Posts Tagged ‘ebook’

Order your Apple iPad tomorrow for delivery April 3

Thursday, March 11th, 2010

Elizabeth Woyka, writing at Forbes.com, reports on a report that Apple has refined their e-book categories. Visit the Forbes site for the whole story, but the book specific information is this:

AppSlice’s findings point to a highly organized approach to bookselling. Apple has designated about 20 “top-level” categories for books, including “Fiction & Literature”, “Reference,” “Romance,” “Cookbooks” and “Comics & Graphic Novels.” Below those categories lie more than 150 sub-categories, including some very specific genres, such as “Manga” under “Comics & Graphic Novels,” “Special Ingredients” under “Cookbooks,” and “Etiquette” under “Reference.” Some sub-categories, such as “Fantasy” and “Science Fiction & Literature,” even have sub-sub-categories (“Historical” and “Paranormal,” for example.) There are also two sections for “Erotica” books; one under “Fiction & Literature” and one under “Romance.”

We don’t know if the iBookstore will become visible tomorrow or on April 3, when the actual iPads will be in Apple stores, but there’s lots of speculation and hand wringing. Commentators range from the enthusiasts (like me) who think the iPad will increase e-book sales to the Apple haters who assure us the device will flop. You can follow the flop predictors at iPad Death Watch. Great fun. One of the doom crieers, John Dvorak, has shown how great it is to be a writer. He’s almost always wrong, yet keeps getting paid for his opinions. My favorite was his column almost three years ago today, when he commented on the announced but not yet delivered, iPhone:

I’d advise you to cover your eyes. You’re not going to like what you’ll see.

Clearly people did like what they saw as Apple sold over 8 million iPhones in just the last quarter. Although Amazon won’t release sales numbers for the Kindle the most optimistic estimates are about 2 million sold to date. That means that in the three months over the holidays, Apple sold four times as many iPhones as Amazon sold Kindles in two years. Anyone going to buy an iPad?

What’s a “hardcover e-book?”

Tuesday, March 2nd, 2010

Check out this interesting essay on TUAW, Macmillan trying to sell ‘hardcover’ ebooks, which gives a technologist’s view of the e-book controversy.

Amazon concedes

Monday, February 1st, 2010

Gilda Radner on SNLIn the words of Gilda Radner, “Never mind.” (Clic the pic for sound.) However, let’s not fool ourselves that the war is over. This is only a skirmish. There are some new insightful blogs on the underlying causes of the conflict. We suggest you check out:  Scrivener’s Error and Charles Stross’ blog for a legal perspective and a supply chain analysis respectively. Great stuff.

UPDATE: A biting and appropriate summary by John Scalzi on his blog.

Amazon pulls Macmillan titles from online store

Saturday, January 30th, 2010

Amazon will still allow customers to buy Macmillan titles from used book resellers as part of their partners program, but no longer displays the “Ships from and Sold by Amazon.com” text. The biggest impact is the elimination of royalty generating sales for authors on the web’s largest book retailer. The New York Times reports that the reason is the ongoing dispute between Amazon which wants to drive down the cost of e-books to $9.99, and publishers who want to hold up the price.

Technically Amazon is justified: book prices have risen due to increasing costs of manufacture and transport to place physical books on display in local bookstores. Ebooks have no cost of production, delivery or (shudder) returns. So ebooks don’t “need” to cost as much as paper books. Publishers, of course, don’t want to see revenues drop and want to continue the business-fiction that books are valued by the “format” of the book, rather than by the content. They are historically justified, because a hardcover costs more to produce than a paperback. But when there’s no physical object involved, the argument collapses. Alas, while my sensibility as an agent, makes me want to see strong, healthy publishers, there’s no good guy in this battle. And the only loser is the author.

Facilitators of delivery like Amazon and Apple don’t need the same margins as brick and mortar bookstores because they have no fixed costs for stores (not that Amazon doesn’t spend a lot of IT dollars on their computers). That’s why Apple’s iTunes and App stores have always passed 70% of the consumer price on to the rights holder. Amazon used to require 65% of the take for ebooks sold for the Kindle, but scared purple by the iPad, they dropped their share to match the Apple business model.

