What is Jeff Bezos’s Favorite Book?

The Remains of the Day

I loved all the personal stories that Jeff Bezos shared in a speech I found on the web last week. He delivered the speech in 2001 to an audience of young aspiring entrepreneurs. And at one point, he shares a fond remembrance of the library where he’d read books as a teenager — and reveals his favorite book.

For a shortcut, point your browesr to
tinyurl.com/JeffBezosRemembers

His parents were in the audience that day, and Jeff Bezos remembers one important fact about his own childhood. “My parents will attest to the fact that I was difficult to punish as a child, because I was quite happy to be grounded — to stay in my room and read!” But then one member of the audience asked him a personal question. You sell a lot of books — but do you ever read them?

Jeff answers yes, but then surprises the audience by revealing that to this day, at least half of the books he reads are science fiction. It seems logical, since he grew up to be a successful and celebrated visionary — but he traces his preference to the summers he spent on his grandfather’s ranch. His grandfather lived in Texas, and Bezos spent some summers there as a teenager, in a tiny town of 3,000 people — with its own tiny library. Books were donated by the townspeople, and a third of the collection was science fiction, “because there was this one guy in town who loved science fiction.”

Decades later, maybe that was in his mind when he made his fateful decision to start Amazon.com. He’d made a list of 26 possible products — “the first, best product to sell online” — studying a list of all the top products being sold by mail order. There was clothing, music, videos, computer software and hardware. And it’s fascinating to see that in the years since, Amazon has since gone on to sell all of them…

But were those science fiction books in his mind when he decided that the first product they’d sell would be books? Bezos listed out the practical business case for an online bookstore “There are literally millions of different books in print at any given time, and computers are good at organizing such large selections of products. You could build something online that literally couldn’t be built any other way.” (Imagine trying to print a paper catalog with every title, Bezos tells the crowd or a physical bookstore with copies of everything!)

After all that, Jeff Bezos still loves curling up with a good science fiction book, he tells the crowd, saying it still accounts for at least half of the books he reads. But then he reveals to the audience what his favorite novel is. Remains of the Day — the story of a butler who looks back over his life wondering if he missed an opportunity which will never come again. The 1989 book is an award-winning literary novel, but it would never be described as science fiction. “My wife inflicts good fiction on me every once in a while,” he jokes to the audience.

“Which I always end up loving…”

An Inspiring Story by Jeff Bezos

Amazon chief Jeff Bezos

Last year Amazon’s revenue was $74 billion. So it’s fascinating to remember when the company was just 10 people…and a dream. Today I stumbled across a remarkable video on YouTube showing Jeff Bezos — the founder of Amazon — describing its early days, their shared struggles, and the one idea which kept them going.

For a shortcut, point your browser to
http://tinyurl.com/JeffBezosRemembers

The funniest part of the speech is when Jeff Bezos takes the stage, he jokes to the audience that his name is Garth Vegan. “I’m going to be speaking to you about choreography,” he continues, before launching into his story. But it is a different Bezos than we’re used to seeing. The speech was delivered 13 years ago, in 2001 — when the founder of Amazon was still a young man in his 30s…

Jeff remembers when his company wasn’t even called Amazon. Its original name was Cadabra, Inc — as in Abracadabra. But he changed his mind when a lawyer mistook its name for “Cadaver, Inc.” He knew he needed something better — because he was risking his career to take a chance on the promise of online shopping.

His wife was in the audience that day, and Jeff remembered that “She had married a relatively stable person — goofy, but relatively stable — working at a law firm.” When she’d married him, Jeff had a nice steady job at a Wall Street hedge fund, so “This was a hard decision…” In fact, most of Amazon’s original employees kept their day jobs while they spent their nights filling the orders that would come in to the company.

Their first “distribution center” that was just 400 square feet — about the size of a one-car garage — when one of the engineers said “I can’t figure out if this is incredibly optimistic — or hopelessly pathetic.” And Bezos didn’t know. There was no way to know how customers would respond. But I love the way Jeff Bezos ultimately came to his decision, using what he described as a “regret-minimization” framework. You project yourself to the age of 80, and then try to minimize the number of regrets you’ll have when you’re looking back over your life…

“If I go do this thing, and participate in this thing called the internet, that I genuinely believe is going to be a big deal — and if I fail, am I going to regret having tried and failed?” Jeff Bezos knew that the answer was no. And he also knew that he’d always regret it if he didn’t try. “I would always wonder, and it would haunt me…”

As Jeff spoke, he acknowledged that his parents were also in the audience that day — and they were also one of his web site’s very first supporters. He told the crowd they’d invested “a reasonably large fraction” of their life savings — over $300,000 — into their son’s dream. And it was pretty much faith. “My dad’s first question was… What’s the internet?!”

