Saturday, February 07, 2009

Kindle 2: Two Days to go ?


Digital Christain Music on Demand

In the past, songs were always song the same way, but now you can go to a church and a song could be sung a little differently in every church.

Lifeway Christian Resources, the publishing division of the Southern Baptist Convention, with nearly 16.4 million members is the largest Protestant denomination in the U.S., this week launched a new online digital music platform, SongMap. The service not only offers downloadable Christian music but also enables users to transpose keys, change songs' order of verses, choruses, introductions and transitions, and download their creation and print out sheet music for various instruments. SongMap, is aimed not only at Southern Baptist congregations but other Evangelical churches and has 900 downloadable songs that include contemporary, gospel and traditional hymns.Although the typical users of SongMap will be Christian pastors and music leaders, the technology also can be a tool for schools, wedding planners or anyone needing customized sheet music or audio files.

Lifeway surveyed over a 1,000 churches and found many have trouble finding musicians to perform and lead in church services. SongMap now enables churches to use music in their services, with or without musicians. SongMap music was created by over 150 Nashville-area studio musicians, engineers and producers.

Users can access and pick songs through Lifewayworship.com Once an arrangement is complete, they select and print out sheet music for an individual instrument, with each instrument costing $1.49. They can also purchase accompaniment tracks, which omit vocals, for the congregation to sing along to. The cost per track is $1.99.

Friday, February 06, 2009

Mobile Books are Here

The NYT reported that Google will make their 1.5 million public domain books, that are available for free on PCs and now also make these accessible on mobiles. The same article also reported that Amazon was working on making the titles for its popular e-book reader, the Kindle, available on a variety of mobile phones.

So this tells us that the consumer is certainly going to have a mobile ebook experience and in the case of Google a free one. But before everyone around the world rushes, as we did, to experience Book Search on a mobile, it appears to be limited to those operating under Android (Google’s own mobile operating system) and the iPhone.
It certainly wasn’t working under Symbian, the system used by Nokia. Also although 1.5 million is the figure quoted, this only applies to the US and outside of there only around 620,000 titles currently available. Still a large number by anyone’s standards!

While these books were already available on Google Book Search, these new mobile editions are not image but text files, enabling a better reading experience and download performance to a small screen. To try it out, open up your iphone or Android phone and go to http://books.google.com/m.

Google said it would extend the service to include out-of-print titles and current books. This then extends their land grabbing settlement benefit sales and licensing opportunities.

Amazon who are expected to unveil the Kindle 2 next week, did not say when Kindle titles would be available on mobile phones, or importantly what the implications would be. The Kindle currently offers about 230,000 titles.

Amazon’s move onto the mobile is a no brainer. If they stay marooned in Kindleland they may well end up with the content, but on a device no one wants. What many forget is that they also own Mobibook and could easily move onto the mobile using a tweek of the mobi format. Some would question whether Amazon would open itself up by using the standard mobi format or that its more likely that the files will remain Amazon only but mobi exclusively restricted. It is as unlikely that they will embrace epub for delivery as to see them loosing their grip on their digital content.


Some say that the reading experience on a small screen will never take off stating that the printed page and ereaders have been optimised for reading. Others will point to the Blackberry and emails that are being read all around us today, the Keitai novels in Japan, texts and also the great variance of quality and size that exists in print that some of which some would say is just as hard to read! The reality is that the market will decide what and when they read.

What is clear is that Google now has arrived in the market and given the treasure trove they have potentially acquired for chump change, they are certainly going to have an increasing impact on the market. Secondly those who doubted the mobile platform would work for books better start to think again! Whatever happens it's certainly interesting times on the mobile platform and with Plastic Logic and K2 coming on the 9th, a hard choice time for many today.

Mobile Broadband Harmony and Demand Fuels UK Change


The BBC report today that regulator Ofcom is planning to make a wider band of spectrum available for mobile broadband services than originally proposed as it auctions off the airwaves freed up by the shift to digital TV. It is proposing to make the whole 800MHz band available for mobile broadband and related services and find "alternative spectrum" for wireless microphones and digital terrestrial TV.

Pressure to harmonise with Europe with Finland, France, Sweden, and Switzerland all releasing the wider block and the drive for mobile broadband has driven the change and it also means that consumers will be able to use the same mobile services abroad that they can use at home.

Mobile broadband demand will continue. The GSM Association state that there are ‘200 mobile broadband networks across 94 countries with some 75m subscribers around the world, 26m of whom are in Europe’. It predicts that the global figure will rise to ‘1bn by 2012’ which is the year that much of the spectrum will be freed up.

For digital terrestrial TV viewers, it will result in a ‘minor’ change to all set-top boxes. The PSME industry (Programme Making and Special Events) now face eviction from Channel 69, which operates at the top of the 800Mhz band. Interestingly the British Entertainment Industry Radio Group (BEIR) state that this is the only channel where radio mics can be guaranteed to work from any location in the UK.

The PSME market is estimated to be worth some £15bn and range from concerts, live events, west end shows and anywhere where radio mics are used. The change will also impact equipment and some say that it could render up to 90% of this worthless. Ofcom puts a £80m price tag on affected equipment and has offered funding so that those being evicted do not have to bear extra costs as a result of the changes. The consultation period for the Ofcom proposals ends in mid-April.

Audiobooks Just Got a Look Clearer?

It heartening to read in PW, that the major US trade houses are very close to fully embracing DRM free audio books. The reality is that virtually every audio CD is DRM free today and ripping a CD to create a file of choice is a lot easier than scanning a book. However DRM free talk is not new and the same publishers have stated this intent several times but have made relatively little progress in their delivery.

We do take our hats off to Random House who saw the light some time ago and have stuck to their guns. Other such as Penguin pulled out of the original DRM free trails and is not quoted in the PW article.

We must also point out that the number one audio provider Audible still sticks rigidly to their DRM technology. After all its what gave them their market position, which in turn enticed Amazon to buy them. Many would say that Audible’s DRM is the only effective DRM for these files today, but alas it is proprietary. Some would say that audible didn't really know whether it wanted to be a technology company, a publisher, a book club, or all the above. Amazon on the other hand has championed DRM free music but has stayed quiet on audiobooks. Amazon also has now acquired a audio publisher. Perhaps this is called ‘Every which way but loose.’

Some 30 months ago when we wrote the ‘Brave New World’ report, we believed that audio books would be at the front of the digital publishing movement. The logic was that the user experience was the same, the MP3 players were ubiquitous and all that needed to change was the delivery, which would make it similar to music. What got in the way were rights contracts, DRM, inertia, lack of price points, general pricing and Audible’s market dominance. We have been increasingly disappointed that talk has not been followed up by action and a clear opportunity has languished untapped.

Just like with ebooks publishers need to take bold steps, 50 titles here and 100 there isn’t going to change a thing. We are again talking about a change in a vacuum of real content. All new titles DRM free and a clear program to address the back list will change that. So who is going to take the bold steps? Who is going to sort out the pricing issues? Will files be watermarked?

The other interesting question is again focused at the public library versus retail. How will audio books free to rent and download from a library compete with purchased download from a retailer?

Finally, how will these titles get to market? Audio books don’t need a single point of distribution be that Overdrive or Audible they need to be available for every retailer to sell, every library to lend, every consumer to enjoy. This means that not only doe the DRM have to go but the channel ahs to be effectively opened up to those who want the freedom to sell every title available and not be tethered to those who restricted the old world.

Yet another Day and Yes Another Smartphone Entrant

You can add Notebook manufacturer Asus and navigation system manufacturer Garmin to the increasing list of smart phone contenders. It make three we have written about in one week! The only difference is that Asus and Garmin have announced a "strategic alliance" to deploy a line of cobranded mobile phones. Both bring value to the venture; Garmin in its mobile telephony and navigation, Asus, with its impressive ultra-small Eee PC netbook technology.

Garmin originally announced plans for its Nuvifone in 2008, which now is renamed G60 and will be available in the next few months. All the Nuvifone devices will be LBS (location-based services) offering the same true turn-by-turn, voice-prompted navigation features built into Garmin’s devices. Users will also have access to Ciao, a social networking application that serves as a bridge between multiple location-based social networks and integrates them into one device.

