A fascinating ebook recipe: lessons for the industry as a whole

Every day I trawl the websites and feeds for ebook information and updates.  I've been doing this for a couple of years now so it's pretty much part of my daily process.  Even though Kindle, iPad, Blio, Kobo weren't the subject (goodness the iPad wasn't even released!),  the concept of digitising content, the role of digital aggregators, the possible cannibilisation of print, the future of the book etc etc etc were all there.  Much of the message has remained the same however information flow has intensified.  It's everywhere!  The book is dead.  The book is not dead.  Ebook this.  Ebook that.  This ebook vendor is doing this.  This publisher is doing that.  War.  Peace.  Mediation.  Control.  Loss of control.  Concern.  Interest.  Development.  Future.  You turn your head one way, then you are tossed upside down the next day, and left shaking your head the next.  Everything can change so quickly.  It can be hard to keep up (yes even me!)

Sales stats are coming through, new players are in the market, sales patterns are changing.  Everyone is now at least talking "e".  It's no longer just a game they play in libraries.  It's something the general reader is part of and that means everyone in the book chain has their role to play.  We're all learning, we are educating each other.  But what about those with blinkers on?

I laughed myself stupid when I read this post on the FutureBook site today - because as much as I absorb everything "e", there's so much in this post that is true.  Gareth Cuddy has nailed it in many ways.  For all the progress, the training, the sharing of information, the digitisation that has been going around us, there's still a black hole.

I loved the way he approached the article: "Recipe taken from the Publishing Almanac 2010; Take a handful of wistful nostalgia and mix with a pinch of regret. Work in a fistful of stubbornness - being careful not to look at the actual mixture. Sprinkle uncertainty and doubt on top. Place in financial constraints and pop it in the oven pre-heated to miltonian temperatures. Close your eyes, wait an indefinite amount of time and hope for the best. When ready, the strategy cake should have a firm but uncertain texture accompanied by that new book smell."

Straight away, I could picture the publisher.  I work with many of them day in, day out.  As I read the article, I had multiple flashbacks to meetings with the "die-hards".  Those with blinkers on..

We can't stop this industry from changing.  We live in a digital age.  Students of today are nothing like the students of yesterday.  Reading patterns have changed.  The web changed our life and our expectations.  Consumer demand drives organisations yet many publishers still ignore their customers.  At their peril.

I'm with Gareth: Open up to change and your authors and readers will embrace it. It is the changes you make now both in practice and philosophy that will determine the future of the industry we all love.

Time to act now people.  Give the consumer, the reader, the customer what they want.   It doesn't have to be all about the ebook but over time we'll see those sales patterns changing and the traditional business model for a publisher - bookseller, library supplier, wholesaler - moving with it.  We all have a role to play in the supply chain.  We need to be smart about it.  And we need to change the recipe.  Now.

Where do you think Apple will go with the iPad?

Is it just me or is most of what is being discussed in the digital media world with regards to ebooks purely centred around the iPad? Is there any other device in recent times that has attracted such attention, focus, debate or interest?

Today I read on ChangeWave all the stats from a survey of over 3,000 consumers that shows a huge wave of demand for the iPad. I'm sure we didn't need a survey to know that - I've mentioned the quote from last year's Frankfurt Book Fair's Supply Chain Meeting again and again on this blog ("it will be Apple, it will be cool, and everyone will want one").

It's not surprising to read Amazon, Sony, Barnes & Noble will all take a hit when Apple launches. That's because they went for a device that was predominantly an e-reader with wi-fi (or without for some of the Sony's on the market). The bells and whistles options haven't been great - music for some, notes for others, nothing that really stands out. Which is what Apple has done. They've created something more. Apple has the convergence of technology we've been waiting for. Of course there will be many lookielikies in the coming months. Everyone will want a piece of the ebook pie.

