Racing to the Bottom of Openness

Here's some interesting news about Barnes & Noble's e-reader:

The reader, named the “Nook,” looks a lot like Amazon’s white plastic e-book, only instead of the chiclet-keyboard there is a color multi-touch screen, to be used as both a keyboard or to browse books, cover-flow style. The machine runs Google’s Android OS, will have wireless capability from an unspecified carrier and comes in at the same $260 as the now rather old-fashioned-looking Kindle.

Linux-based: no surprise there. But this is:

And over at the Wall Street Journal, somebody got a peek at an at ad set to run in the New York Times this coming Sunday. The ad features the line “Lend eBooks to friends”, and this has the potential to destroy the Kindle model. One of the biggest problems with e-books is that you can’t lend or re-sell them. If B&N is selling e-books cheaper than the paper versions, then the resale issue is moot. And lending, even if your friends need a Nook, too, takes away the other big advantage of paper.

In fact, this loaning function could be the viral feature that makes the device spread. Who would buy a walled-garden machine like the Kindle when the Nook has the same titles, cheaper, and you can borrow? The Nook is already starting to look like the real internet to the Kindle’s AOL.

It's a classic "race to the bottom", where the bottom is total openness: see you there, Amazon.

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