The Gillard Years start now!

Prime Minister Ms Julia Gillard in a corridor walk past and media frenzy stated she is “very honoured” to become Australia’s first female prime minister – as she should be!

Once again the faceless men of Australian politics have determined on behalf of all Australians who will lead them and spend their money – ’cause they know best. They did not have the decency to call an election but just do the usual back-room deal. How does that make most Australians feel – angry and frustrated I would assume – once they stop shaking their heads over this sad state of child like behaviour among our well paid politicians.

Poor old Australia.

The fact that Kevin Rudd has bowed out is yet another example of how ridiculous our political system is. Sure he probably wasn’t loved by all – at least that is what the media tell us as they struggle to survive themselves in the new media world, BUT he represented the Australian Labor Party. Why could they not have given their leader some advice in the backroom and told him to get working. Why are politics so totally led by the media in Australia? What an incredibly dangerous situation! Managing a country through the 5 second media grab or trumped up polling is not healthy! Sit down without the cameras and get a real feel for what Aussies want.

“I am very honoured and I will be making a full statement very shortly,” Ms Gillard said as she left the Labor caucus meeting.

Well that was deep. What about “I am really sorry that I have played a key role in politicians disappointing the people of Australia – yet again. I apologise for the incredibly disruptive effect this will have and yes we should have sorted this out months ago and helped Kevin to lead the way you wanted (I was after all his Deputy!)”

Treasurer Wayne Swan was elected deputy, also unopposed. One of Kevin’s great mates – or so we the Australian people were led to believe!

Manager of Government Business in the House Anthony Albanese has moved that the sittings of the House of Representatives be suspended to allow Ms Gillard to be sworn in as the 27th prime minister by Governor-General Quentin Bryce.

“The ascent not only installs Australia’s first female prime minister but also makes her the only unmarried occupant of The Lodge.” What relevance has that to anyone except maybe the Women’s Weekly front page. Of interest to the media of course was that she is unmarried but has a partner and questioned if he will come to The Lodge – this is the depth of our media’s concern about our nation and starts to set the scene for some wonderful unmarried scandal talk down the track if things get boring.

Of course now the media have also noted she is not really an aussie but a Welsh-born lawyer and the first foreign-born prime minister since Billy Hughes, who led from 1915-1923.

The poor woman is already being compared with Helen Clark and Britain’s “Iron Lady” Margaret Thatcher. Again we start stereotyping and manipulating her future and ours.

Still seeking out the emotive outbursts and tears for the TV shots tonight Senator Forshaw was asked if Mr Rudd had displayed any emotion at the meeting. What wonderful concern!

It was said “Mr Rudd took the back way out of the meeting” but then proceeded to walk 100M with 2 dozen cameras as he walked to his office. What back way! What media suggestion again.

Again the disappointed media noted that “There were no tears.” Well how sad for the evening news – they will no doubt try to find someone crying to sell advertising time.
And not to be left out we have the next to blind comment that – “Mr Rudd kept his spirits”! How the hell would the jounalist have any idea of his spirits.

And Gillard was clearly being ready for the next media stouch with – “More recently she has been dogged by accusations over waste and mismanagement over the governments $16 billion Building the Education Revolution program.”

Hold tight the media has not yet decided which leader will make them the most revenue so we will just have to wait to be told I assume.

God help us all.

Posted in Australian Politics, General, Politics | Leave a comment

Kindle – a money making proposition.

Amazon in June 2010 made a number of strategic moves and appears to have consolidated how it will maintain market share and possibly dominance over the next few years.

Amazon have cut their price on the Kindle to USA$189. Not a bad price really and around the equivalent of about 6 or 7 full prices books in Australia. To come out even as you replace paper books with e-books you probably need to factor in around 10 books. You could easily spend about $200 on 6 new release books downunder without any problems. Mind you with the $9.99 tag for an e-book that brings break even to around $250. The sweet spot for e-books would seem to lie around 12 to 14 books. Once you have purchased that number at around $10.00 each, the e-reader’s cost is down to zero (assuming you only buy the new releases at around $25.00).

1 book = $25.00       1 ebook and reader = $10.00  + $189.00

12 book = $300.00       12 ebook = $120.00 plus reader = $ 309.00

14 book = $350.00       14 ebook = $140.00 plus reader = $ 329.00

1. Lower Prices: Amazon Cuts Price on Kindle Device

Increased Kindle unit sales as a result of the recent price cut will benefit eBook sales by increasing the e-reader user base (classic razor / razor blades model developing here).

2. Better Distribution: Kindle App on Apple and Android-Based Devices

Amazon’s Kindle app is compatible with Apple devices (iPhone, iPad) and Android-based devices. This means consumers can buy an eBook from the Kindle store and read it on a Kindle, iPhone, iPad, or Android-based device (smartphone or tablet). So even though the iPad has outsold the Kindle, Amazon still benefits from potentially wider distribution than it had before the iPad was introduced.

3. Bigger Inventory: More eBooks Available

Kindle has an edge over Apple in terms of the availability of eBooks. Kindle has steadily increased the inventory of eBooks and has about 600,000 eBooks in its store. This also includes 109 of 112 of the New York Times bestsellers. In comparison, Apple’s iBook store has far fewer NYT best-selling titles.

Amazon Could Earn $800+ million in 2010 from eBooks Sold to Kindle Owners

According to the research done by Foner Books, Amazon could be selling around 24 eBooks per Kindle per year. If we consider about 3 million Kindle units in use in 2010, Amazon could sell 72 million eBooks for 2010. If we consider the average pricing to be around $12 per eBook, Amazon could be earning $864 million in 2010 from eBooks alone that are distributed on the Kindle device.

The upside can be even greater if Amazon succeeds in becoming the eBook store of preference on the iPhone (50+ million sold), iPad (3+ million units sold) and Android-based smartphones / tablets, although the number of eBooks downloaded per device is likely to be lower for such devices.

If current trends continue, there will be more than 100 million iPhone, iPad and Android-devices in use within the next 1-2 years. Even if each device were to download only one eBook through the Kindle store annually (at $12 a piece), that would imply $1.2 billion of Amazon sales from non-Kindle devices.

Continued Initiatives Will Benefit Amazon’s Stock

We currently estimate that Amazon’s eBooks revenues will exceed $1 billion by the end of Trefis forecast period. We also estimate that Amazon will increase its share in the US Online Media market (Books, DVDs and Music) from 31% in 2009 to 34% by the end of Trefis forecast period, which will mean it could earn around $10 billion in revenue from Online Media sales in the US by 2016.

However, eBooks revenues could increase at a faster rate than we currently forecast if Amazon were to benefit from higher Kindle sales and traction on non-Kindle devices. If eBooks revenues were to reach $2 billion by the end of Trefis forecast period, it would imply Amazon market share in US Online Media sales would reach 38% instead of the 34% that we forecast and suggest an upside of 2% to the $119 Trefis price estimate for Amazon’s stock.

You can see the complete $119 Trefis Price estimate for Amazon’s stock here.

Posted in Books, Kindle, Literature, eBooks | Leave a comment