Could the Recession Kill the eBook?

With Borders announcing the closure of its UK brands, Books Etc and Borders Express and ever-increasing competition from supermarkets the world of publishing is looking for a saviour and some see eBooks as being the golden egg laid by the goose. It is true there is a number of new eReaders about to hit the stores but with the recession still having an effect it may be timing that is the biggest enemy.

Waterstones has increased its product display for the Sony machine in its stores and this will raise the profile of the machines and eBooks among those who are unaware of the product but it won't lead a stampede to the tills. There may be a sales blip at Christmas as the curious struggling for the latest must-have gadget or are at a loss for what to buy as a present for a loved one. Unless 2010 shows a real end to the economic downturn publishing may have to endure not only more store closures but disinterest from a public strapped for cash and struggling to cope with a technology which unless fully explained may appear pointless to a majority of potential customers.

Unless the major publishing houses and the supporting media tell the story that needs to be told to the public, eReaders could become a lost opportunity and possibly one of the last opportunities for quite some time. We have seen the erosion of independent book stores from our high streets as they fall to the competition of the chain stores. We are witnessing the erosion of the chain store as it falls to the competition of the supermarkets. If the trend continues we will soon be left with a choice of few titles available (Supermarkets are not known for their wide reaching stock buying, instead choosing to concentrate on a handful of popular titles), fewer authors making a living from writing and ultimately fewer publishers.

We are not at the last chance saloon yet and publishing is pretty much to blame for the state of the trade, so eBooks really could be a saving grace, but there is a combination of events which must occur for them not to become a redundant technology. Much of the onus lies with publishers ensuring they are talking with the people who make the readers, the people who buy the readers and by sticking to a format which is usable across a range of readers. At present this still has not been universally accepted, though ePub should get the nod thus saving another damaging battle between formats which leave the consumer afraid to buy a machine which will not be supported. We all remember what happened to Betamax or HD DVD and the negative impact it has when the public spends its hard earned cash on a system that gets dropped. In a recession people are looking at every penny and need persuasion that their hard earned money is not going to be wasted on yet another technology which won't receive the support it requires.

 

 

POD – The uphill battle

I recently posted this reply on a forum following a comment from an author questioning why Caffeine Nights Publishing only chooses a maximum of 5 authors a year.
The question which prompted my reply was:
"Why only 5 books? Surely POD/electronic publishing isn't all that complicated"

There are hundreds of POD publishers out there (go to Preditors and Editors for some fine examples) who will publish anything and everything and many more that will charge a lot of money for the privilege. Caffeine Nights Publishing is neither. I thought I gave the clue away when I used the word quality, maybe I should also have added discerning. Publishing five new authors a year allows time to treat each book and author selected the quality of service their endeavours requires. We are a new company and maybe I have made some errors of judgement but personally I like to support each author with a decent PR push for their work. After all it is my time and money that is supporting this venture and I have a vested interest to see a return on that investment. Last year we received numerous submissions and most of it would undoubtedly have been picked up by many of the POD publishers who will print the details of a bus ticket without caring about the impact it has on the already tarnished reputation of POD. Most submissions simply were not good enough.

Our books go through a process of editing, re-reading, re-reading and re-reading before they get anywhere near final proof. Our covers are professionally and individually designed in consultation with the author but we have final say on artwork. We have set up excellent distribution channels for eBooks as well as printed and will be rolling eBooks out in the last quarter of 09. Finally, where possible with UK based authors we will be providing a filmed author interview and/or book trailer for each title. By choosing five authors it enables us to retain control over the quality of product, reputation and brand. Sure I could set up a company to fleece authors and bang out any old crap, but I chose the hard road instead by providing a service which is not too common with POD companies and a level of support for authors to ensure that each title receives individual attention.
POD has a poor reputation but many mainstream publishers are seeing the benefits and now publish titles using the technology. Many POD publishers have brought this poor reputation by offering a service which exploits authors and delivers nothing in return except a handful of sales to friends and relatives. I want Caffeine Nights to position itself in new territory which offers a digital publishing service but is not afraid of having high standards.

The Real Lost Symbol

By Darren E Laws

I do not share the recent excitement in the publishing world following the release of Dan Brown's, 'The Lost Symbol' and my criticism has nothing to do with the content of the book, which is probably a rollicking read. My problem and the problem for publishing is that the real lost symbol is this '£'.