According to the survey, the belief is the iPad will capture an astonishing 40% of the e-reader market in the first 90 days after its launch. The survey further showed demand will continue to strengthen (it will be cool remember!) and once iBook is launched it will further enhance the offering, however from what I can gather Apple will be using the publishers epub files. That means if you receive epub files from your ebook vendor (or directly from the publisher) you don't need to buy from the iBook store. So in my mind iBook has to offer something more. The full multimedia offering.

The other concern relates to cost - if you can buy your $9.99 epub ebooks from Sony (who matched Amazon's pricing strategy for their lead titles), why would you buy from iBook at a higher price? The Apple agency model has been commented on by industry leaders and insiders for some time. With a 30% cut (assuming the information is correct), Apple might not be able to compete on price unless of course they go the loss-leader route like everyone else.

I'm not privy to digital rights or pricing information but I imagine the last thing Apple will want is readers buying books from other ebook vendors and reading them on the iPad. It defeats the purpose of the iBook.

Then again, I buy all of my digital music from iTunes because it's there and it's at the right price point - I don't need the whole album, I choose the songs I want, and I try out ones I don't really know but has been recommended to me based on a purchase or the Genius app. I listen to music all the time and wish the iPod I got for my birthday a few years back had a lot more memory (it only holds 1600 songs and I have thousands more that aren't coming across to the device). Music and reading are very different pursuits and take up different amounts of time. I go via iTunes because it's what I've done from the start. I didn't know any better and I've been a loyal customer from the beginning. Of course everyone wondered why I was buying music solely from iTunes ("buying" is the verb I'd like to emphasise here. One colleague wondered if I was the only person they knew that actually paid for music but that's a different discussion altogether!). So I linked into iTunes, I love the iPod, and I continue to search the site for new experiences. But with an iPad I already know the ebook vendors, I've purchased from several of them, I know their offering. Would I be loyal to iBook from the beginning if they don't match on price? We have the US$9.99 mentality. It will be interesting to see where Apple goes with their pricing and their digital rights strategies.

And of course Australian publishers won't want to go down that path at all. Their pricing policies have strongly centred around the cheapest print edition. But the consumer expectations for ebooks does centre around price. What will Apple do in this marketplace to meet consumer expectations set by their competitors? And how will publishers respond?

On another matter altogether, I loved reading today on Teleread about Apple iPad accessories and a wishlist. Apparently Jeff Bezos of Amazon reads his Kindle in the bath by sealing the device inside a special Ziplock bag. I've mentioned previously that I love reading in the bath but I'm not going to read an electronic device near water (I have enough problems getting the printed version wet!). If there was an accessory that I knew was safe and secure, would I try it? Will be interesting to see whether Apple comes up with something that can be used around water or food. Some sort of protective device sounds great. Then again, would I still use it in the bath? Hmmm, that's a question that I don't know the answer for.

Struggling with ebook reading

Battery life on the Sony PRS-700 – particularly when the back light is used – has been flagged as being problematic on this blog before. Together with not being able to read in the bath or reading long enough on domestic flights, it’s one of the Top 3 reasons why NOT to read an ebook. It really is one of the downsides of this whole e-reading experience.

When I think about the downsides there’s more: not being able to promote the book you are reading to strangers (I’m always fascinated with what people are reading and always check out the covers!), you can’t loan an ebook to someone the way you can a physical book (unless you loan the device with it!), and the gift book market really doesn’t offer anything to an e-book reader (here’s a beautiful photographic book on Paris that I’d love to give you to show off on your coffee table, oops, sorry, it’s in electronic form only! Still want it?). You can’t handle the content the same way and it can be pretty bland in black and white. Of course that’s going to change with the plethora of e-reading devices and tablets hitting the market, particularly the iPad, but for now your main e-readers are not offering colour and so you usually use the device to read fiction and suitable non-fiction (like biographies etc).

