The tech blogs are buzzing with reports of Amazon.com's (Nasdaq: AMZN ) plans to build an Android App store. While Amazon has not confirmed or provided details about its plans, Amazon should build an Android App store, and Google (Nasdaq: GOOG ) should welcome its arrival.
What's in it for Amazon?
No doubt Amazon would take a generous revenue cut on the paid apps sold in its Android store. But just as important, having an app store helps defend Amazon's position as the online go-to for media -- books, music, movies, video games, and more. Currently, 52% of Amazon's revenues are generated by such media. Like book publishers, movie studios, and video-game makers, Amazon must prepare for a future when physical media -- DVDs, boxed software, and printed books -- become a rarity. The company's Kindle e-reader and Kindle apps help the company's position with books, but aren't enough.
What's in it for Google?
Google's Android has been a success in the wireless operating system market. How many products can you think of whose U.S. market share reached nearly 20% in barely two years? But, I would argue that Android's growth has come primarily from