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Insights and headlines from Shore analysts on trends in enterprise and media content markets.
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Friday, April 09, 2010
Apps fever is sweeping across the content industry, spurring hopes amid content providers that software applications development toolkits available for mobile devices like Apple's iPad and iPhone and Google's Android phones will allow them to define new channels for revenues. Certainly "apps" that can be downloaded from online storefronts provided by these and other platform providers are taking off in a big way.

There are more than 160,000 apps available for Apple devices that have been developed over the past two years, while in the six months since the introduction of the Android Marketplace there are already more than 42,000 Android apps available. The lure of having a little icon on the desktop of these devices for apps that can add engaging features to content - and, many hope, premium revenues - is hard for most publishers and services developers to resist.

And why not? After all, mobile phones come equipped with all sorts of new sensors and services that make the integration of content with mobile services very intriguing. People are "checking in" to hot spots via geolocation apps like Foursquare and Godwalla, pinching and zooming their way through layers of data in mobile Google Maps, as well as downloading movies from Netflix and steering airplane traffic via Flight Control HD, not to mention reading news from magazines and newspapers. It's all a bit reminiscent of the PC-based consumer software revolution of twenty years ago, when store shelves were lined with all sorts of packages to make use of that generation's emerging technologies.

Go to a tech-oriented store today, though, you'll find that packaged software is pretty scarce. Along came the Web, making both software downloads an easier way to get a hold of zippy applications as well as Web sites that made content like CD-ROM references seem like stale stuff. Apps are in part an attempt to reclaim the glory days of premium packaged software, as well as an attempt to shove content services into Web-proof cans that will "protect" them from all of that nasty Web content that would otherwise be rubbing up against it. If you doubt this, try using the default search tool on the new iPad; you'll be directed to apps-only selections for your content, forcing you to go to your browser to find content from the Web via the search engine of your choice (by contrast, Google's Android-equipped Nexus One's default search looks at content on that device plus Web content, with a separate search for apps via Android Marketplace).

There are pluses and minuses for Web-based content versus apps-based content - thanks to Jill O'Neill of NFAIS for a link to this nice tech summary by Richard Padley - but the largest minus of all for content producers seduced by apps mania is findability. Although many apps consume Web-based content - or are, in many instances, just lightly reskinned versions of Web content - apps exist largely in a netherworld of darkness when it comes to search engines. That's just fine by many publishers that are more eager to reproduce the print experience on devices like iPad via premium apps than they are eager to get their apps content discoverable via the Web. In hopes of offering their advertisers and shareholders new value via apps through old software and publishing models, the presence of findable options for their content via the Web is a given, or, for some, perhaps, something that they wish would go away.

Yet, curiously, neither the Web nor the power of search engines to get good content in context at the point of demand show any serious signs of going away. In fact, with the continuing expansion of HTML 5 Web standards, Web-enabled applications are starting to interface with many of the mobile sensors that today's apps toolkits enable software developers to exploit. Publishers may be looking to apps as an alternative to the Web for advanced functionality, but the Web itself is becoming increasingly functional and extensible into sensors on mobile devices. Even in today's apps on Apple and Google Android devices, most links in both editorial and ads in these apps lead typically to Web content. The notion that apps are going to make the Web disappear by the desire of publishers willing it to be so is a myth. There is no substantial "there" in apps without the Web.

Nevertheless, apps are going to be with us increasingly as combinations of information and experiences that provide value to audiences in new contexts. As such, apps fit Shore's definition of content, content that still needs to be discovered as Web pages do, even if, perhaps, in different ways. In a sense search engines traverse some apps already by querying databases that drive some Web sites. But the broader question is what happens when unique content gets delivered via apps and not via their Web page equivalents, be it via HTML 5-enabled apps or via apps using proprietary toolkits such as Apple's. There's the strong chance that some sources of content will sink permanently into the "dark Web" again, not to mention new sources of content that will never be discoverable via the Web.