Of course there is another downside that ebook readers will ‘get’ straight away! I’ve mentioned it before but it’s really problematic purchasing books online – not the process, it’s the ease of which we push the “buy now” button! It’s like being let loose in a candy shop. We are conditioned these days to search and discover what we’d like to buy using the web. A little typing and a few clicks here and there. Shopping experiences vary. The content that we are offered to assist with our purchasing decision varies greatly. We can find what we want from an online vendor - if we don't it’s a couple of clicks of the mouse elsewhere. You are at a competitor in an instant.

We aren’t carrying anything heavy. We don’t have a shopping bag filled with physical books. The file is electronic. It doesn't weigh anything. It’s easy. And we click that button again and again when we find books we want to read. And then when we find them. God help us. Particularly if the magic US$9.99 price is offered. It’s only $11 Australian dollars to read this and that. Better buy now. Good price. Cheaper than physical book. Click click click and the device starts to fill.

When you work for a library supplier you pretty much see most books come through the front door. Trolleys in our Operations area are laden with books – trade books, academic, reference, commercial products and non-commercial (independent publishers, organisations and self-published authors). They move in and out of our building, day in and day out. Masses of books. You see the physical item and you think oh Wolf Hall, that’s one hell of a tome. Will take me a month to read. If you are like me, you purchase it anyway. (Yet again, that involves going into our site and clicking on the order now button – simple, effective, and what’s more the purchase comes straight out of the pay-packet….DEADLY!).

You start to collect unread books. Last count there were 30 books sitting on shelves on my floor to ceiling bookshelf at home (which is magnificent to look at by the way!). However on the e-reader (not so good to look at!) there’s something like 46 books waiting for me to read them. They aren’t in colour. They are just files.

Granted a good number of those were freely available classics from Gutenberg, but they are ones I want to read….one day. I’m starting to collect more and more books and as I’ve mentioned before it’s not like being on iTunes and downloading a song. A song is a few minutes of enjoyment. A book can be days, weeks, months. I’m beginning to struggle with time management and balancing my reading list with the time I actually have to read.

And still I can’t stop myself. My e-book newsletters and new product alerts continue to come through on a regular basis. New books in e-book format, old books now available electronically. A few clicks and that book can be on my device.

I’ve sent a help message through to Mastercard previously via this blog. But as more and more publishers get their digital strategies moving, it will only get worse.

Somebody…..help….me…..soon. I'm....DROWNING!!!!!!!

The rise and rise of Amazon: prepare for the battle

In the past few days several US publishers have announced they will be delaying the release of e-book versions of major releases. So what does Amazon do? Well, instead of selling for the already loss-leading price of US$9.99, let's take it even lower to $7.99!!! Let's show the publishers exactly who is in charge of this ebook market. Let's offer Under the Dome by Stephen King and Going Rogue by Sarah Palin for $7.99. The hardcover for the latter is listed on Amazon as US$28.99 slashed 50% to US$14.50. Slash it by half again if you want the ebook. Bestsellers are being slashed - Stephenie Meyer's first two Twilight books for US$4.25, Stieg Larsson's The Girl Who Played with Fire at US$7.99. Slash Slash and Slash again.

What happens next? Well surprise surprise, Barnes and Noble cut their ebook prices to match. I'm now waiting to see what Sony does. They've already admitted the US$9.99 price is NOT PROFITABLE. You can read the full article here. Yet I'm taking bets as to when they'll slash their prices! Any takers?

But back to the giant that is Amazon. I know some publishers are trying to wrestle control away from them so they can control their own ebook destinies. Can't everyone see these price points are DEVALUING the product and the whole reading experience? And what about profitability folks? It's already fragile in the bookselling and publishing industry.

It's no use discussing what percentage Amazon, Sony, Scribd etc take on ebook sales. We already know Amazon is using their pricing strategies to make the Kindle the ereader of choice, to build market share and customer loyalty. Sony has pretty much admited the same. They invest in the technology, they need people to buy it.

