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Apple Maintains Innocence Despite Guilt

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While I was away from Ditchwalk last year the legal system meted out punishment regarding Apple’s conspiratorial efforts to fix the price of e-books on an industry-wide basis:

As punishment for engaging in an e-book price-fixing conspiracy, Apple will be forced to abide by new restrictions on its agreements with publishers and be evaluated by an external “compliance officer” for two years, a federal judge has ruled.

Though the punishment is comically light, Apple remains determined to clear its tainted name:

Cupertino is not pleased, for example, to have an antitrust monitor who is responsible for making sure it does not violate antitrust rules going forward. Attorney Michael R. Bromwich was selected to serve as monitor, and Apple asked that his tenure be delayed pending appeal, but Judge Denise Cote denied that request last week.

Now, in filings with the 2nd U.S. Circuit Court of Appeals, Apple is arguing that it had no idea that publishers were colluding about e-book prices, according to Reuters. Any discussions it had with publishers were simply to boost competition “in a highly concentrated market.”

So on one hand Apple is a shining light of innovation, forward thinking and marketing brilliance, while on the other it’s a company run by dolts too stupid to realize that the relationships Apple entered into with multiple publishers at the exact same time and under the exact same terms constituted a federal crime. Good to know.

— Mark Barrett

E-book Revolution Update

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The writing is on the wall page display:

“We’re now seeing the transition we’ve been expecting. After five years, e-books is a multi-billion dollar category for us and growing fast—up approximately 70 percent last year,” Amazon CEO Jeff Bezos said in a statement. “In contrast, our physical book sales experienced the lowest December growth rate in our 17 years as a book seller, up just 5 percent. We’re excited and very grateful to our customers for their response to Kindle and our ever expanding ecosystem and selection.”

Touting growth in percentages is always misleading when comparing new products to mature ones, but there’s no question that e-book sales are cannibalizing print sales as expected. Given that Amazon is positioning itself as the dominant e-tailer for all digital media it’s also not surprising that it would be facilitating this transition, and willing to take a short-term revenue hit in order to grow long-term market share.

For authors, the question is not whether e-books are good or bad. The question is how e-books can best be used to help you reach your intended audience. Economics will always play a part in that calculation, but given that it’s now possible to produce and widely distribute content with little or no up-front capital I think every writer should feel good about that.

— Mark Barrett

Data Rape

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Date rapists drug their victims for two reasons. First, to make the act of rape as easy as possible. Second, to make it all but impossible for victims to remember or dispute what happened. Unless a victim is willing to act on what may only be dim suspicions, subjecting themselves to the rigors and indecencies of a dubiously predisposed legal process, including invasive testing, there’s no possibility that the perpetrator will be prosecuted, let alone convicted. Date rapists can always claim sex was consensual and point to the victim’s willingness (if not eagerness) to be in the perpetrator’s company. Because the victim’s memory will be impaired due to the date-rape drug, they will be incapable of contradicting the assertions of the rapist absent any forensic proof to the contrary. Worse, if the victim doesn’t know what happened, how can they themselves be sure they said no?

Not surprisingly, the people most at risk for date rape are innocents who have no idea of the existence of date-rape drugs. If you’ve been around the block a few times, or gone to college, you know to keep an eye on your drink at the parties you attend. But if you’ve led a fairly sheltered life and genuinely believe that mommy, daddy, god and law enforcement are watching out for you when you venture into the world, you may not know that some of the people who seem most excited to meet you are flashing practiced smiles and reciting well-honed sales pitches designed to victimize you in ways you might object to if their intent was fully disclosed.

That charming person picking you up at the door and complimenting you on your appearance and buying you flowers or a nice dinner or taking you to their home in the country may be thinking the entire time about how they are going to put drugs in your drink and have sex with you without your consent, but they’re not going to disclose that fact. Because if they did you might reasonably object to that kind of treatment and opt out of the date, thereby denying the rapist what they want most.

Innocence Lost — Again
Hailing originally from the Midwest as I do, I have more than once been accused of being a country bumpkin. Having gone on to live in Los Angeles for a few years, and in the bustling Northeast for a few years after that, I flatter myself that those stops instilled in me the kind of street savvy and deep cynicism that allows people in those media centers to simultaneously dismiss and lampoon everyone else in the country. Unfortunately, a few weeks ago I was reminded once again that you can never really leave the turnip truck when I read a Wall Street Journal article detailing the degree to which e-readers mine personal data from those devices. Even as I know one of the main goals of any internet-connected business is the procurement and exploitation of user data, including the selling of customer information to third parties, it still never occurred to me that e-readers were mining information about the private reading habits of users.  [ Read more ]

E-book Reader Update

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I still don’t own an e-book reader. Until a few days ago I hadn’t been particularly intrigued by any of the current models, but PC Magazine’s review of a new version of the Nook Simple Touch caught my attention:

With E Ink screens, you need an external light source—that is, until now. The Barnes & Noble Nook Simple Touch With GlowLight ($139 direct) includes switchable edge lighting, like you’d find on an ultra-slim LED HDTV. You’ll pay more for the privilege—$40 more, to be precise, over the existing Nook Simple Touch ($99 direct, 4.5 stars), which remains in the B&N lineup.

