Which eReader is Right for You? If You’re a Publisher it Shouldn’t Matter!

Apparently Wiley has released an eReader comparison tool intended to allow buyers to compare the right reader for the right person. This is novel and perhaps needed, but it seems to me to miss an important point: Content.

Sure you can compare the devices based on what features they have, whether they are color or black and white, wireless or not, can read the book to you or allow you to read in the dark. But I think as well what buyers want is to know that eBooks, and other content they’re interested in is available on the device they’re buying. The site could do that too, though that runs largely against the grain — they’d have to list the titles of other publishers. So to this end, we need a site which lists all eBooks and what platforms they’re available on. Then a user can make a fully informed decision. In fact it would be a great site for searching for content “by device”. I can’t say I’ve seen that yet.

But for the publishers, why should you care about which device your book is available on? You want to reach readers. Not devices. Your content needs to be “eReader independent” or “eReader agnostic” or as Bill Trippe, an Analyst at Gilbane Group called it at the recent Buying & Selling eContent (BSeC) conference, “Media Neutral”. Media neutral content keeps it in a master form (usually XML) and then allows it to be published out to the specific format needed for a given device. This is ideal for publishers, who can then make edits in one place, and push a button and instantly have the eBook ready for distribution in multiple eBook formats (e.g., ePub, Kindle, PDF, …) and print as well! Platforms, like North Plains digital asset management for publishing make this possible.

So while eReader manufacturers and outlets (like Amazon and Barnes & Noble) fight over who has the best, the right or the coolest eReader, publishers can focus on publishing more and growing their market quickly and easily by having each title ready for all electronic formats and eReaders.

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March Distribution Madness

According to recent reports, NCAA March Madness on Demand has already outpaced 2009 multimedia delivery by 35 percent and that doesn’t even include the mobile market. CBSSports.com has streamed nearly 9 million hours of video and audio through the first four days of the tournament. Who knew there are so many Panther Fans…Go Northern Iowa.

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How Book Publishers are Preparing for Change

While eBooks represent less than 3% of total book sales, a new and ongoing study by the Book Industry Study Group (BISG) examining “consumer attitudes toward e-book reading” recently presented at the Tools of Change for Publishing conference revealed some statistics that are shaping the early market:

  • Nearly 45% of buyers who have started acquiring eBooks mostly or exclusively purchase eBooks over print books
  • Affordability is paramount
  • The PC is currently the most-used device for reading an eBook (47%), followed by Amazon Kindle (32%), then the Apple iPhone and iPod Touch (21%)
  • At least 30% of them are willing to wait up to three months to purchase the eBook edition of a book by their favorite author

This combination poses great challenges for book publishers who are concerned with the potential cannibalization of their hardcovers. Yet as they fight for price control with Amazon or reach agreements with Apple, what is clear is that they need ability to react to this early and changing market. If they are to reach the full market and maximize their revenues, they need to have the flexibility and power to efficiently and simultaneously publish books in both print and digital formats for multiple devices, and then be able to control both the price and the window of distribution.

To be able to produce both formats efficiently mandates a change in their approach to publishing. It means investing in approaches where the same manuscript becomes the “single source” or “gold master” for generating both the hardcover and various electronic versions. This change towards single source publishing is a significant shift for publishers, as it entails new workflows, technologies, and processes. And new investment.

Investments are always based on risk versus reward. Yet as we’ve already seen at North Plains, publishers of all sizes are willing to start investing in single source publishing technologies such as digital asset management and multi-channel book publishing platforms e.g., Telescope, that enable them to make these fundamental business-shifting changes.

From my conversations with publishers, it is clear that this technology reduces the risk to publishers by making them more nimble and efficient. It allows them to significantly reduce the cost of electronic book production and distribution, as they continue to also produce print versions. This is a fundamental point that is essential to their success: it allows them to transition their business at their own pace, yet be ahead of the market overall, prepared and well positioned for the impending change and growth of the eBook market.

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Video Killed the Swimsuit Edition

Sports Illustrated will be launching a revamped site later this afternoon moving ad-supported video into the forefront with up to 15 clips added daily. Why the big push into video? Well it turns out that SI.com served up 70 million video streams connected to this year’s swimsuit edition. I of course, as part of my research, took a look and well let’s just say Lindsey Vonn is a woman of many talents.
SI is shooting and producing 100% of the swimsuit video, gathering content from SI contributors and its syndicated programming. In a recent interview Managing Editor Paul Fichtenbaum describes video as the “last piece of content strategy that was missing. This was the one thing we wanted to add.” Fichtenbaum further adds. “We want people to enjoy the content wherever they are.” Clearly SI will need to reconsider how it manages and archives all forms of digital media…perhaps I should give Paul a call.