They weren’t betting on any grand vision, Bezos explains. They were betting on their son. And he’d also confessed to them at the time that there was at least a 70% chance that they were going to lose it all. But in the first 30 days, the site got orders from all 50 U.S. states — plus 45 other countries. They couldn’t handle the volume, and expanded quickly — into a 2,000-square-foot basement warehouse.

Its ceiling was only six feet high — and one of their employees was 6′ 2″, so he couldn’t stand in the room without tilting his head to the side! Bezos himself would drive the packages to a UPS shipping facility — tapping on the glass when he was let to beg them to let him drop off his shipment. And they’d package the orders together — on their knees on the cement floor. Bezos remembers his first insight at Amazon was we ought to be wearing knee pads. Although he credits another employee for coming up with an even better idea. What they really needed was packing tables…

Looking back on those early days, Bezos remembers those overloaded weeks as one of the luckiest things that ever happened them. Not the spike in orders, but the challenge itself, which they had to learn to accept. “It formed a culture of customer service — in every department, every single person in the company — because we had to work with our hands so close to the customers, making sure that those orders went out.”

“It really set up a culture that’s served us well, and that is our goal to be earth’s most customer-centric company.”


For a shortcut to the video, point your video to
http://tinyurl.com/JeffBezosRemembers

Amazon Publishes Customer Success Stories as a Free eBook

Free Kindle ebook - Transformations: Stories from Authors, Innovators, and Small Businesses Thriving on Amazon

This is pretty special. People who’ve founded successful digital businesses were all interviewed for a very inspiring new Kindle ebook. It’s published by Amazon, of course — celebrating its role as the home for these self-published authors and small online businesses. But every story comes directly from the words of these way-new entrepreneurs.

For a shortcut, point your browser to
tinyurl.com/AmazonEntrepreneurs

There’s 79 different stories — the book is over 200 pages long — and each one also features a photograph and inspiring blurb about the story to come. (“For kids in Africa, a new way to learn… Bill and Dinah Vogel can run their thriving business from their son’s hospital room…”) And I especially enjoyed the stories of writers who found new careers by self-publishing their books in the Kindle Store. Ultimately 85,000 people downloaded a new young adult novel that was written by Regina Sirois during its free period. And she was then able to sell another 12,000 copies — and then land a publishing deal with Penguin Group worth another $15,000!

It’s almost more inspiring that these people didn’t become multi-millionaires. They’re just ordinary folk who are paying their rent with the money they’re earning through Amazon. “As one factory worker turned small-business owner said: ‘Take the risks, be passionate, and forget the doubters,'” reads the book’s description at Amazon. And the inspiring stories come from all around the world — from America, the United Kingdom, Brazil, France, Germany, Italy, Japan, and Spain.

I like how the book opens with an introduction by Jeff Bezos — the CEO of Amazon. “We are creating powerful self-service platforms that allow thousands of people to boldly experiment and accomplish things…” Bezos writes, emphasizing that’s a key part of its magic. “When a platform is self-service, evne the improbable ideas can get tried, because tehre’s no expert gatekeeper ready to say, ‘That will never work!'” I get the feeling that Bezos really enjoyed writing the introduction — because Amazon also heard “That will never work” for its first years of existence!

The book’s complete title is Transformations: Stories from Authors, Innovators, and Small Businesses Thriving on Amazon., and it’s already become one of Amazon’s top-1000 best-selling free ebooks for the Kindle. But it’s also become the #1 best-seller in Amazon’s “Business & Money” section in two different categories. In both the Management subsection and “”Business Life,” the book has reached the #1 spot on the list of the best-selling motivational Kindle books. And I had to admit that I smiled when I read that Reginia Sirois was “immensely grateful” to us readers — for taking a chance on a brand new authors that we’d never heard of before.

“I hope I left them with something beautiful,” she says in this ebook, “because they certainly gave me something beautiful…”

For a shortcut, point your browser to
tinyurl.com/AmazonEntrepreneurs

A Fun Video From Amazon

Jeff Bezos introduces the Amazon Fire PhoneAmazon Customer at Fire Phone event

It was a big day in Seattle when the CEO of Amazon stepped forward and announced that in addition to the Kindle, they’d now be producing a smartphone. And he’d wanted to build the excitement — creating a buzz — on the day the new Fire Phone was finally unveiled. So the word went out that some carefully-selected customers of Amazon would be invited to the event. Over 60,000 people applied for an invitation — and Amazon chose 300 of them!

