The Digital Reader, which has been following this story for several months, reported Monday that an unnamed Delaware-based LLC was the new owner of Liquavista. Amazon confirmed the purchase in a statement:

“We are always looking for new technologies we may be able to incorporate into our products over the long term. The Liquavista team shares our passion for invention and is creating exciting new technologies with a lot of potential. It’s still early days, but we’re excited about the possibilities and we look forward to working with Liquavista to develop these displays.”

The purchase price was undisclosed, though it may be made public in Amazon SEC filings’s next quarter.

Amazon’s Kindle Fire tablets obviously already have color screens, but Liquavista’s technology offers the potential for color screens that wouldn’t deplete battery life to be added to e-ink readers. This would be particularly useful for children’s books and graphic novels.

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Merkoski ran technology departments for a number of companies and headed e-commerce initiatives at Motorola before joining Amazon as a technology manager in 2005. For the next five years, he served at the company in a number of Kindle-related roles, helping to launch the first two Kindle models and the Kindle DX. “I first joined a team that built the electronic books for Kindle, but I went on from there to do it all,” he writes. “I invented some of the technology used in ebooks and launched the first few Kindles. I’ve traveled to book fairs in New York and London and Frankfurt to evangelize ebooks. I’ve watched ebooks being made in the Philippines and supervised the assembly of Kindles in China. I’ve talked to the White House, former presidents, and astronauts about ebooks.”

I found Burning the Page the most interesting when Merkoski discusses his experience at Amazon, working directly for CEO Jeff Bezos. “I worked in a modern version of Gutenberg’s workshop,” he wrote. But he can’t share much:

• “I believe Jeff [Bezos] wanted Kindle to be his legacy to history. He wanted it to succeed.”
• “The Kindle organization was in some ways a startup within Amazon and benefited from Jeff Bezos’s venture capital infusions, long-range vision, and full support.”
• “Jeff originally wanted the Kindle code names to come from Star Trek, since he’s such a Trekkie, but more literate minds prevailed.”

While Merkoski describes himself as “the closest there was to an ebook shaman, a tribal elder who could talk to all the people who joined Amazon after me about the early days of Kindle, provide the inside scoop,” he doesn’t (and may be legally unable to) provide any inside scoops in this book. So the next best thing is when he can speak specifically about e-reading platforms — including the advantages of Amazon’s competitors. The development of the Kindle was highly secretive: “No outsiders had seen the Kindle because it was created in a perfect vacuum from the very beginning,” Merkoski writes. That resulted, in 2007, in a $399 device that sold out in five and a half hours, remained out of stock for months and got a lot of mixed reviews (facts that Merkoski doesn’t mention).

Kindle’s flaws — and what competitors did better

Future versions of the Kindle improved on some flaws: Merkoski calls the Kindle 2, introduced in 2009, “truly an incredible device.” But “in fits of wakefulness, I thought about how Kindle lacked nuance, style, fonts, and things like multimedia…Kindle’s success made new ideas paradoxically difficult, as if everyone was walking around on stiletto heels on a glass floor, careful not to run, not wanting to take the wrong risks.”

Kindle competitors, he says, have done better in lots of ways. Take Barnes & Noble: “Out of all the retailers who sell dedicated e-readers, they’re the most innovative. They’re the first to release new book-reading features and to innovate on the hardware side. They were the first to have touch-sensitive e-ink screens…They totally get the social experience of books in the way that it crosses over from the real world to the digital. They can innovate so fast because they’re not burdened with their own R&D group.” Likewise, “companies with more humanistic sensibilities than Amazon will win the e-reader war by making the experience more human, more playful…let’s face it: there’s still something emotionally bereft about a Nook or a Kindle.” The winner on that front, he says, is Apple’s iPad.

