If eBooks Are the Future, Do Publishers Have a Plan?

Written originally in November of 2009 by Linda Dishman, the question does need to be asked, what now for publishers? I believe the question has not been answered. However, I believe that the question will be answered in a way most of us have not imagined. Here is where you can find the original piece - http://www.fastcompany.com/blog/lydia-dishman/all-your-business/are-ebooks-brave-new-world-profitability-publishers. Enjoy the piece: 

The numbers are in, and eBooks may very well be the bright spot in book publishing's dim future--but only if publishers can figure out a way to keep the momentum going.

EBook sales accounted for $46.5 million as of the end of September, according to the International Digital Publishing Forum (IDPF), but that number only represents trade eBook sales through wholesale channels. Retail numbers may be as much as double these figures due to industry wholesale discounts, says IDPF. It's a drop in the bucket for book sales overall, which amounted to about $1.26 billion for the month of September, according to the Association of American Publishers (AAP).

What's most astonishing, though, is that eBooks have sold like hotcakes without a marketing or sales strategy. Publishers are moving quick to catch up as new digital innovations come to market.

"Everybody's awake now," says Mike Shatzkin, a 40-year industry veteran and founder of the Idea Logical Company, a firm of digital publishing futurists. He lauds larger publishers such as Random House and Hachette for being way ahead in terms of the mechanics of getting eBooks to market. But one of the publishers' biggest problems, he says, is that their selling strategies are built around book formats, and not about the interests of the people reading those books.

Brian O'Leary, founder of Magellan Media, a publishing industry consultancy, agrees that the approach to finding the eBookworms varies from publisher to publisher. For instance, he notes many of Hachette Book Group's titles have had simultaneous print, audio, and e-book versions that are marketed and sold using common campaigns.

HarperStudio's publisher, Bob Miller, acknowledged that their overall strategy so far, is integrated with their print program because many of their eBooks and digital audiobooks have traditional print versions. This from the HarperCollins imprint that rocked the publishing world recently when they announced a 50-50 profit-sharing deal with authors--a departure from the traditional 7% to 15% royalty-- and publishers of the multi-media "Vook" CRUSH IT!

Miller speculates that commercial fiction categories such as thriller, mystery, suspense, romance, and science fiction will continue to sell briskly in digital format. "Readers of these genres will continue to like the convenience and low cost of this format and are less concerned about having the physical book to keep on a shelf," he says.

But O'Leary suggests publishers such as HarperStudio would do well to take a page from the genre publisher's playbook. Though he's not advocating a one-size-fits-all marketing strategy, he notes that Harlequin has enjoyed much success by marketing short-form digital downloads for Nocturnal Bites separately, and recently announced the start of a digital-only imprint.

Indeed, Harlequin Enterprise Ltd.'s Brent Lewis, vice president of digital and Internet for Harlequin Enterprises Ltd., has been leading the strategic charge of Harlequin's digital publishing and marketing programs that now reach over 50 million readers in ebooks and digital audio, as well as on Harlequin's own site, in mobile distribution, and digital-only content.

Lewis' revealed Harlequin's not-so-secret ingredient in an interview with Fast Company last year: their consumers. "At Harlequin we have a very powerful brand that people have been very loyal and engaged to since the business began."

While Harlequin has its finger on the (ahem) throbbing pulse of its readers, it will be interesting to see what strategies evolve at Random House when industry vet and ex-Amazon employee Madeline McIntosh assumes the newly created position of President, Sales, Operations, and Digital on December 1. Her appointment will "unify their physical and digital sales efforts for adult, children's, and international titles, distribution, publishing operations, IT, and corporate digital-publishing capabilities in an interconnected team,"according to a statement from Markus Dohle, Random House chairman and CEO.

They managed to pull out a blockbuster under current leadership. Crain's New York Business reported sales of Dan Brown's The Lost Symbol sold 100,000 e-books its first week out, or about 5% of total sales for the book. September ebook sales at Random House (much of which are presumably The Lost Symbol) pulled in $22.6 million, which is a 700% increase over Kindle sales last year. While every month can't be a Dan Brown blow-out, a good marketing strategy to find and retain loyal readers will help shore up the revenue model.