Now you can watch the enthusiastic customers in their own home-made videos, which they’d submitted to Amazon to score their invitation. Amazon included three of them at the very beginning of their Fire Phone event — right before Amazon CEO Jeff Bezos took the stage!

For a shortcut to the video, point your browser to
tinyurl.com/FirePhoneVideos

“We’ve got folks from the media, we have developers, and especially exciting for me, we have Amazon customers,” Bezos tells the crowd. (Adding “Give yourself a big round…”) But it was a very smart move, because it guaranteed that when the new product was announced, there would be a big and enthusiastic reaction from the crowd. “I know whatever it is that you’re planning is going to be amazing,” one Amazon customer promised in their introductory video, “and I want to be there in person so I can brag to everyone that I was there, day one, and saw this thing in person!”

That was Adam from Florida, who held up his own Kindle…and then his Kindle Fire. But the videos also drove home an important point: that Amazon was focused on customers, and that real people use the devices that Amazon’s been creating. “I know it’s going to be well thought out,” said another Amazon customer named Jason. “I know it’s going to be well-designed, and most importantly, I know it’s going to put me, the customer first!”

Of course, Amazon’s CEO Bezos knew that he’d be competing with the iPhone now — and with all of the legendary product introductions that Steve Jobs used to make. And the problem is these corporate presentations can seem dry, technical, and ultimately very impersonal. So I have to applaud Amazon for trying to change the tone, and make their event feel more spontaneous, like a gathering of excited people.

“I was born in Seattle,” Jason remembered in his video. “I’ve been here all my life, and it’s been a lot of fun watching Amazon kind of grow and kind of take the world by storm. And I would love nothing more to go to this unveiling…”

“I know the product is going to be awesome!”

Remember, for a shortcut to the video, point your browser to
tinyurl.com/FirePhoneVideos

Can This eBook Make Us Immortal?

Death is Wrong Kindle ebook

I was stunned to discover a 28-year-old author had published an ebook titled
“Death is Wrong.”
Hoping to inspire life-extending medical research by future generations, science fiction author Gennady Stolyarov has also launched a campaign to give away 1,000 free copies of his “transhumanist” picture book to children. “My greatest fear about the future is not of technology running out of control or posing existential risks to humankind,” he writes in an online essay. “Rather, my greatest fear is that, in the year 2045, I will be 58 years old and already marked by notable signs of senescence, sitting at the kitchen table, drinking my morning coffee, and wondering, ‘What happened to that Singularity we were promised by now? Why did it not come to pass?

“Why does the world of 2045 look pretty much like the world of 2013, with only a few cosmetic differences?'”

For a shortcut to the ebook’s page on Amazon, point your browser to
tinyurl.com/DeathIsWrong

You have to admire the ambition of author Gennady Stolyarov. He’s set out to create a better world by educating young readers early about the newest scientific discoveries on aging, and also sharing inspiring stories about long-lived plants and animals “that point the way toward lengthening lifespans in humans.” Stolyarov writes online that he’s trying to help avoid a future where as an aging man, “as I stare into that mug of coffee, I would recognize that it will all be downhill from there, especially as ‘kids these days’ would pay no more attention to technological progress and life-extension possibilities than their predecessors did.”

It’s mind-blowing to even imagine a world where death can be cured just like any other disease. And it’s really inspiring that self-publishing gave this dreamer his platform — so he can share his ideas with the rest of the world. Who knows? Maybe he could inspire medical miracles by the next generation. And the Kindle didn’t just provide a platform for this author’s ebook. It’s also helping to fund the construction of a powerful clock that will run for 10,000 years!

Amazon’s CEO Jeff Bezos is funding the project, and though it sounds like a science fiction story, he’s already purchased a remote chunk of land in Nevada where the “Clock of the Long Now” can be housed. “We humans have become so technologically sophisticated that in certain ways we’re dangerous to ourselves,” Bezos is quoted as saying. “It’s going to be increasingly important over time for humanity to take a longer-term view of its future.”

