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Insights and headlines from Shore analysts on trends in enterprise and media content markets.
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| Wednesday, April 14, 2010 |

Westport, Connecticut offers its residents many benefits, one of which is an excellent public library that has become an ever more central component of our community. As prime local retail storefronts have been overtaken by national and regional chains and the Web absorbs much of our attention for personal contact, our library serves as not just a repository for knowledge but increasingly as the primary pubic facility used by many citizens. A storm knocks out your power for a few days? Camp out at the library and use the wireless and PCs to keep in touch with the world. Need a place to socialize or hold a business meeting in a place that's not too commercial? Grab a coffee at the library cafe or use one of its meeting rooms - that is, if you're lucky enough to be able to book one.
The problems and opportunities that our public library faces were the focus of a recent public forum that I attended, a meeting that drew some thoughtful citizens to respond to the library staff's planning efforts. What came through loud and clear from this session is that in spite of the "the Web is killing libraries" meme that is popular in some circles these days, our library suffers not from lack of use but rather from overuse. Its books, reference desk, reading rooms, book clubs, online databases and Web site, lectures, equipment rentals and childrens' programs are the focus of so many people in our community that competition for access to them is creating some hard choices for the library's planners. How does a public library adjust its resources and programs to serve a public that is hungry for far more than just access to books on shelves?
The answer to this question is complicated by the changing nature of content. Now that our local news is being delivered not just by local newspapers but as well by local Web sites and blogs and other online resources, archiving local news and knowledge is not as simple as tucking away the latest catalog of microfiche or stack of papers. Ebooks are increasingly popular as checkout items, but an expanding array of technologies makes electronic acquisitions for ebooks more complicated. Many towns and cities participate in collective bargaining for books and periodicals, but acquisitions still tend to be done on a town by town basis. And even as our library prepares to upgrade its cataloging system, the question of what should be in that catalog becomes ever more pressing.
In short, what is a public library is supposed to be in an era in which storing a print-based catalog of items is becoming one niche service amongst many is rather complicated. Most importantly, the older patrons of our local library were not necessarily the ones most focused on print services. Many of them were, in fact, more concerned about whether their grandchildren would have the right range of electronic services available for them. They understood clearly that the world is now focused on electronic content and that our library needs to focus on getting them literate in this emerging world. This includes, increasingly, ensuring that people in our community are literate not just about content that's been created by others but also literate about how to create content. Yes, our high school has some courses in this for the teens, but what about a local businessperson who needs to understand how to build a Web site or to optimize their ads for Web search engines?
One of the more neglected possibilities, though, seems to be the opportunity for local libraries to begin to cut the cord between catalog services and patron services more aggressively. If 90-plus of library patrons are discovering content via major search engines, it would seem to make sense to get library content that's available locally into those search engine results more aggressively. Yes, you have a link to World Catalog in Google Books, but what if local libraries were to expose key content via localized AdWords results in mainstream Google search results? There would be no real competition for these placements and people would be immediately aware that a local library would be a reasonable choice to check out even before they clicked through to a retailer's site.
Most of all, though, public libraries are becoming curators of the very sense of that it means to be in the public realm in our local towns. Our downtown resembles more a drive-through mall festooned with nationally known stores than the funky collection of local stores that used to thrive there years ago; our local movie theatres pulled up stakes years ago to make way for restaurants and retail space. A Starbucks or a McDonalds is a far cry from a place that people can really call their own as a public space dedicated to a community. Our town hall, once a school building, has an auditorium that's used for public hearings, but many people are looking for smaller meeting spaces for a broader number of meetings at the same time. What's needed is a curation of knowledge transfer that goes not only far beyond collections of books and journals from far and wide but also beyond what's captured online. It is the community itself that needs to be curated.
I left the library feedback session with a great deal of hope for the future of local libraries in our country. Libraries are becoming increasingly essential components for the economic and social strength of local communities, empowered by electronic content to deliver traditional information services more efficiently while freeing up both facilities and staffs for more complex missions that make use of the unique knowledge assets that can be found and created in our local communities. We are still in the very early stages of this transformation of local libraries into being community curators, but I think that it will prove to be the cornerstone of a renewal of local economic and social vitality. If you know what your town has that's unique and valuable and you make it accessible to the world, and combine it with the best of what's available in the world as a whole, then you empower citizens to invest in their communities far more effectively. Labels: books, connectictut, curation, eBooks, knowledge management, libraries, local, patrons, services, westport
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By John Blossom - posted at 9:50 PM |
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| Friday, February 26, 2010 |

 I just sent off some responses for an email-based interview as background for an upcoming article on ebooks in a magazine. I thought that I would share them with you in the raw here to open a discussion on ebooks that we can continue on Buzz or via the comments section of this blog. What are your thoughts about how publishers should approach ebooks?
Questions and my responses:
—It seems like the specifications for e-readers vary widely from device to device, and this year’s offerings look just as varied. Are there particular capabilities or specifications that publishers are really looking for from e-readers right now? What would an e-reader “silver bullet” device need to be capable of?
Some publishers are beginning to consider new content and features for ebooks, such as video interviews with authors and "hooks" into Web content such as social media services. In some instances publishers are hoping that such value-add content may allow them to command higher prices for ebooks than the prices that have dominated for ebooks from major publishers since the introduction of ebooks on Amazon's Kindle platform. To this end a platform such as Apple's new iPad is attractive to publishers, as it offers a device that can work well as a general computer and as a display mechanism for rights-protected content. But there will be relatively few titles that will be targeted for such enriched content. So what is the "magic bullet" platform for ebooks? The one that's been out there for more than fifteen years, I would argue: the Web. Ebooks will do best when they can be linked into Web content effectively, not necessarily on the device on which we like reading book content the best. With dozens of new kinds of mobile devices being introduced every year, now, it would be counterproductive for book publishers to try to target only a handful of devices for commercial success. It's best for ebook publishers to enable their content to "play well" on as many devices as possible and to ensure that what a reader does on one device can lead to a valuable experience for the same person on other devices that they use. For example, if I have just finished reading a chapter in a book about the state of business and economics in China, that's a great opportunity for book publishers to be able to apply metadata and keywords relevant to that chapter to other services that I as a reader may use. Some of those may be integrated into the ebook reader directly, but I'd probably appreciate them in a private email or messaging service delivered on a platform where I can consume or purchase other forms of content easily. Publishers should think of the ebook itself as just one item in a systematic approach to engaging audiences interested in specific authors and topics. Some of that approach may be delivered best via a publisher or a bookseller on their own portal, but their metadata may lead to rich experiences on partner platforms as well, triggered by contextual advertising network technologies or other technologies.
—On a related topic, are there specific capabilities that consumers are now looking for?
One of the key items that consumers ask for consistently is the ability to call ebook content their own and to be able to manipulate it the way that they would other forms of electronic content. Being able to cut, paste, share and annotate book content is key to enhancing its value in the eyes of book-reading audiences. These types of features, though, are the ones that publishers are least likely to offer to consumers without some form of rights management technology controls. While publishers have a right to defend their copyrights effectively, they have to consider carefully how content reuse and sharing can enhance the value of their products. O'Reily Media, for example, is pushing to have DRM controls removed from ebook content that they distribute, so that it can be used more effectively in collaborative environments. Eliminating DRM can also accelerate the ability of ebook content to be used by its purchaser on any number of technology platforms. This will accelerate also the likelihood that someone will actually read a book that they've purchased. In doing so, that reader is more likely to follow up with more purchases of similar content or value-add content associated with that title.
When you think of it, a paper edition of a book has nothing more than the copyright symbol to protect the legal rights associated with its content. Why would publishers want to frustrate consumers who have already demonstrated via music download purchases that they need the ability to transport content that they've purchased to new types of devices easily without the frustration of dealing with incompatible DRM systems? Ebook services need to enforce copyright but also enable the value of ebooks in as many contexts as possible. DRM services as designed today make that relatively hard to do. What is really needed for ebooks is a built-in ecommerce service that enables both the purchase of ebooks on a person-to-person distribution basis and that enables other types of ecommerce for related content and experiences. For example, if someone forwarded me a link to an ebook for possible purchasing or sharing, I should be able to be presented information about attending upcoming book talks by the author near me automatically on an opt-in basis or related titles or videos that are available. In other words, we can use the offering of content sharing as a revenue-generating experience from many angles.
