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Between the Lines

Larry Dignan, Andrew Nusca and Rachel King

Amazon's Cloud Reader: Beginning of the HTML5 surge vs. Apple's App Store vig

By | August 10, 2011, 6:39am PDT

Summary: Amazon kicks off the end run around Apple’s in-app purchase restrictions with a snazzy HTML5 app that will likely be emulated by other publishers.

Amazon launched its Kindle Cloud Reader, which is designed to use HTML5 to do an end run around Apple App restrictions and the move could be emulated by a wide range of publishers.

The Kindle Cloud Reader, available on Google Chrome and Apple Safari with more browser support on deck, brings in-app purchases to the iPhone and iPad. The big question with this experiment is whether folks will use the HTML5 version over a semi-crippled Kindle app.

Last month, Amazon, Barnes & Noble and others pulled in-app purchase buttons. Why? Apple wanted a cut of the in-app purchases. The Apple fee kills margins too much so the HTML5 migration is well under way. Vudu also moved to an HTML5 app.

And Amazon just kicked off the festivities. Like all Kindle apps, the Cloud Reader synchronizes everything in your library. It looks sweet on the iPad and works nicely on the PC. I used the Cloud Reader to get reacquainted with the Black Swan for rather obvious market reasons.

It’s no coincidence that Amazon picked Chrome and Safari to work with first. Both Google and Apple largely control app ecosystems. The Cloud Reader is insurance against Google also doing away with in-app purchases somehow. That move is unlikely, but HTML5 will increasingly make sense in all cases.

On the PC, I found the Kindle Cloud Reader as something I’d use in a pinch. On a tablet, the Kindle Cloud Reader is a keeper. Adrian Kingsley Hughes highlighted an initial tour. You’ll note that the interface simply works better on the iPad.

Kendrick: Kindle Cloud Reader: You cannot keep Amazon from its buyers

The challenge Amazon—and anyone going the HTML5 route—will be user behavior. Will users go with a browser based version over an app? As wireless service speeds increase via 4G it’s likely that the browser wins the day. That transition may take years to play out, but HTML5 will wind up winning the day.

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Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic.

Disclosure

Larry Dignan

Larry Dignan has nothing to disclose. He doesn’t hold investments in the technology companies he covers.

Biography

Larry Dignan

Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic. He was most recently Executive Editor of News and Blogs at ZDNet. Prior to that he was executive news editor at eWeek and news editor at Baseline. He also served as the East Coast news editor and finance editor at CNET News.com. Larry has covered the technology and financial services industry since 1995, publishing articles in WallStreetWeek.com, Inter@ctive Week, The New York Times, and Financial Planning magazine. He's a graduate of the Columbia School of Journalism and the University of Delaware.

For daily updates, follow Larry on Twitter.

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RE: Amazon's Cloud Reader: Beginning of the HTML5 surge vs. Apple's App Store vig
piousmonk 11th Aug
@ A Gray

I've never had much difficulty, but I'll admit I've rarely searched for a specific app. More often, I've searched for a specific type of app and never really had much difficulty regardless of where it ranks.
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More than just publishers
rhonin 10th Aug
I suspect we are starting to see the non-app store implementation. It won't be long before we start seeing other types of apps going the same route.

Wonder if control and greed has bit someone in the ass?
shocked
@rhonin
This is the same model they have for Apps, Apple always takes a 30% cut. So far everyone has been happy, do you think web apps will sell as well? the app store has advantages...
@Hasam1991 They are not trying to sell apps, they are trying to sell content in this case books, the Kindle app is free, but Apple wants to cash in on Kindle content sales.
@Hasam1991

