Information about e-readers

The E-Book Reader:
Digital Technology in a Paper-Based Industry

By Jessica Deputato (intern)

Introduction
Imagine thousands of books at your fingertips, available with the simple click of a button and stored in one convenient and portable location. This is the service provided by the E-Book Reader, which has been deemed by some to be the book industry’s version of the iPod. The concept is not a new one, however. RCA introduced the Rocket eBook in 2001 and subsequent replicas have been released only to fail miserably.

Yet the September 2006 introduction of the Sony Reader and Amazon’s November 2007 version, the Kindle, have marked a dramatic shift in quality. Both products use E Ink technology, an innovation that resembles black ink on gray paper. E Ink eliminates past complaints of eye strain and glare, and gives users the impression of reading real ink on a digital (Above: Amazon Kindle; Below: Sony Reader) screen. Remarkably, the text remains on the screen even without battery power, as particles are drawn to its surface, forming letters through a brief electric charge. But what is the difference between the current competitors, the Sony Reader and the Amazon Kindle?

Sony Reader vs. Amazon Kindle

• Catalogue Size:
• Amazon currently boasts 90,000 books, including 101 of the 112 current New York Times bestsellers; It plans to expand its selection.
• Sony’s catalogue includes only 20,000 books.
• Pricing:
• The Kindle costs $400 as compared to $299 for the Sony Reader.
• Sony will offer 100 e-book “classics” free with purchase of the Reader until October 2008; Amazon offers free book samples, allowing users to download the first chapter of all books on their site.
• Amazon’s e-books are cheaper: approximately $10 for a popular hardcover versus Sony’s price of $12-17.
• Storage
• The Kindle stores 200 books
• The Sony Reader only stores 160.
• Downloading
• Kindle users can download e-books directly onto the device.
• Sony users must first download e-books onto a computer.
• Other Features
• Sony Reader
• Word, PDF, and JPEG document storage and e-mailing
• Plays unsecured MP3s and AAC audio files
• Battery withstands “7,500 page turns”
• Memory card can hold additional e-books
• Kindle
• Free wireless cellular broadband service (valued at $60/mo)
• Newspaper, magazine, and blog subscriptions with automatic download ($14 a month for the New York Times)
• Word, PDF, and JPEG document storage and e-mailing (10 cents per document)
• Plays unsecured MP3s and AAC audio files
• 2 day battery life if left on constantly
• Memory card can hold additional e-books

With its abundance of features, the Kindle has revolutionized the electronic book market while renewing interest in its predecessor, the Sony Reader. But how will paper books compete with this new technology? The remainder of this presentation will focus on the more successful Amazon Kindle.

Effect on the Industry

• Sales
• The first run of the Kindle sold out within hours.
• While Amazon declines to give sales figures, at least 2,000 products have been sold, based on the amount of customer reviews.
• Publishing officials say they have seen double-digit increases in e-book sales since the Kindle's release, including renewed interest in downloads on the Sony Reader. Sales for the most popular books are in the hundreds, comparable to Sony’s numbers.
• According to the International Digital Publishing Forum, sales have risen consistently over the past six years, from approximately $6 million in 2002 to about $33 million in 2007.
• Industry Percentage
• Despite the growth in e-book sales, e-books still account for less than 1 percent of the $35 billion publishing business.
• Other Drawbacks of Digital Readers
• Though individual e-books cost substantially less than paper books, the cost for the device itself is very high.
• The design is still a bit clunky and does not yet offer color features.
• Many paper books are not offered in a digital format.
• Most still enjoy the look and feel of actual books, though these sentiments may change with time.

New and Future Products

• The iRex iLiad (Available now for $699): created by the Dutch Phillips spin-off iRex, it features an 8.1 inch diagonal e-ink screen that dwarfs the five inch diagonal screens of the Reader and Kindle. The iLiad also offers a stylus so users can write on the screen.
• Polymer Vision Readius (Available later this year): Polymer Vision, another Dutch Phillips offspring company, takes E Ink technology from the glass screen and embeds it on plastic foil, resulting in a rollable, wrappable screen. When unfolded, its five inch display nearly matches Kindle's, but when wrapped up it is about the size of a cell phone.

Conclusions

• The Amazon Kindle has sparked the interest of a wide market and may pave the way for more advanced digital readers.
• If technology improves and prices are lowered, the digital book reader may have a significant impact on the publishing industry in the same way that the iPod has changed the music business.