Right now, Shatzkin says eBooks are more profitable than print because there is no physical inventory, and in many cases the publisher has negotiated lower royalty payments (and other than the aforementioned specific instances, no one seems to have a marketing plan). As such, he believes Amazon, proprietors of the Kindle eReader, is subsidizing publishers for digital editions because the price they are paying up front for a digital edition is the same as for the print version.

O'Leary believes this too, will change. As publishers gain experience and sales grow, the cost of creating them will fall. "In the last year retail prices for e-books have been set lower than their print counterparts. If those lower prices stick, they will leave little room for retailer or publisher profitability under the traditional publishing model," he adds.

Yet Shatzkin wonders whether good marketing strategies and proper branding of digital books won't keep them from being cost prohibitive to the consumer. "There is plenty out there to read that's free. Will the public plunk down $25 for Ted Kennedy's eBook?" he asks, then responds, "I think it will take a while to answer that question."

Forget E-Books: The Future of the Book Is Far More Interesting

Take a long hard look at a book, any book. Pull a favorite off a shelf, dust off the top--maybe it's the Bible, the Koran, a novel by Jane Austen or Leo Tolstoy. Perhaps you're more into Dan Brown or Jacqueline Winspear mysteries, Doris Kearns Goodwin biographies, or you've dog-eared page after page in Skinny Bitch. You may even gravitate toward business books like Viral Loop, my latest. Now say your goodbyes, because there will soon be a day that you may view such analog contrivances as museum pieces, bought and sold on eBay as collectibles, or tossed into landfills.

Coming soon ... It's the end of the book as we know it, and you'll be just fine. But it won't be replaced by the e-book, which is, at best, a stopgap measure. Sure, a bevy of companies are releasing e-book readers-there's Amazon's Kindle, Barnes & Noble's Nook, and a half dozen other chunks of not-ready-for-primetime hardware. But technology marches on through predictable patterns of development, with the initial form of a new technology mirroring what came before, until innovation and consumer demand drive it far beyond initial incremental improvements. We are on the verge of re-imagining the book and transforming it something far beyond mere words.

Take note: The first battlefield tanks looked like heavily armored tractors equipped with cannons; early automobiles were called "horseless carriages" for a reason; the first motorcycles were based on bicycles; the first satellite phones were as clunky as your household telephone. A decade ago, when newspapers began serving up stories over the Web, the content mirrored what was offered in the print edition. What the tank, car and newspaper have in common is they blossomed into something far beyond their initial prototypes. In the same way that an engineer wouldn't dream of starting with the raw materials for a carriage to design a rad new sports car today, newspapers won't use paper or ink anymore. Neither will books. But mere text on a screen, the stuff that e-books are made of, won't be enough.

The first movie cameras were used to film theater productions. It took early cinematic geniuses like Sergei Eisenstein, Fritz Lang, Charlie Chaplin and Abel Gance to untether the camera from what was and transform it into what it would become: a new art form. I believe that this dynamic will soon be replayed, except it will star the book in the role of the theater production, with authors acting more like directors and production companies than straight wordsmiths. Like early filmmakers, some of us will seek new ways to express ourselves through multimedia. Instead of stagnant words on a page we will layer video throughout the text, add photos, hyperlink material, engage social networks of readers who will add their own videos, photos, and wikified information so that these multimedia books become living, breathing, works of art. They will exist on the Web and be ported over to any and all mobil devices that can handle multimedia, laptops, netbooks, and beyond. (Hey, Apple, are you listening?) 

For the non-fiction author therein lie possibilities to create the proverbial last word on a subject, a one-stop shop for all the information surrounding a particular subject matter. Imagine a biography of Wiley Post, the one-eyed pilot from the 1930s who was the first to fly around the world. It would not only offer the entire text of a book but newsreel footage from his era, coverage of his most famous flights, radio interviews, schematics of his plane, interactive maps of his journeys, interviews with aviation historians and pilots of today, a virtual tour of his cockpit and description of every gauge and dial, short profiles of other flyers of his time, photos, hyperlinked endnotes and index, links to other resources on the subject. Social media could be woven into the fabric of the experience--discussion threads and wikis where readers share information, photos, video, and add their own content to Post's story, which would tie them more closely to the book. There's also the potential for additional revenue streams: You could buy MP3s of popular songs from the 1930s, clothes that were the hot thing back then, model airplanes, other printed books, DVDs, journals, and memorabilia.

