Amazon brings together readers, publishers, authors, and advertisers in a platform/environment that creates mutual value for all stakeholders and allows Amazon to capture value for itself.
The near market monopoly enjoyed by Amazon/Audible demonstrates the ability of vertically integrated media companies to maximize value for the customer
By now, many of us have forgotten that Barnes & Noble attempted to compete against the likes of Apple and Amazon in the e-reader/tablet market with their ill-fated Nook. Barnes & Noble invested significantly in R&D and actually produced some great devices, so why did they fail? In hindsight, it’s easy to see that Barnes & Noble was playing the digital game all wrong.