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.

2 Responses

  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!

    • 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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