccessful to cruise a other half of a industry. Plus, those Big Five publishers only raised e-book prices by a lot, so it’s not too startling that sales have slowed a bit.

Amazon itself claims that a e-books sales are anything though declining. “Our U.S. and worldwide Kindle book sales are flourishing in 2015, in partial driven by a expansion and success of Kindle Unlimited,” Amazon orator Sarah Gelman pronounced in an email. Kindle Unlimited is a use that Amazon introduced final year that lets consumers review an total volume of e-books from a library of over 1 million offerings for $10 a month.

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But either or not e-book sales are indeed in decline, Amazon’s fortunes are doubtful to be altered much.

Sure, Amazon devotes a lot of resources to a Kindle business, though eventually that business is seen as a delegate monitor of Amazon’s core business — a offered of earthy goods. Over a final few years, Amazon has dramatically increased its investment in Prime, creation it some-more than only a two-day shipping program. E-books, video, and song were folded into a Prime offering, converting probable e-book purchasers to giveaway downloaders.

With that change in Prime, Amazon radically motionless to “demote media as a business section and make it faithfulness bait,” pronounced Peter Hildick-Smith, owner and CEO of investigate organisation Codex. “Media adds stickiness, eyeballs, engagement. If we take it as a glue that binds a faithfulness together, media has an impossibly profitable role, though not for income as most as loyalty.”

It’s extravagantly transparent that for Amazon, everything points behind to Prime, and e-books are simply another entrance to supplement value to a Prime offering, remonstrate some-more consumers to pointer adult for Prime, and remonstrate Prime members to spend some-more time on If a Prime member opens a Kindle e-book and afterwards remembers mid by that he forgot to restock on toilet paper, chances are he will make that squeeze by Amazon given he’s already in a ecosystem.

Further explanation of Amazon’s take on e-books as loyalty-building: Amazon gives some of its e-books divided for giveaway to Prime members by a Kindle Owners’ Lending Library, where Prime members can review one e-book for giveaway any month. And afterwards there’s a Kindle Unlimited program.

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