Hard to say for sure, really, given that it hasn’t even launched yet, but Amazon’s plans for the “Kindle Singles” service – which in essence appears to be ebooks of the long short-story to novella length – certainly has the potential to put money in the pockets of genre fiction’s clade of short story writers. The shrinking circulations of the Dead-Tree Big Three aren’t looking like a long-term prospect for the short form’s survival, and hell knows that recent experiences right here have demonstrated that making the free-to-read webzine model sustainable is no picnic, either (though I hold hope for better-funded projects such as Lightspeed and Tor.com going the distance, alongside established non-profit outfits like Strange Horizons).
The real (and as yet unanswered) question is whether people would read (and pay for) short stories if they knew where to find them; the search-term browsability of a platform like Amazon certainly offers the potential to put short stories by known names in front of potential readers who might otherwise be ignorant of the form, and there’s plenty of good (albeit as yet entirely theoretical) arguments that short stories are better suited to the when-you-get-a-moment reading habits of the modern reader. I suspect the most important factor will be pricing, with a splash of gatekeepering and/or curating to filter for quality; if a writer hits the right price point and has a bit of luck with word-of-mouth, the potential is there to cut out the magazine middle-men and reach an untapped audience.
My concern (as a fussy reader and a critic) is that the market’s definition of quality will probably differ wildly from my own; the success of Dan Brown is a clear indication that this is inevitable. But if big digital sales of awful literature support an ecosystem that lets the little guys make a living, well, I think I’ll be able to live with it. Plus ça change, non?