Size Matters: Introducing a Larger Kindle

Amazon announced its latest version of Kindle today in New York, featuring a larger screen, a new built-in PDF Reader, auto-rotation and a much larger memory than the existing Kindle e-reader, as it prepares for a Kindle textbook university trial project to be launched this fall.

Six universities will take part in the Kindle trial project. A few hundred students will use Kindle as their textbooks in the coming semester. Barbara Snyder, president of Case Western Reserve University, one of the participating schools, said they are very excited about the project and the school will observe how Kindle affects students’ way of reading and taking notes. “The e-book technology may prove to be even more transforming,” Snyder said. “Students do not need to carry heavy textbooks. Kindle will help our students stand taller.”

Amazon has reached agreements with three leading textbook publishers, Cengage Learning, Pearson, and Wiley, to provide e-textbooks for the device. That will expand the number of the thousands of textbooks already available on Kindle. The Kindle textbook prices are still under discussion. “The prices of the textbooks will be a la carte now,” Laura Porco, director of Kindle Books at Amazon, said. “But it is reasonable to expect the digital version will be cheaper.”

Kindle DX has the feature for highlighting and bookmarking. Students can also take notes on the page and store the highlighted part and the notes into a clipping file on Kindle. The new PDF Reader comes with Kindle DX supports documents like annual report, industry report, and sheet music, in PDF format.

Amazon is accepting pre-order for Kindle DX now to be delivered over summer at the price of $489. “Current Kindle users will not get order privilege,” Steve Kessel, senior vice president of WorldWide Digital Media at Amazon.com, said. “Kindle DX is not a replacement for the 6-inch screen Kindle. We are building a Kindle family here.”

When Kindle DX arrives the market in summer, it will come with 37 U.S. and international newspapers including New York Times, Washington Post and Boston Globe, at a price from $5.99 to $14.99 per month. The New York Times Company and Washington Post Company are also launching pilot projects with Kindle DX this summer. The New York Times, The Boston Globe, and the Washington Post will offer the Kindle DX at a discounted price to readers outside the home-delivery areas.

“The project is an excellent example of the convergence between print and the Web,” Arthur O. Sulzberger, Jr. chairman of New York Times Company, said. “This is to showcase how we can best use of new technology to offer quality newspaper experience to the readers, providing access of the Times and the Globe whenever and wherever they want it.” The price for the discounted newspapers has not been decided, but it will be in the range of $9.99 per month, according to the people familiar with the matter.

Amazon.com carries over 275,000 titles in Kindle version from major publishers. Since the first Kindle e-reader was introduced 18 months ago, the unit sales of the Kindle version have increased to 35%f of the sales of the physical books. That is to say, Amazon sells 35 books in Kindle version every 100 physical books it sells under the same title. “Amazon.com has been around for 15 years. That is an amazing increase given the short time that the gadget was introduced to the market,” Kessel said.

Young and Free, power of social media

Young and Free, this young people's social network Web site launched first in Alberta in June 2007, has jump started 2,600 new checking accounts and $3.4 million in new deposits for Servus Credit Union, a cooperative financial services company that offers most services like a bank.

More encouraging data: an additional $17 million was lent to new account members, and $1.4 million is generating 15% yield from mutual fund. That is, using the Servus's 3-year bank loan rate 4.15%, there is an interest income of $705,500 and return from mutual funds of $210,000. The cost to run the Web site, including operating expenses and fees to the marketing company, is $630,000 for the last 19 months.

Return on investment: 45%.

Wonder why?

Imagine if all your friends have a pair of Nike sneakers, would you want a pair too? Very likely. This is what Young and Free does to its members. It takes an image of a social network, filled with fun activities. Members create blogs, share videos and exchange new ideas. Some members say: Young and Free is everything I want.

Once the members are there creating content and actively take part in the Web site, they are ready for a leader. This is where the spokesperson comes in. In each Young and Free Web site, respectively in Alberta, Texas and South Carolina, a month-long campaign started to search for an annual spokesperson, who is "the voice of Young and Free 2009." The winner is an overnight celebrity, a community star that every members like and trust.

His/Her job is to create five blogs a week to entertain the members. The content subtly incorporate the concept of Credit Union. What is it? How does it work? Why is it better than a bank? His/Her benefit is $36,000 annual pay, a free Mac Book, a HD video camera and a car with Young and Free logo.

Now the "peer power" comes into play. People want to hear advice from friends, especially the ones that they like and trust. The more members sign up to the Credit Union's checking account, the more people want to sign up.

The last but the key thing about Young and Free is, quoting its inventor, president of Currency Marketing, Tim McAlpine: "Everybody is talking about creating conversations online. When it comes to sell products, it is taboo. We have the product right in the Web site. I am selling the product, but very subtly."

Direct to the point, sell the product! And there they go, an old-school Credit Union is the new black. The name relates to youth, to fun, and to hip.

Only the members of Young and Free should be aware: The name of the Web site should really be Young and Not-Free.