—Are there any particular e-reader devices coming out in the near future (or that came out recently) that really stick out to you as being potentially influential devices?
Apple's iPad is bound to be an influential ebook reading device, if but because it introduces color formatting to ebooks in a user-friendly design, but I think that the most influential ebook technology will not be any one specific device but the ePub ebook publishing standard. This standard is gaining wide acceptance as a common format for ebooks, although rights management services may differ from publisher to publisher for ebooks published using that standard. Cross-platform standards will help to make ebooks accessible on more devices more rapidly than any one "magic bullet" device can afford publishers. The Nook ebook reader released by Barnes and Noble features ebook content published in ePub format and has been a very popular unit so far. Other devices such as Plastic Logic's Que device are promising advanced touch-screen devices for displaying ebooks and other types of electronic documents, but they are very expensive compared to consumer devices. Probably the most important devices are mobile phones, which are the most plentiful media-displaying devices in the world today. If you can reach book-reading audiences on mobile phones, then you don't have a very effective ebook strategy.
—Are there any specific markets where ebooks have the potential to make a big impact, yet still remain more or less unexplored?
Ebooks open up the possibility of both new ecommerce models and the re-introduction of older commmercial models for books in new ways. For example, in the 19th century it was fairly common for books to appear bit by bit in periodicals. I think that it's worth considering how popular authors may prove to be a source of subscription revenues for book publishers via Web portals for periodicals sponsoring such bit-by-bit access to a book, or even via email or direct downloads onto mobile devices. Ebooks are also just beginning to touch on some of the potential for creating new opportunities in packaging content for educational markets. —Is Apple’s agency model of ebook selling the new standard? Does Amazon have any hope of holding onto its retail/wholesale model, and maintaining control of the pricing of ebooks on its website?
I think that we will continue to see a mix of retail/wholesale and agency models for ebook distribution, but publishers have a lot to gain from the agency model if they choose their partners wisely. Amazon in a sense has an agency model built in to its model in the sense that it enables people to embed "kiosks" for selling books in Web pages. Whether its an agency model or a retail/wholesale model, the important thing for publishers to do is to make people aware of books in as many contexts as possible where people are likely to have interest in purchasing them. Helping Web site developers and individuals with their own social media presences to "dress up" Web pages with information about and from ebooks will get them in front of people at the times at which buyers are going to be most likely to have their attention. —Related question: If the agency model were to become the new standard, what effect would this have on ebook pricing in general? Are ebooks going to become more expensive all around? And would higher prices benefit the industry in the long run, or potentially harm it?
Publishers are looking for better margins and retail prices from ebooks in general. While the agency model has been held up as a tool to enable better prices and margins, it's not clear that enabling publishers to set their own prices via the agency model is going to support prices and margins in the long run that much better than the retail/wholesale model. The agency model also opens the door to price competition between publishers, as they seek the right balance between unit sales and margins. So it's possible that what we'll see in the agency model is a handful of books at higher price points and a majority of books at lower price points. The main problem that book publishers face is not competition from Amazon or ever other book publishers but rather content that's been born on the Web - including ebooks that have been developed through online services. By managing information about what Web-native ebook content is most popular, this new breed of publisher may develop to become "good enough" alternatives to major publishers that many ebook consumers will be glad to consume their ebooks at price points that will be much lower - and, often enough, better integrated into online content. I think that higher prices via the agency model are fine for established book publishers in the short term, but if they don't use those improved margins to invest heavily in digital-first marketing strategies then they are going to squander the real opportunities to develop profitable ebook publishing strategies for the long run. —It seems like the multiple competing mp3 marketplaces quickly collapsed into just two or three players as the digital music market matured. Are we going to see the same thing happen with ebooks?
Just as the commonly accepted MP3 file format flattened out the music player marketplace, so will the ePub format make it harder for devices to develop proprietary appeal based on file formats alone. In the long run that's a good thing for publishers, since it means that ebooks will be useful on billions of devices rather than millions. Book publishers need to be ready to accept that this is beneficial and to prepare revenue models that are designed to maximize the benefits of rapid and broad dissemination of ebooks, taking into the account the potential power of viral marketing. What could be better than to have someone chatting about a book that they loved at a social gathering and to enable people who hear their praise to experience that book in part immediately via a tap of two mobile phones, as used in the Bump mobile application? Book publishers need to trigger sales based on social interactions far more aggressively - search alone cannot help them to build online revenues effectively.
—E-Ink, color LCD, and other display techs like Pixel Qi: what are the pros and cons of the various display technologies? What seems like the most likely way forward for the e-reader industry?*
While eInk has definite advantages under specific circumstances, such as bright sunlight and limited battery recharging opportunities, the increasing life of mobile device batteries and increasing efficiencies of backlit touch mobile displays are making eInk increasingly a niche device play. The real problem with eInk and similar technologies is not the technologies themselves but the demographics of the audiences that they serve. eInk-like technologies are oriented towards people used to print materials. The younger generation of readers has grown up rarely using paper for reading in general, so being able to duplicate a paper-based reading experience, be it in book, magazine or newspaper format, is far less important to them. Paper-analogous technologies tend to be more important to publishing executives stocked with employees who have skillsets most readily adapted to print-formatted materials. Touch-sensitive displays are particularly appealing to publishing executives for similar reasons, but these technologies will benefit Web-native materials as much as they will traditional media materials, so there's no strong reason to believe that they can develop unique market advantages through touch interfaces either.
—How do you feel about hybrid devices like the enTourage eDGe and iPad, which position themselves as being somewhere between an e-reader and a netbook? Are one-purpose e-readers like the Kindle becoming a thing of the past, or is there still potential there?
I think that there's still definitely a place for limited-function ebook readers. Books are a very personal experience for a reader. Book readers tend to use books as an opportunity to spend one-on-one "quality time" with a particular author, tuning out other stimuli to concentrate on what is usually a very carefully prepared manuscript. With that said, though, people find themselves shifting from a book-reading frame of mind to their online frame of mind fairly rapidly and fluidly. For these situations, having an ebook on a multi-function platform can be very beneficial to publishers, as it may allow them to take those moments of transition to put their book content into more contexts at a time when a reader is most motivated to do so. Publishers have been drawn to simple ebook readers initially because they feel that this replicates their existing relationship with readers more effectively - and they do, by and large. But in limiting their vision of their relationship with readers to their existing models, in part to prevent duplication or sharing of book content, they have shut out books from the billions of people who interact with content and with one another every day on the Web. Standalone ebook readers will continue to have appeal, but these devices must enable readers to interact with the Web through other Web-enabled devices more effectively. For example, though I may not want to do social media sharing of a passage from an e-book via a Kindle or a Nook ebook reader directly, I should be able to build a queue of excerpted passages that I can then manipulate via a mobile phone application to share with others. Labels: agency model, amazon, apple, books, DRM, eBooks, eInk, ipad, publishers, retail, wholesale
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By John Blossom - posted at 4:37 PM |
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| Sunday, January 31, 2010 |

 My wife was bugging me before Christmas for a nice toy that I would like as a gift, so I thought that it couldn't hurt to get Barnes & Noble's new Nook ebook reader, which, at the time, was due for delivery before the holidays. With a hybrid eInk display for text and Android-driven touch interface for navigation combined with ePub-formatted documents, at least it would be a "walking the talk" gizmo that reflected how I saw what publishers should be doing with ebook distribution.
Unfortunately on Christmas day I got a nice new traveling case and screen protector, but only a placekeeper for the unit itself, which finally arrived the day that the Apple iPad was launched. Hmm, interesting timing. There's really no comparison, though, between the "whats" and the "whys" of an ebook reader like the Nook and a device like the iPad. The nook is all about simplifying and in some ways enhancing the process of relating to printed material, where the iPad is about the multi-sense world of Web media, with books a nice part of its capabilities but one not necessarily likely to appeal to many of its core Web-raised customers.