A visionary author could push the boundaries and re-imagine these books in wholly new ways. A novelist could create whole new realities, a pastiche of video and audio and words and images that could rain down on the user, offering metaphors for artistic expressions. Or they could warp into videogame-like worlds where readers become characters and through the expression of their own free will alter the story to fit. They could come with music soundtracks or be directed or produced by renowned documentarians. They could be collaborations or one-woman projects. 

Before you add your comment to the comment thread at the end of this column, or hustle off an email to me to vehemently disagree with my vision, I want to emphasize I'm not predicting the end of immersive reading. I see a future in which immersive reading coexists with other literary, visual and auditory modes of expression. You get the full book--all the words on the page or screen--but you also get so much more. And ask yourself: Which would you rather have, the hardcover book of today or this rich, multimedia treatment of the same title? Suddenly mere words on a page may feel a bit lifeless. And remember that today's youth are tomorrow's book buyers, and they have been brought up on a steady diet of entertainment on demand, with text, photos, and video all available at the click of a mouse. I'm skeptical that simple text will cut it for them. 

Now, I realize that many can't imagine life without a good book to curl up with, but these may be the same people who might have thought they'd never forgo the pop and hiss of vinyl records, jettison the typewriter for a laptop, spring for high speed Internet access, or buy a BlackBerry or iPhone. In an earlier age they might have even resisted adopting the Qwerty keyboard (what's wrong with ink and feathered quill anyway?) And sure, there will be some books around. After all, even today there exist vinyl records--just not a lot of them. 

As the author of three books, I'm excited by the possibilities. Despite all the doom and gloom surrounding newspapers, magazines, and books, I think all writers should be optimistic. Because where there's chaos, there's opportunity. 

Adam L. Penenberg is author of Viral Loop: From Facebook to Twitter, How Today's Smartest Businesses Grow Themselves. A journalism professor at the Arthur L. Carter Journalism Institute at New York University, Penenberg is a contributing writer to Fast Company

And besides, it's inevitable.

Amazon to launch Thinner, Sharper, Faster Kindle in August

According to “two people familiar with its plans”, Amazon will be introducing a thinner Kindle in August. It will have a sharper screen, but will still be gray scale and will not feature touch-control.

If true, it would seem that Amazon is doing the right thing by quietly improving on its simple e-reader with adding price-rising extras. After all, why bother with a color Kindle when you can buy an iPad and read Kindle titles on that? Instead, a slimmer Kindle with sharper text would further differentiate itself from bulkier tablets with shorter battery-life and lower-resolution screens that don’t work well outdoors.

The lack of touch, though, is a shame. When anyone who has used a modern smartphone picks up the Kindle for the first time, they touch the screen. Touch would also let the Kindle lose the ugly keyboard, which would in turn allow for either a bigger screen or a smaller case, either of which would be big improvements.

According to the Bloomberg article, there will be one further improvement. The page “turns” will be a lot quicker. At last.

Amazon.com Said to Introduce Thinner Kindle in August [Bloomberg]

Piece by Charlie Sorrel
Read More http://www.wired.com/gadgetlab/tag/e-books/#ixzz0rRIMA0WZ

Acer Debuts New Reader, Android Phone

For those who feel there’s not enough choice in e-readers or smartphones, here are some new options. Acer is showing a new e-reader and smartphone that more than anything else add clutter to the category.  The two devices will be shown at Computex, one of the largest trade shows for PC makers held every year in Tapei, Taiwan.

Acer’s new e -reader called LumiRead will have a 6-inch E Ink display, 2 GB flash memory (good for about 1500 books) with the option to add a MicroSD card, and a QWERTY keyboard.
There’s also an ISBN scanner built into the device so users can scan ISBN codes on the books to create their own wish list or search online libraries and book stores.
Like the Alex e-reader or Amazon’s Kindle, Acer’s LumiRead will have a internet browser and connect wirelessly using 3G or Wi-Fi.