Ultimately, Merkoski believes, “Amazon is winning the ebook revolution, but it may lose the war…Competitors like Barnes & Noble and Apple have successfully blurred the lines and proven that they can provide a great media experience, so Amazon’s brand matters less in the eyes of readers now.” He says “it’s hard to love Amazon…at best, you respect Amazon for its obsession to detail, for its cheap prices, and for how it achieves the promised arrival dates for its products.”

Oddly, Merkoski doesn’t mention the Nook division’s terrible performance these days, or the company’s inability to cut into Amazon’s market share. Nooks, he claims, are “downright futuristic.” And that’s really where he wants to go in this book: How will ebooks, reading and writing change?

What’s next: High-speed head plugs and a “Facebook for books”?

Let’s be clear: Merkoski loves books. An endless number of sentences like “Books are priceless,” “Books can inspire us toward greatness,” “Books hold the repository of human knowledge, and then some,” “Reading is an act of bathyspheric descent into the depths of an inky-black ocean,” “For me, it really is about books. They’re not commodities, but soulful voices that actually speak to you” become increasingly irritating as the book goes on and weigh down Merkoski’s ideas on what the future of reading could actually look like.

Once you cut through the platitudes, Merkoski envisions some specific innovations that are interesting and imaginative. For instance, “the future might hold some sort of high-speed plug that goes into an author’s head, some way of taking an author’s imagination and converting it directly into a digital format. The same high-speed cables will connect you to the author’s original experience.” That sounds horrible to me, but another idea — a screenless e-reader that uses a pico projector to project an ebook onto a blank surface (like a ceiling or the pages of a blank book), pulls ebooks from the cloud and is navigated by voice commands — seems like something that could actually exist in a few years.

Ultimately, Merkoski believes there will be

“just one book, a vast book that includes all the others inside it, which I call the Facebook for Books. You’ll be able to start reading from an ebook and naturally segue into a different one, just by following a link. It could be a bibliographic link, or just a link to a book that influenced the author and that’s been annotated as such by a reader like you or me. You will be able to link forward or double-back and keep reading…The more content you get, the more cumulative the connections are between books, and the more intertwined and rich the network becomes.”

The company best situated to make this dream a reality is not Amazon, Merkoski believes, but Google — thanks to its knowledge of search engines and the vast number of titles it’s scanned for Google book search, “Google has digitized more of human culture than any other retailer or library.”

For now, rights issues are in the way, and so books, “our greatest repository of knowledge and inspiration, aren’t participating in conversations with us online, with the exception of public-domain books that lag by at least ninety years.” It will take “a sea-change in opinion about ebook pricing models,” Merkoski acknowledges, before such a hyperlinked database of books can legally exist — even though we have the technology to put it in place now.

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That’s what’s happened.  As Geekwire reported on Monday — and yes it dispensed with the April Fool’s aspect – Charlie Kindel, who helped build Windows 7 Phone and then left Microsoft for a startup in 2011, is now at Amazon “working on something wonderful,” according to his LinkedIn profile

His current job description:

“I’m building a new team going after a totally new area for Amazon. I’m hiring cloud and mobile developers and testers, program managers, and product managers.”

There’s been other evidence that Amazon, which fields the Kindle reader lineup, is also getting more mobility-focused in its Amazon Web Services group. It’s building a new development group in Palo Alto, Calif. to build client side applications and folks also expect AWS to expose more of its existing technology services (as well as future offerings) in a Mobile Backend as a Service (MBaaS).

There have been rumors for months that Amazon is building its own smart phone. And, as GigaOM’s mobile maven Kevin Tofel put it: If Amazon is doing a phone and just pulled Kindel into it it’ll be hard for the company to get anything out by summer, which has been a rumored release target. If they do get something out by then, Kindel will have had very little, if any, input into what they’ve done.

One thing’s for certain, a couple months down the road we’ll start seeing lots of Amazon mobile services news posted on the AWS blog.

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Great UX, thwarted by walled gardens

Readmill is a great reading environment. That their designers obsess on visceral user experience makes it a true pleasure to use. It may very well be the best “feeling” ereader application out there. This is a critical attribute for an environment in which you can spend hours a day.