The Nook definitely has a leg-up overall on its Amazon Kindle rival, in the sense that it combines both the sophistication of a touch interface with a very simple and enjoyable page-turning experience via its eInk interface. I had my doubts about this combination, but, while not perfect, it works out pretty nicely overall. You can swipe your finger across a row of book, newspaper and magazine titles like you would on a touch-screen phone interface, tap once and start digging in. A second or two after your text is displayed, the color touch interface powers down and you're enjoying crisp eInk text, which only improves its readability in bright daylight. That's a boon when on a beach or in a sunny train or plane seat where moving to a better spot is not an option.
The physical controls of the Nook are bone simple. An "on" button on the top of the unit, a bar between the eInk display and the color touch display that activates the touch screen, and page-turning buttons on either side of the screen. The page-turning buttons are just about perfect and a joy to use. Each page-turning button has a pinhole-sized protrusion in its middle, which makes it a no-eyes procedure to get your fingers in the right place, and no edges. It's a seamless case, so there's no place for dirt, dust or sand to get into the controls or to spoil the smooth look of the unit. Best of all, the buttons are repeated on either side - a huge plus for righty-lefty usability and for when you get in those wierd positions that feel great put that put your hands at odd angles.
Downloads of new and updated materials are smooth and effortless, with simple and well-designed procedures. It's a no-brainer to use for all of its basic functions. Searching the Barnes and Noble store is simple and easy via a touch keyboard, which overall is no worse than Kindle's weird Chiclet-style physical keyboard but has rather slow typing response and an early-release Android look and feel that leaves something to be desired compared to the Android-based Nexus One phone that hangs next to me most of the time. Barnes and Noble also provides its own content via "The Daily," a daily newsletter that includes a listing of your latest content downloads. You can accelerate download performance by powering up your Nook on your local wireless network, but it will drain your batteries fairly rapidly. Without a wireless LAN connection or a lot of use of the color display, your batteries can last for days, typically, since the eInk display is not powered once a page is displayed.
While I am certainly open to reading book content on powered displays, I really like this "off" nature of eInk. After a day of staring into backlit computer and phone displays, there's an "unplugged" aspect to the Nook that fits the nature of book reading nicely. Reading books is about sharing some "quality time" with the thoughts of another person. The simplicity of the Nook encourages me to tune out many of my typical daily electronic distractions and to focus on one relationship. Want Web browsing? Go to your PC or phone, please. The only other significant function of the Nook is its ability to play downloaded music, which is a nice complement to reading, if I am willing to tax the batteries a bit. Downloading tunes from a PC is easy via the Nook's standard USB cable, which doubles as the charging cord when plugged into a special AC converter. Economy of design and purpose is the theme with Nook, and overall it delivers on that theme well.
However, the Nook is far from perfect. The delay in getting this unit to market was doubtless getting some of the product development kinks out, some of which still shine through. The most glaring problem with the Nook is its overall performance. Loading large books for reading can take several seconds in many instances, and some large ebooks did not load at all (possibly due to being formatted an older proprietary format not compatible with Nook). Page-turning is quick and smooth enough and bookmarking functions simple enough, but the bookmarks themselves cannot be given easy-to-use human names; you're stuck with a geekish, URL-like name based on chapter numbers that is hard to understand. At times it seems that bookmarks were not being saved. The note-taking capability on the Nook is decent but nominal at best, not something that's likely to satisfy a real student or scribbler often. You can bump up font sizes in the eInk display, but there's only three settings overall for font sizes. An extra-large font setting would be nice for those days when your eyes have had far too much work. Combine these rough spots with the touch keyboard issues, and it's a fair bet that the Nook needs a newer version of Android ASAP to improve performance and a few interface tweaks to boot.
 And while the online store interface is smooth and features millions of books from Google Books, Barnes and Noble's own ebook title offerings are still a little bit thin; you'll get most major titles, but don't expect too much peripheral content beyond Google's offerings. Some of the ecommerce for newspapers and magazines is still a little rough also. The online store, for example, lists The New York Times as a $13.99 subscription. For, what, a month? A year? It doesn't say. The subscription provides only a subset of NYT information, which is a bit annoying, but you get at least the highlighted stories that you're likely to want to spend time with in an "unplugged" mode on the Nook.
Finally there's the color touch display, which feels comfortable to use if you're used to touch-screen phones and is generally a pleasure to use, with easy-to-use menus and features that are well-designed overall. The main annoyance here, though, is that after a day of touching the screen of my Nexus One, it feels kind of awkward to look at content in the eInk display that's controlled in the touch display below it. A full-touch display such as in Plastic Logic's new Que document reader would be ideal, but I am not interested in hauling that much hardware around. A Nook slips comfortably into my parka pocket and is not hogging up any significant space on the coffee table next to my favorite reading chair. And again, since book-reading is about getting into the words more than fiddling with features, I am willing to live with the compromise.
I am not really sure that you can call the Nook clearly superior to the Amazon Kindle as a machine, but it's definitely a sleeker and more flexible unit overall with better design and more potential for improvement via its Android underpinnings, as well as more potential to get your content to play nicely in other ebook readers via its use of the ePub formatting standard. I was unable to test out the book-sharing feature yet with another Nook user, but this is certainly an important first that deserves at least a nod of appreciation for the many efforts that Barnes and Noble has put in to replicating some of the most important parts of the book-reading experience. Nook's titles are a little pricier than those found in the Kindle store, but that's a small price to pay for the ability to use content on other ePub-compatible readers. Lock-in to the Kindle system is the price to pay for it's cheaper titles, a price that I am not willing to pay.
And I suppose that's the point of the Nook at the end of the day. It's a great little reader that will allow one to prepare for any number of great new ebook-displaying products that will be coming out in the years ahead. With the Kindle, or, for that matter, materials on the iPad purchased via Apple's online store, you're likely to have a more restricted range of technology options moving forward. It's not clear that standalone ebook readers will be with us much longer, but for those wanting simple functionality in a rugged unit with great battery life that will be highly usable in any number of conditions that would be daunting to many advanced display units, the Nook offers a good reading experience and the ability to escape without hauling around a pound of books - or Jeff Bezos' business model hangups, either. That's good enough for me today, at least. Labels: Android, apple, barnes and noble, eBooks, eInk, epub, Google, ipad, nook, readers, wireless
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By John Blossom - posted at 4:01 PM |
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| Wednesday, January 27, 2010 |

 With the media industry salivating over Apple CEO Steve Jobs' announcement of the new iPad as if it were awaiting an injection of Viagra, you'd think that the machine would do everything except change a flat tire. Well, the hoopla is over, and the iPad is...a large iPhone, essentially. Nice, sexy, though functionally not really a breakthrough device compared to the impact that the original iPhone had on mobile markets. However, then the other shoes started to drop after the klieg lights on the announcement stage began to cool off a bit. The two key factors: price and e-book packaging.
First, the price. At $499, the iPad is coming out at a blow-away price point that will make its purchase an attractive and simple alternative for many people who would otherwise be considering a PC or Mac as their next step-up from a mobile phone - or a slightly more pricey unlocked Google Nexus One superphone. This matters in a big way to global markets, where billions of people who are experiencing Web content for the first time on mobile phones will be looking for their next step-up device for content consumption.
Keep your eyes open also for possible subsidies on this price point as mobile network-enabled versions of the iPad hit the market. Just as King Gillette figured out how to give away razor handles to sell disposable razor blades, Apple will find many ways to lower the cost of hardware acquisition to lock people into their software and ecommerce services. Since the iPad technology and apps are largely warmed-over iPhone components, one assumes that not much R&D was required to launch this model, so there must be a good amount of "wiggle room" in the iPad's pricing for such deals.
Its aggressive price point also pegs the iPad as a highly attractive alternative for educational markets, the original market that launched Apple's growth years ago as a scrappy alternative to then-crude PCs. Given the average college student's expenditures on textbooks, an iPad equipped with ebook versions of those texts that they can use for most other schoolwork along with their favorite entertainment will be a very appealing option. It's also a price point that pretty much resigns most existing ebook readers to also-ran status as cost-effective platforms for people on the go. What do you want at your train or airline seat as a light PC alternative, an ebook reader or something that can also play movies and help you get some emails done? Problem solved.