Acer has signed agreements with Barnes & Noble and Libri.de, a German internet book retailer to offer e-books. The device will launch in the U.S. in the third quarter and be available in China and Germany towards the end of the year.

Acer isn’t talking price, which will be key to the device’s success. The e-reader market is flooded with Kindle clones and the arrival of yet another device is hardly likely to get consumers’ attention.  The ISBN code-scanning feature aside, the LumiRead feels rather pedestrian and unless Acer can beat Sony’s $170 Pocket Edition e-reader, it is difficult to see how LumiRead can get ahead.

Separately, Acer also announced a new smartphone called Stream. The Android-powered phone will have a 3.7-inch touchscreen OLED display, 3G,  Bluetooth and Wi-Fi capability, a Qualcomm Snapdragon 1GHz processor, 512 MB RA and 2 GB of internal memory.

“Acer Stream is a high-end multimedia smartphone, optimized for watching movies, listening to music and enjoying web browsing like at home,” says Acer in a statement. “Perfect for most demanding users who look for the best in entertainment.”

That means HD video recording up to 720p, 5-megapixel camera, a GPS system that allows photos and videos to be geotagged and a HDMI port. The phone will run Android version 2.1 aka ‘Éclair.’
Based on the specs, the Stream sounds a lot like the Nexus One.  It’s likely that Acer will launch the device in Asia and Europe only. After all, the Nexus One and the HTC EVO 4G blow the Stream out of the competition in the U.S.

Acer hasn’t announced telecom carriers or pricing for the Stream.

Read More http://www.wired.com/gadgetlab/2010/05/acer-debuts-new-e-reader-android-phone/#ixzz0rQyCX7qD

Written by Priya Ganapati

Is the iPad Driving E-Book Piracy, and Does It Matter?

If you wanted to know how many pirated e-books are being downloaded, BitTorrent would be a good starting place. TorrentFreak, a blog that covers these speedy, P2P downloads, recently decided to check the numbers. The question: did e-book torrent downloading become more popular after the iPad’s launch?

The answer was a resounding “kinda.” While almost none of Amazon’s top ten appeared on public torrent trackers, six out of 10 books in the business category were available. When TorrentFreak checked the before and after numbers, it found that the number of BitTorrent book downloads grew by an average of 78 percent in the days after the iPad went on sale. Even so, the numbers were still tiny compared to the traffic in movies and music.

What does this mean? First, e-book piracy is still a small problem. Right now it’s a very geeky pastime, which is reflected in the skew of these titles (Getting Things Done, Freakonomics and The Tipping Point were on the TorrentFreak list). This matches up with the usual early adopter profile, the people who would have bought the iPad on its opening weekend.

But where geeks go first, the general public will follow. This happened with music. Now almost nobody I know buys CDs: They pirate, and even my most hardcore book-loving friend is now a Kindle convert. So will the iPad bring this attitude to books?

First, there is the problem of digitizing books. Right now, the best place to download e-books is via irc (Internet Relay Chat), online chatrooms that predate the web. The shared books are tiny text files. Storage and download speed are no problem, but the subject matter is heavily skewed toward popular trash and sci-fi. Original files come from those with enough time and patience to scan, OCR (optical character recognition) and proofread the resulting files, but the majority of what you find are duplicates of these. Contrast this to music, where you pop a CD into your computer and wait a few minutes while it rips the tracks and downloads the metadata.

It is unlikely that there will be a way to scan books so easily at home anytime soon, but what about sharing e-books themselves? If Apple makes its iBooks app available on the Mac or PC, then copying an entire book, even if protected by DRM, will be as simple as automating screenshots of pages and sending them to an OCR program. Only a single copy of a book will need to be pirated thusly and it will then be compromised forever.

Blaming the iPad is stupid, though. If it causes a rise in book piracy, it is only because it is driving demand. The book industry should embrace this and give us what we want: cheap books, published day-and-date with their paper equivalents, along with all back-catalog titles made available. And preferably DRM-free.

There is evidence that this is happening already. The iBooks Store will be rolling out with the iPad as it goes on sale across the world. The iTunes Music Store, by contrast, took years to negotiate itself into non-U.S. markets, and in many countries you still can’t get movies or TV shows. That these deals are in place mere months after the iPad was announced shows that the book industry is at least trying to move into the digital future.

