Amazon eBook Subscription – Why Did Amazon Create its Own eBook Subscription Business?
Amazon has stayed at the top by acquiring businesses that are seen as potential threats (e.g. Goodreads) and creating their own services and products to match those new services that are gaining considerable interest (Oyster and Scribd).
What if an alternative option came along for authors and publishers?
Many would jump on it as quickly as they could. Although many publishers derive significant revenue from selling books and eBooks on Amazon, they also see Amazon as having too much power and control.
Amazon did not want Oyster or Scribd to achieve the success that Netflix has had with their movie and TV show subscription model. If Amazon did not act, then the potential was there for them to lose market share to Oyster or Scribd. Ultimately this would lead to a costly acquisition so creating your own eBook subscription service and leveraging your massive list of existing customers, authors and readers was the best choice for Amazon. Two eBook subscription services can work and earn money, but it is unlikely that three would succeed and survive.