The project has other influential backers, according to Wikipedia, including science fiction author Neal Stephenson and musician Brian Eno (who came up with the name “Clock of the Long Now”.) It makes me smile if only because they’re dreaming big dreams, and that’s partly why the clock is being built. “Ideally, it would do for thinking about time what the photographs of Earth from space have done for thinking about the environment,” writes futurist Stewart Brand on one of the project’s web pages. “Such icons reframe the way people think.

So maybe it’s just one small step from that to teaching a generation of children that “Death is Wrong”…


For a shortcut to the ebook’s page on Amazon, point your browser to
tinyurl.com/DeathIsWrong

Amazon Employees vs. That Amazon Book

The Everything Store - cover of Brad Stone book about Amazon

Brad Stone wrote a new book about about Amazon, and it’s already stirred up a controversy. I enjoyed Stone’s radio interview on Marketplace, but apparently Amazon isn’t one of Stone’s fans. “He had every opportunity to thoroughly fact check and bring a more balanced viewpoint to his narrative,” complains Amazon’s Vice President of Global Communications, “but he was very secretive about the book and simply chose not to.” And one of Stone’s detractors turns out to be the wife of Amazon’s CEO!

In an interesting twist, Mackenzie Bezos is expressing her displeasure with a negative one-star review of the author’s book on Amazon! And it opens with her own vivid and heartfelt perspective on the man she’s been married to for 20 years. “I worked for Jeff at D. E. Shaw, I was there when he wrote the business plan, and I worked with him and many others represented in the converted garage, the basement warehouse closet, the barbecue-scented offices, the Christmas-rush distribution centers, and the door-desk filled conference rooms in the early years of Amazon’s history…”

Her review is titled “I wanted to like this book”, and it’s already received 3,154 “helpful” votes from other Amazon customers. er first complaint is there’s inaccuracies in the book which contradict her own her firsthand memories of the Amazon story. And her second complaint is the negative quotes about the tension in executive meetings create a “lopsided and misleading portrait” of the culture at Amazon. So for balance, she presents some warm and positive quotes drawn from a personal collection — “an archive of the thousands of thank you messages written to Jeff over the years”.

I cried as I read the Career Choice announcement on Amazon today. What Amazon is doing to help its employees is affecting lives in the most meaningful way I can think of. It restores my faith in humanity…

Mrs. Bezos acknowledges that some people in the book describe a “supportive and inspiring culture”, but argues that the author dismisses them as robots throughout the book. And her third complaint is the book speculates about what Jeff Bezos was thinking or feeling, writing that “Hollywood often uses a more honest label: ‘a story based on true events.'” But in the end she points out one of the miracles of life on the internet. Since this book is about real people, the “characters” in the book can step forward “and speak for themselves!”

For example, she cites another review of the book posted on Amazon by Rick Dalzell, who was Amazon’s Chief Information Officer at Amazon for 10 years starting in 1997. “Brad Stone did a lot of research and the result is a glimpse into the history of one of the world’s most exciting companies,” Dalzell acknowledges, though he’s titled his review “Intriguing stories, incomplete and unbalanced history,” and awarded the book just three stars. Dalzell was actually interviewed for the book (along with 300 past and current Amazon employees), and he devotes a whole paragraph to debunking Stone’s interpretation of what it means when Jeff Bezos laughs. “Jeff’s laugh is spontaneous, sincere, warm and endearing. It diffuses stressful situations.” In Stone’s book, Dalzell is cited as saying that Bezos “often” wields the laugh to punish people who aren’t meeting his high standards…

“While I found [the book] rather interesting, lots of stories are missing or just inaccurate. Brad painted a one-dimensional picture of Jeff as a ruthless capitalist. He completely missed his warmth, his humor, and his empathy — all qualities abundantly present in the man.”

And Mrs. Bezos also applauded another review of the book posted on Amazon by Jonathan Leblang, who actually went to high school with Amazon’s founder, and has since become the director of the company’s Lab126 in Menlo Park. He awarded the book four stars, calling it “Interesting, but flawed,” saying it was interesting to see how the company where he worked would be seen by an outsider — but that there were mistakes.

“[A]s with any book where the subject is not an active participant, the book is slanted toward those episodes where Stone can find someone to talk about them. And of course, he includes that which supports his thesis… Overall, from the parts that I know about, about 80% is correct and 20% isn’t (often in details, but incorrect nonetheless). That, of course, taints my view of the book as a whole, because I have to assume that 20% of the stuff I don’t have personal knowledge of is also incorrect.

But even with his concerns about accuracy, he still managed to find something positive (and funny) about The Everything Store: Jeff Bezos and the Age of Amazon.

