Content is King

In a recent Wall Street Journal article, Amazon halted Kindle sales of all books published by Macmillan in a dispute over higher e-book prices. As a commentary on the significance of this move, consumers and businesses must be aware that when dealing with proprietary formats and their related devices (i.e. Kindles or iPads), a strategic decision must involve the consideration of the content one is tapping into. More often than not, the true objective (the desired content) is obscured by the technology (should I buy a Kindle or an iPad?). In the case of a consumer and an eBook reader this may be a $500 mistake, for a corporate decision, it may be a much more significant consideration.
This specific instance is also highlighting the pricing power that a content provider has once there are competitive outlets for the distribution of the content. Until the iPad came along, Macmillan was presumably OK with the pricing deal cut with Amazon; as soon as a competitive outlet was created which offered better financials, the content left one venue and dedicated itself to another.

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