The combination of the LBS Sat Nav and notebook technology is both interesting and compelling, as it potentially wipes out the SatNav devices as we know them today and breaks down the barriers between the notebook and the smartphone. The question we ask is what happens to Germain’s existing market and are they descending from the top of a SatNav peak, which has reached its summit, to now climb a far taller peak in search of bigger rewards? Asus on the other hand is in a great position to give the user choice of experiencing the same applications and access on different devices. The Asus question is on how far do smart phones and notebooks go before they morph and if Asus think this may happen then they have taken a bold step.

However, as with all the contenders there is a huge battle ahead in a tight market and the smart phone wars are going to prove to be very interesting indeed.

Thursday, February 05, 2009

Happy Birthday Facebook


Most 5 year olds have a birthday party and invite their friends around to share cake, games and fun. Facebook is no different and for its 5th birthday is giving its 150 million users a mystery virtual gift to celebrate.

Facebook wasn’t the first social network but has clearly established itself as the market leader and biggest social network with 150 million active users, some 20 million more than MySpace and its and the fastest growing demographic is 30 years old and above.

Facebook help break the mould offering a safe and trusted environment where people could share their real identities and interact online. It enabled people to feel comfortable in being able to express more about themselves.

Within 24 hours of launch, 1,200 Harvard students had signed up and soon after that the network was quickly extended to other colleges and universities. By 2005, around 85% of students in the network had a Facebook account. At the end of 2005, Facebook hit the UK and today the site is translated across 35 languages with another 60 in development.

The perennial question for Facebook has been how to make money on the site and cash in on its 150 million users who critically spend more than two hours each day on-site.

Within 24 hours of launch, 1,200 Harvard students had signed up and soon after that the network was quickly extended to other colleges and universities. By 2005, around 85% of students in the network had a Facebook account. At the end of 2005, Facebook hit the UK and today the site is translated across 35 languages with another 60 in development.

The perennial question for Facebook has been how to make money on the site and cash in on its 150 million users who critically spend more than two hours each day on-site.

Another Day, Another Smart Phone


We appear to be having a new smartphone every day. Interestingly they are now coming thick and fast from the PC manufacturers. Dell, Lenoivo and Toshiba have both announced their models and now they have been followed Acer. Out of the top PC manufacturers, only HP and Fujitsu Siemens don’t now have a smart phone. Lenovo will roll out an Android phone in 2009 and Toshiba has already demonstrated its gorgeous TG-01 4.1-inch marvel.

The Acer DX900, is from their acquisition of mobile manufacturer E-ten last year and is a Windows Mobile powered 3G handset with dual SIM that allows users to use two different networks, or to use an international simcard whilst travelling. The SIM 1 includes 3.5G HSDPA support with quad-band GSM and the SIM 2 is triband GSM with no 3G support.

Features sound like all the rest ; a 2.8 inch high resolution touchscreen, built in GPS, Wi-Fi, Bluetooth, 3 megapixel camera, and microSD expansion slot. Processing power comes via a 533MHz Samsung s3C 6400 and 128MB of RAM.

So the market is getting crowded and at the current time we will continue to question if some are going to get their fingers burnt in the stampede to secure sales. Smartphone are clearly in demand and the choice is now wide, but it when its hard to really differentiate between them its going to be interesting to see what happens. Mobiles are often seen as a design accessory or status symbol. So what would turn your head and what would you wish to be seen using later this year?

Wednesday, February 04, 2009

So Is The UK Going Digital Selectively?

The anti BBC people will be no doubt rubbing their hands at the news that the Kangaroo joint project between BBC, ITV and Channel 4 is to be blocked by the Competition Commission. The service would have established an on demand video service to sell current shows from C4 and ITV and archived BBC shows. The reason given was that the posed service posed "too much of a threat to competition".

One week after the government had tabled a digital Britain plan another arm of the establishment has gone the other way and the losers will be the public. The logic was that the project would inhibit other on demand services developing a service. The reality is that the services are all under considerable pressure with ITV haemorrhaging ad revenues, Channel 4 and 5 close to a survival marriage and the knives poised as always over the BBC.

These companies may commission productions but today the majority of content is independent and it’s the delivery where the consolidation makes most sense. In a global market with strong international dominant branded players a UK consolidation makes more sense than a fragmented one that is potentially unable to compete on the global stage.

The BBC's iPlayer followed the lead of Channel 4and has proved a high success story and proof of the demand for a free service and ITV now also offers a similar service. Kangaroo would have enabled the BBC to offer its huge archive of material and importantly build a global brand enabling those outside the UK to use the service on a pay to view basis. It could have removed the current 7 day window. This could have been rolled out country by country on the back of BBC.com. As it is the BBC may have to live within their branded section of iTunes, further building Apple’s brand rather than a UK one.

The combined entity would have consolidated investment, user experience and enabled money to be funnelled into what really matters content and rights.

At a time when the UK government cries global with one breath it’s a shame their narrow minds stifle global opportunities with the other.

Toshiba to Shake the Mobile Market?


Last week it was Dell now its Toshiba. It is clear that the computing manufacturers are all seeing a bright future for the smart phone and all want a slice of the action.

The Toshiba TG01 is expected to be officially announced at the Mobile World Congress later this month. At weighs in at only 0.39 inches thick, compared to the iPhone’s at 0.48 and TMobile G1 at 0.6. It’s VGA touch screen display is 4.1-inches wide with 800-by-480 resolution again superior to the iPhone. So appears a winner on size.

The TG01 will be the first mobile to run on Qualcomm’s 1GHz T- Snapdragon QSD2850 chipset. Qualcomm claim the chip offers, speed, better power management and greater battery life. It has the usual features and even a shake-to-answer, or disconnect, or even navigate option, so you need to avoid jogging or going over bumpy roads. It is also expected to come with a stylus.
The TG01 will run on Microsoft’s Windows Mobile 6.1 with a new graphical interface and full Flash support. The inclusion of Flash is a powerful plus offering access and navigation to any Flash-based Web site, the ability to watch videos that may only be available through a Flash interface. In addition to the Windows Mobile programs already available the TG01 will have built-in access to Google, Facebook and YouTube and Toshiba is reported to be on games specific to the device.

Release is expected mid year and channels and price is yet to be announced.
So the market is hotting up. The Computer manufacturers are coming in battle, the operating system are at war, the carriers are fighting for share and applications are being generated daily. Can anyone truly dominate a market that is so diverse and volatile? What will be the killer application; a game, films, exclusive content, some new combination? Will mobile churn continue at its current rate fuelled by renewable contracts or will consumers opt to buy or stay put rather than upgrade at today’s rate?

What is clear is that the iPhone shook the market as the iPod and iTunes shook music and we are now seeing the response. However unlike music which could simely shift DRM free and top MP3 this is a far more complex environment with many vested interests.

Tuesday, February 03, 2009

Paper View


We were intrigued by several reports of a new format the ‘video book’. We didn’t stop to ask whether it was BluRay or DVD, but just wanted to know what it was. Could it replace MTV with BookTV? Was there an ‘Easter Egg’ buried in it. or was it all hype, hot air and a marketers dream to publicise the book?

HarperCollins has announced the ‘video book’ and the first to go is Jeff Jarvis’s. ‘What would Google Do?’ We thought it may be about the settlement but although some may say that would make a good mystery thriller, its not. Jarvis’s book is already out in hardback and also audio and now its coming out as a video book. So what is a video book and how does it relate to the book? Is it in author reading and does it have animation, graphics, actual film shots or special effects?

The answer is that it’s a 23 minute video of Jarvis speaking into a single camera with a white background. Jarvis talks apparently about the basic concepts in the book and that’s it!

So it’s a marketing promotion video or a meet the author type video? No according to HarperCollins its new its exciting and it’s a ‘video book’ and to top it they expect consumers to cough up $9.99 for it! Some would certainly question whether this is Wise.com?

HarperCollins has been noted for its digital experiments the past few years. However this isn’t so much as an experiment as a basic promotional video which you have to buy and then hopefully you buy the audio or the book. Some may say that it’s like asking consumers to pay to watch a film trailer or pay to read a book review, or pay for video clip not a video book. Someone is obviously thinking it’s a ‘great idea’. HarperCollins expect to produce a further 6 six ‘video book’ titles in house, which will be available for download on iPods and iPhones. So they are even asking consumers to pay for home movies!

Authors are reported to be receiving around 25% percent of the sales, but if as some would think, these end up being given away or used as bargain promotions, then 25% of nothing, could amount to not a lot.