I spent all the hours I ever intend to spend staring at an electronic screen that requires ambient lighting when I was playing games on my original Gameboy. The idea that I might be able to read an e-ink screen in a dimly lit environment like, say, my bedroom, has considerable appeal when compared to reading in, say, a bustling cafeteria. (Along with its review of the new Nook, PC Magazine released a roundup of all of the current readers. Although their five-circle rating system has always been badly skewed toward the high-end, it’s fairly reliable when comparing products across a particular segment.)

When B&N’s Nook first came out it was lambasted by the same tech snobs that turned Apple into a religion. While the Kindle is still the leading e-book reader, the fact that the Nook is holding its own — let alone introducing new features — is having an effect on both Barnes & Noble’s economic health and competition in the e-reader market. Specifically, Microsoft, always looking for an opportunity to cross swords with Apple, Google and Amazon, is now investing heavily in B&N:

The e-book market is still young; if Amazon continues to be seen as the enemy, there’s no reason in theory why the Nook shouldn’t become just as popular, if not more so. It’s true that you can’t read Kindle books on your Nook, or vice versa, but over the long term, we’re not going to be buying Kindles or Nooks to read books. Just as people stopped buying cameras because they’re now just part of their phones, eventually people will just read books on their mobile device, whether it’s running Windows or iOS or something else. And that puts Amazon at a disadvantage: the Windows/Nook and iOS/iBook teams will naturally have much tighter integration between bookstore and operating system than anything Amazon can offer.

Whether that bit of prognostication proves accurate or not, Microsoft’s involvement can only broaden the range of e-reader options and help keep prices competitive, and that’s good for everyone who isn’t manufacturing e-book tech. More here on Microsoft’s gambit from the Wall St. Journal.

Not too long ago there was serious speculation that Barnes & Noble might follow Borders and other big-box bookstores into the dust bin of history. I don’t know that anyone thought the introduction of the Nook would potentially lead to B&N’s salvation.

Update: The Nook Glowlight seems to be a hit.

Barnes & Noble plans to add near-field communication (NFC) technology to its Nook e-reader platform, chief executive William Lynch said Tuesday.

Lynch also revealed that the Barnes & Noble Simple Touch with Glowlight, B&N’s latest Nook, has sold out.

I’m not surprised. In e-book reader commercials everyone may be reading at the beach, but in real life the only people reading on a beach are wearing one of these and still going blind.

— Mark Barrett

E-books Outselling Print On Amazon

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It was inevitable, but the speed of the transition is impressive:

In July 2010, Amazon announced that sales of electronic books for its Kindle e-book reader surpassed sales of hardcover books on the site. Six months later, sales of Kindle books surpassed that of paperbacks. Now, customers are downloading Kindle books more than hardcovers and paperbacks combined.

Having built their businesses on the production and distribution of physical books, traditional (legacy) publishers are in big trouble. The cash crop of seasonal, celebrity and cyclical titles that annually supported publishing’s administrative and production overhead is rapidly disappearing. The same information is either readily available for free on the internet, or more quickly and easily produced as an e-book or subscription service. Customers can still get what they want, but publisher are no longer critical to that process.

Attempts by publishers to control (if not fix) the price of e-books have also failed. Even with a lower cost of production, e-books must still provide revenue that offsets the loss of print sales or publishers will necessarily have to reduce those costs — including employment costs devoted to print. Whether Amazon’s numbers are consistent with other retail channels, the trend seems clear: the profitability of e-books will determine the viability of any publisher going forward. (There are probably very real implications for the paper industry as well. Adjust your portfolio accordingly.)

The good news is that content and books as valued objects are not under siege. If anything, many of the books previously sold in physical form and now sold in digital form had little or no value as objects — and probably little or no value after a year on the shelves. Clearing big-box stores of titles that existed only by virtue of a constricted distribution channel obviously means adjustment, but I see no downside for the reader. Physical books will still be available, and probably in better-quality editions. It may also be that independent bookstores will thrive because of their smaller footprint and more intimate knowledge of local reading habits.

Update: The New York Times has more here.

E-Book Library Loans for Kindle

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Kindle users have been kind’a-sort’a able to loan e-books to each other for a while. Today Amazon announced that the Kindle is making a bigger leap in the near future:

Amazon said the library books will be available on the Kindle “later this year,” but the company did not specify a launch date. The free e-books will be available though Kindle apps on smartphones and on the Kindle e-reader device, which can download books over Wi-Fi or 3G internet connections.

The service will work only in the United States.

I’m not sure why the reporter used the word ‘free’ to describe the financial impact of taking out a library book, unless it was to clarify the terms of such a transaction for those who have never had a library card. In any case, the basics of the deal strike me as almost banal in the way they replicate the loaning of physical books. (Libraries will purchase and loan limited copies. Copies loaned out will not be available until returned.)

The one glitch I can imagine is allowing loans via the internet. Libraries have always required that patrons present themselves physically, with allowances made in some municipalities for the physically disabled. Allowing people to download content from anywhere is obviously problematic, but can be mitigated to a great degree by only allowing people who qualify for local membership (meaning they reside in the library’s district) to access content from that library’s site.

