Google’s E-Bookstore To Take On Amazon

Google (NASDAQ: GOOG) wants it all. There is no corner of the modern world in which  the technology company isn’t looking to launch a product. When we call  friends and family to make plans for the weekend, Google’s there — the Android mobile phone operating system turned 2 years old this fall, and as of last summer, phones using the OS accounted for 43.6% of the entire U.S. smartphone market. When you go to watch this week’s episode of Glee, Google’s there — the Google TV Internet television software is already available in set top boxes from Logitech (NASDAQ: LOGI) and HD televisions from Sony (NYSE: SNE), letting audiences across the land handily search for their favorite shows on the Internet as well as their cable service. Google even wants to give you a ride to the grocery store — the company has already started road testing robotic cars that can drive themselves around California. Now Google is gunning to replace Amazon.com (NASDAQ: AMZN) and Barnes & Noble (NYSE: BKN) as your bookstore of choice.

Google Editions, Google’s commercial electronic bookstore that was expected to launch earlier this year, will finally open for business, according to a Wall Street Journal report. The digital bookstore will launch this month in the United States and during the first quarter of 2011 in the rest of the world, says Google product management director Scott Dougall.

How will Google compete with services like Apple’s (NASDAQ: AAPL) iBookstore and the e-book business’ 800-pound gorilla, Amazon’s Kindle store? By opening up its book sales to not just other platforms, but other retailers as well. Google Editions will work by setting up an account tied to a user’s existing Google account (Gmail, Google Docs, etc.). The user can then purchase titles directly through Google as well as independent bookstores — the American Booksellers Association says that as many as 200 hundred independent booksellers could join Google Editions — that host their wares through the service. Purchased books can then be read on any platform with a Web browser, whether it’s a desktop computer, an iPad or even (presumably) a Kindle. Provided it can offer a competitive selection of titles, Google Editions new e-bookstore model could wrench away some of Amazon’s 65% control of the market.

As of this writing, Anthony Agnello did not own a position in any of the stocks named here.


Article printed from InvestorPlace Media, https://investorplace.com/2010/12/googles-e-bookstore-to-take-on-amazon/.

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