But it suffers from the thing that any book-related company or product or startup that is not a Kindle suffers from: It’s a slog to get content into it.

This is a discussion less about DRM (although, it is that, too) and more about seamless user experience. Sure, you can hunt down a copy of “Gone Girl” on a website you’ve never bought a book from before. Enter your credit-card information. Download it. Then upload it to your Readmill account. Or, you can click “Buy now with 1-Click” on Amazon.com and have it on all your devices in 10 seconds, ready to be read in the Kindle reading application. You have to be really persuasive to beat that kind of convenience.

Since Amazon would never allow its library to be accessed by reading applications other than Kindle, this is a non-trivial problem for a startup like Readmill to surmount.

A community to challenge Amazon

Goodreads has always been a bit of an enigma. Truth be told, I’ve never been an avid user. There’s a number of reasons why, but the biggest is simply that the distance between my books — and the activity that happens within them — and Goodreads has always seemed ginormous. That is, updating reading statuses for books on a website always felt odd and forced. It felt odd in 2007 when I was mainly reading physical books, and it feels odder still in 2013, where I’m mainly reading Kindle books. That said, 16 million people clearly don’t agree with me.

So why did Amazon buy Goodreads? Well, the promise of a collaboration between Goodreads and a great reading platform (like Readmill) loomed large. A combination like that had the chance of being the Last Great Stand against Amazon. Goodreads is many things but most defensibly it is a community. A strong community. An engaged community. (And now, a slightly enraged community.) Sixteen million users is nothing to dismiss. It’s not Facebook or Instagram levels, but 16 million excited people is a firehose to be reckoned with. What Goodreads didn’t have was a reading application.

It also should be noted that publishers love Goodreads. No surprise there; it’s just as one would imagine. Goodreads is an amazing platform for promoting books to an avid, core readership. So if Goodreads were to develop a reading application, it doesn’t take much imagination to see them signing up the catalogs of the big five and launching a Goodreads store for the Goodreads reader. And were that reading application to plug seamlessly into the Goodreads ecosystem — the community — then getting those 16 million users to switch from Kindle to Goodreads Reader would have been one of the easier platform sells in publishing.

Goodreads users already want to hang out at Goodreads. If they could read there too — in an app — I suspect many would.

Kindle flaws present opportunity

Despite the maturity of the market, the tablet reading space is still weirdly under-polished. Kindle reading environments have hardly changed in the last three years. The Kindle app has seen some improvement — mainly in support for complex KF8 formatted titles — but the polish around the reading experience, that visceral component, for novels and other mass-market books has remained largely unchanged. Books in the Kindle applications still don’t hyphenate. And page slides still stutter ever so slightly. These are small details that add up.

Certain polish aside, Kindle’s strengths are manifold. It has a vast catalog and transactional trust. It has all our credit-card information, making purchasing seamless. It is also supremely good at cloud data — consistent and reliable storage and retrieval of our books across devices. What it doesn’t have — and no inkling or iota of — is community.

What might have been

So you can see, there was a combo here. A curious matchup. Take one of the most polished, most satisfying digital book reading applications and merge it with one of the most engaged reading-specific communities. A marketplace could have developed that might have been the first real competition against Kindle. Not one built around competing with Kindle toe-to-toe as Barnes & Noble and Kobo have attempted (and failed at), but competing on ground on which Amazon has no footing: community.

It’s a certainty that Amazon, too, saw this. Which is why the sale this week comes as little surprise. I’ve always imagined that secretly, deep down in the murky stacks of Amazon headquarters, they had a crackerjack team making kindle.amazon.com the best social reading network in the world. Maybe they did. Or maybe they just realized it would be easier to buy the one that already existed.

Craig Mod is an independent writer, designer and publisher focused on publishing and storytelling. You can follow him on Twitter @craigmod.

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Photo courtesy Vitchanan Photography/Shutterstock.com.