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A Special Breed: Staffing a Digital Asset Management Implementation

So you’re implementing a DAM solution, and you want to know what sort of person (or people) you should hire (or promote) to ensure the implementation is a success. What types of qualifications define a good DAM manager? It’s a good question, because DAM itself covers so many areas of practice:

  • Library Science
  • Enterprise Application Architecture
  • Database Administration
  • Creative Services (in whatever your industry is, so Publishing/Print, Video Production, etc.)
  • Workflow Design & Change Management

Where to start? While it is important that the DAM Manager have some visibility into some or all of the list above, there is one attribute which is absolutely vital for the job: knowledge of YOUR specific business and creative processes and reasons for implementing DAM.

Without that vision, the DAM Manager will be implementing the system in a vacuum, and a DAM system, more than any other enterprise application you will ever install, is intimately tied to your creative process. After all, the only way that DAM achieves return-on-investment, is to streamline your creative workflow, and allow your creatives to manage, find and repurpose the content your organization creates.

A corollary, and second important consideration is: flexibility and acceptance of change.

While it is in no way true in every case, the workflows you have in place for your creative services right now may not in all cases be optimal in a DAM-enhanced world. A DAM solution enables new capabilities and new uses for your digital media, and provides a tool set that might make portions of your workflow more efficient (for example, the ability to collaboratively mark up and work together on an image with a customer on-line using the Photo Portal tool, could replace an entire “review/approve” cycle with the customer). So the DAM Manager needs to be able to “think outside the box” with regard to your business and creative processes, to take full advantage of the efficiencies the system offers.

Finally, the most important attribute of all: commitment to the DAM implementation.

By “commitment” I’m not talking about some sort of religious fervor for the system (although that never hurts!), I’m talking about it being that person’s job to manage the system at a corporate level. No enterprise class software, and certainly not a DAM product, can run itself, but with the visibility in the market of desktop and lower-end DAM solutions (Cumulus, Portfolio, etc.), we often run up against the misconception that an enterprise DAM solution falls into the same category. Saddling someone with the management of a large-scale DAM implementation, while they are still on deadline for their “regular” job is a recipe for disaster.

The good news is, that every single successful implementation of DAM that I have participated in, has been successful largely because they had the foresight to recognize these simple rules and put a DAM Manager in place.

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The Argument for Dirt-Cheap E-Books

There are some interesting arguments about lowering the costs of eBooks. In a post by Chris Dannen, he explains the downward pressure on eBooks prices to the changes that have happened in the movie and music industry. I disagree with the notion that a book is like a song or album and he’s missing the whole section of book publishing that is not for entertainment. This article certainly brings to light a lot of the challenges that are facing book publishers today in how they produce, market and sell their books. From the power struggle with Amazon to the hope for the promise land with Apple, the industry is certainly in the midst of a lot of change. But, change isn’t something this industry has had to do much over history and that adds an interesting dynamic because the executive management at publishers have seen how this movie ends if they do sit back and do nothing, yet the answer on what to do isn’t easily apparent.

What publishers can do is look internally and find areas in their organization where things can be done differently. Chris Dannen points out in his article something that represents the heart of problem that we here at North Plains focus our solutions on for book publishers. Embracing new ways to produce and market content cheaper, better, and faster is what publishers should embrace.

Television and publishing companies are terrified of downward pressure in the prices of e-books and digital TV shows. Whether it’s $1 shows on the iPad or $9.99 books on Amazon, big media are worried that consumers will come to believe that, while media production and distribution prices have dropped, the retail price of media content hasn’t.

Not everyone will admit this disparity actually exists. Columnists like Gordon Haff at our sister site CNET have argued that e-books are actually no cheaper to produce than hardback books. And that’s true — if the book publishers refuse to update their operating structure to reflect the new economics of the Web. One example: nearly 10% of the overhead Haff cites is “marketing.” Having watched the traditional book marketing machine at work, I know that most of this is wasted on ineffectual, immeasurable methods: newspaper ads, mass-mailings to reviewers, and so on. Media companies need to cut the fat.

http://industry.bnet.com/technology/10005476/the-argument-for-dirt-cheap-e-books/

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Amazon e-Book share to fall from 90% to 35%, Analyst Says

The race is on and that’s good for the eBook market. Three strong competitors (Apple, Google and Amazon) in this market will fuel the need for more content and for enhanced content. The issue will be can publishers keep up? There is so much happening right now with clearing of eRights, back list conversion and dealing with just getting the current product to ePub, how will publishers get to the next stage of dynamic and interactive books?