The other factor that is very appealing on the face of it is Apple's decision to deploy an iTunes-like eBook store with content formatted in the ePub open-standards ebook and emagazine format championed by the International Digital Publishing Forum for several years. Having an ebook reading software package that will, in theory, be compatible with content purchased from any ecommerce service using ePub-formatted content will be a great boost to ebook, enewspaper and emagazine sales. However, the caveat with Apple's use of ePub standards is that ePub leaves the door open for the optional use of proprietary DRM tools, such as those used in Apple's iTunes store and Barnes and Noble's online ebook outlet.
If you're happy using iTunes on whatever platform you're using, then chances are Jeff Bezos over at Amazon just bought himself a huge headache after having alienated publishers with onerous revenue share agreements to get content in Amazon's proprietary Kindle format. I've said it often that the proprietary Kindle format was a dead end, but no more so than today. In a sense I wonder if the publishing industry went along with the proprietary Kindle early on as a ruff of sorts to keep the combination of Amazon, Google and open standards from running away with the entire premium content ballgame while they developed a more palatable alternative. That may be giving the people involved too much credit, but it's curious. Perhaps it's not too late to dust off some of those "GoogleZon" memes, after all.
Now that the book industry and other media producers have an alternative to Amazon's stranglehold on them, it will be interesting to see whether they will find themselves in a new Catch-22 situation. Have they run from Amazon's dominance only to discover that the grip of Apple's DRM on ePub-enabled content winds up being an even worse stranglehold in the long run? Time will tell, as will the details that unfold over the next few weeks regarding the iPad's compatibility with premium content purchased from non-Apple outlets. If it's easy-peasy to pull up content purchased elsewhere in ePub format on the iPad, then publishers will have done themselves a great favor. If they drank too much of Steve Jobs' Kool-Aid and allowed it to be hard to use other DRMed or non-DRMed content via Apple's ePub reader, then it will be a more-of-the same dilemma for publishers overall.
While the media industry seems ready to declare Steve Jobs the next David Sarnoff, their "homeboy" genius of content, technology and human insight, the overall reaction to the iPad by consumers so far seems to be warm but not necessarily hot. If you love Apple products already, then you're probably going to plunk down your five Franklins as soon as you can. If you're a person who's already equipped with a decent PC, an iPhone or Android-enabled mobile device, then you're probably saying, "Oh, a big iPhone, neat" - and then going back to surfing the Web. iPad as a gizmo is nifty, but it's not grown new capabilities that people haven't seen before in one form or another. If you're an enterprise I.T. manager, you're probably saying, "Oh, brother, another device to deal with, thank goodness it's basically just an iPhone" - which may simplify adoption at schools and universities especially.
And if you're a book or magazine publisher, then you're probably feeling pretty good at the moment - but then, perhaps, realizing that Jobs spent most of his demo showing how great it was that the iPad rendered Web pages and YouTube movies so well. Sorry, dear publishers, the Web is not going to disappear just because there's a handy new netbook that does DRM the way that you want it to. The iPad will definitely be a boost for print-formatted electronic content, but this is highly unlikely to address key revenue and cost issues that are ultimately the enemies of many publishers. By the time that iPads start coming out in March (and in April in mobile network-enabled configurations) , competitors will be that much further down the road towards their own cost-effective tablet and touchpad interfaces that are likely to be committed to open standards more aggressively.
Yes, this means that Google is still very much in the mix for premium content. Google's Chrome OS will be available in the next year, and rest assured that this next-generation computer operating system will have some deployments that will be remarkably iPad-like. Already its Android operating system is the basis for Barnes and Noble's Nook ebook reader being shipped in a few days, equipped with ePub-formatted content. Could this alliance form the basis for another end-run around Amazon for book and magazine publishers? It seems that not too long from now we will start thinking of Google and Apple the way that we used to think of television and radio networks, with Microsoft striving to get its own new-generation devices into the mix as well.
In the meantime, there are TiVos, Playstations, mobile phones, ereaders and a galaxy of other gizmos that will keep both the iPad and any other particular device from being a "magic bullet" that will solve the distribution problems of media companies definitively. All hail Jobs, today's knight in shining armor for a content industry still struggling with the realities of the Web some fifteen-plus years after the launch of HTML-based graphic browsing on the Internet. Then let's look at how many gray hairs some of us have gained since that time - and accept that the iPad is just another beautiful, functional tool from Apple that cannot stave off the effects of the Web indefinitely. Even with Viagra, you have to come down to life size eventually, after all. Labels: amazon, apple, eBooks, epub, Google, ipad, iPhone, standards, Web
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By John Blossom - posted at 3:05 PM |
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| Friday, January 15, 2010 |

 This year's International Consumer Electronics Show was awash in more tablets than a local pharmacy, with both actual models being shown and overarching buzz from Apple's anticipated iSlate tablet offering expected later this year. While many of the new tablet models were largely warmed-over versions of netbooks or smartbooks, some were oriented towards executives and (presumably) wealthy students who would be willing to pay close to a thousand dollars for a tablet that "acted" like a paper document. Two key models making their debut at CES in this column were the Hearst-sponsored Skiff newspaper and magazine reader and the Que document and e-book reader from Plastic Logic.
The Skiff initiative from Hearst is far more than a tablet gizmo, encompassing distribution on a number of platforms including smart/super phones, PCs and other devices on which their clients would presumably want to view content laid out in traditional print format - and pay presumably premium print prices for it. The reader itself has a display almost as large as a typical notebook PC, with wafer-thin construction, eInk-like resolution and touch-screen activation. The Que reader is a similarly "thin is in" device, but the content that it can manage is oriented towards both traditional media and enterprise document management. The idea behind both devices is that you can have the convenience of digital storage and display without the hassle of dealing with Web-oriented content formats.
The real rationale behind these initiatives, of course, is more of a regressive approach to content than a progressive approach. The Skiff screams at its audience, "Print formats are still relevant, darn it!" while the Que burbles out, "Web sites for collaboration? Nevah hoid of it." And in common to these devices both traditional publisher and enterprise document management business models hope to thrive by locking in support for bright and shiny new high-tech toys that amuse people enough to let them forget that they are paying not just for a pricey device but for outmoded ways of looking at content aggregation, integration and contextualization. The Web site for Skiff tells people first that it's a "publisher-friendly" device, meaning that publishers can obtain revenues from lock-in via proprietary formats while changing as little of its outlook on its revenue streams as possible.
I am hard-pressed to think of an army of executives who have to already juggle laptop PCs, smartphones and other gizmos who will find their world to be truly simplified by this emerging world of proprietary devices. There's little doubt that the tablet format for devices will begin to pick up steam this year, especially those that are touch-enabled devices that help to eliminate the need for physical keyboards. But much of the tablet buzz is smoke and mirrors for journalists, hiding the broader reality that most major publishers are faced with a world in which their revenue streams are drying up and unlikely to be propped up for very long by proprietary tablet plays. None of these devices seem to address the primary issue facing their operations: namely that the Web as a whole is far more interesting and engaging to its readers than any given publication.
Publishers do need to focus on quality editorial operations, to be sure, to ensure that they have a product that's worth the premium prices that they hope to extract on their tablet devices. But their real competition is not bloggers or online aggregators, but other Web formats. The ease with which video can be displayed both on PC and mobile devices and the rapidly accelerating integration of voice services into Web services is creating an environment in which an enormous amount of information is being created and shared with people around the world well before it ever gets into words. The prevalence of status posting services such as Facebook and Twitter make people aware of the first and best news coverage of an event to the point that follow-up reports are as redundant to the general public as they are to stock traders equipped with real-time news feeds.
Yes, the experience of print is engaging, and, often, seductive. But in an online world built around relationships, context and collaboration, investing heavily on keeping up the appearance of the seductiveness and power of print seems to make about as much sense as an 80 year-old investing in a fifteenth round of cosmetic surgery. Premium publishing models are important, but investing in outdated business models to drive premium revenues again and again is a non-starter. It will help to stem the tide of the Web no more than 3-D television or other diverting forms of repackaging. The movie " Avatar" succeeded not because of 3-D images but because it appealed to generations young and old who are moving into new forms of relationships with information and experiences via the Web, enveloped in them constantly to the point that publishing is becoming part of who they are, as I infer in Chapter 10 of Content Nation.
