Amazon Kindle DX: The Last Chance for Newspapers?
Brand: Amazon
Product: Kindle DX
Target: Students and Newspaper Readers
Rating: ***
Reviewer: David Vinjamuri
Description:
Amazon today launched the Kindle DX, a new eBook reader with a larger screen than the recently introduced Kindle 2. The screen measures 8.5″ x 11″, the size of a sheet of ordinary notebook paper. The device retails for $489 and appears initially to be targeted at students and newspaper readers. Amazon has concluded deals with a number of textbook publishers as well as several universities including Case Western University, Pace, Princeton, Reed, Darden School at the University of Virginia, and Arizona State University.
What Works:
The Kindle DX will undoubtedly be revolutionary for students if textbook prices can be lowered enough to compensate for the cost of the device. Parents and orthopedists will ultimately thank Amazon as younger children ultimately adopt the device and ditch absurdly heavy backpacks.
The bigger news about the Kindle DX is that it shows that there is still a slim chance that traditional newspapers might avoid extinction if they act quickly and decisively. The availability of newspaper content for free on the Internet, the defection of classified advertising to Craig Newmark ‘s brainchild craigslist as well as the increasing use of Google News and Google search by consumers to source news have combined to put newspapers in a dangerous state. A number of smaller papers have closed and even giants like the New York Times show signs of weakness.
Large screen eBook readers like the Kindle DX show a possible path to salvation. By eliminating the cost of printing and distribution and making the screen large enough to accomodate some advertising, the Kindle DX may persuade readers to subscribe to newspapers again. Like the Kindle 2, the Kindle DX has a 3G wireless cell chip in it that allows newspapers and books to be downloaded immediately without connection to a computer. The Kindle DX also has a more substantial web browser – presumably to allow the newspaper advertising to be more funtional for advertisers.
The concept is good. This reviewer often reads the NY Times on the Kindle 2 long before he ventures to the lobby of his manhattan building to discover which creative new place the delivery company for the Wall Street Journal has deposited the paper.
What Doesn’t:
Amazon is not helping itself with the absurdly high price for the Kindle DX of $489. This makes the Kindle DX more expensive than most netbook computers which allow readers to wirelessly read newspapers for free, as well as accomplishing other tasks the Kindle DX cannot do. While this is also true of the Kindle 2, the Kindle 2′s size makes it feel more like the replacement for a paperback book. Amazon may be able to achieve economies of scale for the Kindle DX simply by pursuing it as a textbook replacement, for which it is better suited at the pricepoint. But it will not create a breakthrough for newspapers without a minimum 50% price drop.
Amazon also touted newspaper partnerships which would help subsidize the cost of the device with a long-term subscription. This turns out to have been more wishful thinking than substance, as the New York Times announced these subsidies would only be available for rural readers who could not get home delivery.  This is really a missed opportunity for the newspaper industry which should be supporting these new devices in every way possible (free reader with three year subscription, anyone?). Instead the New York Times continues on with the stone age marketing techniques that brought us the classic ploy of penetration pricing (offering new subscribers lower prices for a short time), thus assuring that the most loyal readers will be punished with the highest prices. The Times business managers should peer from the top floor of their new building over to Sony-BMG and the ruins of the rest of the music industry to understand what happens when an industry fails to adapt its revenue model to technology.
Branding Bottom Line:
Amazon introduces an amazing innovation for the citizens of Monaco.
May 6th, 2009 at 12:32 pm
I never understood the penetration pricing technique. I guess if all you want is to target new customers while leaving your loyal, ALREADY PAYING customers to feel taken advantage of, then it's the route to go. If you want to do both, offer something of value, then make them happy! I have used the Kindle DX, and I can say I would NEVER pay $489 for it.
May 11th, 2009 at 1:06 pm
I agree this is an excellent distribution platform for printed media and an opportunity for newspapers to stay in the game. Amazon loses everyone with the insane price. If they took a long term view the profits from increased Kindle book sales or possible subscription & advertising revenue shares as you suggest would make more sense. How about a special priced Kindle book of the month club? Another cool feature would be to make this device more interactive where users could share comments about books or make recommendations in real time. ..Still waiting for a lower price before I order mine!
May 14th, 2009 at 8:37 am
I never understood that pricing technique. I guess if all you want is to target new customers while leaving your loyalcustomers to feel taken advantage of, then it’s the route to go. If you want to do both, offer something of value, then make them happy! I have used the Kindle DX, and I can say I would NEVER pay $489 for it.
June 10th, 2009 at 10:03 pm
This is ridiculously over priced, though I love the device but really it is a little too expensive.
September 2nd, 2010 at 1:47 am
It is much simpler now and putting the previous and next buttons to both sides is convenient for both left- and right-handed readers The Kindle 3G is definitely worth it.It’s international, so you have the ability to buy a new book where ever you're at anytime.
September 2nd, 2010 at 5:25 pm
Can't really make a decision about these things. I'm such a big fan of real books. How good can you really see in the dark? Don't you get glare with LCD screens? Not sure how many are backlit. Most of them have some mis-givings.
June 18th, 2011 at 5:36 pm
Wow, that looks so good!Peradventure you fool changed your treatise not too extensive ago? First because I could contain sworn it was not the unchanging the previous patch I was here…unless I am intelligent of a different net site.