If the ‘book video’ succeeds it may tell us much about the new video culture we live in and the decline of traditional reading for the 23 minute sound bite.

We normally applaud innovation and experimentation, but question where this is going and also the potential impact if all author videos and podcasts went the same way?

Couch Potatoes Sprout


In 1721 when James Franklin started his weekly newspaper, he invited readers to contribute. One of those readers was his typesetter and brother Benjamin, who started writing essays under the name of "Silence Dogood". In the early days of the printing press contributions and views from a wide range of people were published as flyers, pamphlets, then as periodicals and eventually they became newspapers. Over time citizens contributions become relegated to Letters to the Editor. The people became more receptacles for news and information and not generators of it.

Ex Boston Globe and MIT Media Lab, Jack Driscoll believes that computer have changed that one way traffic and has published a book, ‘Couch Potatoes Sprout: The Rise of Online Community Journalism’. He starts with the line, ‘now anyone with a computer is a newspaper.’ So what is a "newspaper" and what are the differences between individuals or communities publishing the news and the work of professional journalists.

Today we have bloggers who in some cases are voicing their opinions, in others are being aggregators or teachers, and in others champions of causes. However, Driscoll believes that community groups are often frustrated with their community media. He suggests that community groups will tend to do more original reporting than lone bloggers and will tap the potential of community activity. We now live in a world where everyone is a potential journalist, photographer, and cameraman. The enablers for this collaborative work, the computer and network are here today. They now offer local groups the opportunity to add that extra value to traditional media and fill the community gap.

So does the democratisation of news, reporting and opinion become a collaborative exercise and if it did, what does it mean for newsprint as we know it today? Can community journalism, blogging and professional journalism co-exist?

India to Produce its Own Cheap One Laptop Per Child

The BBC today reported that India is to announce a educational technology investment that will not only impact the likes of the OLPC (One Laptop Per Child) programme but the whole educational space. India's National Mission on Education through Information and Communication Technologies, is due to be unveiled at Tirupati, Andhra Pradesh, on Tuesday and as part of this India will announce its own cheap laptop. The total service will be based around the one stop Sakshat educational portal

The cheap laptop will be part of a mission which will include spending on e-books and e-journals for students, development of translation tools, upgrades to educational networks. The speculation suggested that the laptop is likely to cost $100 (£70) and is being developed at the Indian Institute of Science, Bangalore and the Indian Institute of Technology in Madras. If this cost were to be achieved it would pose a serious thret to the OLPC and the Intel Classmate but could also mark a significant step change in the wider market outside of education.

Monday, February 02, 2009

What is the Impact of Digitising Public Libraries?

Today we read of the surge in library demand and the obvious return to free public libraries when money is tight.

Last month we wrote about the Cleveland Public Library and CLEVNET member libraries offering downloads of epub eBooks from the library's website onto the Sony reader via digital aggregator Overdrive’s service.

This month we read OCLC’s NetLibrary response, offering ebook collections which can be once again read on the Sony reader. NetLibrary’s service includes a Sony PRS 5056 reader and once again a service for the librarian to download files to the reader. Libraries with ‘Mobile Collections’ will be able to let members check out Readers for onsite or offsite use. However the device appears to be tethered to the collections acquired by the library and the licence.

Thousands of public libraries in the US offer online collections to members. Members simply need a valid library card and a PC with an Internet connection in order to start borrowing and enjoying eBooks. Borrowed eBooks automatically expire after the lending period.

So we return to the question no one wants to answer. Where does the free ebook from a library stop and the bought ebook from a retailer start? What is the impact if libraries lend out readers as part of the service? In a physical world libraries demanded attendance and a return journey but in the online world you don’t have to leave the house. In a digital world libraries can pay on a lend basis and shelf space is no longer a constraint. Just to top the offer Google is planning to put a PC into a library. Once content is perceived to be ‘free’ putting it back in the box is not easy.

Lightning Sources Strikes 2 Million

Print on Demand (POD) is still relatively new but is now well established in the publishing world. In its inaugural year Lightning Source UK, a sister company to Lightning Source US and an Ingram company, produced some 30,000 books. Today some 8 years later it announced that it had printed over 2 million books in 2008. So what impact has POD really had and what has changed in those few years?

Traditional printing remains more a case of just in case than just in time with the calculation on the print run often being down to economics than hard sales. If you don’t print off a certain quantity you don’t get the price, if you don’t get the price you loose margin or potential sales and then there is always the special deals on offer to print that little extra you didn’t really want.

POD has had some significant success stories and no more so than Cambridge University Press whose program has now passed 11k titles and continues to question those titles that will still continue to generate small sales but would not justify a traditional print run.

But what is the right POD model is it aimed at short print runs, single copy fulfilment, self publishing? Which books suit it best? Is it only economic for textural and greyscale or can it compete on colour?

More interestingly is it aimed at perpetuating the print and distribute model or moving towards distribute and print and offering true local print facilities? If it merely reduces bulk inventory but creates or perpetuates titles stocked, is this merely shifting the cost from bulk to range? The same transport is required, handling will increase and holding more titles doesn’t guarantee more sales. The interesting Blackwell in-store experiment, like the Foyles one before it, has been scrapped and no one has stepped up to providing the community answer. Perhaps their isn’t an effective economic local model and we have to face the facts that we have replaced the big printer presses with new small POD presses, bulk with range and just lowered publisher risk.

The other side of POD is that it has moved the digital agenda forward. Some would say that POD has given Ingram a huge amount of ‘digital’ files on which to fuel Ingram Digital ventures and maybe that is what Amazon saw as the opportunity to replicate with their directives on Booksurge. Digital files can be a real asset when you are building a digital repository offer.

Lightening Source took bold steps, invested and grew to a dominant market position both in the US and UK. Although tradition printers followed, their actions weren’t as bold and their results today are far less impressive. Sounds a somewhat familiar story.

Smartphones to Kick the Trend

ABI Research Inc have announced new mobile projections saying that they expect the 14% of mobiles shipped in 2008 being smart phones to increase to 17% in 2009. They also predict that this will happen against a 2.5% drop in overall mobile phone shipments. They also report an understandable but significant drop in demand on all phones in the last two quarters of 2008.

ABI also released 2008 global year-end numbers on the 1.21 billion mobiles shipped; Nokia Corp. 38.6%, Samsung 16.2%, LG Electronics 8.3%, Motorola 8.3% (a drop of 5%), Sony Ericsson 8%, RIM 1.9%, Kyocera 1.4%, Apple 1.1%, HTC 1.1%, Sharp 1% and all others at 14% .

The Great Book Bank Robbery - A different Perspective

On the weekend that Google’s Legal Notice of their settlement hit the UK broadsheets, we wonder what it will take to get the debate on the streets. Do people care, or are they too apprehensive about speaking out against Google? Do people feel that they have sufficient context on which to base any opinion and is the settlement too complex for many to digest?

The more we read, the more questions are raised, the more questions, the more curious the newsprint silence is.

Today we read and interest blog at exact editions, 'Google Book Search and the Tragedy of the Anti-Commons', which raises more questions and some interesting perspectives re the territorial aspects of Google’s settlement. It again also raises the thorny issue of in copyright but out of print titles and the fate of these often orphan works. We may not agree with all the points made but welcome the debate that appears to be limited to the blog-sphere today and definitely off the newsprint and trade press column inches.

Sunday, February 01, 2009

Riverdeep Mountain High

When times are good and credit is cheap some build significant empires but when winter comes and the sub prime ice storms come then that debt may become very visible and be hard to finance. Houghton Mifflin Harcourt has $6.7 million of debt, which ten times its gross earnings and according to the Boston Globe is putting the iconic 180 year old publisher on shaking ground.

So what happened to a publishers whose author list includes the likes of; Roger Tory Peterson, JRR Tolkien, Philip Roth, Arthur M. Schlesinger Jnr and Rachel Carson? In 1978, Western Pacific Industries acquired a large stake in Houghton Mifflin which was defeated not by money but a group of famous Houghton authors, led by Archibald MacLeish, John Kenneth Galbraith, and Arthur M. Schlesinger Jr. who threatened to move from the company if the sale went through.

In 2001, Vivendi International bought the company for $2.2 billion and they became part of an empire which included Universal Studios, theme parks, TV stations, and telecom companies. A year later debt brought down the empire and in 2003 Houghton Mifflin was sold at a $500 million loss to a Boston-based equity partnership. Then in 2006 Dublin based Riverdeep Group bought the company for $3.4 billion a surprising move given the company was only a $392 million educational software company.