With this in mind, I think that the most important "tablets" are already in many people's pockets - Web-enabled smart/super phones that provide touch-activated access to content and applications that free people from heavy and expensive PCs. Most of these devices cost a fraction of the price of the premium tablet units being promoted for sale. When touch-sensitive tablet devices based on Google's open-source Chrome OS debut later this year, the need for price-sensitive access to full-display content will be underscored yet again. The publishing industry will never grow, much less survive, if it insists on locking its hopes into the most expensive delivery mechanisms available when cost-effective alternatives abound.
What publishers should be focusing on is enabling their content for cross-platform distribution as effectively as possible, demanding premium price points where warranted based on the contextual value of their communities, features and services, not on the fleeting value of a handful of specific devices. If we are headed towards a world in which people will be able to wave an RFID-enabled phone at an item to purchase it, or similarly to execute a business agreement, then publishers need to jump off yesteryear's bandwagon and tool content to be valuable where organizations generating products and services will be thrusting their marketing investments. Gimmicky tablets will prevent this no more than Cinerama-produced films stemmed the rise of television in the 1950s and 1960s. So congratulations to the tablet producers for sucking money out of publishers who should be investing elsewhere. Hopefully next year's CES will see some more sensible solutions to content display and distribution that will be true boosts to publishers. Labels: 3-d, apple, avatar, cinerama, eBooks, ereader, facebook, hearst, islate, magazines, mobile, newspapers, pc, plastic logic, que, skiff, tablet, television, Twitter
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By John Blossom - posted at 3:04 PM |
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| Tuesday, October 20, 2009 |

 As exciting as Amazon's Kindle has been for many early adopters of content technologies, its screaming limitations and awkward business model have been threats all along to its long-term success. But as long as really viable alternatives were not available, few people seemed to focus on the potential for Amazon to be painted into an uncomfortable box. With the nearing launch of the Nook device from book retailer Barnes & Noble, that time of unchallenged supremacy for the Kindle seems to be drawing to a close.
As much as Kindle has been hailed as a breakthrough for eBooks, I do think that Nook will be a far greater breakthrough for the average book reader and for book publishers and retailers. The Kindle was a nifty piece of breakthrough technology, but it did little to improve the lot of publishers looking at dwindling margins and nothing to help book retailers who are able to shoot cannons through their stores oftentimes without hitting a customer. Nook is well thought-out through and through from a technology standpoint, a customer standpoint and a retailing standpoint.
First, the gizmo itself, which will be available for sale in a few weeks. It uses eInk display technology for the book content, as does Kindle, and it can download books via wireless connections like its Amazon brethren. It has access to millions of books, a convenient online store, and tons of storage and battery life. But this is where the stories of these two devices begin to diverge. Where the Kindle is a completely proprietary platform, the Nook is based on Google's up-and-coming Android operating system for mobile devices, which ties it in immediately with dozens of other Android-enabled devices hitting the marketplace this fall and next year. Barnes and Noble sees clearly that proprietary devices are not going to be a viable barrier to entry when devices based on open source software and Web standards are setting the pace for electronic content access. Using Android enables the Nook to have a slick touch-sensitive color display in addition to the eInk text display that allows for book covers and other attractive graphics to be displayed. Instead of waiting for eInk to solve the color display problem, this is a simple and useful solution that opens up the Nook to other Web functionality and slicker feature navigation more effectively.
Behind the hardware and software is wireless connectivity both for wifi hot spots and for broadband wireless Web networks, a two-fer combination that bests Amazon broadband-only access but also opens up interesting possibilities for retailers. Nook owners who are visiting Barnes & Noble stores will be able to read books via Nook in their stores for free. What a great way to attract people to their retail outlets - and, eventually, what a great way to transition to site-licensing free content access on a subscription basis via affiliates such as high-end coffee shops, university and community libraries and so on once print-on-demand services can be packaged by Barnes and Noble more effectively. Having the right physical context for content remains a winning strategy for content packaging, and Nook's marketing strategy promises to get the 'where" of content right.
Nook also gets many of the "hows" of book content right. Purchasers of eBooks can use Nook to share a book with other people for up to fourteen days and will be able to mark them up with personal notes. Lending can be enabled across both the Nook itself and other portable devices enabled for ePub-formatted eBooks. This also opens up Nooks for library books using the ePub format, in addition to PDF-formatted eBooks that are popular on the Web - and not supported at this time by Kindles. The combination of these features finally offers readers the kind of usability for eBooks that they have been used to having as print readers in an electronic format. Instead of making the hardware and software artificial barriers to a full experience, Barnes and Noble has embraced the experience - and, in the process, has enabled the Nook to be a much more "must-have" place to consume and share content.
Finally, the Nook comes in at a comfy $259 price, twenty dollars less than the current price for the original-size Kindle while offering a display as large as the Kindle2 model. For a fully wireless-enabled device, this will give the Nook a strong advantage going into the holiday season in a lean year - and strong traffic in both their online outlets and retail stores. And while I can't vouch for the hands-on experience, the look of the unit promises to be at least as rewarding as the Kindle. Lacking a physical keyboard, one assumes that the Nook will make use of the Android software-managed touch keyboard capabilities, which, while not an ideal interface, cannot be worse than the amazingly awkward keyboard on Kindles.
So let's see. Great interface, great physical package, great rights management, standardized electronic format, use and share content the way book readers like to, good reasons to visit their retail outlets, go-anywhere networking, Android compatibility - yep, I'd say that Barnes and Noble has just leaped into the center of the new-hotness race for electronic content consumption. I think that it's safe to say that Barnes and Noble is poised to become a major player in electronic book retailing with a device and a marketing strategy that is likely to heat up the book services race to a raging boil. But don't count out Amazon yet - especially with their recent efforts to re-invent the business of local retail delivery. Local contexts is where the money is in content delivery, and both Amazon and Barnes and Noble will have a shot at new approaches to local markets in the years ahead. As for me, well, if a Nook showed up in my holiday stocking, I won't be thinking that it resembles a lump of coal. Labels: amazon, Amazon Kindle, Android, barnes and noble, eBooks, Google, nook, readers
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By John Blossom - posted at 11:04 PM |
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| Monday, August 03, 2009 |

 While there's been enormous buzz about Kindle eBook readers from Amazon and, now, the new eBook platform offering from Barnes & Noble and an updated eBook reader from Sony, the broader truth is that eBooks represent just a sliver of the book industry as a whole and an even smaller portion of online attention. With USD 118 million in U.S. eBook sales last year versus USD 24.3 billion in overall book sales, electronic books have barely scratched the economic surface of publishing, in spite of all of the Silicon Valley bluster about their potential. Yet this isn't stopping major retailers and publishers from experimenting with eBook technologies again and again - and continuing to pull their punches when it comes to realizing the possibilities for books in electronic forms.
This doesn't mean that there aren't good efforts being applied to these improved stabs at eBooks. The new Barnes & Noble eBook store includes lots of state-of-the-art best practices, including easily downloaded reading software for PCs, Macs, Blackberries and iPhones, a decent offering of current commercial titles and access to free eBooks from the Google Books online archive, as well as a smattering of classics pre-loaded into their eBook reader. A forthcoming eBook reading unit from Plastic Logic will enable Barnes & Noble to have its own little toy for eBook enthusiasts, but wisely they didn't bother to wait for this hardware to show up before launching its attractive and easy-to-use store for existing electronic platforms. As they go to pains to point out in their online orientation materials, they want it make it as easy as possible for people to buy and download eBooks using whatever device people want to use to absorb their attention.
While it's good that Barnes & Noble is offering alternatives to eBooks and a very consumer-friendly approach to their promotion, the broader truth is that the book industry has gained very little from eBooks thus far in taking on their biggest competitive challenge: the Web. If, after more than a decade of Web access to books, the entire book industry can only garner USD 323 million worldwide from a medium that reaches more than 1.4 billion people around the world, one wonders how projections predicting USD 9 billion in eBook sales by 2013 can represent real growth and new markets as opposed to a more probable contraction of overall book revenues as book sales to dwindling audiences transfer to online destinations.