The iPad is fast shaping up to be the go-to e-reading device. Between Apple’s iBooks, Amazon’s Kindle for iPad and the slew of other e-readers in the App Store (although curiously, our favorite Stanza is still absent on the iPad), you can buy and read almost any e-book out there. Blaming the iPad for kicking-off book piracy is foolish. It’s an opportunity, and if book publishers mess it up, they have already seen what happened to the recording industry.

This piece was written by Charlie Sorrel and can be found here: http://www.wired.com/gadgetlab/2010/05/is-the-ipad-driving-e-book-piracy-and-does-it-matter/

Read More http://www.wired.com/gadgetlab/tag/e-books/#ixzz0qothii8S

Is iPad supercharging eBook piracy?

Here is the piece for your perusal:

Recently, Scott Turow, the best-selling author of legal thrillers, including "Innocent"--his just released sequel to "Presumed Innocent"--was named president of The Authors Guild. That Turow, a practicing lawyer, was named president is probably no coincidence, considering the myriad issues that authors and publishers now face as digital books and e-book readers not only disrupt the marketplace but leave it vulnerable to that nasty little vermin commonly known as piracy.

In an interview with Media Bistro's Galley Cat (see video below), Turow talked about how author royalty rates for e-books were too low, but the larger problems for authors and publishers involved piracy. "It has killed large parts of the music industry," he said. "Musicians make up for the copies of their songs that get pirated by performing live. I don't think there will be as many people showing up to hear me read as to hear Beyonce sing. We need to make sure piracy is dealt with effectively."

Why this suddenly more-alarming tone? Well, though Turow recognizes that the iPad has clearly taken the e-reader to a whole new level, he doesn't specifically single out the iPad as the No. 1 catalyst for pirating. But I am. 

To put it in the context of the music world, it goes something like this: You remember the first MP3 players to catch on? They were from a company called Rio and the early ones used SmartMedia memory cards as their storage medium. Then there were more Rios, and most of them were really pretty good (I still run with a Rio Chiba). I look at these players as the Kindles, Nooks, and Sony Readers of the e-reader world. 

But then the iPod showed up. Sure, there had been piracy ever since people started burning CDs, but the iPod was the big accelerant. You can say what you want about iTunes ruining the music industry with its 99-cent single-track downloads (why buy the whole album for $10, when you can buy just the two good songs on it for $2?), but the fact that so many millions of people were carrying around iPods that could store thousands of songs only fueled the transition to fully digital music, no discs attached.

As e-readers go, Amazon won't let us know exactly how many Kindles it has sold, but most estimates put it in the 2 million to 3 million range, give or take a few hundred thousand. Apple sold a million iPads in a month. And though sheer numbers and critical mass are important, what's more alarming is what the iPad can do. No, it can't support Flash, but it sure does a nice job with PDF files and a host of other document formats that can be easily imported to the device via the appropriate app, most of which cost less than $3. (GoodReader, which I use for PDF files, costs 99 cents; you transfer files to the app via iTunes.) 

A quick scope of Pirate Land reveals a hodgepodge of content in a variety of formats, and other bloggers have already touched upon this aspect of e-book piracy in other pieces. I particularly liked an article done earlier in the year by The Millions' C. Max Magee titled, "Confessions of a Book Pirate," in which MacGee does a Q&A with a BitTorrent uploader who goes by the handle The Real Caterpillar. My favorite Caterpillar quote:

"Perhaps if readers were more confident that the majority of the money went to the author, people would feel more guilty about depriving the author of payment. I think most of the filesharing community feels that the record industry is a vestigial organ that will slowly fall off and die--I don't know to what extent that feeling would extend to publishing houses since they are to some extent a different animal. In the end, I think that regular people will never feel very guilty 'stealing' from a faceless corporation, or to a lesser extent, a multimillionaire like [Stephen] King."