Many purest will argue that publishers shouldn’t rush to do that because the end product is not what a book or eBook is meant to be, but I don’t think we need to look far to see sign how a traditional medium (music, television) has been morphed into something that presents itself very differently than just five years ago. I can remember my audiophile friend saying music as an MP3 isn’t music; today you couldn’t pry his iPod away from him. So times are changing and I think we all realize that and I still maintain that book publishers need to be thinking about how a book is an experience and that experience needs to be high quality to each individual consumer regardless if it is an ink on paper or a pixel on screen experience. The publishers that do that will be the big winners when it comes to having the right content to ride the wave as these three device manufacturers put on their boxing gloves.

Apple’s iPad and the expected entry of others such as Google into the e-book space will cut Amazon’s share of e-book sales from 90% to 35% over the next five years, writes Credit Suisse analyst Spencer Wang in a research report Tuesday:

Near term, we suspect that the iPad and the new eBook agency pricing model, which requires that Amazon increase retail prices to be more consistent with Apple’s pricing, will provide Kindle with the most market share headwind. Going forward, we can envision a scenario where Apple, Amazon, and Google eventually split the market. Therefore, we expect Amazon’s share of eBooks business to fall from 90% currently to about 35% over the next five years.

Noting that Amazon shares have underperformed the sliding S&P 500 ahead of — and in the wake of — the iPad’s launch, Credit Suisse analyst note that “Apple’s entry into the eBooks market stoked fears about the growth outlook for Amazon’s core book franchise, the balance of power between Amazon and book publishers, and the future of Amazon’s promising Kindle device.”

Credit Suisse analysts also note that Google appears to be in the midst of an effort to launch its own tablet device: “In addition to its books project, Google is also reportedly working with HTC (maker of Google’s Nexus One phone) on a tablet device. While few details on this device are public, images of the Chrome OS on a new tablet device appeared on Google’s Chromium website, sparking the speculation that the Google tablet is closer to launch than most expect.”

http://blogs.wsj.com/marketbeat/2010/02/16/analyst-amazon-e-book-share-to-fall-from-90-to-35/

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Trade eBook Sales More than Triple Year over Year!

The Association of American Publishers (AAP), in conjunction with the International Digital Publishing Forum (IDPF), released eBook sales statistics for December 2009. Trade eBook sales were $19,100,000 for December, a 119.7% increase over December 2008 ($8,700,000). Calendar Year to Date sales are up + 176.2%.

Even more impressive is that:

  • Q4 of 2009 totaled $55,900,000 and eclipses entire 2008 total of $53,500,000 reported last year.
  • 2009 Trade eBook sales were more than triple 2008
  • December 2009 wholesale trade sales were $19,100,000 which is highest single month thus far. October 2009 wholesale trade was previous high at $18,500,000

A quarterly graph of sales shows the eBook market is starting to accelerate, or “hockey stick” as some venture capitalists like to say. Over the past two years, it is clearly to growing with greater revenues each quarter. When shown in aggregate year over year (below) the hockey stick growth curve is apparent:

Trade eBook Sales 2002-2009

An analysis of the Compound Annual Growth Rate (CAGR) for each 5 year period from 2002 – 2009 shows that the CAGR is accelerating as well:
2002-2006: 28%
2003-2007: 34%
2004-2008: 41%
2005-2009: 73%

This is very common for early markets, but it clearly indicates a real beginning of the growth of the eBook market.

An interesting correlation, which I currently don’t have the data for, would be to compare this with the sales of eBook readers and devices, like the Kindle and Nook. Clearly the interest in these devices, the increasing competition, the availability of more titles at attractive prices, and fundamentally, the increasing comfort and willingness of consumers to read and consume information (and now books) on electronic devices, are the driving forces behind this growth.

For publishers of all sizes, this means that now is the time to invest in tools and systems that allow them to generate eBooks for any device and any format, while also allowing them to also publish to their traditional print formats as well. Modular, hosted and installed systems like North Plains’ digital asset management for publishing can provide that needed flexibility and power.

The eBook train is approaching, we can hear the whistle blowing… here it comes!!! Are you ready?

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What happened to all that TV Olympic coverage…Check your phone!

When I started my career in television it was simple. We had a show, the promo that told you watch the show and the commercial that paid for it, all on a single distribution platform…That’s how we made money.

Today, that same network has to deliver that show in multiple versions, formats and distribution platforms in near real-time to get as many people as possible to watch it or run the risk of losing an audience. That’s when you need to look to a digital asset managemet (DAM) system that can support content creation, transcoding and distribution (something native to North Plains’ TeleScope) to streamline the process, because the value of a customer who doesn’t watch your show is $0.

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