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Amazon presents “Send to Kindle” as an alternative to read-it-later services like Pocket and Instapaper:

“The Send to Kindle Button lets you easily send that content to your Kindle to read later, at your convenience. Just send once and read everywhere on any of your Kindle devices or free Kindle reading apps for iPhone, iPad and Android phones or tablets. No more hunting around for that website or blog that caught your eye — just open your Kindle and all the content you sent is right there. The Send to Kindle Button is also great for those who want to collect content from the web to use in work projects, school assignments, or hobbies.”

The new feature for websites is the most recent in a line of read-it-later services Amazon has launched. Last year, the company announced a “Send to Kindle” button for Google Chrome, and later added support for Firefox. And users can already email files to their Kindles or transmit them using desktop apps. But the browser extensions — and now the web app for publishers — are Amazon’s effort to make the Kindle and Kindle apps an easy way to read all types of content, not just ebooks.

Developers who want to add the button can do so here, and the WordPress plugin is here.

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The biggest price cut is for the 4G LTE Kindle Fire HD. The 32 GB version, which had been $499, gets a price drop to $399. The Wi-Fi-only version of the same tablet gets a price cut of $30 — to $269 for the 16 GB version and $299 for the 32 GB version.

Amazon is also launching the 8.9-inch Kindle Fire HD, with Wi-Fi only, in the U.K., Germany, France, Italy, Spain and Japan. It will start at £229.00 (USD $341) in the U.K., €269 (USD $348) in Europe and ¥24,800 (USD $258) in Japan. (Amazon told me that the varying prices are due to different operating costs in the countries.)

The 8.9-inch Kindle Fire HD, which launched last September, is Amazon’s answer to the iPad. Amazon also launched a 7-inch Wi-Fi Kindle Fire HD, which starts at $199, last fall; that tablet, which is already available in Europe and Japan, is not getting a price cut.

Dave Limp, VP of Kindle, claimed in a statement that “As we expand Kindle Fire HD 8.9” to Europe and Japan, we’ve been able to increase our production volumes and decrease our costs. Across our business at Amazon, whenever we are able to create cost efficiencies like this, we want to pass the savings along to our customers.” But the move may also be intended to help the Kindle Fire compete with the iPad Mini, which has a 7.9-inch screen and starts at $329.

A previous version of this story stated that the 8.9-inch Kindle Fire HD would cost ¥15,800 (USD $164) in Japan. That is the price of the 7-inch Kindle Fire HD in the country.

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Book group iPad app that supports Kindle

A bunch of my girlfriends and I are about to start a virtual book club to read Sheryl Sandberg’s new book Lean In: Women, Work and the Will to Lead. We’ll be reading it on our respective devices and then talking about it together on a private message board.

Most of us will be buying the Kindle version of the book, and I wish there were an iPad app that let us open the Kindle file within it and then create our own private conversation around the book — highlights, notes and so on. There are already plenty of social reading iPad apps — Readmill, Subtext, Copia — but they either don’t support Kindle books and/or don’t let users create a private discussion.

If you’re wondering why it has to be Kindle, by the way: It’s the device/format that all of my friends already use. That’s going to be true for a lot of book groups, and so it seems as if any book club app is going to have to support books bought on Kindle.

Interim solution: We’ll be reading the book on respective devices or in print, and then we’ll talk about it together on a private message board.

E-ink mode for iPad

I like to read ebooks on my iPad before I go to bed, but I worry that the back-lit screen messes with my eyes and sleep patterns. I wish there were an e-ink mode or a filter app that changed the type of light coming from the iPad screen — not just a dimmer but something that actually made it look more similar to an e-ink screen, with no glare. Apple actually has a patent on this type of hybrid display, so it might be a feature we see on an iPad one day.

Interim solution: The app F.lux changes a screen’s brightness and tint based on the time of day.