This guy, like most e-book pirates--or the ones uploading the files--tends to take the time to scan the physical books into a computer, obtains the text via OCR (optical character recognition), makes corrections, and converts them to a variety of file formats. The same goes for comic books, which are being rampantly shared on The Pirate Bay. As you might have guessed, a number of comic book reader apps are available for the iPad and its large high-resolution color screen, turning it into the perfect digital comic book reader. And let's not leave out magazines, which are also being scanned and uploaded to BitTorrent sites.

At the moment, book piracy is dwarfed by that of the music, movie, and game industries. But it is gradually growing. Shortly after the launch of the iPad, TorrentFreak took a look at a small group of popular business titles and calculated that unauthorized e-book downloads on BitTorrent grew by 78 percent on average--and that was when Apple had sold only about 300,000 iPads.

Ironically, though the early lack of standardization may have adversely fragmented the e-book market, it may have also slowed down piracy. The Kindle still has its own platform and file format for e-books, but most of the big e-reader players, including Apple, have now adopted the ePub format.

It seems that most of the EPUB files available are converted from PDF files (scans of books), but what's scary is how compact the files are (less than 1MB) and how easy they are to load into iBooks and other e-readers that support the EPUB format. Though the size of movies and games can easily exceed 1GB and take hours to download (just ask folks who own the PSP Go how they long they have to wait to download games they've legally purchased), e-books can be shared in a few seconds. It seems that it's only a matter of time before file sharers move from exploiting the "analog hole" (scanning a hardcopy book) to the digital world of cracking copy-protection schemes and stripping legally bought e-books of their DRM.

For now, readers who are upset with the rising price of e-books have taken to posting low ratings on books on Amazon. Turow's "Innocent," for instance, sells for $14.99 as an e-book, which is essentially what the hardcover costs, and certain readers have given the book one-star ratings to express their displeasure. Turow is quite aware of the situation, but still supports his publisher's pricing scheme, arguing that if you don't want to pay $15 for the e-book, buy the hardcover (or wait for the e-book to go down in price). He's right, but certain people get angry when they feel they're getting a raw deal, and, like the publishers who are free to price their e-books however they want, these protesters are free to rate books however they want. As an author, it is incredibly aggravating, because you have no control over pricing--only the publisher does.

Free markets and free speech aside, I have my doubts that higher pricing for e-books is a good long-term strategy. Alas, as we've learned from the music industry, keeping prices steady at around $10 to $12 an album has done nothing to help combat piracy and may have, in fact, contributed to it. Eventually, more people are going to go from leaving bad ratings on books at Amazon to doing something more vindictive, like uploading DRM-free EPUB files to file-sharing sites. And mega-bestselling writers like J.K. Rowling, author of the "Harry Potter" series, are finding out that readers also get angry when you don't make your book available as an e-book. "Harry Potter" books are among the most heavily pirated out there.

How much is pirating hurting the publishing industry? Well, in that same "Confessions of a Book Pirate" article, Magee cites a study done by Attributor, a "firm that specializes in monitoring content online," that claims that "book piracy costs the industry nearly $3 billion, or over 10 percent of total revenue." Most people think that figure is very inflated, but the point is there are some big numbers involved and they only stand to get bigger as powerful e-readers like the iPad become more prevalent and tempt people to acquire content without paying for it because, well, too many of them have become used to it.

If there's a silver lining, it's that people don't read anymore. At least that's what Steve Jobs said in January 2008 in The New York Times when the Kindle first appeared.

"It doesn't matter how good or bad the product is, the fact is that people don't read anymore," he said. "Forty percent of the people in the U.S. read one book or less last year. The whole conception is flawed at the top because people don't read anymore."

Of course, that was then, and this is now: Apple is now a full-fledged bookseller, going head to head with Amazon, Barnes & Noble, and Borders--not to mention any place else you can buy books, from Wal-Mart to your local drugstore. When the company announced that it had sold 1 million iPads in a month, it also bragged that iPad users had downloaded 1.5 million e-books from its iBooks Store. I assume the host of free public-domain e-books in Apple's catalog make up a large portion of that number (although it apparently doesn't include the freebie "Winnie the Pooh" that was offered with the iBooks app). So the appetite is there, particularly if the price is right.

What do you guys think?