This fight, and the pulling of the Macmillan titles, is over the list price of the e-book. Publishers have been demanding agents and authors accept 15% of the ebook list price or sometimes a larger percent of the “Net receipts.” Our agency has been fighting the unfairness of publishers holding high percentages of e-book revenues for years. The problem is that 15% of the list price is not profitable for authors if business partners (say, Amazon and Macmillan) decide to price the e-book at $2.99. Likewise, the apparent niftiness of a 25% net receipts royalty is a bad deal if the delivery facilitator decides to collect 65% of the sale price, which Amazon used to do. Too many contracts have authors incomes tied to the publisher’s ability to artificially inflate the price of e-books; a fight I don’t think they can win.

It’s time to rethink the business model for publishing. Print runs are falling, even NYTimes bestsellers are being stocked in big chain bookstores in smaller quantities, and consumer spending is falling. Arguing over the wrong things for the wrong reasons and arguing against technological reality is not the way to improve the world. I’m concerned, but not worried; I love all the editors we work with and want them to have long careers, but my fiscal duty is to the cash flow of our authors. I think I’m the only literary agent who is also a computer software guy; someone who can edit books and refactor software. (They are very similar activities). I was in the BBN network control center the night the Internet, then called ARPAnet was first turned on. I’m pretty sure I’m the only agent with the iPad development system running on my laptop. All this e-book and web stuff is fun and it is not going away. So to Amazon and the Publishers, I want to say: stop fighting kids. The author, and agent–at least this one, is your friend. You can’t fool me; but you don’t have to.

E-books set to drive publishing in 2010

Tuesday, January 26th, 2010

All the signs say publishing will change significantly by Noon, California time on Wednesday January 27th when Apple announces the iThingy. Speculation about what this iThingy will be sounds like publishing genres: from Romance (it will be love at first sight), to Fantasy (it will be a full color e-book reader that provides total laptop computer capability with a touch screen interface that plays games) to Religion (it will be the Jesus Tablet).

I don’t know any more about the product than anyone, but I can offer a few observations about Steve Jobs and about Publishing.

Today’s rumors report that Jobs thinks “it’s the most important thing I’ve ever done.” This supposed quote feels genuine and if so, and from what we know about Jobs’ Apple, should tell us something about the product. When Apple introduces paradigm-shifting products, the speculators and pundits always predict they will somehow encompass a whole bunch of historically desirable features and support traditional activities. What really happens is that Apple removes features and simplifies use. The immediate response of the Apple haters is to say, “Well no one will ever buy a product without that feature” and dismiss the Apple gizmo just long enough for Apple to dominate the unseen market that never cared about that feature anyway. For example:

The first iMac (thebrightly colored gumdrop), lacked a 3.5″ floppy drive. Pundits fried the iMac for its lack of backward compatibility. However, consumers appeared not to notice it was missing, and the line sold well.

The iPod completely revolutionized music players and electronic devices in general by replacing individual buttons (and the documentation required to explain them) with the click wheel. The iPod was the first all-digital device with an analog control. The iPod also simplified use: with “1,000 songs in your pocket” the iPod user had plenty of music available at all times. Of course today’s iPods hold many times the music, games and videos.

The same story unfolded with the iPhone. Most positive speculation of the iPhone design expected an iPod click-wheel that somehow turned into a rotary dial or some slide out keyboard that other vendors had done poorly. The iPhone offered a completely new interface that changed up the game for smart phones. The speculation that predicted the failure of the iPhone is now as faded as the earlier speculation that the iPod would fall to the superior resources of Microsoft and their partners. Remember the Zune?

So will the iThingy wipe out the Kindle and all the other, newly announced e-book readers? Technically, it probably will. From the business point of view, it has already caused change.

Here’s how music players, like the iPod, are different from e-book readers, like the Kindle.

First and foremost is the user experience. Music players, including the iPod are out of sight and seldom touched while being listened to. The minimal click wheel is all that’s required to control the iPod. iPhones and the iPod touch are highly visual and the touch sensitive screen is key to the usability. Reading a paper book is entirely a visual experience with a subjective tactile quality: the feel of the book.

