3 Reasons Publishing Giants' New Venture Will Bruise Amazon

The five powerhouse publishers -- News Corp., Time Warner, Conde Nast, Hearst and Meredith -- said the new e-reader platform will open the door to a "rich array of innovative advertising opportunities" for themselves and other publishers.

The e-reader platform and content storefront from the publishing giants is a united strike of sorts against Amazon, which is attempting to grab the lion's share of revenue from content sold on its Amazon Kindle platform.

Here are three reasons the new content storefront and open e-reader platform will hurt Amazon's Kindle and the Amazon content store.

1. The Publishing Giants' Venture Is A Better Deal For Newspapers And Other Content Providers

Amazon takes a 70 percent cut of the revenue from newspapers and magazines sold on the Amazon content store. That leaves only 30 percent for newspaper and magazine publishers shouldering the heavy cost of creating content.

The new venture from the publishing giants provides better terms for themselves and all publishers. That will almost surely mean publishers will decide to place a bigger bet on the new content store rather than Amazon.

This new publishing giants' venture is a direct hit against what many of them view as the unfavorable Amazon revenue-sharing terms.

2. The Open Platform Provides Access To Content On Multiple Devices; Amazon's Kindle Is A Closed Environment

The five publishing giants are pushing an open e-reader platform. That is in sharp contrast to the closed proprietary Amazon Kindle environment.

For example, newspapers purchased on Amazon's Kindle cannot be viewed on Sony's E Reader.

The aim of the joint venture from the major publishers is to provide an open platform that will allow users to buy content and then enjoy it on multiple platforms from smartphones to netbooks to laptops to desktops.

3. The Publishing Giants' New Platform Provides A Better Reader Experience Than The Amazon Kindle

The publishing giants have banded together to offer a more enjoyable reader experience than offered by Amazon's Kindle.

The fact is the publishing giants are offering a common reading application capable of rendering the "distinctive look and feel of each publication."

The Amazon Kindle is a "my way or the highway" platform. The publishing giants' new venture is a "have it your way" platform.

Make no mistake about it. There is a big difference in the reader experience being offered by the new open e-reader platform from the publishing giants and the Amazon Kindle.

Amazon's Kindle has has just been rendered technologically obsolete by publishing giants that have the cash, technology smarts and, more importantly, knowledge of their readers' likes and dislikes to deliver a better and more intuitive user experience.