Can Twitter Be The Next Amazon?

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Twitter Inc TWTR is turning out to be a messiah for the publishing industry. After a bitter war fought over years with Amazon.com, Inc. AMZN, publishers have almost given up on the company and are exploring new ways to monetize. Hachette planning to sell books through the micro-blogging site is one of them.

Whether it works or not is a different question, but if it does, it will surely provide Twitter with an additional revenue stream that the company is in much need of. 

Bloomberg's Contributing Editor Paul Kedrosky recently discussed how this deal can prove beneficial for both the companies involved.

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“Absolutely. I think many people will be baffled that it wasn’t happening already, that this some kind of merchandising happening directly between authors and their buyers. This has been happening a little bit at the fringes, but this is the first one that I am aware of that a major publisher working directly to use the Twitter buy button to allow an author to sell directly to its readers,” Kedrosky said.

Next Amazon?

When asked if Twitter can be the next Amazon and do this on a massive scale, Kedrosky said, “I go back to history and go back to the mid 90’s and people would say ‘oh you know, people are never going to buy books over the Internet, that this doesn’t make any sense' and then in the middle part of the last decade it was ‘well, people will never do it over mobile’ and now we are having the same conversation over doing it over social media.

"I think the reality is that we are discovering is that people will buy stuff and particularly things like books pretty much anyway you can connect them with the supplier," he said, jokingly equating the transaction to drugs.

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Posted In: CNBCTechMediaBloombergPaul Kedrosky
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