So e-book readers must survive being looked at a lot and they must be good to touch. Many existing e-book readers certainly provide convenience, but beyond the steadily improving quality of e-ink screens, many are ugly and distractingly covered with keys. So any Apple e-book reader will have to do lots better.

The second aspect of e-books is the source of content. Music players were originally introduced to acquire songs from existing sources and make them available in your pocket. People seem to have forgotten that iTunes was free on all Apple computers for almost a year before the iPod was released. iTunes was a digital jukebox presented with the slogan “Rip. Mix. Burn.” It allowed users to move songs they already owned to music players and burn new albums as CDs. Personal creativity was not creating music (that’s hard and requires talent) but choosing how to combine music and share the playlist with friends. Piracy of music was well underway long before iTunes and the iPod, but with the iTunes Music Store, for the first time, consumers could purchase legal music, and they did.

But e-books are a different story. Despite advances in scanners, there’s no book reader to move an existing library onto any form of e-reader. To scan a book today, you either have to devote a lot of time to holding the book down on a scanner, or destroy the book to feed the pages into a scanner. So the only way to get content legally on an e-reader, other than texts that are in the public domain, is to buy each book as an e-book at published prices. This is fine for brand new front list titles, but the book business, before the “hits” model that developed in the 1980s, was a backlist business. Older books sold every year and good books could stay in print for decades. The very essence of publishing, backlist bestsellers, hasn’t driven e-books and e-readers; but it should.

How to make an e-book market explode?

The missing bit of technology that could explode e-books is the $200-300 book scanner that would read a paperback or hardcover book in less than an hour of clock time and spit out the book no worse for wear. For mechanical reasons, this would be a hard product to build. Lacking this device, e-book retailers and publishers could announce that anyone who bought the paper book (non-returnable paper book and some proof of sale required) could download the e-book edition for free or a nominal cost like $0.99.

Eliminating the need to ship heavy paper books around the country, e-books should be highly profitable for both publishers and authors whenever the pricing gets right. In the past two decades the price of all formats of paper books has risen to levels that drives down consumer book purchasing. Now, when e-books as a format, have the ability to remove the high price levels, all we hear from publishers is their intent to keep prices high. But trends can reverse.

With the recent announcement by Amazon that they are conforming to the iTunes model and dropping their share of the consumer price as well as the target price, Apple has already influenced publishing while having no product in the space.

Let’s see what Wednesday brings…

Amazon adopts Apple ebook royalty model

Wednesday, January 20th, 2010

Authors have just won a great battle in the war over their royalties without having to negotiate anything. Since the Kindle was released, our agency has been unwilling to embrace the platform, not because of the technology but because of the business model. Amazon claimed 65% of all revenues, a full 15% higher than common retailer rates for paper books. We have always favored the Apple iTunes/App Store model that pays the owner 70% of all revenues. Apple just hasn’t been selling ebooks. With Publishers receiving only 35% of the retail price of Kindle books, they’ve been unable to offer authors more than 15% for selling the authors words in electronic form; a crazy bad deal since there’s no physical book involved and zero risk of returns. While some publishers have obtained better terms from Amazon, all details have been secret and authors and agents had to agree to royalty rates, the value of which lay beyond a locked door.

A few days ago, Amazon opened the Kindle to individuals who could format to their standards. This was big news because previously Amazon wanted authors to go through “publishers” who would rake off income, but do little beyond formatting text files.

Today, Amazon has adopted the Apple model. Why? Because the rumors of the Apple iTablet-thingy are so compelling. We will have more as this develops but you can read the news at many business websites. Here’s the Motley Fool Story.

There are hooks and obligations in this new Amazon business model, so this does not mean that every author should jump in blindly. However, it does mean that published authors with control of their out of print backlist can now consider ebooks as a viable business. Our advice is that while this is good news: good for Kindle owners, good for authors, and good for Amazon; we should all wait until after January 27 to start negotiating contracts so we can see what Apple announces.

HarperCollins negotiating with Apple for ebooks says WSJ

Tuesday, January 19th, 2010

Today’s Wall Street Journal reports on a negotiation between HarperCollins and Apple to release ebooks for the new Apple tablet device to be announce next Wednesday. The article indicates HarperCollins staff leaked this story but a photo caption in the WSJ online edition claims an “announcement” by the publisher. This is probably sloppy journalism unless this is an Apple sanctioned leak as Apple normally never permits partners and suppliers to pre-announce anything. Read the WSJ article here.

