The impact of the agency model

Much has been said about Apple's agency model and the impact on ebook pricing. Look at what happened with the Macmillan/Amazon clash a few weeks ago. Macmillan wanted to change it's trading terms with it's largest customer and move towards the so called "agency model" for ebooks. The feud between supplier and customer received an amazing amount of publicity in general, trade and business media. I read much for and against each party in the altercation. Both sides had their supporters. There were Amazon loyalists (and by God they are a loyal bunch!) And there was the publishing and bookselling community who was glad to see someone taking back some of the power they shouldn't have given away to their largest customer in the first place. Granted, ebooks wouldn't be where they are today without Amazon firing up the Kindle. And I shouldn't really think of them as a customer. They play so many roles that my head spins with what Amazon controls - afterall, they are the supply chain leader, printer, publisher, ebook influencer, visionary. I could ramble on but today's blog is actually sharing the letter that Sony e-reader customers received today:


Dear Reader Store Customer,

The publishing industry is turning a page and so are we.

Beginning April 1st some major publishers will be instituting a change in the pricing of eBooks, which puts decisions on eBook pricing firmly in their hands. As a result, prices of bestsellers and new releases from these publishers will be changing on the Reader Store, and during the transition time, some titles may be unavailable. Although most of these eBooks will be priced from about $12.99 to 14.99, there will not be a broad pricing change across the Reader Store. In fact, new releases and bestsellers from other publishers will still be priced at $9.99.

Starting a new chapter can be a good thing. With this change, you may see more of your favorite books available in eBook format at the same time they’re released in print. Book lovers like you are driving a revolution in digital reading and the Reader Store is committed to providing you access to the widest selection of digital reading content. Since its inception in September 2006, Sony’s Reader Store has introduced a wide offering of new releases, bestselling eBook titles and newspapers. Today it features access to more than one million titles and links to borrow eBooks from local libraries nationwide.


Must say, loved the reference to "turning a page"!!!

Will be interesting to see if there is a backlash. I don't think there will be one although the $9.99 price point has been a brilliant introduction to ebooks. Now we're reading them, I doubt a few more dollars will make any difference whatsoever. Your thoughts?

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!!!!!!!

A day in the life of an ebook reader

I've just finished an ebook (purchased locally surprise surprise) of The Book Thief. What a remarkable book. Will go down as one of the best I've ever read.

I've been laughing at myself lately because I either forget to charge the Sony ereader, or I don't turn it off properly, and then of course there are the problems with the device when I use the backlight (which chews up the battery). Trust me, I made sure I kept the battery strong for this book as I didn't want to get to a critical point and have a battery warning! There's nothing worse than wanting to read and not having the battery charge to do so...

It made me think about school students. I've heard many stories about (mainly private) schools wanting to have content on ereaders for their students but being rejected by publishers who either don't have the content digitised, don't want to participate, or just don't want to provide it for other reasons (piracy? who knows...). Anyway, I don't know about you, but my experience with teenagers in particular suggests they will lose their ereader, misplace it, forget to charge it etc. I can just imagine the teacher saying everyone turn to page 10 and some people have it on large font, some on small, so the page number is irrelevant. Then hearing cries from several students "miss, my battery is dead, I can't read it". Hysterical!

Of course they could always lose the print copy but you don't have battery issues with the traditional format. You don't risk damaging the whole device if you spill liquid on it. You can take it in the bath. You can read it throughout the flight (there's no "switching off all electronic devices" for the takeoff and landing period). The beauty of an ereader is storage and taking choice with you wherever you go.

Oh and further to my previous post, I had the ereader out and about with me yesterday - in a cafe and in a hairdresser. Only men asked me whether it was a Kindle. All older men - as previously identified - and all had lots of questions about it. Most women glance at it and it really does challenge their opinions. I think there's been half for and half against todate. Most add "I really hope the printed book doesn't die though". Me too folks, me too.

Roadtesting the Sony ereader

As many of you know, I took the Sony ereader to Frankfurt this year for the Book Fair. It was an interesting experiment, particularly as it was the longest trip to date and I must admit I was a little anxious as I love to read on longer flights and train rides. My luggage to previous international Book Fairs has included at least 3 books and I must admit, I did take a paperback as insurance!

The Sony ereader was fully charged when I left Sydney airport and there were 45 ebooks on the device including the new one from Audrey Niffenegger, Her Fearful Symmetry. I purposely didn't take the charger on board and regretted this half way when the battery started dying in Singapore! As I've flagged previously on this blog, when the back light is used on the Sony, the battery dies quickly. Knowing this flaw, I use it sparingly but needed to because the light in the business lounge at Singapore airport was not good. I continued reading while I waited for my connecting flight and realised the battery was depleting right in front of my eyes! I wasn't happy about it and ended up putting the reader away.

