There was a reason Jeff Bezos came all the way to New York to unveil Amazon’s new suite of Kindle e-readers and tablet devices. Like the iPad the Kindle is first and foremost a device for consuming media, with the new Kindles going beyond the book to offer music, television and movies as well. And the Big Apple (AAPL)’s high end publishers are thrilled to have a second dance partner for the party beyond Apple.
As the NY Times reports, Amazon’s new Kindle Fire tablet will come with a digital newsstand front-and-center where users can buy magazines and newspapers. To glossy publishers, this sounds like a haven from a digital world dominated by Angry Birds.
“When you’re lost in the middle of 100,000 apps, you only have people who find you when they’re looking for you,” Bob Sauerberg, president of Condé Nast, told the paper. “This helps with getting consumers in. They pick what they want, and we sell them more of what interests them. And everybody is happy.”
Apple has been hoping to introduce its own newsstand for some time, and is expected to announce one within the next month. But Cupertino has struggled to come to terms with magazine publishers over their cut of subscription revenue. And sales of subscriptions on non-iPad devices, like Barnes and Noble’s Nook, have already surpassed iPad sales for publishers like Hearst.
This new line of devices are all priced below $200, meaning they are most likely a loss leader to help Amazon (AMZN) establish themselves in the tablet market. So far it seems to be working, with the Kindle Fire and various flavors of Kindle sitting claiming the entire top ten for best selling gadgets on Amazon. Come Christmas time, the tablet market is going to look very different than it does today.
