In 2013 Amazon acquired reading platform Goodreads for a reported $150 million. Until now the only source of revenue on the site was book advertising. Now, it appears that Amazon will finally use the treasure trove of data on the site to sell books:
“On May 17th, Amazon-owned social reading platform Goodreads announced a new deals service, Goodreads Deals, that will notify users of ebook deals. The deals will be personalized according to genre preference and the reviews of fellow readers, as well as readers’ own wishlists.”
Unfortunately the deals will only be limited to the U.S. Although surprisingly the deals will be available on any platform, not just the Kindle:
“Goodreads Deals is initially available only to U.S. users, and will include deals from a multiple platforms, including the Kindle Store, Apple iBooks, Barnes & Noble Nook, Kobo, and Google Play.”
According to Fotune, this use of Goodreads data could be just the beginning:
“Taste is such a nuanced thing that according to Netflix NFLX 3.28% , another portal with a lot of data on media consumption, traditional demographic measures like location, age, and gender are “garbage” for helping divine what people want to read or watch.
While it’s starting close to home, Goodreads’ data could conceivably be leveraged much more broadly, to sell users not just books, but movies, games, even home décor or food. Amazon’s retail portal, of course, learned the ropes of that game long ago, also starting with books. But Goodreads has arguably managed to create a more dedicated and active community than Amazon AMZN 0.57% , which could produce better data. The site currently reports a userbase of 50 million.”
This is a good move on the part of Amazon. This will allow them to gauge the effectiveness of how well the recommendation engine works on the Goodreads data and then expand the program from that point.