How long will it take for somebody to download and pirate/market content from a library system? Well, I have to believe that’s already been done, and will be done again. (If I understand the piracy argument correctly, everything’s already on the web anyway, so why would pirates bother — unless they like the clean, device-ready formatting.)

Interesting times.

— Mark Barrett

The Book as Burden

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Hilarious:

This is going to sound incredibly lazy, like someone who gets in their car to drive a few blocks rather than walk, but the physicality of the book, having to hold it open then lift and turn each page, was a lot more exhausting than I remembered. All of that holding and lifting and turning distracted me from the act of reading, took me out of the story if you will. A few pages into it I gave up, logged in to Amazon, and bought the Kindle book.

I agree that the revolution has already taken place. But I still think books will always have their place.

— Mark Barrett

The Print-On-Demand Mountain

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At first blush, print-on-demand (POD) seems to be the middle-ground in the publishing revolution. It yields a physical book, much like traditional publishing, but is the result of a quasi-do-it-yourself process. To the extent that holding a book, or being able to physically transfer contents in book form, is important to an author, there are a wealth of companies providing POD services. (The big three are probably Lulu, CreateSpace, and Lightning Source, with Blurb anchoring the image-heavy end of the self-pub spectrum.)

Thinking that it would be nice to make a POD version of The Year of the Elm (TYOTE) available for anyone who wanted it, I spent a fair amount of time last night digging deeper into the POD process. What I’ve come away with today is both a renewed appreciation for the craft and complexity of publishing, and a growing conviction that I don’t want to go down the POD road, at least for now.  [ Read more ]

The Internet as Relief Valve

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Dan Wagstaff had an excellent post up over the weekend at CasualOptimist. Here’s the crux:

My point is not that we should not stop experimenting with new author contracts, transparency, formats, trade terms, or marketing — we need to try new things and be allowed to fail. But this should not come at the expense of consistently good, interesting (and inexpensive) books.

I encourage you to read the post. It’s a summary of things that have been and are being tried to in order to gain a toehold in the new publishing reality, but — as Dan points out — it’s also a reminder that the basic problem is not one of process but product. What is it that is the publishing industry should be selling?

In the comments to the post, I wrote this:

…if the industry needs to contract on the basis of content alone (ignoring other obvious reasons driving a coming contraction) — it seems to me that the internet is a useful mechanism by which that contraction can be managed, as opposed to happening at a more precipitous rate.

I think it’s clear that corporate publishing cannot continue in its present form. It’s top-heavy and badly listing, and sooner or later economic pressures are going to take their toll. Thinking about this over the weekend, it seems to me that even as the internet is the instigator of many of publishing’s woes, it’s also a relief valve of sorts in that it allows publishers to connect readers with content, while at the same time being more (appropriately) selective about which content is turned into physical books. (Note how completely this distinction seems to be lost in the current publishing dialogue at the corporate level, while it is at the heart of discussions at the authorial level.)  [ Read more ]

Acronyms From XHTMLHELL

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For my own reference, as well as that of readers who are in the same boat, I pulled together the following links to help make sense of the alphabet soup inherent in self-publishing solutions. My objective is simply to provide a single post that will replace the repeated searches I’ve been running whenever I can’t remember how XML is different from HTML is different from XHTML.

  • Brian O’Leary, in a post titled Alphabet Soup, tackles the issue head on. If you get confused by XML, HTML and XHTML, this is the post for you.
  • In a post titled Web Standards for E-books, Joe Clark dives deeper. There’s a lot here and I’m not sure I understand or agree with all of it, but it definitely wrestles with the issues I’m wrestling with.
  • Gizmodo leads with a tabloid headline: Giz Explains: How You’re Gonna Get Screwed By Ebook Formats. Despite the hype the article is still worth a read, in large part because it projects all these tech issues onto the current marketplace. Again, I’m not sure I agree with the conclusions, but the article frames the right debates.
  • Jedisaber has an .epub eBooks Tutorial that I found extremely helpful. It includes a list of tools, with commentary about same, as well as many other useful bits of information. If you’re thinking of creating an ePub file, this is the place to start.

As suggested in a recent post, it’s always a good idea to look for work flow examples that you can copy or emulate. You may not agree with all of the other person’s choices, or need to follow their examples word for word, but anything is better than reinventing the wheel.

Where the rubber meets the road for me in all this jargon is getting my content distributed. I am concerned about embarking down a technological path that either dies out or takes my content hostage. I don’t want to have to keep changing native file formats, or create new documents for new services or sites that use proprietary tools as a means of also holding customers hostage. I’m interested in flexibility and utility and portability, and I’m constantly judging tech solutions by those criteria.

Update: Keith Fahlgren has a post about ePub and CSS that’s worth reading, if only to give you an idea of what’s coming in terms of compatibility issues. In the comments to the thread, Liz Castro says, “It’s browser wars all over again,” and I fear she may be right. My one hope is that the maturity and deep pockets of many of the market players will keep the insanity to a minimum.

— Mark Barrett