Riverdeep had high ambitions east credit and a year later had bought Harcourt from Reed Elservier for $4 billion. Reiverdeep had grown from a $8 million sales educational publisher in 1999 to Houghton Miffen Harcourct Riverdeep in just seven years with a significant debt.

Combining two similar publishers is not as simple they bought the same kind of list. Educational publishing has in principle one curriculum so having two reading programs, two math programs, two of everything is not the answer – this is not Noah’s Ark. When you add a recession you add a big problem to any company with debt but for a company that hasn’t consolidated and shed the excess you have a problem.

So the rating has been slashed and its core educational business is cost cutting and threatening even its existing revenue levels. So some would suggest the vultures are in flight, a fire sale beckons and it’s hard to see how they can service the debt in this climate.

February 9th - eReader Day

We have written on Plastic Logic’s ereader which first surfaced at last year’s CES show and has taken a year to market. This is good news as it is clearly aimed at the ailing newsprint and business document market.

We have also reported on the Kindle 2 which is expected to be announced in New York on the 9th February, but what we didn’t expect was that both the K2 launch and the Plastic Logic reader would appear on the same day and in the same city. Yes PL plans to launch their device in New York on 9th February at the Tools of Change conference in New York.

We would ask if this is wise? It certainly will raise the column inches on both announcements but what will consumers make of two potential heavyweight offers squaring up to each other on the same day, in the same city? Bezos will have the consumer eyeballs and PL ,by their choice of venue, the technology attention.

Expect one to talk books and education and the other newsprint and business and the consumer to read about it all via their news alerts and on their iPhone.

Google ‘This Site May Harm Your Computer’

Would we have ever expected to try to log onto Google and enter a search to be told that it was dangerous? Some would say that they were only stating the obvious others that it was obviously 1st April, but reality was that Google crashed for 40 minutes around the world this weekend.

The problem was down to a malware detector, which is designed to keep users from sites that could install malicious software, but apparently thought Google was too.

The cause of the detector returning the, ‘This site may harm your computer’ message was apparently down to human error with an engineer who was manually entering suspicious web addresses accidently including all web addresses. So there are humans at Google after all and they do make mistakes.

Ironically, paid searches appear not to have been effected.

Zumba a Mobile that is Different

UK based IA Technologies who specialise in military equipment have as developed the Zumba phone. So what is special about this phone and makes it different from the pack?

The Zumba’s handset is the size of a credit card and can be operated almost entirely hands free, claiming to be the world's first fully accurate voice recognition handset.

Using an earpiece stuck to the back of a credit card-sized handset, the somewhat clunky looking earpiece detaches from the handset and becomes a hands free phone that will read back and transmit voice driven text messages. The set is ultra light in that it doesn’t carry your life around on it but stores all your details, contacts and messages on a secure central server. So the phone is in fact uniquely personalised and renders useless to all others. The front of the handset has a circular dial with alphabetic keys for inputting information and by removing the earpiece it automatically activates a connection to the internet, allowing you access to all your information.



So it is a cheap and cheerful mobile which may appeal to those not wanting cameras, video, email, GPS, internet connectivity and the world of ebooks and smartphones. However the technology and concept behind the design does offer much and no doubt could be licensed and incorporated into other devices. It certainly would offer the disabled an alternative that is simple and maybe could offer a cheap alternative where the current mobiles are venerable to theft.

The Zumba is planned to be out later this year and although it probably is more of a gimmick than a serious contender we think it will spawn others to think differently

Child Safe Books - An Update


It appears the sense has prevailed and the somewhat rushed US act we wrote about last week has a one year stay for further testing.

CPSC PRESS RELEASE FOR IMMEDIATE RELEASE
January 30, 2009
Release #09-115

CPSC Recall Hotline: (800) 638-2772
CPSC Media Contact: (301) 504-7908

CPSC Grants One Year Stay of Testing and Certification Requirements for Certain Products

WASHINGTON, D.C. - The U.S. Consumer Product Safety Commission voted unanimously (2-0) to issue a one year stay of enforcement for certain testing and certification requirements for manufacturers and importers of regulated products, including products intended for children 12 years old and younger. These requirements are part of the Consumer Product Safety Improvement Act (CPSIA), which added certification and testing requirements for all products subject to CPSC standards or bans.

Significant to makers of children's products, the vote by the Commission provides limited relief from the testing and certification requirements which go into effect on February 10, 2009 for new total lead content limits (600 ppm), phthalates limits for certain products (1000 ppm), and mandatory toy standards, among other things.
Manufacturers and importers – large and small – of children's products will not need to test or certify to these new requirements, but will need to meet the lead and phthalates limits, mandatory toy standards and other requirements.

The decision by the Commission gives the staff more time to finalize four proposed rules which could relieve certain materials and products from lead testing and to issue more guidance on when testing is required and how it is to be conducted.

The stay will remain in effect until February 10, 2010, at which time a Commission vote will be taken to terminate the stay.

Many thanks to Edward Vielmetti for bringing this to us.

Saturday, January 31, 2009

Dell's MePhone to Challenge IPhone and the Rest?


Dell is expected to announce two iPhone and Blackberry competitors sometime next month. Code-named MePhone, the phones will run on Google Android and Microsoft Windows Mobile respectively.

The Wall Street Journal has revealed that in February Dell will introduce two new mobile phones at the Mobile World Conference in Barcelona. This puts the direct market PC manufacturer head to head with market leaders Apple, Research, Nokia, Palm, and the many others scrambling for the smartphone market.

One of the phones will be touchscreen-only while the other will be similar to the TMobile G1 with a slide-out keyboard. One will feature Windows Mobile the other Android but little else is confirmed today. Dell's "MePhone" is also reported to not go on sale until September.

The one interesting aspect of Dell’s operation is its ability to shift boxes off the Internet and promote and manage this operation minimising inventory, maximising the relationship build with the customer and importantly making higher margin or being able to sell at lower cost. Will Dell’s business model work better than the high cost operations of its new competitors? Will it be able to cross subsidise and leverage their existing customer base?

It certainly interesting times when technology companies shift their markets.

Where's the Digital Content?

We have often argued that consumer digital book demand today is a demand operating in a vacuum. Compare just the titles in print or the titles published in print this year to the total number of ebooks available. There is still a clear dearth of digital content today. Waterstones last week asked publishers to stand up and grasp the opportunity and were clearly stating the obvious – you can’t get consumer attention if you could find what you want. Today we read the same from the US in the Christian Monitor. These voices aren’t alone nor are they asking for something that is unreasonable. The ebook, the digital debate, the introduction of Digital directors aren’t new. So what are the issues and why isn’t there a digital edition of every book in print?

The publishers have rights issues to be cleared and investments to make but this isn’t new nor is going to happen without the commitment. Some say that the cost is prohibitive for the likely return but how will that logic ever change? Device manufacturers, digital companies and now channels, libraries and retailers are stepping up but the word ‘cautious’ best describes the market.

Can we remember the early Internet days or the first ebook pre dot com crash digital gold rush? Some we are still today suffering from the burnt fingers and mistakes made then. However today is very different and there are many positive signs that this digital move will survive the recession. Some will say that it has to survive the recession and may be the way forward.

Some would say that the biggest mistake being made today is view digital as an add on, something you do after you have published the physical book, an afterthought, something you do if you have some spare cash to gamble. The reality is that the digital rendition is just that a rendition and should be created as part of the development process. This means changing not just what we produce but how and what is acquired, how its edited and developed, marketed and promoted and sold.

Digital content, rights management and digital context (metadata and bibliographic) are all corporate assets. So wouldn’t make sense to develop them and manage them digitally? Publishing visionary Mike Shatzkin’s research and conference ‘Start with XML’ has raised the agenda, but although it may have touched some, in reality it missed many. If publishers are to participate in the digital world they must look at their total process from manuscript to consumer and manage this with today’s processes and tools.

Is it Wise.Com - newprint on demand?

Imagine going into your local newspaper shop and being offered 890 newspapers from around the world, some 81 different countries and 38 languages. Today’s cosmopolitan society can read their own paper, not a day later, or shrunk to a foreign edition, but today and in full.



