'with Amazon' replacing 'with Google' on Android?

Amazon is set to launch an Android Tablet on Wednesday. What if they license their code too? Android as experienced on phones is actually two separate software bundles - the Open Source core of Android, and the proprietary 'with Google' applications, including the App Market, Maps, Gmail, Talk, Contacts, Listen and other apps bound to Google services, and requiring a business development deal to ship with a device. Eric Schmidt explicitly discussed this strategy at Dreamforce.

Now there are already more Android devices than I can count that don't follow the 'with Google' playbook, including the Barnes & Noble Nook that probably inspired this response from Amazon, but there are hints of a broader strategy here. What if Amazon offered an alternative to Google's top half of Android? I think Amazon does not really want to be in the hardware design business, but wants to be sure that they can't be locked out of it or forced to pay extra by Apple, Google or any other potential competitor. As well as releasing their own 7" tablet, they could offer an Open Source or lightly licensed version of their stack to other hardware developers.

Why would Amazon do this? Because they are primarily in the shopping and media business. Apple has stopped them selling eBooks and media inside their apps on iPad/iPhone; Google has banned their App Store from the Google Android Market. Amazon could even offer a referral fee for anything bought via their store as an incentive for device manufacturers to ship it.

An even bolder step wold be to actually fork Android. Google has a delayed-open model for Android source, where a new version is released in public after a closed development process, without a clear way to send in patches to Google. Amazon could put their current version up on Github, accept patches, and treat Google's new drops as another source of possible patches.

Understanding each company's core business is what makes this likely. Apple is in the devices business, with the media business as a small side earner designed to make their devices more attractive. Google is in the Advertising business, with their Android business designed to make searching everywhere, continuously more likely. Amazon is in the shopping business, migrating from physical goods to media, with Kindle a way to drive this. A tablet that they can sell audio and video to as well as eBooks makes more sense to them if it as widely distributed as Kindle playback apps are now.

Is Netflix picking the right disruption?

The decision to split Netflix into two companies, with the poorly-named Qwikster getting the DVD by post business and Netflix keeping the streaming business has caused a lot of fuss. Bill Gurley suggests that this is due to the very different licensing regimes the two businesses work under, and Clayton Christensen has praised this an a rare example of a company pre-emptively disrupting itself.

However, Reed Hastings gave rather non-plussed responses to those who complained about not having the two queues (DVD and streaming) integrated. As danah said,

It may seem logical to split the world based on business models from the inside of a business, but if you want your business to succeed, you should be focusing on understanding your users' mental models. And those aren't organized along business lines. They're organized around movies that they like, obtained by the means that is appropriate to the particular context of that user. People understand Netflix through its database of movies and the ratings that they've spent time providing, not its distinct queues.

Hastings clearly isn't thinking about this from our point of view - we want to watch something, and are much less focused on the particular medium. Instead of separating the two modes, Netflix should be uniting them further - help us book cinema tickets too, or buy Blu-ray discs. Encourage us to bring in information on favourite films and TV shows from Facebook, Amazon, GetGlue. They still could do this in an exemplary way by having Netflix and Qwikster share users' information through public APIs that others could use too. Activity Streams was made for this.

Being on the users' side in this way is another disruption, and indeed several startups at TechCrunch Disrupt had this mindset - what Doc Searls's VRM project calls '4th party tools' - ones that mediate between the customer and the vendor on the customers behalf. Cake Health mediate between you and insurers, TalkTo between you and local shops, FlickMunk between you and cinemas, and u4them as a way to donate to others medical bills.

The deeper currents of disruption of the film and TV industry are showing up in music. At SF Music Tech last week, turntable.fm was on everyone's lips, as the site that has got us all sitting round playing music for each other again, like the older label execs fondly remember from the 1970s. What it has done is apply the semi-overlapping publics and sharing models of twitter to listening to music together.

The other critique of Netflix that I saw was Megan McCardle saying that they were freeloading on the studios by only paying the marginal cost. Someone has to fund the creation, she pleads with us. Again, the answer was assumed at SF Music Tech, in the form of Kickstarter, which explicitly encourages people to fund production, and not just at marginal cost either. A key part of a successful Kickstarter project is widely spaced payment options, the special deals that are really about showing support with largesse. That these are power-law distributed seems odd at first sight - why would people pay more? But in fact it makes perfect sense. Income and wealth are power-law distributed in the US too, so people can pick the level of patronage that fits their income.

Independent artists like Pomplamoose and Zoë Keating are not served by the commodity pricing of Spotify - many are removing their songs from the catalog; they'd rather host them for download themselves. Zoë reports that her Bandcamp site, which lets you pay as much as you like for an album, has received payments of $8 to $500. Because they want to support her.

Cory Doctorow once said that "If big-budget movies might turn into opera, then long-form narrative books might turn into poetry." Opera has long understood the power-law distribution of wealth, and seeks donations in the same kind of structure.

In some ways, this power-law distribution of price is visible throughout commerce in the US. You can pay anything from $1 to $5000 for a burger, with price points inbetween, similarly for housing, transport, drinks, clothing, shoes, you name it.

The old economic choice between a commodity business that's all about margins, or a fashion business that is about competing for the most popular spot is finding a new accommodation. The discovery mechanisms like Turntable, Spotify, Pandora, and yes even Netflix, need to connect to these artist empowering patronage sites, as well as the commodity playback from the industrial aggregators. They need to lead people to Kickstarter and Bandcamp too. They need to be convenient, comprehensive and supportive of those creating art.

Update:Zoë Keating on Spotify, Apple and Independents (and lettuce)