A Web-based Calibre

Calibre is free ebook management software: You can use it to store your ebook collection, convert ebooks to other formats, send ebooks to e-readers, download content from news sites and turn it into an ebook, and so on. There are also a number of third-party plugins that add new features to the service. For example, there are Calibre plugins that break the DRM on an ebook. That means that, for example, you can buy an ebook from Barnes & Noble, break the DRM on it, convert it to a *.mobi file and read it on your Kindle. (That isn’t what publishers or retailers want you to do, but with Calibre third-party plugins it’s possible.)

Calibre is downloadable software, but I’d love to see a web version that lets readers store all their ebooks in the cloud, convert them directly within a web browser and then email them straight to a device. That way, users could access their files from anywhere.

Interim solution: With a couple hacks, you can sync Calibre with Dropbox. That’ll let you access all your ebooks where you have Dropbox installed, but you won’t be able to convert them to other formats. Also, be warned that it looks as if Dropbox has cracked down on this in at least a few cases.

Photo courtesy of Shutterstock / Borys Shevchuk 

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In the last few years, entire websites aimed at promoting free Kindle books have sprung up. Their business model is primarily referral fees: When a visitor to one of these sites clicks on a link to Amazon to download a free ebook, but then buys other products on Amazon within 24 hours, the original site gets a percentage of those unrelated paid sales.

Amazon is now cracking down on this. The company notes on its website that as of March 1:

“Associates who we determine are promoting primarily free Kindle eBooks and meet both conditions below for a given month will not be eligible for any advertising fees for that month within the Amazon Associates Program. This change will not affect advertising fees earned prior to March 1, 2013.

1. At least 80% of all Kindle eBooks ordered and downloaded during Sessions attributed to your Special Links are free Kindle eBooks

2. 20,000 or more free Kindle eBooks are ordered and downloaded during Sessions attributed to your Special Links.”

The new policy will primarily affect the largest free Kindle book sites — Ereader News Today, BookBub, eReaderIQ, Pixel of Ink and Free Kindle Books and Tips. Some self-published authors fear it will also affect downloads of their titles. Self-published authors who make their books available to the Kindle Owners’ Lending Library are also allowed to run special promotions where they can give their books away for free for a day, to drive sales. And many self-published authors use the free Kindle bestseller lists to gain publicity for their books.

“This is definitely going to make life for Indies [self-published authors] much much tougher,” one author writes on the Kindle Boards. “After all, we depend on these free runs for the ranking and therefore sales boosts. Without the free book sites, how will we reach those people who want to download free books?”

Is Amazon starting to emphasize paid Kindle books?

The self-published author David Gaughran sees a trend in Amazon’s attitude toward free Kindle books. He wrote to me in an email:

In mid-March last year, Amazon began trialling new versions of the algorithms which decide the ranking on Popularity Lists before settling on one iteration in May which no longer counted a free download as a paid sale, but as one tenth of a paid sale. This had the instant effect of greatly reducing the “post-free bounce” which many self-publishers had been witnessing after a KDP Select free run.

On top of that, towards the end of last year, Amazon began experimenting with hiding the Top 100 free behind a tab (they are usually listed beside the Top 100 paid books which gives tremendous visibility). They haven’t decided to make that change permanent yet, but the very fact they are experimenting with it is a possible sign of things to come.

But Gaughran isn’t too worried: The existing free Kindle sites “will need something to feature, and we could see the 99-cent price point become hot again as self-publishers move from free-pulsing to price-pulsing.”

Big free book sites plan to change their policies

Michael Gallagher, who runs the site Free Kindle Books and Tips, writes in a blog post that he expects a lot of free Kindle book sites will have to shut down. While he notes that Amazon’s new 20,000 free Kindle book-per-month threshold sounds like a lot, he estimates that clicks on his site’s affiliate links result in about 50,000 or so free ebook downloads a day.