Sheth, manager of Zyn s News & Cigar on Greenwich Ave. Connecticut has embarked on this interesting print on demand venture last spring. NewspaperDirect, a Canadian company headquartered in Vancouver, puts the papers on its Internet system and then sends them to dealers such as Zyn’s.

Sheth's printer cost $30,000 to $40,000. A printout of a weekday newspaper costs approximately $3.50 to $6, while the charge for a weekend paper ranges from $7 to $10 and are based on the number of pages printed. It takes up to 15 minutes to print copies on both sides and to the paper’s format.

Customers can subscribe, call ahead, request colour and request back as far back as one year.

Given the technology investment and the low cost of the newsprint the capacity constraints and also community demand it makes us wonder at the wisdom of the approach.

Friday, January 30, 2009

Death of the Independent Book Review?

This week news broke that The Washington Post’s ‘Book World’ will stop as a stand alone printed entity on 15th February. Its printed reviews will be accommodated elsewhere and it will still be available online. The news has raised much twittering in the book world and together with the dire state of US newsprint, has led many to question where they would get their literary fix and steer from.

In the Uk we are awash with reviews but are they the same and do we understand the difference?

In the US reviews are totally independent of sales. There is a conscious policy to ensure that there is clear water between editorial and business. The NY Times’s staff reviewer will not even review a book by a Times employee.

Some will say this is a far cry from the often muddy waters in the UK where editorial column inches in book reviews, not only review the book but offer it often through a ‘pseudo bookclub’ at discount. Why isn’t the word advertisement stated on the top of the page as some would argue that this is what it is, a catalogue hiding under editorial inches. There are also often special book offers under the brand name of the paper, but are picked packed and distributed by book wholesalers and others. UK newsprint has long leveraged its brands but some would say at the cost of their impartiality. However, some say that when shelf space is bought on the high Street the question of where payola starts and finishes is a debatable point.

So where do you get you review fix and are all vested interests declared?

Thursday, January 29, 2009

Keitai Lessons in Writing for Mobiles


We have written several times about the Japanese ‘keitai’ mobile phone books and how the writers are adapting to this new format and reaching this new audience.

The western world continues to kick-start the appeal for reading, but continues to do so using the format and presentation that worked yesterday. We still take finished books and shoehorn them into ebooks and think that they are different and will somehow transform the unread into the well read and the paper and card libraries, into digital ones. We see the attraction that the iPhone book has generated, but continue as before pushing the ‘looky-likey’ book eink readers.

Japan has cultural difference and similarities with the western world and understanding these may offer a way forward. Almost every Japanese adult has a at least one mobile and 31.3% of elementary school students and 57.6% of middle school students have mobiles. Net Asia says that as many as 22.3% self-identify as mobile phone addicts. According to a recent Mainichi Shinbum newspaper survey, 86% of high school, 75% of middle school and 23% of grade school girls read cell phone novels. Talking on the phone in many places is frowned upon, so people tend to text message, which is also cheaper than voice services. As a result people are used to reading on mobiles much as many are on their Blackberry today.

Commuting in crowded trains is where the Keitai novel works best, with works published in 70-word instalments, or abbreviated into chapters that are the ideal length to be read between stops. This means that, despite small cell phone screens, lots of white space is left for ease of reading. Not surprisingly the appearance is often similar to manga with multiple short lines of compressed sentences, fragmentary dialogue, with mobile symbols.

Interestingly when we look at the instalment offer here we see books often written for a different age and to be read as page turners or at leisure being chunked into frustrating reading instalments. DailyLit.com try’s hard to provide the experience, but misses not in its execution, but in its content.

In August 2007 we wrote about Yoshi’s ‘Deep Love’, a story which now has sold some 2.7 million copies and spawned a TV series, movie and manga. The popularity of the genre is spreading, 10 of the bestselling printed novels in Japan in 2007 were based on mobile novels, and each selling around 400,000 copies. The sales were strongest for costly hardcover, where readers had already experienced the work on their mobiles.

However the Keitai novels are not being taken up by adults, who often criticise the lack of diverse vocabulary and a general dumbing-down of traditional literary approaches. Some call cell phone novel enthusiasts ‘yutori,’ slang for those who cannot properly read, write or think. Keitai novels do not go through the editorial selection process; they are first Keitai then are turned into books once popular. It’s like creating a novel based on a film.

Perhaps we have the opportunity to create a new genre, spawn new writers and engage with a new audience. However to do so we may have to let them self publish, experiment and promote organic growth.

Wednesday, January 28, 2009

February 9th - Kindle 2 Day?

So what do; the Beatles and The Ed Sullivan Show, American combat troops and Vietnam, Lithuanian democracy, Carole King and Mia Farrow and Amazon, all have in common?

Amazon has announced a press conference at New York's Morgan Library & Museum, scheduled for Monday, February 9th and hosted by Jeff Bezos himself. As you can see the day is not one of the biggest event days in history, but are Amazon planning on changing all that? The Internet is now rife with speculation that the book giant is planning to launch its long overdue Kindle 2 and a library would appear to be the perfect venue.

The speculation of what it would look like has started. Will it have a bigger screen, more feminine rounded corners, be thinner, rounded buttons, smaller side buttons and come in designer colour packages? Will it have faster screen loading, using the Broadsheet chip used in the Sony 700? Some may say that these are fairy safe guesses, but what may be the surprise, or has it again taken so long to get to this stage that there is very little surprise?

Whatever lands on the street on the 9th it is clear is that Amazon has some catching up to do in the market if it is to regain the initiative it created with the K1. Irrespective of how many of the K1 boxes were shifted, the spotlight has clearly moved from the eink grayscale readers to the full colour and ubiquitous iPhone and mobile platform. It will take more than a quick dust down, lick of paint, rounding of the edges and an Oprah stardust endorsement to get the K2 back to pole position. Sony has consistently plugged away and with its epub credentials and its educational moves and its availability and is starting to make the eink running. We have consistently stated that we believe that the end game is between the shrinking notebook/lapotop and the mobile smartphone, between download and online, between restrictive DRM and DRM free and more likely OLED than eink . It is unlikely that Mr Bezos is going to move any of these goalposts next month.

We now wait, speculate and listen to the noise, but just in case you are curious what some believe will pop out of the box next month here is a ‘leaked’ photograph from the gadget site Boy Genuis Report.

Tuesday, January 27, 2009

MSN Loose the Music Plot

Many have long thought that Microsoft had lost the plot and yesterday some will have thought they definitely had when they launched MSN Mobile Music Service and a return to music DRM. So what do Microsoft know that Amazon and Apple and practically everyone standing don’t ?

MSN Mobile locks tracks to the mobile handset they are downloaded to it doesn’t even transfer files between the handset and a PC so you have to carry everything around on the handset. It gets even better! A track costs £1.50 as opposed to iTunes 79p and Amazon is even lower. So MSN believe that a restrictive service that is physically restricted to a handset and that cuts twice the market leader is going to fly! Some would say that the only people flying are MSN! So what happens when I upgrade my handset?

Some argue that MSN believe that they have a loyal customer base that will take whatever they throw at them and in this case that theory may well be tested.

Monday, January 26, 2009

Amazon Take Off their eBook Format Gloves

Publishers Weekly today announced that Amazon.com has notified its publisher and author clients that it plans to cease offering e-books in the Microsoft Reader and Adobe e-book formats.

What does this mean? Is it like their declaration that they made on POD via Booksurge? As with Booksurge Amazon own Mobibook and if that’s they way they wish to do business then who will say no?. They store, they have the content, they deliver the content via their own wireless network connection, they own the store, they own the reader - so why not own the format? Although they accept epub files these are converted these to their own format. Some may say that by playing the format card they in fact strengthen their hand and make it Kindle independent. So the publisher may be happy but the problem remains.

Mobibook remains probably the dominant ebook format alongside Adobe and epub. If plays on as many as any other format and isn't dependant on Adobe to apply DRM. So if you view Sony as the main competitor to Amazon then you start to see a clear division of ebook camps. Adobe remains in the picture with their new ACS4 DRM, without which the Sony can’t use epub and are left with their own overlooked format and poorly represented format. We have reported on the Fictionwise and Follett ‘own brand’ formats and can only see more as the battle hots up.

Some may envisage that Amazon and Mobi will try to cut off old DRM versions the same way that Adobe did in their move from ACS3 to ACS4. Some may also see the move as a swift response to the high profile ereader format and iPhone applications. Whatever the game plan its obvious that Amazon wants to challenge the Adobe ebook format which is the cheapest route for many publishers and push the market towards a richer tagged format.