There are many signs that the book industry is becoming more savvy about rethinking their role in publishing and beginning to think of themselves as being able to promote talented authors as assets in many media, but these are baby steps in the face of a Web that has already completely rethought how people can profit from expressing themselves to audiences. As nice as the Barnes and Noble eBook store may be, its level of education and assurance seems to be aimed at people who have very little confidence with using online content. One would think that book publishers would become far more aggressive in thinking about how to engage the most aggressive online content producers and users, capturing their energy and interests - and disposable income - more effectively. Certainly ensuring compatibility with iPhones and Blackberries are a step towards that audience, but the relatively inflexible eBook reader software that packages most eBook offerings on these platforms seems doomed to make books an afterthought rather than a primary focus of aggressive content users.
What publishers should do is to focus far more aggressively on packaging that will integrate book content into personal publishing lifestyles far more aggressively. APIs that facilitate applications development to extend eBook capabilities, collaborative reading, bookmarking, linking, user-generated content and other extensions into the real-time generation of content consumers and producers are essential developments to bring eBooks into the stream of attention that they really deserve. Serving audiences is the real objective of publishing - not generating units of production that may or may not deliver full value to a given audience. Creating services that keep people who are today's greatest content purchase influencers - digitally literate readers - in a position to recommend and amplify the value of a wide variety of book-oriented content and services will take far more than locked-down reading software that operates in a vacuum. These types of services are surfacing in the hands of innovative online companies, but as to where that leaves mainstream book publishers and retailers remains to be seen. Labels: amazon, Amazon Kindle, barnes and noble, books, eBooks, eInk, Google, plastic logic, Publishing
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By John Blossom - posted at 10:38 AM |
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| Monday, June 01, 2009 |

BookExpo America is one of the premier U.S. trade events, encompassing more than a few Wal-Marts of display space wherever it sets down. This year's event in New York was no exception, but more than ever there was a pall in the air of its exhibit halls as much of the paper-based world of books began to come grinding to a halt in recessionary times. The other key factor, of course, was the meteoric rise of premium ebooks on Amazon's Kindle device, a blessing for publishers needing quick revenues without inventory commitments but a curse with its draconian revenue cuts and control over unit pricing. Who would have thought, then, that the name of Google would come along to offer the book industry...some hope?
As counterintuitive as it may seem to some, the light is finally going off in more than a few minds in the book publishing industry that Google's neutral stance on delivery platforms and its popularity as a destination for book readers courtesy of its library book scanning project may combine to offer publishers a more sane "plan B" for online publishing than they had originally thought. A recent New York Times article outlines some apparently positive responses from publishing executives to Google's strategic partnerships director Tom Turvey saying "We really mean it" to going live by the end of 2009 with Web-based premium ebook sales on all major PC and mobile devices. One key incentive to teaming up with Google: the promise to give publishers complete say over unit pricing.
The technology making this possible, though, is still a bit shaky. Turvey mentioned that books would be available offline only through Web browser caching capabilities; otherwise, your ebooks will be ready and waiting online for you. This is less optimal than the reader-centric features of Amazon's Kindle reader, but given the increasingly universal presence of Web connectivity, it's probably not a major hindrance for many readers more used to online access. It also underscores yet again the re-emphasis by Google of the importance of the Web browser as the most powerful platform for cross-platform electronic content delivery. "Lock-down" of content is easy enough for ebooks in whatever container a publisher would like in a browser, but more importantly it gets to live in a medium that doesn't require them to negotiate distribution deals with an expanding universe of platform providers with each new twist in their technologies. This is also bound to make more of their cash-strapped book consumers happy.
While Turvey made it sound after a fashion that Google had slipped on ebooks as a product priority, clearly there were a few other product priorities that needed to fall into place. With Google's Android operating system taking off now on both smart phones and netbooks, there is a growing Web counterforce to proprietary technologies that were hemming book publishers in to platforms that would ultimately hinder ebook growth. Google's new Wave messaging and collaboration technologies are likely in time to accelerate Google's ability to build real-time conversations around books, enabling publishers to create richer content to engage readers without having to invest in technologies that would take them away from their core editorial talents.
Although these seem to be positive trends for Google, no doubt publishers are still feeling their way through a relationship with Google that is only beginning to move past the tension and mistrust that lead up to the recent book scanning settlement covering orphaned works. It's also likely that Google will not find itself the only "plan B" that publishers investigate as they decide to expand their partnership options beyond Amazon. But when one thinks back a few short years ago when the book industry was trying to partner with Yahoo and Microsoft as alternatives to Google's book scanning efforts, it appears that book publishers, willingly or not, are ready to pursue more aggressive marketing strategies that embrace the Web on the Web's own terms. Labels: amazon, Amazon Kindle, bookexpo america, books, eBooks, Google, marketing, publishers
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By John Blossom - posted at 10:07 PM |
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| Thursday, March 05, 2009 |

 The New York Times, The Wall Street Journal's Walt Mossberger and other prominent lights are weighing in on the launch of an application on Apple's iPhone that enables reading e-books compatible with Amazon's Kindle mobile device, with many analysts cooing about this as a huge event. There's no doubt that Kindle e-books have everthing to gain from leapfrogging out of a pond of half a million Kindle devices into a lake of thirteen million-plus iPhone owners (just in time for "Content Nation," which is now available on Kindle). Better yet, since the Kindle application does not tie down Amazon to any exclusive marketing deal with Apple, the doorway is open for Amazon to march onto Nokias, Blackberries and phones equipped with Google's Andriod application. As people owning Kindle-compatible book titles move from one mobile device to another, the Kindle Store on the Web will make it possible for them to use their e-book on any equipped device, "closing" their book on one gizmo and being able to "open" it on another one at the same spot. Think of it as an iTunes for books that's not tied down to any particular player. Not much to complain about here at first glance: it's the creation of the first true mass market platform for electronic books from major publishers. Kudos to Amazon and to the publishers that are playing with them to advance Kindle sales. But let's look past the first glance and get to what this really means for book publishing. The good news is that Kindle books can now reach the relatively affluent and educated audience that has enough money to buy iPhones - many of whom may have the money for both an iPhone and a Kindle reader but not necessarily the desire to lug around two book-reading gizmos all of the time. Now e-books get to take a major step towards the "nearly everywhere" profile that Web content has on both Internet and mobile-based devices. The bad news, though, is that the book industry, already beholden to Amazon almost as much as music companies are beholden to iTunes for electronic sales, appears to be repeating the mistakes that are likely to prevent their revenues from growing quickly enough to sustain their business models. Put simply, book publishers have turned over the keys to their electronic printing presses to Jeff Bezos and said, "Knock yourself out, you know what to do more than we do." E-books will progress only as quickly as it suits Amazon - and on only those platforms that suit them. A benevolent monopoly of this kind for electronic book distribution might be beneficial for publishers if it had global reach, but those 13 million iPhones represent only about half of the greater New York City metropolitan market. A good chunk, to be sure, but a far step away from, say, the 1.6 billion people using the Web or the billions of mobile phone users around the world. And even within that universe of 13 million iPhone users, a fair amount of those people fall into the category of folks who Steve Jobs believed would never really read much of anything. In the meantime the audience for books continues to get grayer and grayer. To put it another way, I don't see all that many people in book stores toting around iPhones. The Kindle packaging for iPhone solves a key licensing and distribution problem for book publishers that's likely to improve their profits in the short term, but it does not come even close to building marketable exposure for books on a scale that is likely to draw attention away from other forms of electronic content. This brings us back to those music publishing companies which had such high hopes for the DRM-enabled iPhone agreements that they signed only a few years ago. This "magic bullet" seemed great at the time - and it certainly has been great for Apple's profits. But it did little to slow the rapid erosion of profits from music sales at most of the major music publishers. Put simply, the insistence on having packaging that seemed to protect their existing business models only delayed the point at which music publishers had to face that their models were going to miss the lion's share of revenues that could be generated online from music. What they saw in the Web was the world's largest music store. What they should have seen was the world's largest theatre and radio station rolled into one. Book publishers in general don't suffer from the electronic piracy problems that plagued the music industry, so