Amazon Offers Publishers A New Option: DIY Apps

Kindle KDK (Kindle Development Kit)

One of the biggest knocks toward Amazon’s Kindle has been the closed nature of the Internet-capable device. That starts to dissipate today with word from Amazon (NSDQ: AMZN) that “later this year” the Kindle Store will start featuring “active content” produced by developers who can suggest their own prices and get 70 percent of the take after delivery costs. The Kindle Development Kit is already in use by a small group of developers including Electronic Arts (NSDQ: ERTS) and Handmark, which is building a Zagat app. Amazon is taking names for more to participate in a limited, U.S.-only beta to start in February.

Timed a week in advance of Apple’s anticipated unveiling of a tablet meant to compete on the e-book front, the announcement is the latest sign that Amazon wants to build a better image with publishers and make the device more useful to consumers — within its own limits, of course. Wednesday, the company unveiled a new royalty plan that lays out how publishers who publish e-books through Amazon can make 70 percent.

Developers can’t include “VoIP functionality, advertising, offensive materials, collection of customer information without express customer knowledge and consent, or usage of the Amazon or Kindle brand in any way.” They are also banned from offering a “generic reader.” But publishers who have complained about the way Amazon handles pricing would be able to develop their own active content and suggest their own prices. Amazon still keeps the customer relationships, though, which means this isn’t the solution Rupert Murdoch wants. The apps fall into three pricing categories:

Free: for apps that are smaller than 1MB and use less wireless data than 100KB per user per month. Amazon covers the costs.

One-time payment: The fee will be split 70-30, net of delivery fees of $0.15 per megabyte, The app has to be priced to cover the costs of downloads and on-going usage.

Subscription: Same split but for monthly charges.

The apps are limited in size to 100MB; anything larger than 10MB will have to be downloaded via USB, not wireless.

Ian Freed, VP for Kindle, told the New York Times he expects a wide range of programs, including utilities like calculators, stock tickers and casual video games, along with searchable e-books. Amazon said Handmark is building an active Zagat guide, while Sonic Boom is building word games and puzzles.

In other Kindle news, it looks like Amazon is offering some heavy book readers the chance to try the e-reader under an unusual program. TechCrunch readers have spotted an offer to buy the Kindle, try it for 30 day and get their money back if they don’t “love” it. The kicker? They get to the keep the Kindle they don’t love — and the branded cover. The offer expires at midnight Jan. 25.

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