This format warring is inappropriate as retailers and publishers start to see the shoots of a digital business. However, we now have a confusing consumer offer. The publishers may back epub but the consumer is the person who matters and if Amazon want an Amazon only world we are in for potentially trying times.

We still believe that the ultimate platforms will be online and split between the mobile and the notebook /laptop world and if we are right the current format tiffs are not so important.

Google Delivers $5.7bn in Q4

Some sobering figures were revealed by Media Week last week. Google's ad revenues are bucking the industry trend and are still rising. Google's global advertising revenue jumped by 15%, year on year in Q4 2008, to deliver $5.5bn with overall revenues up 18% to $5.7bn. During the quarter year on year ad revenues from its own websites rose $600 million and through AdSense programs, $100 million.

Although UK operations fell 2% year on year they still delivered $685m. The biggest rise came from outside the US, which represented 50% of all revenues in Q4, up from 48% and totalling some $2.8bn.

Some may wonder whether they missed the ‘chump change’ they paid for the book business?

OLPC Continues

We have long supported the One Laptop Per Child (OLPC) project, which develops low-cost education-oriented mobile computers to sell to governments in developing countries. Today the organisation through the United Nations Relief Workers Agency (UNRWA) has donated 5,000 units of its flagship XO laptop to Palestinian children in the Gaza strip.

The One Laptop Per Child (OLPC) project, which developed the low-cost XO education laptop for developing countries, has already revealed plans for its next-generation mobile computing device. The clamshell design of the new laptop is modelled after a book and the new system is to sell for $75 per unit and will be available in 2010. It is planned that the system will be smaller and lighter than the XO and can also be opened up completely flat to provide a single continuous touch-screen surface Like the XO, it will use unique dual-mode display which is readable under direct sunlight.

However, OLPC is experiencing difficulties and founder Nicholas Negroponte has revealed that the organization cutting half of its staff and significantly scaling back its software development efforts. The organization is said to have experienced significant internal disputes which have led to the departure of several participants and there are now questions being raised whether even the organization will last long enough to deliver the new system.

Whatever the outcome OLPC has pushed many boundaries and demonstrated that costs can still be cut without sacrificing innovation. We hope that the programme moves forward.

Digital Changes Driven By Hard Times

In tough times people take different choices and are often more discretionary in their spending. Do you buy a new laptop with full-features, or a basic no frills notebook, such as the Asus EeePC ? The economic reality of hard choices brings with it potential shifts in technology and offers and can also ultimately change consumer behaviour itself.

It seems only a short time since we were being told that ebook readers were affordable devices and we saw laptops replace cheaper desktop furniture, everyone had expensive office software and we were all going broadband and wifi. Ok which would you sacrifice when times get hard; the all singing and dancing latest laptop, the standard but top price software, the broadband connection or the wifi? Sense would suggest that the infrastructure is more valuable that the device and in some cases commodity office applications.

However as prudence plays its hand, do we also now have to question the consumption of media itself? We have seen the disappointing migration to Blu-Ray as the consumer settled for second best. We have seen the significant rise in open source operating systems and applications. Do we now potentially see a shift in media ownership?
We have previously questioned why we need to buy and own all of our music, films, TV shows and build libraries that have to be replaced when the next technology supersedes it. We started with vinyl, then replaced it with cassettes, some with eight track, then CDs and now with digital files. Potentially how many formats of the same music have we bought? The same applied to video, with the infamous Betamax VHS wars, moving onto the DVD and now Blu-Ray. To date, the humble book hasn’t suffered the same repetitive library syndrome, perhaps because the best reader is still the physical book itself but change will happen and with ebook manufacturers and gurus all talking about the number of books that can be stored on a device on automatically sees the usual library writing on the wall.

We can envisage a shift towards cheap devices that can be permanently logged on to rent, or even get free access to commodity applications, use open source software, access content online and avoid the restrictions of DRM and costs of dedicated devices. Why not share our library with the universe, play what we want when we want it at a price we want to pay and importantly achieve all this at a lower price?
Hard times sometimes shake the tree and what follows are different attitudes and choices that were not relevant before.

Child Safe Books

We all sucked books when we were young and the most damage they could do was when a hardcover was thrown at another child in anger.

Last week we were alerted, by our good friend Donna Ballman from Litopia, to the Consumer Product Safety Improvement Act (CPSIA) passed in the US last August 2008 as a response to the high-profile recalls of toys containing lead and that comes into effect on 10th February. We asked why would an act targeted at toys would be of interest to book publishers. The answer is both surprising and potentially alarming.

The law appears to have been somewhat rushed through and the impact on books is vague in that it covers not just toys but all consumer products intended for use by children 12 and under. That includes books and audiobooks irrespective of where they are manufactured and the fact that most books have lead levels that are well below the safety standards. The US industry is trying to ensure that most books exempted by the time the Act kicks in on February 10.

The Act demands that each item, shipped as of February 10, must have been tested by a third-party lab to ensure that lead levels are below 600 parts per million and some books must also be tested for phthalates, an acid used to soften plastic. A Certificate of Conformity must be posted and the product must be labelled appropriately. Testing itself is estimated to cost up to $1,500 per item for lead and more for phthalates. In addition there appears to be only two or three third-party testing facilities, which test products in all categories which could add weeks to production schedules. Even if traditional book formats are exempted, novelty books which include soft plastic books, titles with toys and anything with soldered components will continue to be included under the Act.

The clock ticks ever closer to the February deadline as the American Booksellers Association, Children’s Book Council, publishers’ legal offices and other associations are taking actions to try and get an exemption on print-on-paper and print-on-board books and gain definitive guidelines and interpretation of the act. The impact is not just on the shelf items themselves but also on catalogues and marketing materials that have been produced to stimulate sales into the channel.

For the latest updates and clarifications, go to www.cpsc.gov/about/Cpsia/cpsia.html.

We sat back to check that it wasn’t 1st April and then to pondered what the act thought of digital books and content presented via even the ordinary ebook reader. Are we exposing children to repetitive eye syndrome, radiation, and other long term injuries? Some may say that some ebook readers suck, but not that you should suck on an ebook reader.

Sangria Red and Red - Spot the Difference







Sony and Harlequin last year celebrated Valentine's Day with a limited-edition pink eReader that came preloaded with 14 Harlequin love stories.

This year they have gone one better with a Sony PRS-505 in Sangria Red. The Limited Edition 60th Anniversary Harlequin reader comes now preloaded with 16 Anniversary Harlequin titles and a free copy of Secret Fantasy by Carly Phillips plus an embossed cover all for $300.

Some on the UK may think the ‘limited edition’ looks familiar. So we also show the ‘exclusive to John Lewis’ red edition. Some may say that it difficult to see the difference between Sangria red and red from the pictures and since John Lewis is out of stock the difference between a ‘limited edition’ and ‘exclusive’. We thought you may wish to spot the difference.

Sunday, January 25, 2009

The Great Book Bank Robbery - Legal Notice

On the 16th January on page 9 The Bookseller printed a whole page ‘Legal Notice’ on behalf of the Google Book Search Settlement Administration. We waited expecting some commentary or debate in the press but saw none.

The ‘Legal Notice’ was entitled ‘If you are a Book Author, Book Publisher or Other Person Who owns a Copyright in a Book or Other Writing’.

It went on ‘Your rights may be affected by a class action settlement regarding Google’s scanning and use of Books and other writings’. It warned, ‘This settlement may affect you because it covers US copyright interests in books published outside the US. If you hold such an interest in a book or other material in a book, this settlement could bind you unless you timely opt out.’

The notice summarised what the settlement provided, who was included, what material is covered and what you should do. 'The settlement class includes all persons worldwide who hold a US copyright interest in any book or insert.' Books include 'in-copyright works; novels, textbooks, dissertations and other writings that were published or distributed in hard copy on or before January 5th 2009... Inserts include; 'forewords, essays, poems, quotations, letters, song lyrics, children’s book illustrations, sheet music, charts and graphs if independently protected by US copyright contained in a book...’

The notice sets out the critical timeline:
May 5th 2009
Object or comment in writing
Opt out in writing of the settlement and keep the right to sue Google individually
June 11th 2009
The court will determine whether to approve the settlement at a fairness hearing
January 5th 2009
File a claim for cash payment

Otherwise do nothing and remain within the settlement and be bound by the courts ruling, including a release of your claims against Google.

