It is no secret that the Amazon eBook store is the leading store on the internet! They currently have 4 authors who have toppled over 1 million ebooks sold and their business continues to do well. So well in fact that Caris & Co. have reported at an investors meeting that Amazon will see $5.42 billion in Kindle-generated revenue in 2011, and Caris analyst Sandeep Aggarwal predicts that figure will climb to at least $7.96 billion in 2012.
The revenue system Amazon has employed comes from a large wellspring of content totaling around 945,000 eBooks. This is a tremendous number and is increasing drastically on a month to month basis. In April 2011 almost 47,000 new eBooks were added to the system.
Amazon’s eBook catalog is not only publisher added entries but also incorporates user generated content via their independent submission program. The Amazon Digital Text Platform continues to be a highly successful revenue sharing system where authors can earn near 75% commission on the books sold.
In Aggarwal’s view, as the Kindle ecosystem expands, Kindle device users will not only continue buying more eBooks but also subscriptions, accessories, hardware warranties, and eventually use Kindle’s wireless and computing capabilities for other data and content consumption (e.g. pictures, music, videos, email, etc.).
Aggarwal said now that the Kindle App is available on all major computing platforms and portable devices, Amazon’s eBook market has expanded beyond just the Kindle eBook reader. This is pivotal to Amazons growth strategy because they know not everyone has a Kindle. Some people have tablets or smartphones as their primary device. Having the Kindle App allows Amazon to reach a wider audience.
What is in Amazon’s plans for the rest of 2011? Well they just released a new Kindle e-reader that serves advertisements to offset a lower entry price point. They are also readying a new Android Tablet that will utilize the eBook store, Cloud Music Locker, and various other Amazon services.
Michael Kozlowski is the Editor in Chief of Good e-Reader. He has been writing about audiobooks and e-readers for the past ten years. His articles have been picked up by major and local news sources and websites such as the CNET, Engadget, Huffington Post and Verge.