Posts Tagged ‘tablet’

One Last Note on the iThingy

Wednesday, January 27th, 2010

Apple will begin their iThingy presentation in just two hours, so here’s the last minute roundup of speculations. Philip Elmer-Dewitt blogs at Fortune as Apple 2.0, and offers a sensible roundup of rumors with a business slant. It’s good work.

Fellow agent and E-Reads publisher, Richard Curtis, offers his thoughts at Start Your Apps.

Technology blogger, John Martellaro, reminds us to embrace surprise with a very thoughtful essay, Say What?

My own final note is that however well the iThingy works as an e-book and or e-magazine reader, and the CEO of McGraw-Hill assured us yesterday that it will do these things, there’s still got to be the surprise. Everyone expects it to continue the Apple iLife activities of managing, buying and sharing images and music through iTunes. All Macs to this and so do iPods and iPhones that are also hand held gaming devices. If the rumors of the touch interface being surprising are true, and the iThingy builds local networks among other iThingys (iPhones and other smart phones can do this now), perhaps it will also act as a musical instrument. A new harmonica or concertina that anyone can learn to play well enough to jam with their friends. GarageBand, an application within iLife, is already a great studio mixer for real and electronic instruments. Why not offer a general purpose input device as well.  Just a thought.

After the announcement, we will get back to Publishing and talk about why the current publisher’s business model is dead and how authors and agents can thrive in the new world order.

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.