I don't know what deals publishers Transworld/Bantam Press are offering retailers to sell the book but with hard back copies being sold for as little as £5 on a book that has a recommended retail price of £18.99 is it any wonder that the industry is in the state it is. Have publishers no concept of perceived value. If Asda is selling the book for £5, which is less than most paperbacks, imagine what price they are buying them at. Sure 'The Lost Symbol' will storm to the top of the bestsellers list but here's the real question. Would it not have done so anyway?

If I were Dan Brown I would be a little upset because the royalty at this sale price for a hard back must be exceptionally low. Though I dare say Mr Brown probably won't notice too much of a dent on his bank balance.

The buzz and the hype around this book would have ensured that if Bantam had the nerve to play hardball with chain stores and supermarkets the price of the book could easily have held at a respectable £12.99 which would be an honest price for a hardback publication. People would still have bought the book in huge numbers and the perceived value of the product would not have been damaged.

Look at how Nintendo control the availability of the Wii every Christmas, making it one of the top selling presents for the past three years. They create demand and then sell at a price which reflects the quality of the product. What Bantam is doing is actually making it harder for other publishers to compete without cheapening their product and brand.

Selling a new and wanted product at such a low price, while one may argue is good for the consumer, actually begins to hurt the industry as a whole and that cannot be good. If I were to offer books at half price or less it tells the public two things:

1. The original rrp is set unreasonably and unrealistically high
   
2. That all of my products should be subject to the same discount
   

This in turn leads people not to trust the pricing model – at £18.99 for a hard back I certainly don't. It also puts extreme pressure on independent bookstores or smaller chains which cannot negotiate such silly rates as Asda obviously have. Again this hurts the industry. So who is to blame?

I like a bargain as much as the next person and I in no way blame anyone for buying The Lost Symbol at knock down prices. I just can't see the sense in the publisher doing it.

The eReader Invasion from the East

By Darren E Laws

If Amazon with the Kindle and the Sony with the eReader think they are going to monopolise the eReader market in Europe there are one or two surprises heading our way from Eastern Europe which may change the landscape. While I still firmly believe that mobile phones will have the edge for the eBook market, there is one or two devices in development that are adding functionality that will equal both of the main players and then some.

Ukrainian company Pocketbook have launched the 360 an eBook reading machine that is Wi-Fi and Bluetooth compatible reads ePub, RTF, DOC and HTML among other formats. The 360 has a tilt reading function which readjusts the text layout no matter which way you turn the machine. For a look at the machine follow this link http://techvideoblog.com/ifa/5-pocketbook-360-e-ink-reader/

It is clear that there is going to be a lot of competition in the market and that is an excellent thing as it will drive down prices and add more functionality to devices. What is clear is that the first colour screen eReader is going to leap to the top of the pile and it isn't far away. Small tablet devices will cross over in this area and the Smit mid-560 with its Google Android operating system will begin to look appealing because of its multi-functionality. This machine is designed and built in China and looks impressive. It is small and because it runs on Android and has been manufactured in China there is a good chance that when it hits these shores the price will be competitive.

I am sure there are many more machines in development from large and small companies alike and each will bring something new and interesting to the market.

Every Little Helps...Kill the Industry

By Darren E Laws
Everyone likes a bargain and it is human nature not to want to pay more for something than is necessary. Money after all is hard to come by. But at what point do we stop to look at the impact our shopping habits is having on our local economy. Arguments rage about the loss of specialist and local stores as supermarkets continue to encroach on a number of retail sectors. The ironic thing is that supermarkets sell this argument on the basis of broadening our choice. Yes, they are broadening our choice in a supermarket context but as small stores close through the impact of losing sales to the likes of Asda, Tesco, Sainsburys and Morrisons among others, we have to begin to question the social consequences as well as the blow to the local economy.

Book sales are a great example of how supermarkets are decimating specialist retail trade. A quick trip down the aisles will reveal paperbacks as low as £1.99 and sometimes less. Great for the consumer who will never want to set foot in a bookstore but bad news for real book lovers. Try purchasing anything other than a ‘popular’ title in a supermarket and then think about the consequences of having little or no alternative as genuine bookstores close.

Publishers currently have their pants in a twist over the Internet, digital content and eBooks but it appears they are quite happy to let supermarkets ride rough-shod over paper sales. The restriction on choice in a supermarket is appalling and will never match that of a decent bookstore even a chain bookstore. I for one do not wish to see any of our books in a supermarket at a give-away price. I know what the margins are and believe me they are slim especially when you take the ancillary costs of marketing, promoting, PR and any other supporting mechanisms out of the bottom line. The major publishers might be able to afford to prostitute their authors but the real price is that they are killing the industry. This all comes back to the old business model adopted by the major players. Print tens of thousands of books of each title and when they don’t sell, give them away to supermarkets and remainder outlets at knock-down prices. How much longer can the industry afford to do this? The major publishers are acting like parasites prepared to eat their own bodies when there is no longer any flesh on the carcass.