While publishers benefit from the lower ebook prices in the short term (through higher sales), according to Mike Shatzkin they "don't trust Amazon to keep things that way. From their perspective, Amazon is building a consumer expectation of an under-$10 price point while they are building up their audience of captive Kindle consumers. How long can it be, publishers figure, before Amazon says 'sorry, now you have to sell me these for under ten dollars?'" Mike also shared his thoughts on the possible war over the issue, including publishers not supplying or selling e-books through Amazon, Amazon suppressing the sale of their printed books, and more.

So when and where will the battle lines be drawn? It's a'comin, folks. Wait and see...

The Apple iTablet: should we believe the media?

It's been coming for years (apparently!) but according to today's Sydney Morning Herald, Apple is preparing to launch a tablet personal computer in late March or April 2010. It will be their launch into the digital book market which is controlled by Amazon's Kindle at present. The article said "Apple declined to comment". Is anyone surprised by that? Has anyone from Apple ever confirmed there is a tablet coming?! I'd have to dig around the web to find out the answer to that one....

Anyway, according to the "analyst" the tablet will have a 10.1-inch multi-touch LCD screen similar to that of Apple's iPhone. The books will sold on a non-exclusive basis and it seems they've requested only a 30% discount from the publishers as opposed to Amazon's 50% (which is pretty much the ballpark for the ebook vendors).

Interestingly, the SMH article didn't mention price. It was the cnet news that mentioned the $1000 price tag. (I'm assuming US dollars) OK, if it does lots of whizz bang things, including a fabulous experience with ebooks, would we be happy carrying around a device at that price tag day in, day out....?

Also, there is a big take-up of ebooks using the iPhone now. The head of one of the largest ebook vendors said to me recently that he reads everything now on the iPhone through the Stanza app. Absolutely addicted! I don't have an iPhone and while the screen is clean and it's easy to use, having the look and the feel of the traditional book is my preference. The larger screen works better for me. But he loved sharing his experience with me and I'm always open to everyone's reading experience whether it's e or p.

As I've said time and time again, consumers will read whatever way they want. Print, an e-reader, on their laptop, on their iPhone. And I still believe e and p can live in harmony. There will be a percentage of cannibilisation but I think it won't be anywhere near as high as 50%. And I still feel ebooks and ereaders will bring new readers into the book loving community. Anything that encourages people to read is surely a good thing?

But back to Apple, is it coming or isn't it? I can't help but think of those supply chain gurus at Frankfurt and the line they left us all with "It will be Apple, it will be cool, and everyone will want it". I wait for further news...

Read Without Paper

Yes folks, DA has finally launched their ebook website - www.readwithoutpaper.com - partnering with OverDrive in the US. I was already aware OverDrive had approached Australian publishers for content but there's only a handful who are in a position to provide at present - but it's a-changing world as we know.

I've gone into the Read Without Paper site to assess their offer and structure. Lots of foreign language, PDFs and audio downloads. I just want to see the EPUB titles available. (PDFs are crap to read on the Sony e-reader.) And I really don't want to see all the foreign language materials. There should be a view you select up front so you can see the titles that are relevant to you.

In many ways I'm disappointed this isn't a uniquely Australian venture and wonder how local publishers feel about overseas original publications being sold now as ebooks. Yes that might sound hypocritical as I've been getting my ebook content elsewhere but I genuinely want to see a truly local offer - even if it is through someone like DA! :)

Some major publishers here have told me they don't believe there is an ebook market. Some of these discussions have taken place in the last six months so I'm not talking about two or three years ago. We are talking major trade houses here and while the e-readers aren't yet taking off in this market, the day will come where people want more choice and read on whatever device takes their fancy. Many people are waiting for that rumoured iTablet from Apple. That's if they aren't already reading on their iPhone or some other device.

Don't get me wrong - I'm all for the book. The old fashioned one that is. But I read on an e-reader as well. All fiction titles. I pick them up cheaply or free from Gutenberg. I'm more than happy to pay US 9.99 through Sony for a latest release in certain genres but I'm still buying most books in the traditional format. I like to collect and I like to share. There's something personal about the book and flicking through the pages, dog-eared and all.

