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
- Talent is Overrated (paid)
- Outliers (paid)
- Assassin’s Apprentice (free)
- Royal Assassin (paid)
- Assassin’s Quest (paid)
- His Majesty’s Dragon (free)
Books Currently Reading on Kindle 2
- Bit Literacy (nearly half done).
- Fool’s Errand
- Throne of Jade
After this, are 2 Personal MBA books – Indispensable and Ultimate Sales Machine.
Kindle 2 Purchase History
- Books Bought – 12. $108.61 worth of purchases.
- Paid Books Read – 4.
- Free Books Downloaded – 6. Also, 1 for $1.
- Free Books Read – 2.
- Books currently Reading – 3 (all are paid books).
- 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
- Kindle Calendar – created, tested, and put up. 5 hrs or so. You can get it for free at the Kindle 3 Labs page.
- Weekly Kindle Planner – created, tested, and put up. 5 hrs or so. Also free at the above link.
- 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 –
- 20% of readers buying 10 or more books a month.
- 30% of readers buying 6 books a month.
- 30% of readers buying 3 books a month.
- 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.