Amazon CreateSpace starts Open Publishing Service
Another extraordinary interesting example supporting our concept of Open Entrepreneurship is the platform CreateSpace by Amazon.com, a new online service for media on demand. The company is not charging setup fees for books, audio CDs, DVDs, Blue-Ray media and digital video downloads, enabling authors, filmmakers and musicians to offer their works to millions of customers worldwide and to determine the prices for their products themself. One could say, of course simplified, that CreateSpace is the Spreadshirt for media content of any kind.
The concept of CreateSpace from our point of view holds the potential to heavily jumble the publishing landscape up. Hereby it is shown once more, what fundamental consequences for the way we are understanding the economic coherences, the creation of value in networks can have. Artists had until now only the opportunity to achieve the publishing of their works by intermediaries like the big publishing companies for example with their affiliated distribution channels. A publishing within the framework of self publishers was markedly expensive and furthermore because of missing distribution channels less promising. Now, everyone can operate his own publishing house over an outstanding distribution channel like Amazon.com and is able to both publish his self created media and on behalf of third-party artists. The service seems to be useful especially for small editions, for instance the publishing of scientific work like dissertations.
With Amazon, there is opening one of the largest distribution networks worldwide for the first time, being a classic player in E-Commerce, for the creation of value in networks or, as we call it, Open Entrepreneurship. Seen from the perspective of Amazon, this makes sense in several ways. First and foremost, Amazon is ensuring exclusive access to media contents of a huge amount of media creators, massively expanding its already very far reaching Long Tail. Secondly, Amazon enlarges as a producer of record carriers for media its margins compared to its function as a distributor enourmously. Through a sale over Amazon.com, the company earns for instance with a single DVD 45 percent of the purchase price and through a sale over the CreateSpace E-Store anyhow 15 percent, each time plus a fixed charge per unit of 4,95 dollar. For instance, the Open Publisher earns through the sale of a DVD for the purchase price of 20 dollars via Amazon.com in the end just 6 dollars. On the other hand, this can be clearly overcompensated by the scalability of the distribution channel. It is very clever by the way, that Amazon reserved the right to give discounts on the products, only eating into Amazon’s margin leaving the earnings of the seller the same.
Especially because of the distribution model, the service of CreateSpace seems to be extremely interesting on the whole. Almost the complete infrastructure of Amazon.com is accessible and shipping is possible within 24 hours after receiving the order. All on demand books are automatically eligible for Search Inside!, Amazon Prime, Super Saver Shipping and other Amazon.com programs as well. Just by the interplay with the Amazon.com community, true creation of value in networks will become possible and we can wait eagerly for the upcoming developments. Welcome, Open Publishing!
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