It’s crazy when you listen to the top publishers bleating over the state of industry, it would appear they don’t even know they are responsible.

e-Book Reader Wars...The Return of the Red Eye

The manufacturers of eBook readers are suddenly very serious about the concept of the eBook and the machines we will want to read them on. Sony has taken an aggressive stance with the announcement of a $199.00 machine while cutting the price of titles to a base level of $9.99. As usual for us poor Brits I dare say we are going to have to wait to see these machines. This is the third new e-reader announcement in under a week and it seems that reduced footprint is the order of the day with Merlin Digital also announcing a small reader. It will be interesting to see how the reduced footprint of both the Sony and the Merlin models is received in comparison to the cumbersome Kindle. Smaller machines have their benefits and may well appeal to holiday readers and those who want to read on the go. With a plethora of machines hitting the market and publishers finally waking up to the revenue stream available - all though they still struggle with marketing and pricing – it would seem that the next twelve months are going to be very interesting.

Will the Kindle be the UK’s Big Christmas 09 Gift?

Once again its rumour control from Amazon but it does appear that the Kindle will arrive in the UK in time for Christmas. Problems relating to the complicated mobile phone networks have been overcome and a UK Kindle will hit the stores for the season of avarice. But who will the Kindle appeal too? Will it appeal to techno-junkies; I doubt it, unless they like their techno retro. For me the Kindle has the refinement and functionality of a 1980’s computer. Great, if we were in the 1980’s.

Or will it be serious readers ready to abandon paper for pixel after a lifetime of strolling around bookstore picking up books and browsing new titles by thumbing through physical pages of neatly laid text. This too somehow I doubt.

Readers are resilient and adaptable if nothing else though. Recent surveys have proven that the UK reader’s affair with traditional bookstores is already on the wane. A huge shift in the buying habits of readers has seen a marked transition to supermarket purchases. These soulless monoliths can hardly be compared with the charm and comfort of a book store with an in house cafe. So price and convenience is a defining factor. This group of readers, if they had the available income would almost certainly opt for an eReader like the Kindle; sadly though the majority of these readers are on a lower income and not as likely to be able to afford buying an electronic reader. They have more pressing matters for what little disposable income they may have.

As a publisher, the Kindle has appeal in providing a new platform, I will definitely be making our titles available to the platform. So I am not knocking Amazon’s endeavour; it’s just the functionality of the machine that concerns me. This is by no means a small piece of equipment. It may be light and thin but it’s bulky and not very pretty. I know looks aren’t everything but they are factors in deciding popularity, unfortunately. We all know the quiet girl/guy with the glasses and few friends is actually the girl/guy you should be going out with because he/she will try harder and is less vacuous, whereas the glamour boy/girl is often all looks and little substance. But look at the popularity of the iPhone, it has some great apps and looks really good, yet behind it is some pretty ancient technology in phone industry terms. Whereas the Kindle looks like it was designed by boffins without a single aesthetic bone in their body.

Until more functionality, colour screens and better design is incorporated into eBook readers they will not achieve the potential they obviously could. I hope to be proven wrong, but eReaders of one sort or another have been available in the UK for over a year now and I have yet to see one in public or know anyone who has purchased one. There are more reasons for publishers wanting them to succeed; among them is the acceptance of eBooks as a product. The general public have to go through a whole new learning curve related in purchasing digital content. This is also a reason why the publishing industry should be embracing mobile phone publishing as a serious platform and revenue stream. eBooks work equally well on mobile phones even with small displays and with the ability to process JavaScript mobile phone eBooks can had the added functionality of multimedia. We all know how mobile phones appeal to young readers. They already use phones as cameras, for videoing, listening to music, downloading film and surfing the net. Reading books is surely just a tiny leap if they are marketed correctly.

Do people really want to carry around another piece of IT that can fail, run out of power or just be another burdensome artefact to get through customs while going on holiday? Let alone running the risks of breakage. We have laptops; we have phones, hell, we even have books, so are we ready to accept another lump of silicone and plastic whose only function is as a repository. I hope so, I really do, but I’d rather hedge my bets and ensure we don’t neglect mobile phone publishing in the race to embrace a Kindle whose market will be limited.