Amazon’s entry into publishing’s traditional casino is a sideshow. More worrisome, at least over the long term, is the success of Amazon’s Kindle Single program, an effort to encourage writers to make an end run around publishers, not only of books but of magazines as well. That program offers writers a chance to publish original e-book essays of no more than 30,000 words (authors agree to a bargain-basement price of no more than $2.99 in exchange for a 70 percent royalty and no advance).

via The Amazon Effect | The Nation.

This article is very long winded but makes a good history reference for amazon.