[Editor's Note: E-Publishing Notebook is a new Digital Breakfast series that highlights different contemporaneous digital topics within the publishing industry. Today is the second column from Anne Kostick, Partner at the digital (as well as print and web) consulting services company Foxpath IND, who specializes in the transition to and from traditional content publishing and online content management, development, and publishing.]
Digital publishing and selling is a little like running a mom-and-pop shop: the challenge is to make sure you give the customers what they want without giving away the store. And when it comes to e-books, that turns out to be difficult.
At the recent Untethered conference produced in New York by The Big Money.com, the financial business website of WashingtonPost/Slate/Newsweek Interactive, the main topic was … well, even the conference’s title dared not speak its name: “Profitable Media…” (yes, we all want that) “…in the Tablet Era.” No, they don’t mean aspirin or Alka Seltzer, or Moses on Mount Sinai: they mean the iPad.
You might have expected, from the title’s timidity, to hear more nervousness from the speakers, but you would have been wrong.
From the Washington Post’s chairman Donald Graham to ScrollMotion’s founder Josh Koppel, everyone declared their love for the book while extolling the experience of the iPad. The question was, where does profit come in? Does the iPad render all future e-reading devices (and there are dozens) irrelevant? Where does the e-book go from here?
James Ledbetter, editor of The Big Money, succinctly pointed out one important obstacle that needs clearing in the title of his online article: Amazon and Apple: Free the Data!
Forrester Research analyst Sarah Rotman Epps estimated that 59 million tablet computers in use by 2015. The opportunities for magazines and advertisers to reach their target audience through wireless tablets is excellent. Several speakers saw the tablet future as “app-centric” (no surprise, considering iPhone’s expansion) and, most important, multi-platform. Epps pointed out that more phones have shipped with the Android operating system than with iPhone OS, and predicted that the tablet market will look very much like the smart phone market. Of critical importance will be synching across devices, and, as always, the need for enhanced and custom content for tablet apps.
How to get that enhanced content? More enlightening in many ways was the afternoon-long verbal volleyball among traditional content producers—that is, book publishers—and new-media device producers. Beyond the ever-present discussions of rights and pricing, book executives were optimistic about their industry’s future in e-publishing. Simon and Schuster’s Carolyn Reidy considered books to be taking a new path—changing the form, perhaps—but still a publisher’s product with growing sales and profit in the future. Perseus Books Group’s David Steinberger said that the digital environment lowers the barriers to marketing and selling books. The next big challenge, then, is converting viewers to the discovery and sale of even more e-books. Brian Murray, CEO of forward-thinking HarperCollins, agreed that the book business is not under threat, but that all publishers have a new opportunity to connect with their readers. But what all publishers need to be figuring out is, how. Note to content creators—consider bundling, consider selling the brand and content, not the delivery system. Consider (and reconsider) the subscription model.
And what happens when everyone is wirelessly reading, commenting, downloading, enhancing, and creating on the fly? Edward Lazarus of the FCC predicts a real bandwidth crisis as near as the next two or three years (landing neatly in Epps’s time window for 59 million tablet users). And although the government will try to keep up, most speakers agreed that there will be no reining in consumers’ demand for bandwidth now that they’re “untethered.”
Device and reading-platform businesses regard everything, even the iPad’s gigantic launch, as good news. Linda Gagnon, Baker & Taylor’s executive for digital media services and the force behind the new full-color, multimedia Blio reader software, said that it only “validates our approach”—to be device-agnostic. And for those device-specific speakers, such as Anthony Astarita of Barnes & Noble, the producer of the nook eReader, there’s room in the digital future for everyone.
But wait, there’s more: not three days after the conference ended the price wars began: Amazon’s Kindle and Barnes & Noble’s nook dropped to below $200 (compare this to the iPad’s $500 base price), signaling that iPad’s sales-to-date of about 3 million units is, after all, cause for nervousness.