It might interest you to know that most of the marketing material previously stated the battery lasted around 7000 page turns. If that's the case, I should be getting through 4-5 ebooks with no problem. This is not happening and I must admit, it cheeses me off somewhat.

Apart from the battery, the other problem was not being able to use an electronic device for take off and landing. Of course, on an international flight that can mean the last 30 minutes is without reading material. I was grateful for the paperback I threw into my handbag at the last minute, even if it meant my reading was somewhat interrupted.

Oh and I may have flagged this previously when discussing pros and cons of ereaders, but I enjoy soaking in a tub at the end of a long day and getting stuck into a good book while I bathe. Not having a bath at home, I always look forward to one when I travel. I managed to enjoy the experience only once during the whole Book Fair - on my last night. Of course, it's not wise to take the ereader in the bath (!) and again glad to have the paperback on hand.

But back to the story: The reader charged without difficulty once in Frankfurt, and again when I travelled to Regensburg for some personal time. The time off was particularly interesting as I had to field multiple questions about the ereader, all from German locals. Whether it was someone politely interrupting me on the train "Was IST das?!" to people in cafes or restaurants wanting to know more about it, I was fielding questions left, right and centre. Most of the time I handed over the device and let people use the touchscreen to navigate. It was met with a lot of approval, a lot of nods, a lot of sighs, and A LOT of interest overall.

The demographic was interesting - all enquiries were from men! Several were older, one I would hazard a guess would have been retired, and only a couple were from late teens to university students. I've been talking ebooks for years professionally (mainly for libraries) and having to do show and tell at a more personal level has been a lot of fun too.

On the way home, the ereader was fully charged yet again and I did NOT use the backlight at any stage of the journey. The trip home was longer as I had a 4 hour layover in Singapore. By the time we were preparing to land in Sydney, I had one battery cell left on the ereader. I had read two new books, re-read/scanned through another four, and answered about a dozen questions on the ereader from the general (German) public.

And here comes The Kindle

Amazon has finally announced its Kindle ereader is available to customers outside the US including Australia. For US$279 you can order your Kindle and they'll ship it to you from 19 October. I imagine there won't be a lot of Australian content available for us, as local publishers have been relatively slow to get behind ebooks. Allen & Unwin and Pan Macmillan are two notable exceptions thanks to Elizabeth Weiss and Victoria Nash respectively. These two publishing leaders continue to promote the digital agenda and I don't know what the local industry would do without them!

Mind you, I had to laugh when I read that Don Grover, CEO of Dymocks, spoke about the take-up of devices being driven by content. They were the first retailer to get on the ebook bandwagon (we library suppliers having gotten on it some years back...). But now the ebook kiosk at Dymocks tells a sad, sorry tale. Dismantled and hidden away at the back of the store, it failed to attract a wider audience. Of course it would! If you want to buy an ebook you don't need to go into a bricks and mortar bookshop. That's the beauty of it! Hop online and a few clicks of the button later you have your content. Also, apparently Dymocks sold thousands of Iliads. Ahem. Thousands? A contact at the distributor advised the real figure was much less but don't let us stop you upselling the demand and promoting the uptake of ereaders! We all know it's the future so get your e-reader today folks. Of course you can't get much content but hey, here's a device that you'll enjoy carrying around with you!

And then, of course, there was this beauty from Don: ‘We're finding consumers like the wide screen of a laptop computer instead', he said. No kidding! Didn't we see that all along? Ereaders are great but at the end of the day readers will read on whatever device they use the most - their phone, their laptop, their ereader. Dymocks started the ball rolling but I really do hate to see them drop it.

And for those who have been following this blog: for the record, I'm still reading printed books! However I've got plenty of content (mainly US sourced) on the Sony e-reader. This is the first year I will be taking the device with me to the Frankfurt Book Fair and I must say I'm excited and nervous at the same time. Excited because there's around 46 books currently on the reader, including Audrey Niffenegger's new one Her Fearful Symmetry and nervous in case I have trouble charging the bugger and find I have nothing to read but German magazines I'll pick up while I'm there. My German's good, but not that good!

Oh, and before I sign off this post - perhaps in the months ahead people will stop asking me "oh is that a Kindle" every time I take out the e-reader. No it's bloody not a Kindle. It's a SONY!