Ronnie05's Blog

Amazon – Future of digital distribution? (Part II)

Posted in Uncategorized by Manas Ganguly on September 9, 2012

Continued from Part I

Dear Sergei and Larry. Thanks for Android. Now go away. Love, Jeff.

All Androids and even the Microsoft Surface tablet will now feel the fueled by Amazon Kindle Fire. There still is hope for Microsoft tablet with their positioning of content creation plus consumption, but Nexus & the Galaxy seems doomed. While Google has spent its time between Android versions 2.3 or 4.0 – Amazon subverted the philosophy of platforms showing that this is a battle of eco-systems not platforms.

While Google has been wondering on the order of the horse and the cart confused between the identity of devices and services and what drives what? – Amazon played to its strengths. It looked at the future from its perspective- where it wanted to be – and the answer being digital distribution has upended the whole process of looking at the technology markets.Amazon’s principle was not to loose resources and time playing a ground game on devices. Instead they put the ball in the air which realley worked up for them. They won being what they are persuing in the long terms- digital distribution. Amazon being Amazon is what’s working for them.

In terms of devices, Kindle and particularly the Kindle Fire have served as hardware devices designed to showcase Amazon’s digital ecosystem and services. In a world driven by ecosystems more and platforms less, that’s an important set of devices for them to have on the market. The Kindle Fire tablets obviously do get better than its earlier edition, also the new Paperwhite e-book reader does improve on the earlier Kindles – but even in the device space, Amazon shines through service innovation-

  1. Whispersync for Games, which saves game progress in the cloud so the user can pick up the game on another device.
  2. Whispersync for Voice, which lets user listen to an audiobook and then pick up where he left off in a regular e-book.
  3. X-Ray for video, which pulls content from IMDB and suggestions from the Amazon store when the user pauses a video on a Kindle Fire HD.
  4. Kindle FreeTime, which allows parents to set user-based time limits on different types of media (for example, unlimited reading, but only x hours of gaming).
  5. The new in-game advertising service that can deliver physical as well as virtual items to the customer, using Amazon’s one-click method

The DNA here is services- and Amazon has pulled up far too many victories on this count to beat the crowd in the global markets. Virtually every feature was designed to facilitate shopping at Amazon’s store.

Amazon is considered the biggest threat to retail since Wal-mart, and it’s one of the most disruptive forces in every industry that it has touched, from consumer electronics to fulfillment and logistics, to commerce and retail. Now Amazon is the course of making its own future as the innovation in digital distribution.

And yes, Amazon is playing a long game. This is a marathon, not a sprint. Why is Amazon important? Because they have one of the largest consumer digital ecosystems and this is all about ecosystems.And Amazon is playing to its strength – ecosystems for all where consumers matter and digerati don’t.

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