Great minds are thinking about this, of course, but not necessarily equally. One of the great neglected opportunities of the apps era is creating search utilities that can place emerging apps into the right context via search alongside more traditional page-based Web content. Already we get video clips, images and widgets delivered up via search engines that match particular queries or metadata clusterings; why not apps also? Some apps providers may balk at this notion, preferring to keep content consumers corralled into can-like containers that limit their options for cross-pollinating with rival apps platforms. The gaming console industry has certainly managed to keep stores that used to stock software well-lined with CDs that are in essence apps for those devices, so perhaps publishers have reason to hope. But my sense is that it's largely a false hope.

I believe that it's a false hope because browsers aren't going away any time soon. In fact, Web browsers are becoming only more powerful, with ever more technology packed into them to launch advanced applications as well as run-of-the-mill Web pages. Thinking of the rapidly developing Chrome OS operating system, browsers are, in their own way, even becoming devices themselves. If you thought that the iPad was slick, imagine what happens when you get an instant-on device that you can log into once and be enabled for both everything that the Web offers and everything that premium apps offer from one Web-driven touchscreen device? Now imagine one step further - imagine that it's all discoverable via one search utility. Game over, content industry friends.

The same discoverability issues will exist within enterprise firewalls, of course, if not moreso. Most organizations cannot afford to have their content locked into proprietary apps if they are to build business intelligence dashboards from multiple sources rapidly and effectively. Few will have patience for publishers wanting to sell them independent apps "cans" - you may as well tell them to go back to the era of CD-ROM products. No chance. As more enterprise-ready apps make their way to the marketplace, their day-to-day utility to individuals in businesses on mobile platforms will clash more and more with the need for those businesses to break open those cans to increase productivity amongst collaborators. Images of jolly executives toting touchpads to board meetings with print-friendly digital documents are largely mythical representations of how businesses really need to work today. It's not about individual convenience as much as getting teams productive as rapidly as possible. In a corporate world that's trying to break out of its own silos constantly, tight-as-a-can apps for content consumption are silos that few will be able to afford.

With all this said, the new generation of software and content services developed via emerging apps offer tremendous promise as platforms that can deliver real functional value to audiences. However, that functionality in and of itself cannot replace the need to find all of the relevant content that's needed to accomplish personal or organizational goals, be it through an app or any other number of useful content consumption tools. It's the ability to integrate content from multiple sources with multiple sensors that makes apps most valuable; using apps as a short-cut DRM tools based on proprietary standards shuts down most of the value that they have to offer in the first place. So, as you approach your apps strategy, remember at least these three simple rules:
  1. Don't use apps as an excuse to ignore the power of the Web
  2. Use apps to extend functionality that integrates content, not as a tool to segregate it
  3. Design your apps with content discoverability via search in mind - even if your current app store search tools may not warrant it
This is all a way of saying that although the current interest in apps has grabbed a lot of headlines, there will be plenty of other trends grabbing headlines in the months ahead. Brace yourself for an emerging, complex landscape that will be integrating the world of apps and Web pages into a cohesive whole of services, with search engines playing a key role in gluing these together rapidly into on-demand services that individuals and enterprises will be craving. If you thought that apps were going to line up your content problems into neat little packages, it's time to break out the can opener.

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By John Blossom - posted at 10:02 AM
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Monday, April 05, 2010
Unless you were under a rock in a far-flung desert it was hard to miss the launch of Apple's iPad tablet computer over the weekend, an event which, while generating impressive coverage and good first-wave sales, seems to have raised as many concerns among publishers as it has raised lavish praise and attention. Clearly the era of touchpad tablets is now officially upon us, with Apple using its now-customary combination of brilliant engineering and proprietary gatekeeping to tip the playing field in its favor in another neglected market segment. The iPad is well-timed from Apple's perspective in that it managed to swoop on to the scene ahead of other rival touchpad devices from Hewlett Packard and other providers, albeit with a stripped-down feature set and relatively few options for software and premium content.