This question-piece is from David Carnoy of CNET. You can read the original piece here: http://reviews.cnet.com/8301-18438_7-20005008-82.html.

eBook Piracy "Surges" after iPad Launch

This blog was written by Ernesto on TorrenFreak. Here is the original address: http://torrentfreak.com/ebook-piracy-surges-after-ipad-launch-100409/ 

Here is the blog: 

With 500.000 iPads sold in the first week, Apple’s new multi-gadget is already a force to be reckoned with. As book publishers see the iPad as a potential threat to their revenues, we take a look to find out what happened to eBook piracy in the last week. The results are surprising.

The introduction of Apple’s iPod marked a significant change in the music industry’s business. When it was first released in 2001 there were no digital music stores online. By the end of that decade the number of digital music sales had outgrown physical sales by far. 

This year the book industry may see the definite breakthrough for eBooks, and again an Apple device is expected to play a facilitating role. Having watched the changes in the music industry where piracy is often portrayed as a huge threat, some book publishers already fear the worst.

The million dollar question is whether or not these fears are justified. How big of a threat is eBook piracy for the book industry? Is there a noticeable iPad effect? We have some interesting numbers to share.

To determine if Apple’s iPad has had en affect on eBook piracy we looked at the number of downloaded titles before and after its introduction. We decided to focus our research on the 10 best selling eBooks on Amazon which seemed to be a good starting point. The problem, however, is that none of these books are available on public BitTorrent, nor could we find them on file-hosting services or Usenet.

This in itself is quite an interesting observation, and clearly a signal that eBook piracy is not (yet) as widespread as that of music and movies. In order to come up with some comparison material we decided to change our sample to the 10 best selling paperback books in the business category, which should also fit well with the demographics of iPad buyers.

From this list 6 of the 10 books were available on BitTorrent. Although we have to note that BitTorrent may not be the only source of eBook piracy, it should give us a good indication of the iPad effect, if there is any. To do so, we tracked the download numbers from Saturday till Thursday, a week before the iPad launch and the days after. 

By comparing the data from these two samples we found that the number of unauthorized eBook downloads on BitTorrent grew by 78% on average, a significant increase. It is worth noting that all of the six eBooks had more downloads after the iPad launch than before.

David Allen’s productivity guide ‘Getting Things Done’ was by far the most downloaded eBook with an average of 435 downloads a day, up from 277 before the introduction of the iPad. However, this 57% increase is relatively small compared to some of the other titles we tracked.

‘Freakonomics’, another classic in the business section, saw a 104% increase in downloads, going from 187 to 381. ‘How We Decide’ saw an even bigger surge in downloads – 140% – as downloads went from 56 to 134. 

The three remaining books from the list that we tracked on BitTorrent are ‘The Tipping Point’, ‘How Women Decide’ and ‘The 7 Habits Of Highly Effective People’. These three titles all saw an increase in downloads, 21%, 47% and 71% respectively, with absolute download numbers after the iPad launch of 192, 52 and 82. 

Interesting data, but what can we conclude from the statistics?

First of all, there seems to be a significant iPad effect if we assume that the increase in downloads is in part related to the iPad introduction. On the other hand it is clear that the absolute download numbers are relatively small compared to those of music and films, where popular releases can have more than a million downloads in one week. 

This low piracy figure can in part be explained by the fact that the number of people with an iPad or other eBook reader is still relatively low. Another key factor is that most books are simply not available in a pirated version, so buying a book through an online store is far more convenient and faster than trying to find an unauthorized copy.

The convenience factor and the overall user experience are going to be the key advantages for the book industry. When the iPod was launched there were no digital download stores, making file-sharing networks the only option to get music easily.

As a final note we have to stress that piracy does not equal lost sales. In the academic publications that looked into the link between piracy and (music) sales, there is still no consensus on this topic. For now, the book industry is best off putting all their efforts into making a great product for consumers and we’re sure that the iPad can be of assistance there. 

In the months to come we will keep en eye on how eBook piracy evolves.

The Next Few Weeks

A whole plethora of eBook readers are now on the market. This might be confusing for a few people and to the tech savvy among you exciting. Many of you might remember the battle for standards through the seventies, eighties and even the nineties from video playing machines to software. I believe we are in such a time. Our previous blog - Amazon Vs Apple Be Damned: Publishers Pine for Universal eBook Format, has already mentioned this fact.

