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...

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 curious reader

What an interesting week it’s been. The Sony e-reader has created such curiosity whenever I’ve taken it out of the handbag and started reading. Last Saturday I took the e-reader to the hairdressers. I’m usually there around 2 hours while I have my hair cut and coloured. My hairdresser and colourist are used to me bringing a book and reading while I wait. They usually ask questions about what I’m reading and whether I would recommend it. They both nearly fell over when I showed them the handheld device!

Located in the swish Chatswood Chase complex, the salon had around 30 customers and several began talking to me about the e-reader. A few were noticeably horrified but one lady in particular spoke about The Kindle and the impact it’s made in the U.S. Why didn’t buy that? I explained it wasn’t available in Australia. What made me buy the device I was reading on? I had to explain I work in the book industry and had two e-readers for a project. The Sony e-reader wasn’t available here either but I’ve heard rumours it may be towards the end of the year. A few customers wanted to know what was available and the price of them. I answered all the questions that were fired at me however no one had a burning desire to run out and buy one there and then. But those who were asking the questions were obviously interested – or overly concerned, I couldn’t really tell. Was it because it was a new gadget? Something to admire, to be envious of, to be interested in.. Who knows, but inevitably the conversation would take one of two directions. Either “not sure I like it”, “can’t see me reading from it”, “I’m sorry I just love a book”, “the book is really dead then” OR “it will be great for travelling!” and “that will solve my [book] storage problems!!”

At the beautician a few days later, the young 18 year old behind the counter couldn’t contain her interest and was by my side in two seconds! “Oh MY GOD! Is that an ebook!? Where did you get it? Do you think it will eventually replace the book? AWESOME!” There was a different awe right up until I told her the price of e-readers in Australia. She just sighed.

Then today while waiting at Pattisons in St Ives for a coffee before work (I mention Pattisons purely because if you know it, you’ll know the queue that forms each morning for coffee!) my docket number was 100. They had just called 86. So what does a girl do while she waits? Well she pulls out an e-reader that's what! I could feel eyes looking over my shoulder and while I read Michael J Fox share his thoughts about politics, stem cell research and Parkinsons in his book Always Looking Up, I heard two women next me talk about reading and how kids don’t like to read anymore. They discussed the books they were currently reading. They said loudly how much they love a book. I hid my grin because they were so obvious! I was a traitor. How could I?! I should be shot. What they didn’t know was that I work in the book industry, I’ve worked in it for nearly 20 years, and I wanted to shout at the top of my lungs “hey I love a real book too but give me a chance, I’m trying to understand the appeal of an e-reader and is it really the future?”

I can’t deny there is an appeal but will it cannibalise print sales or bring in new readers? The more I live and breathe ebooks the more I think a percentage of readers will move over to electronic devices – e-readers, mobile phones, whatever takes their fancy – but ebooks will appeal to a new audience, another layer of reader. The critical factor will be what content will actually be available, the price, the release date, and whether it’s in the format you – as the customer – prefers to read from.