This should be good news for both authors and the reading public, but the story suggests the price of these ebook editions will be between $14.99 and $19.99. I suspect this is bogus or simply HarperCollins’ hoped for position. At such high prices, the viability of ebooks will depend largely upon the physical appeal of the Apple product rather than the content of the books themselves. We will have more on the state of ebooks and Apple thingys later this week.

WSJ and NYTimes say B&N’s Nook is underdone

Thursday, December 10th, 2009

Both of the nation’s leading technology columnists, Walt Mossberg at the Wall Street Journal and David Pogue at the New York Times (Not Yet the Season for a Nook), roasted Barnes and Noble’s ebook reader in their reviews today. Click through and read what the e-sages have to say. Note: you may have to register or subscribe to read the columns. You can also read Walt’s review at his All Things Digital site.

I have no comment yet, because I (like everyone else) have never seen a Nook. In general, I applaud developers of e-book readers and hope this additional product will spur consumer choice, but I think we will still have to wait for Apple’s tablet to get an iPod-class example of e-readers. Of course the biggest obstacle to e-books is not the merit or temporary bug-level of individual models but the predatory nature of the business models. Vendors want to trap consumers in their business model rather than replicate and expand the nature of reading and pocketing a profit along the way.

Don’t be misled, e-books are coming. Partly because of technological advantage, and partly because of blind greed on the part of publishers and retailers. They hope to continue to make profits from owning 85-96% of the retail price for books while keeping the price to consumers at the level of physical books. This cannot continue. Publishers and retailers see making huge profits selling an e-book for $24 and never having to ship, inventory or display a physical object. I can’t see this. But then I never saw all the colored lights in the 70s either.

Credible Rumor: Apple e-book terms

Wednesday, December 9th, 2009

In today’s Apple 2.0 blog at Fortune, Phillip Elmer-DeWitt has rounded up the latest rumors on the unicorn-like Apple tablet device. Read Apple tablet set for spring launch for the details. This is the first collection of tablet rumors that include details of what the cash flow deal will be with publishers for ebooks, and the numbers are right in line with our agency projections for the past two years.

Currently the Kindle Portable Bookstore device has kept 65% of the retail price for e-books giving authors ultimately only 15% of 35% for electronic editions of their works. That’s a 5% royalty on an ebook sale where no physical product is involved. It has always been our agency position that authors should get at least 33.5% of the retail price of an ebook sale, sharing a third each for Publisher and Retailer. The Fortune story also quotes a Wall Street Journal story that Simon and Schuster and Hachette are holding off on e-books, you can read that through Fortune or here.

Today’s e-book market is the wild west with publishers making corporate edicts that they must control e-rights, will never revert titles kept available on some spinning disk somewhere and offering a pittance to the authors. The publishers are not totally at fault; they are greedy but they didn’t think up this mess alone. E-book channels are murky and schoolyard bullies who make devices and try to sell electronic books either demand large shares of the cash flow or tie the works to their proprietary devices. The agent’s and author’s business challenge has been to cope with publishing deals in which we are offered 10-20% of the “net” when the net is computed behind a closed door that even the publishers cannot always see behind. The Apple model should clarify things a lot.

More as we learn it.

Will Apple save publishing?