I don't know that it is accurate to say everyone is happy. I suspect you could say, enough people tolerate that 30% for the store to be a success, If they lowered the cut, developers would probably be more happy, and they might even see more developers.
@Hasam1991 Oh you're so right it has the advantage of paying Apple to tell you what you're allowed to read. Oh that's not an advantage is it? Oh well I guess it has the advantage of making Apple rich for doing no work at all much like most of their ideas. No work, no R&D, and sue everyone that stands in the way.
@Hasam1991 Amazon used to charge 70% so Apple actually forced Amazon to drop the fee. They may pay 30% to Apple, but right now eAuthors are down to paying 40% instead of 70.
@rhonin
First, Apple started with HTML support and pushed web apps. They didn't release the SDK for native until a year later, so try to get the timeline right. Second, having been in software development for some time, I feel *very* confident in saying that web apps will not replace native for many, many years. Native is will always be faster and will most likely always provide a richer experience.
@dhmccoy
I am very aware of this.
Apple has adopted the app model and leveraged it well, sometimes too well.
I am saying with this Amazon web app, others feeling the need to get out from under the app store control, can leverage this solution. I see no reason this won't grow.
Speed of growth? If I knew that I would be hedging aligning stocks now.... plain
@dhmccoy

Then they refused to implement HTML 5 properly so they could force peeople to develop "apps" with their ancient development system.

My HTML 5 apps runs fine on Windows Mango, Android and all the big boy OSs as well on multiple browsers, but not iOS.
@rhonin
"Wonder if control and greed has bit someone in the ass?"

Definitely. Apple deciding they deserve 30% of books they didn't sell has caused me to delete iBooks from my iOS devices and to stop recommending iPads as readers. Their greedy cash grab has and will continue to cost them.
@BillDem
Does it matter? the iPad will continue to sell. I own 1 ipad 2 and I'm already looking for a second one for the wife. We also have a kindle which is better than reading on the iPad. I guess I'm a Apple fanboi and Amazon fanboi....
@Hasam1991
Just curious: When did fanboy lose the y?
@rhonin

My 2 cents is that apps will continue to thrive, with only the heavyweights (who have the name recognition) like Amazon to pull off the non-app store shift. Smaller developers will continue to pay Apple their cut in exchange for premium "app storefront" real estate and the volume it brings. Which is better, paying Apple's premium or nobody knowing you're service exists?

I understand browser-based apps can be found other ways (i.e. Google search), but let's face it, there's a good reason store owners display certain products in their windows, near the front of their store and at the end of aisles.

There's also the free app factor and that plays a role for paid apps as well.
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Premium storefront?
A Gray 10th Aug
@piousmonk Have you tried finding anything obscure in the app store? You get the top 25 or so of any category. Try to find a game not in the top 50 if you only know some part of the title. What about games good for 3 yr old boys? What about games that have animals or spelling games? I mean there are 500,000 apps in the store, but I've probably only seen a few hundred that float to the top.
@ A Gray

I've never had much difficulty, but I'll admit I've rarely searched for a specific app. More often, I've searched for a specific type of app and never really had much difficulty regardless of where it ranks.
@rhonin I would say it has and about darned time too.
@rhonin

Apple deliberately restricted HTML 5 on iOS so that interactive web apps that use audio and video would be unable to function (preventing autoplay from working in the audio and video tags)

HTML 5 is more than adequate to duplicate the antiquated apps that fill out Apple's store.

Time for Apple to start conforming to standards.
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(NT)
I don't think Apple cares, remember they also sell content, iTunes, iBooks... in essense if you want to have an app that sells you pay Apple 30%, if you don't want to have an app, go with HTML 5 and avoid paying Apple.
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They should care
Michael Alan Goff 10th Aug
30% of Amazon's cash is a lot of cash.
@goff256
Not just the 30%....
it also involves leveraging publishing sales via iBooks instead of a competitors store.
@Hasam1991

How obtuse can you be? Amazon isn't selling an app. They're selling books. Apple is trying to cut themselves in for a big slice of Amazon's core business in exchange for not much. The iOS Kindle App based is quite small compared to the actual Kindle. Likewise, iBooks is nearly non-existent for e-book sales. So, if Apple drives off Amazon and B&N they also alienate readers who may find themselves deciding they need a Kindle or Nook in addition to their iPad. (And some of them are going to notice how easier those devices are on the eyes for prolonged reading.) Kindle on iPad does more for Apple than it does for Amazon. Apple is exercising poor judgement in trying to grab a piece of everybody's revenue just because they have anything to do with an Apple platform. Apple now faces a Catch-22: they can try to constrain Web app functionality but that also means crippling their platform as a web venue.

