On Wednesday, Amazon (NASDAQ:AMZN) dropped the bomb expected since the beginning of the year, announcing the coming of the Kindle Fire tablet. The $200 device represents what is the most promising alternative to Apple‘s (NASDAQ:AAPL) iPad to hit the market. Now comes the wait to see how consumers respond.
For investors wanting to cover their bases, however, it’s time to look beyond the tablet market itself and onto those industries the tablet market fuels — particularly, electronic publishing. Here are five publishers that stand to gain from the evolution of the tablet market.
Financial Times publisher Pearson (NYSE:PSO) has made an impact on the electronic publishing world during the past three months. In June, when Apple instituted new rules for magazine and book sellers requiring all partners to sell subscriptions and pubs through iTunes and the App Store giving Apple a 30% cut of each sale, the Financial Times broke off and opened a tablet-specific version of its website.
The company reported last Friday that the web version of the paper has a total of 700,000 users now, a number that’s bound to increase provided the web paper works on the Kindle Fire’s browser. Pearson’s Penguin Group also already enjoys brisk business on Amazon’s existing Kindle e-reader, so Fire should continue the trend.
The affordability of Amazon’s Kindle Fire and the drive to lower tablet prices following the liquidation of Hewlett-Packard‘s (NYSE:HPQ) ill-fated TouchPad mean tablets are quickly going to become more prominent among students at every level of education. For an educational publishing powerhouse like McGraw-Hill (NYSE:MHP), a company that saw its business increasingly shift from print to digital in 2010, more tablet-using students mean even greater digital sales going forward. It might not climb back up to the $70 per share it traded at in 2007, but it should help continue the company’s steady growth over the past 12 months.