“That said, I would still recommend the book (and especially the picture of Jeff in High School!)”


Check out the book (and the reviews) for The Everything Store:
Jeff Bezos and the Age of Amazon

A Fascinating Look at Amazon’s Founder

The Everything Store - cover of Brad Stone book about Amazon

I love listening to the radio — and last month I heard a wonderful interview about the man who founded Amazon. Brad Stone has just written a new book about the company (after interviewing more than half a dozen senior Amazon executives). And it was really fun to hear him talking about what he’d learned with Kai Ryssdal, the enthusiastic host of Marketplace on public radio.

To listen to the interview, just point your browser to
tinyurl.com/BezosMarketplace

Amazon “is a force — maybe the force — in the retail economy today,” begins the segment. But soon the interviewer has honed in on a fascinating personal detail about Jeff Bezos, the CEO of Amazon. “There’s a thread that runs through this book — you mention it early, and you mention it often. It’s part of Bezos’s personality, I guess you would say. And since this is radio, we’re just going to hit you with a little bit of it here, and then I want to talk about it.”

And then he played the sound of Jeff Bezo laughing…!

” ‘Jeff Bezos’s laugh,’ you write, ‘precedes him down the hallway. You hear it in meetings, it will come after a volcanic outburst of temper. I mean, it’s this defining thing for him.’ ”

It’s a great way to start they’re discussion, and the author points out that Jeff’s laugh is unusual in another way. Brad Stone has personally spoken to Jeff Bezos, and “He’s not always laughing with you. It’s difficult to put your finger on, but one of his colleagues literally said, ‘He’s punishing you.’ It’s that his standards are so high, and his intellect is so fierce, that sometimes it’s you’re not catching up with him. And that is what he finds funny!”

I wonder what he talked about with Jeff Bezos (since reportedly the book is based more on his interviews with other Amazon executives). And the radio interviewer moves to a second observation — that for people who work at the company, it’s not always pleasant. “He doesn’t want it to be a country club for his employees,” the author counters, saying that the extra pressure is “by design… [Bezos] wants everyone giving the proverbial 110% percent.”

And there’s a good side to that too, the author points out in the interview. Besides Amazon’s slightly elevated turnover rate, “It also might be why this is a company that has achieved so much over the last two decades.”

But the most interesting part of the interview was about Amazon Web Services, the massive online platform which lets companies offer services and storage from “the cloud” — all hosted on Amazon’s own servers. “You say — and I agree with you — that [Jeff Bezos] has changed the world, and he’s done that just with Amazon.com, the retail shopping site, and he’s changed our behavior. But there are a couple of things that sort of have come from that that arguably have changed the world even more… This idea of us all living in ‘the cloud’ — which now we take for granted — started with Bezos and Amazon, in some degree.”

The author notes that NetFlix uses Amazon Web Services, but then brings up an even more impressing customer — the CIA! “Amazon just won a contract against IBM. The CIA will soon be running its operations on Amazon’s servers. A bookseller! And now they’re running the government!”

“Wow… Think about that for a minute,” the interviewer responds….

Next, their conversation turns to Amazon Prime — and both the author and the interviewer admit that they’re already subscribers. “It makes it really easy to buy stuff off of Amazon,” the interviewer says.

“It turns you into an Amazon addict,” the author responds (to which the interviewer agrees). “I think it’s a little CostCo, in a way, buried inside Amazon. CostCo magically has this business model where you have to pay to shop there — a good business, if you can get it. And now the same is true of Amazon. You’re paying $79 a year for the luxury of spending even more money on all these add-on services!”

The interviewer actually mutters, “Now you’re making me feel stupid, man.”

And the author just replies, “Well, I pay it too…”


The book is called The Everything Store:
Jeff Bezos and the Age of Amazon

Amazon CEO Applauds “the Transition We’ve Been Expecting”

Amazon's Jeff Bezos on the Kindle

I always enjoy hunting for nuggets of information when Amazon makes their big announcements to stockholders. Today Amazon’s CEO, Jeff Bezos, revealed something new to think about. Amazon did sell more printed books this December than they had the year. But it was the smallest increase ever in the 17-year history of Amazon — a rise of just 5%.

Meanwhile, Barnes and Noble announced plans to close 200 bookstores over the next 10 years — about one-sixth of all stores. That’s America’s single-largest chain of bookstores — and Borders bookstores already declared bankruptcy in 2011. It’s hard to ignore the fact that there’s not a lot of growth now in the sale of printed books. Today Amazon’s CEO identified this trend as “the transition we’ve been expecting.”

