Kindle 2 Review – Impact on Reading

Now that I’ve had my Kindle 2 for 3 weeks, it’s interesting to do a quick review of its impact on my reading habits.

Books Read on Kindle 2

  1. Talent is Overrated (paid)
  2. Outliers (paid)
  3. Assassin’s Apprentice (free)
  4. Royal Assassin (paid)
  5. Assassin’s Quest (paid)
  6. His Majesty’s Dragon (free)

Books Currently Reading on Kindle 2

  1. Bit Literacy (nearly half done).
  2. Fool’s Errand 
  3. Throne of Jade 

After this, are 2 Personal MBA books – Indispensable and Ultimate Sales Machine.

Kindle 2 Purchase History

  1. Books Bought – 12. $108.61 worth of purchases.
  2. Paid Books Read – 4. 
  3. Free Books Downloaded – 6. Also, 1 for $1.
  4. Free Books Read – 2.
  5. Books currently Reading – 3 (all are paid books).
  6. Utilities etc. purchased – 8. However, these were to get an idea of what’s possible with calendars and planners and not a recurring purchase.

Periodicals don’t really apply since Canada doesn’t have access.

Kindle 2 Related Stuff

  1. Kindle Calendar – created, tested, and put up. 5 hrs or so. You can get it for free at the Kindle 3 Labs page.
  2. Weekly Kindle Planner  – created, tested, and put up. 5 hrs or so. Also free at the above link.
  3. Tried unsuccessfully to get a crossword and couldn’t come up with a good journal.

Other Types of Reading

The lack of periodicals access in Canada means this is  nothing. Normally it’d be 1 newspaper and 1-2 magazines.

Impact on Amazon’s Kindle Revenue Stream.

A lot of people have been wondering why something like Savory that opens up the Kindle 2 to other ebook sellers is a threat to Amazon. It’s because in 3 weeks Amazon has gotten $108.61 worth of purchases from 1 Kindle 2 owner. And me reading 2 books every week means at least $15-$20 every single week in revenue.  That’s $750 to $1040 of revenue every single year.

Every single projection model assumes 1 book purchased a month. However, people read much more when they own a Kindle/Kindle 2, and they buy most of their books from Amazon.

Based on my experience the actual model should be –

  1. 20% of readers buying 10 or more books a month. 
  2. 30% of readers buying 6 books a month.  
  3. 30% of readers buying 3 books a month.
  4. 20% of readers buying 1 book a month.

Averaging it out to 6 books a month, and an average price of $9, that’s $54 a month per Kindle owner. That’s $648 per year in revenue per Kindle owner. Even if you take the Steve Jobs ‘people don’t read books’ opinion and cut it in half that’s $324 per year.

Kindle edition books are becoming a huge revenue stream for Amazon. For me, deciding to do the Personal MBA program means at least 30 more Kindle Edition purchases this year – a minimum of $300 of revenue for Amazon. Add on reading for pleasure and other books and $700+ in Kindle Edition purchases isn’t far fetched.

Kindle 2, Kindle, and when it comes out, Kindle Textbook Edition, are gold mines for Amazon. Not the device itself – the books and content that people buy.

0 thoughts on “Kindle 2 Review – Impact on Reading”

  1. As another person that is churning through the Personal MBA list, I have to say that the Kindle is a godsend. Although the savings for many of the books isn’t too much (maybe $2-$5), the convenience of being able to choose what book to read next and being able to read a few concurrently without having to carry multiple books in my briefcase is fantastic.

    I love having a dozen or so books to choose from at any given time and never being stranded on the train after finishing a book unexpectedly. There’s always another one right there!

    1. cool. agree with you on the convenience of having the books on the Kindle. Am hoping that by the time I’m through the 30 or so that are currently available a lot more have been added. what ones have you read already, and which ones were worthwhile?

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