Friday, December 14th, 2007

Apple LogoI’m not really in the business of predicting the details of Apple product releases, but I do have a good feeling for what they are capable of, having been a Mac user since 1986. Today, I’d like to say what I hope they will announce at Macworld on January 15, 2008. I say this not from having spoken to any Apple employees, ex-employees, or subcontractors to Apple on any continent. This is just what I hope they will announce because it is the product I want to buy and use.
There’s a much rumored “ultra-thin-laptop” with a 13.5 inch screen (same size as the current MacBook) that will sport only flash memory and sell for about $1,500. Then there’s the less popular rumor of an Apple Tablet computer, equally small, featuring some kind of touch screen, but declared unlikely since Microsoft-based vendors have pretty much killed the tablet category. 
The problem with both such products is that they are small markets without some killer app or new usability. Personally, I’d buy an under two pound MacBook, because I like to travel light, but those of us who would like such a thing may not be a big enough market. 
I hope Apple will change the world again because authors and readers of books need a technological solution to the problem of manufacturing books and getting them into reader’s hands. Here’s how Apple can do this. Apple has iPod-class-success with the iPhone and has also been selling a solid state iPod with the iPhone’s touch screen called the iPod Touch; basically, an iPhone without the phone. What’s promising about these devices is that the iPhone’s touch screen interface allows the user to flick though PDF, MS Word and text files in a way that feels like turning the page in a book. Reading a lot of text on an iPhone or iPod Touch is not very attractive because of the 3 1/2 inch screen, but it is possible and the interface feels right. Click off to the Apple web site for the demo movies on the iPhone and iPod Touch if you aren’t familiar with the way they work. So I’m hoping Apple’s new product will be… pause for dramatic effect …

The MacBook Touch

Think of an iPod Touch scaled up to a 13 1/2 inch screen but not much thicker. It’s a slate, a simple glass book, in which you can see pages of text or pages of media or videos, but has no physical keyboard like today’s laptops. You don’t need a physical keyboard to read a book. It surfs the web whenever it’s in a WiFi zone, does everything a MacBook can do when linked to the existing Apple Wireless Keyboard and has both the touchscreen interface and its virtual keyboard.  The current Apple touch interface: pinch to change the size of the text and images, flick to turn pages, rotate the device to switch from portrait to landscape, is already ten thousand times better than the Sony or Kindle’s clunky buttons. 
Here’s where we book people have to change our thinking. Everyone’s been assuming an ebook reader has to be a special purpose gadget that poorly mimics a book while trapping the consumer in a business model that ties the reading experience to the vendor’s device, file encoding format and sales channel. The Amanzon Kindle is a fine example of this kind of thinking. As an agent, I can grasp the idea of some sort of limit on free re-distribution of duplicates of the electronic book, but I can’t get used to limits on how and where the book is read. Publishing has survived hundreds of years with no control of what happens to a purchased book. You can read it sitting in your chair, at your desk, on a plane  or give it to your nephew or a total stranger. What I can’t get on with is the limit of reading something only on one single platform or when tethered to the shop that sold it. How many books would be sold if when you bought a Random House or Putnam novel, you had to read it by the light of the publisher’s light bulb and store it in a bookcase made or licensed by the publisher.Book people, including many readers, say, “we will never give up the paper book.” Yet, our reading habits have already changed. We already read more on our PCs than we read in magazines and lots of types of books. We read personal mail, business documents, play games for enjoyment, and read the stuff we just wrote on screens. What I want is one thin device that is portable like a book, but on which I can read anything pretty much anywhere. The iPod does this well for music and has sold over 120 million units. A thin MacBook touch could do this for documents. And being a MacBook, even if I have to flip it over or haul out the Wireless Keyboard for serious typing, it’s a computer too.
So without making the user accept another special purpose device or subscribe to a new proprietary service, Apple will have the world’s best electronic reader. Sure, you can expect books bought from iTunes Bookstore to have some kind of DRM, but since it reads PDF and text files too, it should be easy to download your own documents from your PC, Mac or the net. A MacBook touch would be a non-proprietory device that can read proprietary formats, as well as your company’s secure documents, since it is really a Mac laptop. What is not to like about this?

Now for the key objection.

It’s too expensive. Cost was the big objection everyone made about the first iPods and look how that prediction turned out. My hoped-for device would be too expensive if it was a traditionally visualized book reading machine like all those that were cheaper, had faint, gray screens, and failed. But would it be too expensive for a flat, touch-screen news, magazine and book reader that reads every web site in the world in full color? Would it be too expensive as a portable wide-screen movie player (sans DVD drive), music player and audio book player? Probably not.
So this is what I hope Apple will announce. If I’ve accidentally blown some of Apple’s secrets, I apologize. If Apple is reading this and didn’t quite think of this product yet, well, get to work on making it. Readers need this. The publishing industry needs this. I’ll buy the first one.