And for comparison, he added that after 5 years, “eBooks is a multi-billion dollar category for us and growing fast – up approximately 70% last year.” After that stunning statistic, there wasn’t much left to say — except a big thank-you to all the people who’ve started buying ebooks from Amazon. “We’re excited and very grateful to our customers for their response to Kindle and our ever expanding ecosystem and selection.”

Amazon also shared some other interesting bits of trivia about the Kindle. For example, since it was introduced in September, the Kindle Fire HD has continuously remained Amazon’s #1 best-selling, most gifted, and most wished for product “across the millions of items available on Amazon worldwide.” And by the end of the year, Amazon’s worldwide best-seller charts showed that the top four spots had all been claimed by Amazon’s digital readers and tablets — the Kindle Fire HD, the Kindle Fire, the Kindle Paperwhite and the Kindle.

Amazon has always insisted they’re willing to lose a lot of money over the short term, as part of a grand master strategy of growing their customer base over the long-term. So they probably want investors to focus on this number: in just the last three months of 2012, Amazon’s sales totalled $21.27 billion. That’s up more than 22% from the same period a year ago — an increase of $3.84 billon. And Amazon’s sales figure would’ve been even higherif it hadn’t been for fluctuations in the world currency market, which cost Amazon another $178 million.

I don’t know how Wall Street is going to react to Amazon’s numbers, but I’m impressed. For the last three months of 2012, they averaged over $236 million in sales every single day. And as Kindle owners, we’re all part of that number – and a big piece off Amazon’s long-term strategy.

The Kindle makes it even easier to buy things from Amazon — even when you’re lying on your couch!

Larry McMurtry Challenges Amazon’s CEO

Larry_McMurtry
Image courtesy of The Dallas Observer

Larry McMurtry has a question: “Will Amazon kill the book?” At least, that’s the headline for a new article that he’s written for this month’s issue of Harper’s magazine. The 75-year-old author provides a very thoughtful answer, looking for historical precedents to the rise of Amazon. But I also learned that besides being famous — Larry McMurtry also owns a bookstore!

“My own bookshop, Booked Up Inc., consists of four buildings and about 400,000 books,” he explains in the article — establishing his credentials for weighing in on the future of publishing. The store sells mostly used books, and he reports that since the dawn of the ebook, he’s actually seen an increase in orders from overseas. “Of course it’s not all roses for traditional booksellers now, and in part the downturn is due to the digital revolution. We have bought the stocks of some 26 booksellers, but it wasn’t just the e-book that caused these shops to die, it was a withering of generations.

“The owners of these shops had no one to pass them on to…”

McMurtry himself is the son of a Texas rancher, so he’s seen first-hand how the world can change. In 1986, McMurtry even won a Pulitzer Prize for his historical novel about cattle drivers — Lonesome Dove — and he’s also been involved in several Oscar-winning movies. (He wrote the novel Terms of Endearment in 1975, and co-wrote the screenplay for Brokeback Mountain.) But for his article in Harper’s, he casts a skeptical eye on the claim that the death of the book is inevitable. “The culture has surged in the direction of e-books, but the surge might not go on forever,” he writes. “It might be a bubble; history grinds slowly, and despite impressive sales of the Kindle, it seems to me a bit too early for Bezos to gloat.”

McMurtry is reviewing a new book about Amazon’s CEO, called One Click: Jeff Bezos and the Rise of Amazon.com. He writes sardonically that “There were rivalries, failures, and leadership crises, and Amazon is now one of the largest book suppliers in the world.” But it takes a certain amount of ego to run a $40-billion-a-year corporation, and McMurtry wonders if bookstore owners recognize something that’s being overlooked by Amazon’s CEO. “He is so accustomed to the very vastness of his own empire — 850,000-square-foot distribution centers — that he may not see the tenacity of our appetite for variety: for good books of all formats, including old-fashioned ones.”

I thought McMurtry’s assessment of Bezos was ultimately pretty fair — and it was grounded in a real sense of history. He reports that like Henry Ford, Bezos “had a single culture-changing idea that they executed doggedly until the culture came round.” And he applauds Amazon for the way that they’ve already revolutionized the purchasing of printed books. “Bezos is a farsighted merchant whose company provides an excellent service,” McMurtry writes. “Want a book? Use Amazon and you can have it the next day. Such literary expeditiousness has never existed before and all readers should be grateful that it’s here.”