But back to the Australian ebook market where rumours and confusion reign supreme. Start-up companies are approaching publishers left right and centre. All after the ebook dollar. I feel a little sorry for the local publishers that are only now looking at their digital strategies, having left them to US and UK head offices.

Read Without Paper is a start but I wish it was a truly Australian venture. Will I order ebooks through them? So far, they haven't got anything that I want but I will keep you posted on anything I order through them and how the process goes.

The fourth Twilight Book

I still can't quite believe I read 4 Stephenie Meyer e-books. In the end I read them all within a week, with Breaking Dawn finished late Thursday night the 4th June.

This was an interesting experiment with ebooks. I picked Twilight purely from the bestseller list. As far as I knew, it was a novel for teenage girls. There was very little chance I would read the bugger! Even when I started reading I thought the writing was poor, basic, unimaginative but I kept going. What "got me" was the Bella & Edward story. Yes hidden beneath this tough (cough cough) exterior is a soft mushy romantic. And of course let's pretend for a minute we aren't talking a vampire love story! I'm still trying to come to terms with all of this!! Somehow I just got sucked in (yes, couldn't resist the pun)....and really enjoyed it.

So to sum up my first ebook experience: Interesting choice. Resulted in 3 additional sales (4 if you count the Twilight DVD, 5 if you count the movie soundtrack, 6 if you count the piano score....). Yes, tragic isn't it. Consumerism gone mad.

But back to ebooks. The purchasing process was just like Apple's iTunes portal. You choose your ebook and purchase with a simple click or two. The site uses the credit card details stored from the previous purchase as per your profile. On completion of the sale, an email notification is sent but not an invoice like Apple's iTunes. I would have preferred the formal invoice but that's a personal choice.

Another downside is that you can't view before you purchase on the Sony ebook site. We are all used to sampling music tracks, why not sample ebooks in the same vein? Not having the preview functionality is a shame and I would have thought Sony had enough negotiating power with publishers - plus the technology - to do this effectively. Afterall Mobipocket's ebook site allows a demo to be viewed, stored, downloaded to your portable device - why hasn't Sony offered the same? Browsing is an important part of the ebook purchasing process and I trust they will add that to the portal in the near future.

STOP THE PRESS! I've just gone back into the Sony ebook portal and good news! They have "excerpts" as Coming Soon. They already have 20, 18, and 12 books featured for June, July and August respectively. At this stage they don't appear to be incorporated into the main functionality, but as a side bar. Hopefully the preview button will be part of the purchasing process in the coming months rather than having to navigate separately through the portal...

The last downside was reading on a computer. We spend all day on the blasted contraptions - email, websites, databases, spreadsheets, documents etc. Why on earth would we read a complete ebook as well? Well I have and I will again! I just have to position my body appropriately with better lighting. That may stop the headaches. I haven't had them since I stopped reading from the laptop, so I'm assuming the two are linked.

As to the handheld e-readers, I'm not liking the HanLin but will review that separately. The Sony ebook reader is enroute from our head office in the U.S. and I'm getting very excited about seeing it. (Particularly when my colleagues from the U.S. sent this email:

We have your Sony reader. If you ever want to see it again, place $10,000 in unmarked bills behind a certain convenience market in NW Portland ....!

I will post again once it's arrived and I've successfully downloaded the other ebooks I plan to read on the device. Stay tuned folks.

Part One: The ebook blog begins

Hi. I'm completely new to this. Never thought I'd contemplate a blog. Then again I also said to everyone that would listen that I would NEVER ... EVER purchase a digital camera (I spent a small fortune on my first one, loved it, and spent even more money September last year on a DSLR). And here I am again saying who really reads e-books, particularly on a computer? I spend all friggin day - and most of the evening - on a computer, so why would I want to read a book there.