This isn't a game console where the maker loses money or just breaks even on the base hardware. Apple enjoys a very nice profit margin on the iPad and has given themselves a console-like control of its third party software. But they cannot control everything without opening up a big opportunity for competitors.
@epobirs Well said. Apple's greed is insatiable.
to direct traffic to the Amazon store across the street, and Apple is the greedy one for demanding rent?
@Hasam1991 If they really don't care, they are morons. This move caused me to delete iBooks from my iOS devices and I will never buy anything else from Apple's content stores. I will also stop recommending iOS devices as "universal e-readers." I plan to support every content provider EXCEPT Apple from now on.

Why? They don't deserve 30% of books that they didn't sell me, didn't host on their servers, and didn't use their bandwidth to transmit to me. That is exactly the same as charging 30% extra for everything I purchase on any web site I view with the Skyfire browser. It's using an app to buy online. They're idiots. What's next? Are they going to start charging all Apple owners 30% extra for everything they buy online using any Apple computer? This gives new meaning to the term "Apple tax." They're making me regret being an Apple owner.
When a company can dictate that other companys must pay a unreasonable slice of their income to them or go out of business, its not a healthy thing.

Anything that takes absolute control away from Apple is a good thing, they have now reached the point of extortion racketeering.
Whatever kills flash has my vote.

Three newspaper tabs, with lots of flash, in firefox on a 64-bit Win7 system with 4GB Ram and 2.3GHz i5 quad core can hog 3GB of ram and 50% of processor time. That's rubbish if you ask me and the culprit? Plug-in container - Flash.
Ok, so how about this. Apple wants users to stop using flash and go with HTML5. Developers keep using flash because there isn't a whole lot of incentive not to, and it's cheaper to keep doing the same thing, and... By leaving this loophole open and charging an exorbitant price in apps, suddenly Apple has incentivised the marketplace to develop in HTML5. So they win on both ends here.
Cellular network speed isn't overly key here. You still have to download apps, and those apps are doing fine on 3G now. HTML5 supports storing resources offline (if the user gives the web application permission), so if built correctly, Amazon's reader will be mostly a download-once type deal.

HTML5's biggest fallback for now is its ability to interface with the user. It can't, to my knowledge, support multi-touch gestures. Until it can, it's a far from superseding native apps, but that doesn't mean some apps won't accomplish that successfully today.
"open standards" only work when everybody adheres to them and doesn't try to make a "walled garden" or "enhanced-with experience" out of them.

Which is why things like Java and Flash came about in the first place...

New boss = old boss, what changes ends up being the same, etc...
@HypnoToad72

+1

To drive your point home, Amazon's cloud reader only works in Safari and Chrome. So yeah, that HTML5 "reach" is maybe 30% of the market in this case (using Wikipedia median).
same for both the app and html5 versions. Doesnt the html5 version take advantage of html5's new local storage apis to cache the books locally for offline access just like the app does? if not it's not very html5'ish.
@Johnny Vegas
I wonder how long till Apple tries to monkey with that design too?
Yes. The future is open. The Open Store is the future: http://www.openplatformasaservice.com

Developers get a truly open platform. Users get apps they can have on their phone, desktop, laptop and tablet because they are HTML-only. Everybody wins.
Getting 30% of book sales was never going to happen. Apple could have gotten a deal whereby the booksellers would pay a processing fee for the transaction. The fee should be less than one dollar to make it attractive. Any other business model is an attempt by Apple to drive business to their own book and music stores. It might even be considered as an illegal competitive practice.
I don't understand the detail of this system. If I purchase an ebook from Amazon like I do now, do I get a physical file that I keep within the ipad or is it kept in the cloud and therefore useless when I don't have a good 3G signal like when I'm on a plane or outside of the cities in Aus. Cloud might be great for Americans but once outside of metropolitain areas of Australian then the signal can be crap.
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Fantastic!
NedNedson 11th Aug
This is great news. I applaud any end run around greed and control!

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