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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.

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By John Blossom - posted at 3:04 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.

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By John Blossom - posted at 10:38 AM
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