no doubt it seemed like a logical step to move into rights-protected distribution that enabled book publishers to manage industry metrics in much the same way that they have managed metics on print book sales. But in focusing on protecting their existing business model, like the music industry the book industry is largely delaying the more troubling question of how they can make the most money possible from the global audience of billions who engage the Web and mobile devices daily. Kindle book packaging is useful for traditional reading, but how, for example, can it facilitate even the most basic collaborative use of books? Basic uses of books such as discusions via book clubs, classroom discussion, fair-use excerpting, note-sharing and other value-add services are nowhere near the surface of the stack of potential Kindle developments. Beyond replicating basic uses of print books there is little if any thought given as to how multimedia can be integrated into Kindle books effectively. For example, the online version of the "Content Nation" book has about a dozen video clips embedded in the text. Even still photos of most of these clips did not make their way into the print edition because of traditional print publishing standards. Yet these same clips would be great to have in an electronic, Web-enabled version of the book. While it's possible that an aggressive roll-out of Kindle readers on most major mobile devices could help to stave off some of the worst problems that are looming for book publishers, the truth is that they are years behind in developing the real opportunities for books in electronic format. Book publishers are facing the same revenue gaps that confront music, newspaper and magazine publishers that waited far too long to build robust online revenue models that could sustain them as their traditional revenue sources moved into legacy status. In the meantime the Google e-books initiative that builds on their book-scanning initiative promises to put millions of book titles on electronic devices that are no longer controlled by book publishers. In other words, Kindle may just turn out to be the "eight track tape" solution for books - a technology that seemed to be extremely popular at first with the public for listening to tape-recorded music but that turned out to be a dead end for early adapters when more flexible and higher-quality technologies came along. Every time publishers resist the fundamental dynamics of the Web, they usually come to regret it. Traditional book publishers still have an opportunity to redefine their future independent of the Kindle, but it's more likely that the explosion of alternative online book publishing services will begin to overtake Kindle-based books over the next few years as sources of content that are more flexible, more shareable and more attuned to the needs of new generations of readers to whom the term "cracking the books" is largely a metaphor. Traditional books and book publishers will live on, and Kindle will help them to live on for many years to come. But in the meantime a new book industry is being defined that will be the true future of books - with or without Kindles. Labels: amazon, Amazon Kindle, apple, books, business models, eBooks, iPhone, Jeff Bezos, Publishing, Steve Jobs
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By John Blossom - posted at 10:31 PM |
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| Tuesday, June 03, 2008 |

 This year's BookExpo America in Los Angeles featured much of the usual multi-story ballyhoo of years past, with a thinner crowd and thinning expectations for the book industry in general, though with a few bright exceptions. One of these exceptions has been Amazon's Kindle eBook reader, which has become the Pet Rock of the 2008 book industry. Still inscrutable in terms of its limitations (no PDFs, no general Web content) and as awkward as ever, the Kindle is the darling of book-readers on the go who can't afford the space, time or trouble of loading multiple books in their overnight bags and pocketbooks (and yes, one of them might be me when I break my el-cheapo mental barriers). It's also becoming the darling of traditional media outlets, which have the ability to push print-like materials into a medium that's unbound from print production limits, enabling them to maximize revenues when a title gains its peak value in a very short period of time. AP notes that former White House press secretary Scott McClellan's new book on his experiences in the Bush administration sold out quickly at Amazon in print format but that the book continued to sell briskly in Kindle eBook format, albeit at a lower price. There's some question as to exactly how much Amazon really makes on the book sales themselves (the New York Times claims along with others that Amazon takes a bath on each Kindle book sale), but as Amazon CEO Jeff Bezos noted that the Kindle is still in its developmental phase it's likely that book publishers' existing business models are considered a part of the platform's developmental cost at this point. Silicon Valley Insider's back-of-the envelope model for Kindle sales noted that if the Kindle business scales as quickly as Apple's iPod/iTunes business scaled it's possible that Amazon could be enjoying more than USD 740 million in combined Kindle device and content sales by 2010. That's highly speculative, especially given that there had been more than a decade of well-established consumption of music via online portals before the iPod came along to become a cool fashion tool for content amongst the young. Book publishers face a far tougher proposition of moving beyond a graying population of book enthusiasts still young enough to value technology as a status symbol towards younger generations that have yet to discover books at all in a big way. A whole generation of college students is now coming of age that has not ever turned a paper page on a regular basis. So Kindle's ability to grow rapidly beyond its early adopters into iPod-like growth is still in question. That may suit book publishers just fine in the short run, given their need to maintain a pricing structure that covers the 99 percent of their sales still done in print. But now that they have locked themselves into a proprietary DRM-secured format for Kindle content they have in essence handed Amazon the keys to the paper mill for electronic content. Certainly Sony's eBook platform provides a "Brand X" that will generate the illusion of consumer choice in eBook reading, but with the extensive infrastructure and branding of Amazon people wanting to purchase content rapidly for their eInk-displayed content will have but one real choice. If in fact eBook sales rise rapidly enough to push Amazon into a position of dictating book industry pricing, then book industry executives may be wondering why they didn't consider the music industry's death at the hands of iPod's proprietary 99-cent downloads as a lesson to have been studied more carefully. Fortunately the book industry has the opportunity to adapt to these changes in relative slow motion compared to the music industry's fast-forward realization that Apple had stolen their business model. In doing so book publishers may want to consider how music companies are learning to benefit more from broader artist management services as a supplementary line of business. As noted in The New York Times recently Universal Music Classical Artists Management and Productions has been formed as a unit to produce and profit from live performances of music and artist fan items other than CDs. Thinking of the good fortune my friend David Meerman Scott has had on the speaking circuit in the wake of his runaway hit business book " The New Rules of Marketing and PR" (available as a Kindle book also, of course), how much more could his publisher have profited from his management as a speaker as well as from his imprinted word? At the same time book publishers are becoming smarter about benefiting from the value of book content in pre-print communities as well. My own relationship with John Wiley & Sons has enabled content from my own forthcoming book " Content Nation" to be posted online and publisher programs such as O'Reilly's Rough Cuts are well into developing pre-print subscription communities for tech book consumers that act more as knowledge exchanges than peeks at books before publication - artist management for art still in the making, if you will. So although there are certainly exposures that publishers face via Amazon's proprietary eBook platform they are already developing more diversified revenue channels to maximize the value of their content. Future iterations of the Kindle are no doubt going to change the shape of this debate significantly, but for now it's probably good that the intense interest in Kindles from a relatively narrow band of book readers is probably going to grow more slowly than some would think. It opens the possibility that book publishers will be able to develop an approach to eBooks that will open the marketplace to far greater competition amongst technology platform providers - and more opportunities for more ways to package and sell content on eBook platforms. Although the Kindle itself is proprietary it is using the Sprint telecommunications company's broadband wireless network in the U.S., a strong network with standardized communications technology that could easily accommodate any number of services providing downloads of eBooks and other media. Enabling any media service to provide subscription or on-demand downloads into any device at a cost lower than typical broadband Internet services via such a network might accelerate a market for competitive platforms before Amazon gets to flood the market with cheaper Kindles at a not-so-distant future point in time. Here's hoping that publishers of books and other media jumping in the Kindle bandwagon think carefully about who should be in control of their distribution mechanism before locking themselves into being curators of content proprietary to emerging mobile platforms. Labels: amazon, broadband wireless, eBooks, kindle, publishers
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By John Blossom - posted at 2:34 PM |
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| Thursday, February 07, 2008 |