But McMurtry also notes that despite the popularity of the Kindle, printed books are still competitive, and he considers the position of Amazon’s CEO to be “less attractive”. “He has pointed out that the traditional book has had a 500-year run; he clearly thinks its time for these relics to sort of shuffle offstage. Then he will no longer be bothered with old-timey objects that have the temerity to flop open and cause one to lose one’s place.”

I know that I don’t know, for sure, what’s going to happen in the future. But I do know that something big is going on, and it’s fun to watch writers — and corporations — as they try to make sense of these changes. So I enjoyed reading what Larry McMurtry had to say — especially knowing that it comes from a man who’s owned a bookstore for more than 40 years.

“Jeff Bezos and his colleagues are free to make and sell as many Kindles as they can, but Bezos shouldn’t be persuaded that our Gutenberg days are over, at least not from where I sit. One thing we offer that he can’t is serendipity — a book browser’s serendipity, the thrill of the accidental find.

“Stirring the curiosity of readers is a vital part of bookselling; skimming a few strange pages is surely as important as making one click.”

Where to buy a new $139 Kindle – and why!

Picture of the new smaller, black $139 Amazon Wi-Fi Kindle

If you want to buy Amazon’s new $139 Kindle, click here!

Amazon lowered the price for the Kindle Wednesday — for a newer model with only Wi-Fi access to the Kindle store (and with only Wi-Fi surfing when using the Kindle’s web browser). All the other Kindle models still have their built-in access to the online world, so they’re always ready to surf the web and shop for books — anywhere and any time. But this new Kindle has other advantages — like running for up to one month on a single battery charge. And it weighs just 8.5 ounces — “less than a paperback,” Amazon argues — making it 17% lighter than even the smallest of the original Kindles.

There’s also twice as much storage space — holding up to 3,500 books — and Amazon promises the new screens can display pages 20% faster, and offer “50% better contrast than any other e-reader.” But best of all, this settles any question about whether Amazon might give up on selling the Kindle, and focus solely on selling ebooks. “The hardware business for us has been so successful that we’re going to continue,” Amazon’s CEO told the New York Times.

Wednesday they’d contacted Jeff Bezos at Amazon headquarters, and heard his strong commitment to continuing Kindle sales. “I predict there will be a 10th-generation and a 20th-generation Kindle,” Bezos announced. “We’re well-situated to be experts in purpose-built reading devices.” And while touting the lower price, he also found a way to highlight the fact that — unlike the iPad — the Kindle is perfect for reading outdoors. “At $139, if you’re going to read by the pool, some people might spend more than that on a swimsuit and sunglasses…”

I think Amazon will also attract people who are curious about the Kindle, but don’t want to risk a lot of money. (In a few months, the prices should drop even lower if you’re purchasing a wi-fi Kindle that’s used or refurbished.) And of course, it will make a perfect birthday gift. (I wonder if you can purchase it pre-loaded with gift books!) In fact, Amazon is already describing the Kindle as “the most-wished-for, most-gifted” item in their vast online store, and they’ve revealed that the Kindle “has the most 5-star reviews of any product on Amazon.”

But hearing the news today, I’d remembered a blog post I read in June. “Don’t worry about touchscreens or color or even always available internet to download new books,” argued marketing guru Seth Godin. “Make a $49 Kindle. Not so hard if you use available wi-fi and simplify the device…” Amazon may not have lowered their prices to $49, but they definitely swapped in the cheaper Wi-fi connectivity, and the lower prices should attract even more readers to the Kindle.

In fact, there’s fierce competition now in the market for digital readers, and the Kindle’s survival might depend on how cheap they can get! “You either become the best and only platform for consuming books worth buying or you fail,” argues Godin’s blog post. “And the only way to create that footprint in the face of an iPad is to make it so cheap to buy and use it’s irresistible. I saw a two-year old kid (in diapers, in a stroller), using an iPod Touch today. Not just looking at it, but browsing menus and interacting. This is a revolution, guys.”

But as every age group starts to embrace the arrival of electronic readers, Amazon is still fighting hard to be perceived as the best deal in town.

Interested? If you want to buy Amazon’s new $139 Kindle, click here!

