I think the barrier to compete with amazon is quite high, as amazon's benefits are several: multi-platform compatability (with cloud-based bookmarking which could be extended further), a good, keenly priced reader direct from them and simplicity of payment (as you say, under a minute to get a new book). Not that the tech itself is unusual, but to do it slicker and simpler would involve a pretty heavy investment.

If you look at iTunes (a good comparison, i feel, as iTunes also had a proprietary format so that files can only be played back on their hardware too), no-one's managed to stop that having a huge monopoly on digital music sales, and there's been no legal effort to prevent its monopoly whilst it has dominated the market. Interestingly, in both cases, it's good hardware coupled with the proprietary format that has driven the adoption of the stores, if better reader hardware came along coupled to a store then Amazon would have cause to worry, the iPad has already caused Kindle sales to drop slightly (after near-continuous growth since the mk1 model). But maybe amazon don't care anymore because you can buy and read kindle books via their iApp.

There are few other companies capable of developing a store AND hardware for reading from scratch. Most companies are doing one or the other. As long as there is some competition for amazon (google, apple) they will need to keep pricing things keenly and develop better features to keep the top spot. Which is ideal. If the competition leaves the market, that's when it starts to harm the consumer and publisher.

On the one hand, if you want to build a rival proprietary system then competing with Amazon is hard.

On the other of you want to use open standards and maybe change user behaviour, one part would be easy, but the other hard.

If you find a way of using user behaviour with open standards and building in a model that makes money, I'd say the chances are good of making some money.

Finally, B&N seem to be doing a decent job of building a rival system in the US, Kobo aint doing terrible and Apple are doing okay too, so it isn't impossible!

Eoin

This might be a very shortsighted view, but I don't actually have a problem with a monopoly in this case. Amazon is head and shoulders above brick-and-mortar stores in terms of selection and prices. For me, a book lover, browsing in a bookstore just isn't that much fun anymore, with the lack of selection and all the ancillary merchandise screaming at me. It's only the latest and most popular stuff they stock, at full price, and they ask if you want to throw in a chocolate at the register.

Whereas at Amazon, I haven't paid full price in years, if ever, and they have absolutely everything I could want. Companies in monopoly tend to start getting ugly as the years pass, I know, but right now I am 100% okay with it.

I also agree with Eoin somewhat. I don't know much about how the ebook market works, but it seems to me like other ebook makers can figure out how to make ebooks on the same platform as Amazon uses - make them Kindle-happy. Then the Kindle would be the preeminent device, a problem itself. That problem, though, strikes me rather the way digital watches were - eventually every watch company had the tech to make more or less the same device, even if the innards of each were a little different.

Is that oversimplified? Is the software too complex for that?

Also, I just have serious doubts that the ebook will become the way that people read all of their media in the future. I think they're perfect for textbooks, but I can't see myself reading a novel that way. Ever. (I am actually willing to wait for The Girl Who Kicked the Hornet's Nest to come out in paperback, myself. Nothing wrong with a little self-deprivation from time to time...)

I agree with Kath C - I think Amazon have had a monopoly on books for a long time already. I know with flu, while stores sales have been good, the out-and-out leader has been Amazon. And it's easy to se why - Amazon charge half the price of brick-and-mortars. There's a broader range of books available and they can be shipped to you for free. Having said that, I think the Book Depository are giving Amazon a run for their money, shipping WORLDWIDE for free. Also, they seem to try to undercut Amazon by 1p on each item (I watched with intrigue the price war on FLU between Amazon and TBD).

For me, that's how you compete with Amazon - bring out a better product at a better price or on better terms. Offer something that Amazon don't offer us. That's a much healthier and more common-sense way to compete, in my eyes, than to rely on legislation. Plus, it means us customers are always the winners and that's what we want, right?

Rob - Great blog piece with some interesting questions. I'm very worried about Amazon's dominance of the ebook market and dread a monopoly. Amazon are nowhere near a monopoly on physical books (though they are now perhaps the dominant player) and that is the reason why they are still producing low prices for books. They're only selling ebooks at a loss at the moment in order to dominate the market and become a monopoly. Once they've done that you can be sure they'll be upping the prices considerably. Interestingly I believe Apple my inadvertantly be aiding amazon. Until the advent of the iPhone, the internet was converging to a standard set of protocols which meant everyone could pretty much access all the content regarldess of their device. Following the iPone and the introductions of apps this is no longer the case and the world is being forced into an internet era of differentiated access. This is perfect for amazon (and Apple) as it enables them to become the VHS of books. Perhaps. Or maybe not. The amazing thing is none of us really know.

I just wish Sony and other competitors would bring out a 3G version of their ereaders. I have no deisre to own soemthign so tied to Amazon but I can see a kindle purchase coming, and I wish it wasn't.