Gallagher’s not shutting down his own site: He’s changing its name to Kindle Books and Tips and will focus more on tips and bargains on “quality” content and less on free content. He’s also going to start accepting advertising from self-published authors. ”I am lucky in the fact I didn’t quit my day job, but there are many other individuals and companies out there who have built a business around the promotion of free Kindle book offerings,” he writes, and “this move by Amazon will put many of these people out of work starting next week.”

Greg Doublet, who runs the site Ereader News Today, told me in an email that he thinks Amazon’s changes will be good in the long run: “it will get people not to rely on ‘free’ to get their books. It was a matter of time before something like this was bound to happen.” He says he’s been making changes to Ereader News Today in order to comply with Amazon’s new rules, and like Gallagher is emphasizing more bargain books and fewer free books. “Maybe 99-cent books will become the new free,” he said, “and authors will start to earn more money for their efforts.”

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At the O’Reilly Tools of Change conference last week in New York, Paperight’s Arthur Attwell and Worldreader’s Michael Smith outlined several companies’ efforts to bring new ways of reading to developing countries. Here’s a brief introduction to each of those companies.

Paperight

Arthur Attwell worked in educational and scholarly publishing in South Africa for several years while cofounding and running a digital publishing company called Electric Book Works. But, he said, “The more I worked in ebooks, I found that I was essentially making ebooks for rich people. I didn’t think that was a very interesting challenge.” South Africa’s digital publishing market, he said, is supported by just one or two million wealthy people; the country’s remaining 48 million residents can’t afford it.

Digital wasn’t the solution for Attwell: The most recent South African census found that 65 percent of the country’s residents have no internet access at all. But, Attwell said, every South African village, town and city has at least one “photocopy shop” with copy machines and those buildings usually have internet access. His company Paperight, launched in May 2012, takes advantage of those shops to distribute books. A store registers on Paperight.com, opens a prepaid account of credits and instantly gets the legal right to download and print books for their customers. Over 200 South African shops, as well as a few in other African countries, are now using Paperight.

Worldreader

Worldreader, an NGO I’ve covered in the past, gives Kindles to students in sub-Saharan Africa and has become increasingly well-known in part because of its partnership with Amazon. (CEO David Risher was previously an Amazon executive.) The company has distributed 428,000 ebooks to 3,000 kids as of January 2013.

Worldreader is now pushing forward with reading on basic mobile phones. An app called biNu lets users download Worldreader books (and other content — including Facebook) over a basic feature phone’s data signal. biNu is now enabled on 5 million subscriber phones, primarily in Nigeria. (The top five book searches, Worldreader’s Smith said, were “sex,” “romance,” “the Bible,” “Harry Potter” and “physics.”) Worldreader is also working with students to self-publish their own writing on Amazon’s KDP platform.

Right now, Worldreader is tied to Kindle. Smith said the company is “definitely looking to get beyond” it, but right now Kindle is the only e-reader that supports 3G. And in many countries where Worldreader operates, internet access isn’t easily available. Smith said Worldreader also needs Amazon’s Whispercast technology to push books onto devices, and other e-reading companies don’t yet have that system in place.

Mxit and Siyavula

Mxit is a social network for mobile phones, with about 50 million users across the African continent. The network relies primarily on instant messaging but also allows access to other kinds of content — including books. One of the first books distributed on Mxit’s platform in 2009 was a novella called “Kontax.” Aimed at teens and available in both English and Xhosa (one of South Africa’s official languages), the book was distributed in parts, allowing readers to discuss it as unfolded. “Kontax” was read 34,000 times, and Yoza, the initiative behind it, has expanded to offer more cell phone novels (which it calls m-novels).

Now, the South African open-source creative commons textbook publisher Siyavula is distributing free math and science textbooks on Mxit. (Attwell’s Shuttleworth Foundation is a backer of Siyavula.) In 2010, following teacher strikes, the South African government arranged to print copies of Siyavula’s textbooks and distribute them to high school students. As a result, over 200,000 South African students have read Siyavula’s content. Now corporations are sponsoring books in new subjects and for younger students.

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