Allen Weiner

For those of us deeply entrenched in following the e-book world, we watch and marvel as Amazon’s purchase of Lexcycle, developer of Stanza, a the most popular iPhone e-book application, further distances the Seattle company from the competition. Question: is everyone else in this space either asleep at the switch or too busy worrying about out Kindle-ing Amazon with a prettier, maybe less expensive device?

The addition of Lexcycle does a few things for Amazon, a company slowly but surely gobbling up pieces of the offline and online publishing value chain. Stanza, a better and more popular e-reading app for mobile devices than the current Kindle iPhone app, will strengthen Amazon’s position in the mobile world which (at present) is used as a companion channel for its e-reader. Since the mobile device is perhaps better suited for newspaper and magazine consumption, I wouldn’t put it past Lexcycle to develop an app for both the Kindle as well as the mobile phone that preserves the newspaper experience for consumers on the go. At present, the Kindle does a poor job in rendering newspapers and magazines.

Lexcycle is beta testing a Stanza for the desktop which looks to provide an elegant PC or Mac-based reading experience. Again, that’s not been Amazon’s strong suit but one in the arsenal of companies such as Olive Software, Zinio and Libre Digital (under its Newsstand product). Microsoft also has been dabbling in this space, partnering with The New York Times in creating a desktop e-reader. Offering publishers—and in this case there’s a heavy emphasis on newspapers and magazines—a multichannel distribution opportunity to include e-readers, mobile devices and computer desktops. Such a gambit puts Amazon in even more rarified air than it current occupies. Also, if the netbook craze continues to gain momentum, that device becomes an interesting venue for e-reading, especially given its internet connectivity, affording publishers the ability to update content as needed.

Amazon’s stockpiling of essential publishing value chain components is perhaps book publishers’ greatest nightmare. One company practically controlling distribution and consumption in an emerging digital channel is a throwback to such industrial giants as Carnegie and Ford. It sure is a story that would make a great book; Amazon is likely to write it, publishing it, create the e-book and sell it for top dollar.