The Great Book Bank Robbery - Its All About Rights

Robert Dalton’s article in the New York Book Review, (see belows), prompts us to raise a number of questions with the proposed Google settlement.

‘Of the 7 million books that Google reportedly had digitized by November 2008, 1 million are works in the public domain; 1 million are in copyright and in print; and 5 million are in copyright but out of print.’

Question to ask and debate:

1. How many of the 5 million digital scans had permission granted, or due diligence on ownership performed on them?

2. If 5 out of seven books are potentially orphans (books whose rights ownership is not automatically clear) are Google going to scan first, sell second and maybe pay out third? Everyone else has to do sue diligence and even the potential Orphan Acts demand such actions. So are Google exempt from this?

We do not accept the often arrogant position taken that it’s for the good of all and they were merely poor little orphans. The opportunity to reverse this is fraught with litigation and bully boy approaches to what is not common property. If you leave your house vacant for a few weeks, does that entitle squatters to take it over?

3. Rights reversals have been a cornerstone of publishing but are these to now disappear by default and are those who argued for it to change now to get their way by means of jumping on the Google bandwagon? Tethering rights virtually unconditionally and in perpetuity is not in the spirit let alone the letter of the majority of contracts to date.

4. What is going to be the price of old books still in copyright but out of print. The proposal is complex based on several elements but how do you price today a book that was published in 1957 for $2? Some would suggest that the proposed algorithm is a farce. Some would argue that it could have only been dreamt up by someone who is either a geek or only understands front list pricing. If anyone thinks this works go down ask a few antiquarian book dealers how they price books and ask them what they think to the proposed model?

5. We all know that we have a problem with territorial rights within a global networked economy. We have witnessed the recent actions by Hachette with respect to US digital aggregators and etailers. The question now is where does Google Book Search start and finish and can it only operate in the US? What if a title is available in the US under HarperCollins and the UK under Hachette and Google have the US version?

6. If the rights owner is unknown then that revenue is held over but does Google still get paid for something that is clearly not theirs to sell?

Saturday, January 24, 2009

The Great Book Bank Robbery - A Reseach and Information Library Perspective

A well constructed and logical article by Robert Dalton, a professor at Harvard in the 'New York Review of Books', titled ‘Google & the Future of Books’ which is one we would like to share with our readers.

Dalton writes as a research librarian and although this is a different perspective to the trade, his arguments are ones that should be heard and debated by all. He gives a balanced and lengthy insight into the history of research papers and learned journals and that in itself is a recommended read. The parallel he draws between the scholarly or learned journal model and Google is very interesting. He examines the potential impact of the Google settlement, but questions if the intent isn’t achieved, who or what will check the outcome.

‘No one knows, because the settlement is so complex that it is difficult to perceive the legal and economic contours in the new lay of the land.’

‘Of the 7 million books that Google reportedly had digitized by November 2008, 1 million are works in the public domain; 1 million are in copyright and in print; and 5 million are in copyright but out of print.’

Springer Has the Largest eBook Offer?

There are only a few publishers who can boast a significant ebook catalogue and Springer is clearly at the front of the list. Today they offer access to the largest collection of eBooks, more than 1,500 peer-reviewed Springer journals and 18,000 protocols for laboratories. Springer has continually increased the volume of titles and since starting its digital collection in 2006 and now has some 30,000 eBooks and plans to continue to increase this by some 5,000 titles each year.

Springer operates an open and liberal digital access programme for its library community , allowing unlimited simultaneous access, to fully searchable books that can be downloaded and printed. Importantly once purchased Springer's eBook Collection content, is owned by the library in perpetuity.

Litopia After Dark

Last night we were once again invited to participate on the panel of Litopia. As well as an informative daily Litopia has a weekly broadcast which is both live and available to download from iTunes. It is run by that charismatic and entrepreneurial agent Peter Cox and brings topics book subjects, humour and industry insights to the table from a writer’s perspective.

Last night was the first in a new format and discussed subjects such as; the state of the book industry, the fortunes of the newsprint and magazine sectors, the publishers’ reaction to dyslexia in authors, the Google Book Search settlement and whether fairy tales are now too scary for kids.

The show is well worth a listen and has a very healthy audience that is growing.

Last night’s show
http://podcast.litopia.com/2009/01/24/litopia-after-dark-what-the-hecks-

LITOPIA DAILY - The World's First DAILY Podcast For Writers http://podcast.litopia.com/

Peter Cox's Blog
http://petercox.info/

UK considers Broadband Levy on Piracy

Today we read of the impending major UK government report by Lord Carter the Communications Minister. The report looks at how ‘piracy’ should be tackled and one suggestion is to levy all broadband bills to compensate the losses of to film and music companies due to illegal downloads. The companies claim the illegal activity is costing them £1 billion.

Well not bail them out for their miss management. We have bailed out the banks for their ineptitude and bad judgement.

The big question is why a tax on everyone for the actions of some is right? Maybe people wish to support artists and ensure that they earn but propping up some of the music producers and perpetuating a model that doesn’t work isn’t the answer.

There are only two people that matter in the media value chains, the creator who puts in the intellectual property and the consumer who values and pays for it. Those in between, have to earn their place at the table and add value and sometimes in changing times, have to go or change. Propping them up with what is a false subsidy is merely delaying the inevitable. The UK poured bad money into the car industry in the 70s and it didn’t work. Handouts are easy but solutions are harder.
Please try again.

Thursday, January 22, 2009

Crunchpad Prototype

We wrote a few weeks back about the potential of the large iTouch tablet we. We hope it happens and believe it would be a real ‘killer device,’ but we have to wait in hope. Meanwhile the folk at Techcrunch are pursuing their dream of an affordable, basic touch screen web tablet that is ‘lite’ and basically running just a browser. They call their prototype the ‘CrunchPad’ and we believe it warrants some considerations as it aligns to many of the visions we have.

Its aim is to be cheap, very important in today’s climate. They were aiming for $200, but expect it would be higher. We believe it has to be under $200 and more like $100. It’s build as a tablet twelve inch touch screen offering 1024x 768 resolution with the concept being to be as thin as possible, have a single button for on and off, headphone jacks, a built in camera for video, low end speakers, a microphone and currently weighs in at 3 pounds. It will have Wifi, maybe one USB port, a built in battery, half a Gigabyte of RAM, a 4-Gigabyte solid state hard drive. It will runs on open source linux, Firefox and Skype for VOIP.

Although the prototype looks 'industrial' and lacks some slick design casing it shows the potential.



They have a formidable team headed by Louis Monier, formerly the founder/CTO of AltaVista and previously also with eBay, Google and Cuil.

Follett Announce a New Educational Reader

We have seen the recent emergence of more digital formats and readers some of which are mere pretenders and others confusing noise. Today we read news that is potentially important because of who has developed it and their position in their market. Follett, has revenues in excess of $2.3 billion and provides universities, libraries and schools and school districts in the US and increasingly globally with a wide range of educational tools and services, touching millions of students ranging from adults to grade school children. Follett is truly an educational force.

A new Follett Digital Reader has been developed specifically to meet the needs of K-12 eBook users and will be released on 9th February. During February the focus will be to get the reader installed on computers and at the beginning of March automatically they will migrate the entire existing digital download collections to the FDR format. The reader only effects downloaded ebooks with the existing online collections remain as current.

Follett downloaded eBooks currently are protected using Adobe’s ACS3 DRM and are opened with Adobe® Reader® or Adobe Digital Editions®. Adobe products are now migrating to ACS4 DRM and are planned to cut over in March. The new Follett Digital Reader replaces Adobe DRM and reader products, which Follett believe limits their dependence on Adobe, gives them the ability to develop and introduce additional functionality and importantly enables them to meet the specific needs of their significant K-12 and Public library customer base.

The new reader currently will only read Follett ebooks and works with Adobe Flash 9.0 and 10 and Microsoft.Net and runs on PC and Mac platforms. To read more visit
http://www.follettebooks.com/readersupport/index.html

We believe that this move is significant and is real news. Together with others, Follet are now taking control of their digital business and channel. The move to Flash is both understandable and some would say a wise move as it offers much moving forwar. The battleground would now appear to be between those who believe ebooks should be downloaded and read on a portable dedicated devices and those who who still belive the online and download PC and laptop world works and potentially have their options open with mobile platforms. The concern is that we have yet another format and what this means further down the digital road.

ePricing - Be Careful What You Wish For

Fictionwise the ebook specialist retailer appear to be monopolising the publicity machine of late. In one breath they claim to have "one trillion words served" mark recently and the other they have had the interesting but unexplained fall out with Overdrive.

