Is the E-Book a Bad Business Model?

By Liz Abinante

E-books are not exactly new, but they are still stirring up a storm. With Amazon's Kindle 2 and Sony's latest Reader packing new features, the e-book is becoming more and more popular. Despite this increasing popularity, many authors are still holding out on publishing their books in an e-book format. Do we blame the authors, or do we blame the e-book?

I'm a voracious reader: it's not unlike me to take down a decent sized book in one or two days of diligent reading. I've recently turned to e-books, both on my computer and my iPhone, to help ease the pain of my pocketbook, and to solve my storage problem.

Yes, I do miss the feeling of holding a book in my hands, being able to smell it, dog ear the pages, highlight, take notes (blasphemy to some, I know), and curl up with it in bed. Despite my love for paper books, the environmentalist in me can't compromise. When given the option to buy a more environmentally-friendly product at a similar or lower price, I will. Even though I've read dozens of e-books, I have yet to invest in a Kindle or Sony Reader.

Despite the numerous advantages to e-books, they are still considered a niche market. There are problems with e-books.

The availability, for one. The number of titles available in print versus e-book are vastly different. Now, I'm not in the publishing business, but I can't imagine how producing an e-book would be more difficult than a printed version.

Some authors - namely J.K. Rowling - refuse to have their work published as e-books. They argue that with the low cost production, they should be receiving higher royalties.

Which brings me to another point: the price. How is it that an e-book and a mass market paperback version of the same book are almost the same price? Price issues aside, unless you enjoy reading on the computer or your iPhone, you have to invest over $300 for an e-book reader. The cost different doesn't pay off unless you read dozens of books a year.

And, on top of it all, arguably one of the most well known e-book carriers, Amazon's Kindle store, uses DRM and locks the items you purchase.

What's going on with e-books? Do they just have a bad business model? Can the e-book industry learn from the failings of the music and film industries taking their content digitally?

DRM is just as controversial as ever, but new e-book retailers still insist on using it. E-books require expensive devices in order for the content to be portable and don't do much to compensate for this with content pricing.

Like audiobooks, e-books aren't for everyone. It's a small market, but will it ever get bigger? Can Amazon and Sony move past pricing and content issues and improve? How long will it take authors to adapt to the new digital format? With so many flaws in the business model, with e-books be able to achieve the same successes as digital music and video?

POSTED IN: TECH
Thu, 30 Apr 2009 08:32 (GMT+00)
3 Responses
1.

The trouble is with consumer demand. Music would never have made it into legitimate digital media if Napster and the like hadn't come along first, fueling interest. Likewise you'd probably never have seen streaming movies from Netflix if the Pirate Bay hadn't come along. Books have never really taken off in the pirate scene though, despite the fact that a full novel takes up about a tenth the space that a single song does. It's the visceral experience of the book that you discussed above that is missing in digital text; the quality of the experience degrades instead of improving as in audio & video. Gutenberg Project, which hosts a huge archive of public domain texts free and legal for download. Take your pick of H.P. Lovecraft, Jules Verne, Dickens, H.G. Wells or thousands of other authors spanning the whole range of human history up to 1923 (and in some cases later). There are also a few great authors who release their work under free licenses, for instance Cory Doctorow.

For reading, anything that can handle text is fine; the Kindle is a neat if utterly unnecessary gadget. I read on my hacked PSP using SCE_Bookr.

Justen
Thu, 30-Apr-2009 09:35 GMT
2.

Er, lost some of my post up there, remainder was something along the lines of:
You can get collections of thousands of books on various torrent sites, via IRC, and elsewhere, or if you're shy about that check out the Gutenberg Project...

Justen
Thu, 30-Apr-2009 09:37 GMT
3.

I work in publishing, and it is very different producing an e-book.

If you are working an academic or journals publishing, where books are XML-tagged for online publication, e-books are more readily available. For frontlist fiction, however, the publisher has to decide whether to follow an XML-first or XML-last workflow. Costs vary between suppliers, but to tag a book while it's in production costs around £0.30p per page of the finished product, and £0.60p per page to tag a backlist title.

Authors who have agreed to be tagged in production are currently few and far between, as that will have been agreed in their contracts. It takes so long to write a book that many contracts for books now coming out will have been signed 5+ years ago, when e-books and XML were not at the forefront of the publishing brain.

As that becomes standard, you will see more e-books on the market. It's a trickle-down effect.

Additionally, there's all sorts of rubbish to think about vis-a-vis text designs - will it work on an e-book? If not, it needs to be redesigned and re-typeset, which adds up to £2.50 per page of the book.

It's not as easy as you'd like to think it is, honest!

Kate
Thu, 30-Apr-2009 09:54 GMT

Add Comment

Note: Your email address will be verified but will never be published on the site.

If you are a registered user, please Sign In.




The opinions expressed by the author and commenters are their own and do not necessarily reflect the opinions of BitchBuzz or any employer or organisation. The aforementioned are not responsible for the accuracy of content published.

social feed

@BitchBuzz: The [Digital] Revolution Will Be Gendered - from @katelaity on BitchBuzz Tech http://t.co/5bkxZo0x
09 Feb @ 10:46 GMT

search



buzz we love

Bitchin' Lifestyle
Vikki Chowney
Bangs and a Bun
Vintage Patisserie
Pop Justice
The Other Woman
Pamflet
Gala Darling
Red Velvet
Shape What's to Come
Bird's Eye View
Gala Darling
Bake & Destroy
Kris Atomic
Mark Johns
Garfunkel & Oates
India Knight
Kate Nash
Erin Gibson
Sarah Lacy
Vegansaurus
The Boss of You
Meantime Brewery
Make and Do with Perri