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Goodreads + Amazon: Winners and losers

Tremendous potential, but will Amazon take full advantage of it?

I decided to wait a few days before writing about Amazon’s acquisition of Goodreads. I wanted to let the dust settle before weighing in with my own opinion. Now that I’ve had some time to mull it over, here’s what I think: This has the potential to be a game-changer that could be the next, and possibly final, nail in the coffins of other ebook retailers…but only if Amazon actually does something with the Goodreads platform.

I first have to say that I’m very disappointed that such a great service will no longer be independent. The acquisition makes a ton of sense for Amazon, of course. In the sporting spirit of the best defense being a great offense, Amazon gobbled it up before someone else did. Shame on those other ebook platforms for not jumping in first though. The combination of, say, Google and Goodreads might have finally put Google on the ebook map. That assumes Google even cares about ebooks though, which is a debatable.

What about B&N? While they’re focusing on possibly splitting the company and the future of Nook device production they just saw a terrific acquisition candidate disappear.

Another interesting scenario that will now never be is the Goodreads and Readmill combination. See Craig Mod’s thinking on that here.

Let’s get past all that though and consider what might happen next now that Goodreads is an Amazon property.

I got to spend some time with Goodreads CEO Otis Chandler at TOC NY in February. We talked about how I use Goodreads to record purchases and rate books I’ve read, but that I never use it for book discovery. Based on his reaction I got the impression I’m not alone. It wouldn’t surprise me to learn that many (most?) Goodreads members track their purchases and ratings there but don’t use it as a discovery tool.

So how will this change under Amazon?

Let’s remember that this isn’t Amazon’s first investment in this space. They already own Shelfari and they’ve got an investment stake in LibraryThing. I haven’t seen technology from either of those companies integrated into the Amazon catalog though, have you? Maybe Amazon was just waiting to acquire the biggest player, Goodreads, before adding this type of functionality to their website. After all, whoever wins the discovery war ultimately sells more products and is crowned the winner.

For a glimpse of what the future might hold, take a look at slides 27 and 28 from the presentation Otis made at TOC NY. Those statistics on slide 27 show that when most readers finish a book they want to learn more about similar books and what else that author has written. IOW, they’re open to being pitched on what to buy next. They also want to discuss the book with their friends and read other people’s reviews. Meanwhile, as Otis showed on slide 28, what readers get at the end of the book serves none of those interests.

Now imagine that same, static back-of-book ad on slide 28 becomes the Goodreads platform, right inside your ebook. That’s a nice enhancement for the consumer and it will drive a lot more ebook purchases for Amazon. It also opens up a huge can of worms.

Does Amazon, or any ebook retailer, have the right to insert something like this in the ebooks they sell? Would they have to get the publisher’s permission before doing so? After all, those other titles recommended at the end of the book (or maybe throughout while it’s being read) via this new integrated service will likely come from a variety of publishers. Does publisher X really want to see publisher Y’s ebooks promoted in their products?

As I mentioned at the start, this is all predicated on Amazon actually doing something with Goodreads, not just hoarding the platform. Remember the original Kindle from 2007? Compare the reading experience of that to what you have on today’s Kindles and Kindle apps and I think you’ll agree there’s been very little innovation in the past 5+ years. Yes, there are new devices, but the reading app itself hasn’t changed much.

By integrating Goodreads into Kindle devices and apps Amazon has a tremendous opportunity to enhance their platform in a way the competition simply won’t be able to touch. No, it doesn’t change how an ebook is read, but we’re talking about a significant impact it could have on further reinforcing Amazon’s leadership position and driving more ebook revenue.

Years ago I exported my ratings and reviews from LibraryThing and imported them into Goodreads. At the time Goodreads was a terrific independent platform with lots of momentum. It’s still a great service today and I’m sure it will continue to be solid within Amazon, but where can I go now for a service that’s still platform-independent? And since there’s no guarantee that today’s independent provider won’t be tomorrow’s Amazon acquisition, maybe it’s time to accept the fact that platform independence is nothing more than a myth.

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  • http://feldmanfile.blogspot.com Len Feldman

    Joe, there’s already a model for what Amazon is likely to do with Goodreads: IMDB, which Amazon has owned since 1998. The primary change that Amazon made to the site after the acquisition was to add “Buy from Amazon” links everywhere. If any title that you search for is available for rental or purchase from Amazon, the company lets you know. I expect the same thing to happen with Goodreads–it will be very simple to buy any book talked about on the site from Amazon.

    In a radio interview over the weekend, Otis Chandler said that Goodreads’ members can control whe

    • jwikert

      Hi Len. Goodreads currently has purchase links to a variety of retailers including Amazon. I assume those will soon disappear and only the Amazon ones will be left. It’s one thing to only point visitors to Amazon but what I wonder about is how Amazon might inject Goodreads into the actual Kindle ebooks. Will we see links and periodic reminders as we’re reading that “other Goodreads users also liked title x and y…click here for a sample or to purchase” throughout Kindle editions? As Otis showed in his TOC slide deck, readers want to see more information about follow-up reading options when they get to the end of the book. Seems like a big opportunity to me.

      • Sean Lally

        I don’t see a big difference between what Amazon currently has at the end of Kindle books, which is tweet/rate this book and an appropriate page from Goodreads.

        • jwikert

          First off, I would envision something that’s a lot more of a sales pitch for what to read next. You don’t get that today with the tweet/rate message. Second, I could see that sort of sales pitch appearing in other places too. For example, when you open the book, maybe as you read the book, etc. Sound like advertising? That’s because it is. Amazon already took the first step into the advertising space with their “Kindle with special offers” device, which I believe has been their best-selling eInk device to date. What they’ve undoubtedly learned from that is consumers are willing to deal with advertising if it saves them a few dollars. That savings was for the device. What if future deals are for lower-priced books as well?

      • http://feldmanfile.blogspot.com Len Feldman

        As you pointed out, there’s a big issue of whether inserting Amazon content into other publishers’ eBooks would constitute creation of derivative works, which would require the permission of the publishers. (Given everything that’s happened, it’s unlikely that Amazon would get permission from many of them.) On the other hand, Amazon could connect to Goodreads content via a tab, button or icon in the eReader itself. That would allow them to “inject” Goodreads content without actually changing any of the eBooks. Since Amazon’s DRMed eBooks can only be viewed with a Kindle eReader, that would be the obvious way to go.

  • OriIdan

    I agree that it is a shame that such a service is no longer independent.
    Let’s see what happens now with it, will it become Amazon specific?

  • http://wickedlysmart.com/ Elisabeth Robson

    That’s interesting; I use Goodreads almost entirely to discover new things to read and to keep a “to read” list.