Now all this week through to the 25th, they are offering a 60% micropayment rebate when buying with a credit card or PayPal. This is not a cash rebate but a credit to be set against future purchases. They are now actively promoting their own format both for those caught in the fallout with Overdrive and as part of this latest offer by giving an additional 5% rebate for titles bought in the format.

The market issue of what the digital price point should be for ebooks remains unclear. Although Amazon has boldly ventured with setting a $9.99 price point on their Kindle store, few have followed and there have been limited digital discounts to date. What offers have been visible are on special limited time window offers which are usually focused a promoting specific titles.

Some may say that publishers are trying to reduce the digital margin given to resellers and using this to offset their digital costs. Others would argue that there is a reluctance to get dragged into the current discounting fiasco on physical books that is rife in markets such as the UK. However, given that the ebook is often a carbon copy of the physical book with no extras what is the price comparison with it and the price to the consumer? Why would the consumer pay more for an ebook than a discounted physical book? If libraries are going to lend ebooks for free with no obligation to visit the physical library why would the consumer pay to own and ebook?

Pricing is important to the consumer and often when there is uncertainty things fall to the lowest common denominator and on price that’s often free.

Monday, January 19, 2009

US Magazine Digital Revenues Must Change

The web continues to impact the US magazine sector with some 18 titles stopping their print presses in 2008 and now being joined only this month by Country Home, Electronic Gaming Monthly and Plenty magazines.

Advertising Age reported that Time Inc.'s digital ad revenue last year totalled an estimated $245 million, or 10% of the company's total ad revenue. The revenue achieved is greater than some their competitors such as Conde Nast, who only achieved 3%, but not as much as others such as Martha Stewart magazines, which have achieved a greater percentage of their revenues. They suggest that anyone who is generating over 8% of print is ‘ahead of the digital curve’.

If you believe that sub prime only related to housing think again. Ad pages sales and their rate sales have been recently driven by increasing circulation at the cost of subscription prices, marketing, resource and distribution costs. When the ad pages crashed the circulation was at a height that was now longer realistic and for some, the gap between cost and revenue has become a gulf.

Circulating print copies, is also now getting more expensive in the US, with Anderson News, which handles about 25% of all magazine distribution, raising a new charge of 7cents per issue.

So what do consumers want and importantly what are advertisers wanting to now pay for? Some would say that merely taking today’s print copy and slapping it onto a website isn’t cutting it for either party.

New York magazine, whose information is local generates about 20% of its ad revenue from digital but is planning to raise this to 50% within 5 years. The Economist, raised about 16% of its ad revenue from digital last year, and along with Time Inc and others such as Sports Illustrated are clearly starting to make digital inroads.
Interestingly Time Inc.'s People.com isn't planning on living off ad revenue alone. This spring, the site will start selling downloadable games and they are releasing a 1$ iPhone application planned to push revenues higher.

Print will always have a place, and a consumer base but digital is coming and finding the the right model, content and revenue balance is the goal. It is clear that magazines like newsprint are sailing into uncharted waters and have to be open as to where the revenues will be generated moving forward.

If Facebook Where a Country?

If Facebook were a country it would be the 8th largest on the planet and would be bigger than Japan, Russia, the UK and most of the developed world. Its 54.5m unique users a day is the equivalent of everyone in the UK logging on every day.

The rise of social networks is so far the phenomena of the 21st century but where are they going next? Where is the money? Can we all subscribe to many networks or do we focus just on one? Is there room for more or are we at saturation point? When does a generalist loose appeal to a specialist networked community?

The trick is obviously to turn the eyeballs into advertising revenues, but with such a large and diverse membership, are global brands the only ones that will work? Can list management offer sales based on preferences? Individual companies can mine into the community to promote themselves but can do this without paying the service provider, so again its down to how they make money?

The one thing that is certain the consumer is unlikely to pay to be a member so the money has to come from somewhere. Unlike countries Facebook and the other networks can't nationalise the Banks or print money.

3 Mobile to Offer Books on the Go?

We were pleased to read from several sources that Mobile operator 3 is to offer its customers the chance to download over 1,000 ebooks and audio books direct to their mobile phone. The operator has a track record in trying new things and was offering Skype inclusive deals over two years ago.

The Books on the Go service, is reportedly already available to Vodafone customers and offers books for download from top publishers, including Penguin and HarperCollins and is provided by former SAS soldier and writer Andy McNab’s GoSpoken.com. Authors available for download include Stephen King, Patricia Cornwell, and Celcilia Ahern.

3 UK’s entire customer-base will be able to preview free extracts before either downloading the whole book for £5-10, or choosing to download the book in several parts at a cost of £1 to £3 each. Downloading an entire audio book is reported to only take "minutes" while eBooks will "be available to read in seconds".

The problem was that even as a 3 customer we couldn't the books or any refernce to them on any 3 site. If anyone at 3 knows about it please let’s us know as we would like to try it out, but can’t be bothered to keep searching for it.

Sunday, January 18, 2009

Digital Entertainment Content Ecosystem or DRM to You and Me

Who would you place your bet on, Apple, the largest music retailer, or DECE, a US consortium of entertainment, retail and IT companies that want to establish a new in which consumers buy, access and play digital content. DECE is creating a ‘new generation of DRM.

Although Apple have announced that they are dropping DRM on music the restrictions still apply to films. Apple, who aren’t members of DECE can in effect ignore any new DRM from DECE and make it impossible to play them on any Apple devices such as iPods, IPhones and be sold through iTunes.

DECE (Digital Entertainment Content Ecosystem) has some 25 members including Sony, Paramount Pictures, Microsoft, HP, Cisco, Samsung, Panasonic and Intel. DECE's ecosystem for digital entertainment is planned to cover movies, books, TV programmes and games. Whether Apple joins or stays outside the delivery of yet another DRM solution is immaterial as its ultimately only going to impact one player – the consumer.

DECE believes consumers should be able to buy from multiple stores and access the content anywhere on any device, which sounds good but if they can do that why do they need DRM? DRM was created not to enable right to be exercised but to restrict and control their potential abuse. It would be great if DECE were to create a different rights model that mirrored the physical world and enabled sharing and was born out of trust and not distrust. However it's probably not in their genes to think that way.

ePub Enters the Public Library

Members at both Cleveland Public Library and CLEVNET member libraries can now download EPUB eBooks from the library's website. The EPUB files can be read on the Sony reader or via Adobe Digital Editions on a PC or Mac. Digital aggregator Overdrive is planning to extend the service to other libraries powered by its service.

The libraries are able to offer a variety of borrowing options, such as 7, 14, or 21 day lending periods. This again raises the question that if you are now able to rent an ebook for free, why would you want to buy one? You only need to validate that you are a community member and are entitled to lend material and never need to set foot in a library again. How do we balance a public library and a retail model? What is the impact on author royalties if the dominant ebook model was based them being loaned under a library licence with an aggregator such as Overdrive?

Saturday, January 17, 2009

Blu-ray Maybe Too Late

Sometimes the spoils of war are too late and surpassed far easier than they were won. Last year Sony appeared to have won a bloody video format war with Toshiba and everything seemed to be going Blu-ray. They had won the endorsement of Hollywood studios and major retailers and all that was now needed was for the consumers to buy Blu-ray players.That hasn't happened in the numbers expected. 10 million Blu-ray players have been bought but this is only 10% of the total US television market.

A number of factors have influenced the disappointing take-up. There is the credit crunch and consumer spending confidence, the fact that unless you are watching on a large screen the quality gain is not appreciable, there are cheaper alternatives and finally there is the library reinvestment which is not a small cost.

When we look at eink and ebook readers no one will dispute the quality of the technology to read in adverse conditions, no one will dispute the devices tick readers functional boxes. However the content still isn’t there, the devices lack colour, the prices of both devices and readers isn’t right and finally we have a recession. Maybe by the time the market really takes off we will be in the world of the mobile, content may be free of at least restrictive DRM and we won’t be downloading and buying libraries, but renting to read on demand and online.

Some would suggest that even an elephant has a shorter gestation period than an ebook reader.