Bezos insists Amazon still committed to the Kindle

Newsweek just published what’s almost a rebuttal to my last article. My headline: “Will the iPad Kill the Kindle?” Newsweek’s headline: “Why the iPad Hasn’t Killed the Kindle…”

It’s a good article, but what I really liked is the way that it answered an even bigger question. A few analysts had raised a darker possibility:that Amazon will kill the Kindle. What if Amazon decides it just doesn’t want to compete with the iPad, and then shifts all of its resources into marketing Kindle ebooks (to all the non-Kindle devices, like the iPad, the Blackberry, and the Droid)? But apparently Newsweek’s reporter broached that topic with Amazon’s CEO Jeff Bezos when the Kindle first began confronting the possible threat from the iPad last fall.

“I suggested to Bezos that maybe Amazon didn’t care about selling Kindle machines, that maybe the device wasn’t important. He said that wasn’t the case, but that ‘our goal with the Kindle device is separate from the Kindle bookstore.’

“Bezos insisted there is a market for ‘a purpose-built reading device,’ as he calls it. ‘It’s not a Swiss Army knife. It’s not going to do a bunch of different things. We believe reading deserves a dedicated device.'”

Of course, you can read what you want into that quote. (After all, separating the Kindle from the ebook would be the first step towards eventually abandoning the Kindle altogether.) But here’s how I understand what Amazon’s CEO is saying.

1. Amazon doesn’t need to sell Kindles in order to sell ebooks.

2. Amazon would still like to sell both Kindles and ebooks…

Will the iPad kill the Kindle?

Amazon's Jeff Bezos on the Kindle

There was some controversy when Amazon’s Jeff Bezos announced a new book-reading Kindle application for the iPad. “Is Amazon Killing the Kindle?” asked The Motley Fool, noting that Amazon offered extra video and audio features in their Kindle applications for both the iPad and iPhone.

It’s possible to embed multimedia clips directly into the ebooks, so they can then be played back in the Kindle applications for these devices – though not, ironically, on a Kindle. The Motley Fool noted that Amazon was making an effort to support Kindle applications not only on Apple’s mobile devices, but also on Google’s Android platform and Droid phones. (And there’s also a Kindle app available for the Blackberry.) “But will that support come at the expense of the Kindle itself?” Noting that Amazon is now “putting out a better product for the non-Kindle owning crowd,” they wondered if Amazon was refocusing its energy on the sale of ebooks — rather than on their own ebook-reading device!

For an answer, let’s go to Amazon CEO, Jeff Bezos. Interviewed by Fortune magazine, he was first asked point-blank about the iPad, and, basically, whether Amazon felt doomed by Apple’s entry into the marketplace for tablet-sized reading devices. Was the threat of competition what pushed Amazon into dramatically lowering the Kindle’s price last month?

“No. The iPad… It’s really a different product category. The Kindle is for readers.”

But the interview also offers an interesting statistic — last year, 80% of all ebook sales came through Amazon’s store. (Bezos jokes that “It’s hard even for us to remember internally that we only launched Kindle a little over 30 months ago.”) So it still stands to reason that Amazon is just as interested in protecting their book-selling business as they are in their secondary business of selling Kindles. That’s the secret subtext when Bezos answers a question about whether Amazon can hang onto its share of the ebook market.

“We want people to be able to read their books anywhere they want to read them. That’s the PC, that’s the Macintosh. It’s the iPad, it’s the iPhone. It’s the Kindle. So you have this whole multitude of devices and whatever’s most convenient for you at the moment.

“We think of it as a mission. I strongly believe that missionaries make better products. They care more. For a missionary, it’s not just about the business. There has to be a business, and the business has to make sense, but that’s not why you do it. You do it because you have something meaningful that motivates you.”

It’s a fascinating interview, because you get the idea that Bezos really, really loves books. At the same time, he also admits that “I think the definition of a book is changing.” He defines that change specifically in areas where the Kindle is strong, saying that the book is now “getting more convenient. Now you can get a book in less than 60 seconds.” But in the end, he still never answers the big question of whether Amazon sees its future in the sale of Kindles — or in the sale of ebooks, to all devices.

Fortunately, there’s one more piece of data. You may have seen Amazon’s new television ad, where they emphasize that you can read your Kindle at the beach, in direct sunlight. (Which would obviously be nearly impossible with the back-lit screen of an iPad.) If Amazon were surrendering to the iPad, then they wouldn’t be wasting their money on an expensive TV ad campaign. To me, this strongly suggests that Amazon is still serious about staying in the market for tablet-shaped devices.

But ironically, back in January — before the iPad had even been released — I’d already written an article asking Could Apple’s iPad Kill the Kindle? Maybe it’s ultimately just a perpetually trendy question — and an indicator that Kindle users feel overly protective of their beloved device!