You see, I work in the book industry and have done so for nearly 20 years. The last six years I've worked on "the dark side" as I call it. When my resignation from publishing was announced to my colleagues, there was a sigh of relief I wasn't going to the competition. I wasn't even going into bookselling. I was going into the depths of library supply. Yes we call ourselves booksellers but what we do, day in and day out, goes beyond that. Those in publishing will never understand library supply. They try. But it's not until you go to "TDS" that you realise it's another world.

Speaking of other worlds, after years of reading articles about ebooks and talking to publishers about digitisation, I've actually made the decision to start exploring the ebook market further on the personal front. Professionally, we have sold ebooks to academic libraries for several years and I am absolutely 100% committed to ebooks for this market: all that content at your fingertips, Search and Discovery, patron driven demand models. Good stuff! But what about fiction. Would you read the latest novel on your computer or a hand-held device?

That's the test and what I'm going to be blogging about. You see, I'm not the demographic for this stuff but I have to understand it. Are ebooks the future? I read dozens of articles every week that say the end of the book is nigh. Good Lord! The end of the book has been coming for years and since the Internet the noise keeps getting louder and louder. Lots of column space. But really people! Think about it. It's about READING. For pleasure, for education, for work. Look at Generation Y and what we are competing with. There are way too many distractions. When I find a teenager who actually LIKES to read, I want to kiss their feet. In fact, as my godson Jack will tell you, I BEG him to read so I will remain in a job until retirement age. (Heartbreak: he HATES reading. I told him that needs to change otherwise I'll write him out of my will, but it doesn't change anything! It's about mobile phones that do 100 things, computer games, sport, anything BUT reading...I still live in hope....sigh)

But back to the ebooks (see this is my first blog, I'm easily distracted LOL) would I read MORE if I utilised ebook portals and mastered the handheld device? Would I LIKE the experience? What will work better for me - content read for work purposes and professional development, or books for pleasure. What about my commitment to the local book industry, to publishers, to booksellers. Will I discover new authors? Will I read things I wouldn't normally do. And exactly how bloody hard will it be for me, here in Sydney, to actually access the books.

Amazon's Kindle is not available here. Nor the Sony e-reader. We have The Iliad sold through DA in Melbourne. A whopping $1299 for an e-reader ($1099 for another version). There are watered down ones like the HanLin (which I have on loan for work purposes at present. An industry colleague there reckons I'll be a convert in no time!) You read the spin about each device every day, OMG stop the press Oprah recommended The Kindle. Yes, it's called marketing and giving one to everyone in her audience (which seems to be the done thing on American chat shows now - so boring!). Great promotion for Amazon. It's the winner. Next day you'll read about another new device and how Sony's e-reader is taking on the world. Then there's the latest product release. The COOL-ER for example. Looks ipod-y. Got my attention I must say but let me guess, it won't be available in Australia? The good ones never are....

So not only do we have the problem with the actual e-readers, I'm sceptical about what content I can get (afterall the Sony ebook website doesn't even RECOGNISE you if you are in Australia!). And as a layperson am I really supposed to know the difference between EPUB files and PDFs on an e-reader? I'm not the most tech savvy person, but I'll press the buttons, I'll read about devices, and in the end I'll figure it out!

So it's Saturday 30th May here in Sydney and it's time for a status update. I've got the Mobipocket and Sony ebooks library installed on my computer (thanks to a U.S. work address) I've got a Sony e-reader about to be ordered and sent to me from a colleague in Oregon and I've got this HanLin to assess for possible reselling opportunities through work. I ordered The Alchemist using Mobipocket to trial and downloaded more than a dozen classic works for free (Austen, Bronte, Byron etc). And I ordered the book (and movie) of the moment, Twilight, using the Sony store.

At this stage I'm not looking at reading on mobiles (yes, I hear you, the Stanza application is soooo popular on the iphone, I get it I get it!, but I'm not going to even attempt reading on a small device like a mobile so consider it as out of scope for this project for now)

So ebooks, reading on a computer, reading on a dedicated e-reader. Hmmmm. Will I convert? Will I enjoy? And will it have it's ipod moment for me. Stay tuned and let's discover this together.