Monday, October 19, 2009

Google Will Challenge Amazon with E-Book Service

Google will roll out a new online service for booksellers in the first half of 2010. Dubbed Google Editions, the service will allow readers to buy books from various e-book vendors and read them on a broad array of devices, from cell phones to e-readers.

Consumers will be able to purchase e-books directly from Google or from existing e-book stores such as Amazon.com and Barnesandnoble.com. Books sold through Google Editions will be hosted by Google, so they will be searchable in a web browser.

The store will launch with about 500,000 e-books through partnerships with publishers that have digital rights to the works they represent. Google so far has no plans to manufacturer a dedicated e-book reader that carries its brand name.

Google-Powered Devices

Google doesn't need to develop its own e-reader, just as it didn't need to develop its own smartphone to become a player in the wireless market. Google's Android operating system, which is technically open source, will be used in many devices, including e-readers, according to Greg Sterling, principal analyst at Sterling Market Intelligence.

For example, Barnes & Noble is venturing into the increasingly popular e-reader market. The Wall Street Journal reported the giant book retailer could roll out an e-reader as early as next month in the U.S. The device will be built on Android. Sterling said the Barnes & Noble reader looks quite polished, though he has only seen images.

As Sterling sees it, the Google Editions platform could pose a very strong challenge to Amazon if it builds a large consortium of publishers and related inventory. The technical advantage that it offers is apparent compatibility with any e-reader versus the Amazon Kindle, he noted.

"In my current view, Kindle, though a market maker of sorts, is not a sufficiently superior device to dominate the market in the way the iPhone has so far dominated the smartphone segment," Sterling said. "Kindle is already being undercut by rival Sony in terms of price, and the many devices yet to launch will create a very competitive hardware market for e-readers."

Source : newsfactor.com

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