Amazon Kindle Indicates Shift In Books Market

Amazon's (NASDAQ: AMZN) announcement last week that their new-generation Kindle had more orders in the first month than their previous Kindle launches is not particularly surprising, given trends in the book publishing industry overall.

E-books are proving to be both a blessing and a curse for the industry, as they see growing sales, as noted by Amazon in a statement last month. They also have the ability to eliminate the traditional publishing companies from the entire process of publishing.

While traditional bound books still seem to have the lion's share of sales, the shift, if slowed by the economy, is undeniable.

Due to the general lower cost of e-books compared to traditional ones - there's no printing, binding, or physical distribution involved - e-books also offer authors more direct control for publishing their wares, and thus higher royalties.

This is a boon to Amazon, Barnes & Noble (NYSE: BKS), and Apple (NASDAQ: AAPL), whose iPad is an effective e-book reader itself, among other manufacturers. Amazon and Barnes & Noble have the added advantage of still being involved in traditional book sales, though Amazon's complete focus on online sales and Kindle branding put them in a better position overall.

There is still a market for traditional books, in developing countries and among purists who prefer something more physical than a computer screen. However, it is still a part of the industry in a decline that doesn't seem to be changing.

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