This is why I have decided that I will try to publish as many eBook reader blogs and reports on as many eBook readers as possible. I hope that these pieces will help you make up your mind on what to purchase. I also hope to cover topics such as eBook piracy in as much detail as possible.

I look forward to reading your comments and discussions on this blog. Thank you.

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Amazon Vs Apple Be Damned: Publishers Pine for Universal eBook Format

NEW YORK (Reuters) — Giants and upstarts of publishing gathered at the annual BookExpo America here last week agreed e-books will transform the business but believe the big change will come when there is a standard format across which all e-books can be published and shared.

The industry has been going through a tumultuous period as Apple and Amazon duke it out for dominance in the nascent market for electronic books.Both want their devices — the iPad and the Kindle — to be the one consumers use to read e-books, and each wants to be the biggest virtual store were such content is sold.

For Michael Serbinis, chief executive of Kobo, a company that allows users to buy e-books and read them on most devices, that battle is a distraction to the real changes coming.

“Today you can buy a book at Barnes and Noble and you can buy a book at Walmart and you don’t have to keep them in separate rooms in your house,” he said. “You buy a book from Apple and Amazon and you have got to keep it tied up with your Apple universe or your Kindle universe.”

Ultimately, consumers want freedom, said David Shanks, chief executive of leading publisher Penguin Group USA.

“Our fondest wish is that all the devices become agnostic so that there isn’t proprietary formats and you can read wherever you want to read,” Shanks told Reuters. “First we have to get a standard that everybody embraces.” The issue, he said, is the fear of piracy and how to set a common digital rights management system to thwart it.

The battle over technology formats is a familiar one. A century ago, Edison and Victor made records that could not be played on each other’s players. There was the Betamax/VHS videotape struggle and more recently Blu-ray beat out HD DVD.

BookExpo showed traditional books are alive and well. There was buzz for the upcoming book from news parody king Jon Stewart and raucous Rolling Stones guitarist Keith Richard’s memoirs as well as a book on home design by Barbra Streisand. And there was evidence of change coming in the age of e-books, although the new format was displayed only in one small corner of the sprawling Javits Center convention halls.

Among the digital companies here were Sideways, which helps authors and publishers transform text into multimedia content, adding video, pictures and features such as Twitter feeds.
Another company, Ripple, allows adults to buy children’s e-books and record their voices reading them. And there were gadgets such as the enTourage eDGe — a twin-screened device which opens like a book to reveal an eReader on one side and a NetBook on the other.

Eileen Gittins of Blurb, which helps authors and companies self-publish, predicts e-books will make up half of all sales in five years. In 2009, the global publishing business, including print and digital, was worth $71 billion, according to PriceWaterhouseCoopers.
“We’re seeing now in book publishing what had happened previously in the music publishing industry. And that is, a massive disruption of the business model,” she told Reuters.
The problem is that the cost of printing is a minor cost of publishing whereas developing work with an author and marketing it consume the lion’s share of costs.
That means, she said, that the book industry will become more like the movie business. “The book publishing industry is becoming more blockbuster focused,” she said.

Susan Petersen Kennedy, president of Penguin Group USA, said publishers will not make the same mistakes as the music industry, which had an epic struggle over electronic distribution and piracy and lost huge market share. “It’s always treated as if the publishers are the Luddites,” she told Reuters in an interview. “The devices have not caught up with the content. Contrary to popular opinion, the book is actually so far more flexible.”

Serbinis says the industry will see dramatic change. He predicted consolidation among publishers and said tablet computers will be common. He expects readers to eventually be able to lend e-books to each other.

And books won’t just be for bookstores any more as new distribution channels from mobile phone companies to gaming companies join the party, he said. “It won’t only be the bookstores that have gone digital,” he said.

You can read the original article here: http://www.wired.com/epicenter/2010/05/universal-e-books-format/all/1

Photo: Men dress as the iPad and Kindle in effort to promote their company that recycles old electronics during the April 3, 2010, release of the iPad at the Apple store on Fifth Avenue.
Bryan Derballa/Wired.com