No worries there from Apple's standpoint, for the moment of inflection that they are shooting for has a lot more to do with seizing momentum amongst confused and disorganized media companies that are beginning to realize that their underfunding of effective Web publishing strategies is beginning to come home to roost in a big way. The parallel that Apple is drawing on is not so much the iPhone as the iPod, the portable music player which came along at just the right time to herd panicked music industry executives into yet another attractive, convenient solution for digital music distribution that required relatively little thinking on their behalf and plenty of hopes for secure revenues. Several years later, the iTunes music store captures about 69 percent of online digital music sales, disintermediating not only music publishers but the Web in general from the lion's share of premium music revenues.

Flash forward to 2010, when this time it's print and television media producers that are struggling to come up with premium Web strategies. Remarkably, many of these publishers are willing to pretend to themselves that it's worth jumping through hoops for the iPad launch, because, as noted in a Wall Street Journal article, it really doesn't matter if you get only a trickle of data and relationship equity from the "handful" of early iPad adopters. Oh, really. It's another way of saying that publishers are afraid of Apple's power in the digital content industry and not willing to chance that they will be on the outs with trend-setting audiences. In the meantime they enable yet another disintermediating proprietary partner.

One key difference between the iPod launch and the iPad's is that the publishers in print and video have many more well-developed channel alternatives than were available to the music industry when the iPad launched. Book and magazine publishers have Amazon's Kindle, Barnes and Noble's Nook and Sony's ereaders for monochrome content, while a broad galaxy of mobile phones offer color reading experiences for both ebooks and Web content. In the short run book publishers have even been able to leverage the iPad to get Amazon to push up ebook prices to levels more comparable to iPad pricing. But looking at this broken terrain of content ecommerce and packaging, it's a discontinuous mess for the most part, with platform fragmentation that plays into the hands of major Web outlets and device marketers that can muscle in on publishers' value propositions.

All of this argues ever stronger for cross-platform packaging and ecommerce for premium content, of course, a theme that should be familiar to readers of ContentBlogger. Since people are willing to pay for premium content experiences, it makes sense to have an appealing way for publishers to manage this concept via standardized premium Web ecommerce without having to lock into a labyrinth of platform providers that will increase their costs of delivery while slowing down their ability to respond faster than the Web does to deliver interesting content. Yes, it's appealing to limit your channel partners to create some type of limitation that creates the impression of artificial scarcity, but the Web is not radio or television, where the public have access to a tiny fringe of the delivery medium. By frittering away effort on proprietary ecommerce of all kinds, publishers continue to empower acceptable substitutes from all-Web sources that can tap their markets more rapidly and more effectively. The iPad is only one of many new devices that distracts publishers from this fundamental economic reality.

Large media companies will continue to love Apple, and vice versa, as they help to kid one another about the youthfulness of their vision. The people who I saw toying with the iPad in stores were mostly middle-aged or older, or small children with their parents. It makes for an appealing "Family Computing" story line for reporters looking for a new angle, conjuring up pictures of families guffawing together over an iPad game the way that they used to play Parchesi or some other board game. Well, it's a sentimental image, to be sure, but probably not a very realistic one. Most of the kids who I saw toying with the iPad in a local store went immediately to the Web; they know where their content lives, and they're not likely to want substitutes.

So as the Touchable Web begins to unfold, let's not confuse attractive features with the fundamental economic realities that the Web has introduced to publishing. The iPad will be with us for quite some time to come, but the Web is not likely to disappear as an economic issue for publishers just because a good weekend of PR helps launch yet another almost-Web-enabled device. Once the sweet taste of iPod eye-candy wears off, we will be facing the same sour realities that there are a lot of interesting sources of content that it and other devices deliver that have nothing to do with the hopes of major media companies.

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By John Blossom - posted at 2:47 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.

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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.

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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.

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By John Blossom - posted at 3:05 PM
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