 At a business meeting recently I encountered an Amazon Kindle device in the hands of a prosperous executive eager to show off his new gizmo. It was...pretty much what I had expected. Its eInk display technology makes for an easy-on-the-eyes reading surface, through not super-bright, and the monochrome display has all the charm of an under-engineered Apple Newton. But the device as a whole impresses one as more easy to handle than photographs would imply, with a nifty little sidebar LED display blipping away as pages load to give it that Star Trek feel for those folks who need to be reminded that this is a neat-o device. The keyboard is about as bad as I had expected, but given the Blackberry era that we're living in most people who are already mobile fanatics will probably find it to be plenty easy and familiar enough for the rare times that it will come into use. Amazon's recent acquisition of spoken word distributor Audible for a hefty USD 300 million price tag underscores that Amazon is only at the very beginning of its journey into mobile content platforms. As it is there are a fair number of publications available already on Kindles, but in spite of its still waiting-list-only sales status after a rousing round of Christmas holiday sales it's not clear that we're seeing the beginning of a stampede to Kindles any time soon with its hefty price tag and slow production schedule. This makes it harder for Kindle enthusiasts to turn their love for the device into sales any time soon. That's probably just as well, given that more beefy functionality is required in the device to make it more universally appealing. It's a bit reminiscent of when U.S. Robotics first introduced the Palm Pilot, a trendy device that sparked the PDA fad but one that lacked a keyboard, a factor that opened the door for more traditional input interfaces from Microsoft and RIM's Blackberry. While an intense media blitz and Jeff Bezos' personal commitment to the product launch helped to kick Kindle into a well-hyped introduction, I sense that my take from last Fall is still pretty much on track. Kindle is largely an effort by Amazon to go to the "King Gillette" model of making sure that there is a nifty handle (read: mobile platform) on which to sell razor blades regularly. It works for Steve Jobs over at Apple, the thinking goes not doubt, so why shouldn't Amazon have its own content device-cum-captive content channel? Well, why not indeed - at least for now. Kindle will help Amazon to cater to publishers trying to find new walled gardens for their content in an increasingly open digital world, but at the end of the day the value in content is not just in one-time sales but in being able to build a relationship with a content brand or author over time in whatever context an audiences desires that relationship. Kindle will do very well for publishers still in the "we publish things" business but for those who are beginning to realize that they are in the business of providing valuable experiences to audiences Kindle may turn out to be a platform that's more of an experimental bridge to a more interactive and profitable future. Labels: amazon, eBooks, eInk, kindle, mobile
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By John Blossom - posted at 12:51 AM |
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| Monday, November 19, 2007 |

 The image of Amazon CEO Jeff Bezos on the cover of Newsweek clutching his new Kindle as if it were "the new, new thing" is designed to get us thinking that the new portable device from Amazon is going to revolutionize the way that we use books, etc. In short, it's not. The article in Newsweek is filled with gushing praise for Bezos' efforts to "revolutionize" book reading as we know it, but little of what it promises requires a Kindle to make it happen. As the article acknowledges eventually: In 2007, screens are ubiquitous (and less twitchy), and people have been reading everything on them—documents, newspaper stories, magazine articles, blogs—as well as, yes, novels. Not just on big screens, either. A company called DailyLit this year began sending out books—new ones licensed from publishers and classics from authors like Jane Austen—straight to your e-mail IN BOX, in 1000-work chunks. In other words it's fair to say that the cat has been out of the bag for books on mobile platforms for quite some time and that from a book perspective there's not much new to say about Kindle other than it's another new device for eInk technology and a good way for people to view Amazon-scanned books in a proprietary viewer. Other than that, you're looking at an Apple Newton with built-in wireless that costs $100 more than a comparable eBook reader from Sony. Ah, but that wireless. Probably the most interesting things that the Kindle can handle have less to do with books and a lot more to do with other content and marketing opportunities via its wireless capabilities. The Kindle will be able to download newsstand content such as newspapers and magazines as well as books via a wireless system that can use both wireless hotspot technology and broadband wireless. While at launch time the downloads are going to be coming from the Amazon online store, there's the potential in this platform to be a device that could interact with "bricks" environments as well as "clicks." When the Newsweek article says: Amazon has designed the Kindle to operate totally independent of a computer: you can use it to go to the store, browse for books, check out your personalized recommendations, and read reader reviews and post new ones, tapping out the words on a thumb-friendly keyboard. Buying a book with a Kindle is a one-touch process. it means Amazon's Kindle Store online site. Not exactly Buck Rogers stuff. But what if instead the Kindle were a device that you could use to point at items in a retail store to learn more about them and then click on the Kindle to enable immediate purchasing of either a physical or virtual version of that item? What if you were reading an interesting eBook at your favorite coffee shop and then picked up a hard copy of it at the counter from their print-on-demand machine while you ordered up your second latte? Or, better yet, if you're in Toys 'R Us you could browse online reviews of toys and games on your Kindle and use in-store electronic purchasing via the Kindle to speed up the checkout process. Given the enormous investment that Amazon has in retailing all kinds of manufactured goods you'd think that they'd focus on how to improve margins across their entire catalog of merchandise via an electronic gadget. Given the premium price tag for one of these units it's not clear that there's going to be much of any thunder at the cash register for Kindles this holiday season. Consider this a modest step by Amazon to get into the mobile platform business in a way that could position it in a very interesting way over time as an alternative to Microsoft, Apple and Google - a positioning that would make Amazon more attractive as an acquisition target for a publisher-friendly online service. Say, like, Yahoo? With Yahoo's brand-friendly approach to content, it would be a natural fit. So consider Kindle less of a revolution in eBooks and more of an evolution of Amazon towards a marriage that can bring its investors to a new level in the marketplace via acquisition. Labels: amazon, broadband wireless, eBooks, eInk, kindle, mobile
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By John Blossom - posted at 1:59 AM |
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| Wednesday, October 03, 2007 |

 I've been waiting so long for eBooks to take off that it's begining to feel like a scene from a comedy sketch or an existential play, but current sales trends offer some moderate optimism that the medium may be building steam. While USD 8 million for eBooks sales in July is still a rounding error for the book trade as a whole it's double what it was a year ago, and showing strong movement towards cracking USD 100 million in eBook sales next year. Helping along eBooks will be improving players such as Sony's new PRS-505 platform, which Engadget indicates is now available at a USD 299 sticker price. The 505 features improved paper-like image resolution from eInk technology and perhaps most importantly a USB port to allow uploads and downloads between the reader and one's PC - at last simplifying the process to snatching content off the Web and transferrring it to the reader. That content can include MP3 files, but with ultra-low power consumption - you could go weeks between needing extra juice for this unit - the main appeal is to the monochrome text world of readers. Yet for all of the niceties added to this improved model it's still a far cry away from what is likely to be adopted as a mass-market device for book consumption. One significant barrier remains the price point - with communications companies subsidizing the cost of mobile phones heavily to promote usage, why hasn't the book industry considered the same for devices that would promote eBook growth? The answer comes in part from the tradition of booksellers working with balkanized networks of distributors - they're comfortable with retailers who want to lock in their own comfy margins with book products, each with their own quirks and formats. In the process of helping their vendors remain proprietary, though, the industry is slipping away rapidly from any real opportunities for eBooks to take off in a big way any time soon. Amazon's Kindle platform, slated for a launch (of sorts) this month, will do hardly better than Sony in making people love yet another device to clutter their world - and in fact may do worse, given the device's positively retro look: think of a cross between an IBM PCjr and an early Star Trek Tricorder. Then again, for those attached to print perhaps this is flashy enough. The real problem with eBook readers lies with their inability to provide any sort of useful reading experience beyond simple book pages. With Adobe PDFs still the widely used standard for premium eBook materials, too many publishers are trying to format information with print-like rendition in mind and leaving eBook readers to try to figure out how to scroll through or otherwise make sense of materials not well adapted for the relatively low resolution of eBook displays. There's a long ways to go before we can even begin to think of this medium as truly "electronic paper." Mobile devices such as phones are the real portable eBook and eMagazine platform of choice, but even here displays can disappoint. I was watching an iPhone enthusiast demonstrate recently how "easy" it was to read a magazine through the slick new device - a magazine that was formatted for print reading and utterly unnavigable on the tiny iPhone screen. Publishers born of the print world just cannot, cannot give up the notion that print-formatted materials will work great on anything that's smaller than their original format. With all this said, there may be a niche for eBook readers amongst people who want to make sure that they have something to grab when their mobile phone needs a recharge. In the meantime eBooks are thriving on phones and in online venues where printable formatting is considered a plus. eBooks will do particularly well as materials that can encourage previewing a title that someone would like to consider for on-demand printing. But still, even at this highly developed stage in the electronic publishing era, it's hard for most publishers and technologist to think of books as anything other than a relic that will be accomodated reluctantly by new technologies. This leaves plenty of room for people to reinvent what a book really is - but that's for another post, perhaps. Labels: downloads, eBooks, mobile, Sony
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By John Blossom - posted at 2:00 PM |
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