- TeleRead: News and views on e-books, libraries, publishing and related topics - http://www.teleread.com -
The Flat Future of Electronic Reading
Posted By Aggregated Content On December 20, 2012 @ 2:21 pm In ebook,Tablet | 5 Comments
The future wasn’t meant to look like this. According to e-book evangelists, freeing the book from its paper format was going to herald a new era of reading. Physical book sales would wither and e-book sales soar as a new generation of reader, converted by the convenience of digital reading, thumbed through Twilight on their phones.
I believe this was a fatally flawed reading of the future, for multiple reasons:
Writing now at the end of 2012, it does seem that digital reading is facing a flatter future than we were led to expect. While sales of tablets and e-readers have sky-rocketed until now, with the Pew Research Center estimating that 29 percent of American adults now own one of the devices , the future for pure-play e-readers is looking far more uncertain.
This week, technology market intelligence firm iSuppli warned that dedicated e-reader shipments are now well past their 2011 peak  of 23.2 million units, predicting that only 14.9 million will have shipped for the whole of 2012. The consumers who would have splashed out on e-readers two years ago are buying tablets instead. Indeed it’s very probable that many e-reader owners now have both.
It’s good news if you’re a platform owner—like Kindle or Apple—who doesn’t care whether consumers read books, watch videos or play Angry Birds, as long as you use their content ecosystem. It’s a far more mixed blessing for publishers, however, as now, their e-books don’t just have to compete with those of other publishers for the holiday shopping dollar, but are now pitted against every other digital medium represented in tablet app stores. 
Another sign that digital reading isn’t delivering high growth book sales comes from an analysis by Jeremy Greenfield at Digital Book World. He’s used Nook book chart rankings (which are assumed to be more reflective of actual book sales than Amazon’s) to track the effect that e-book discounting has had on actual sales . The results make for discomfiting reading for any publisher who’s succumbed to stunt pricing offers in order to achieve a spike in book sales. None of the Harper Collins titles Greenfield examines seem to have made back the money ‘lost’ in discounting the books in the first place. It makes basic mathematical sense. If you discount a book by up to 93 percent (as Sony and Kindle did during the brief e-book price war earlier this year), sales of that same book must rise by 93 percent before you break-even.
So what can we take away from these apparent trends that will guide our thinking for publishing in 2013? Well, it’s safe to say that e-books will continue to grow their share of the book sales market, but the rate of growth will probably also slow too. This is because many heavy readers have already transitioned (at least in part), as well as the fact that a bigger share of the overall market leads to a natural deceleration in growth.
The end of the publisher price fixing case could also have surprising effects on e-book pricing, according to Greenfield. Faced with a competitive landscape where price promotions don’t work, and are also limited by law, we could see fewer of them about. But seeing as full-price e-books drove the majority of bestseller sales anyway, it’s difficult to say what impact this would have on publishers’ bottom lines.
I do believe, however, that all e-reading platforms should be far more open about the data they provide to publishers. The app stores and mobile content ecosystems that control millions of consumers’ media diets represent vast stores of insight into what people want, when they want it, and how much they’re prepared to pay for it. Without access to at least some of that data, and the ability to interpret it, publishers will be at a natural disadvantage when it comes to creating the product the market wants. And if they don’t get access to it soon, it’s likely that publishing will fall behind in terms of innovation. This is something no one—e-reading platforms, publishers and consumers alike—wants. So make it happen soon, for everyone’s sake.
* * *
About Andy Richardson and Influential Software :
Influential Software is an IT consultancy set up by founder and CEO Andy Richardson in 1993. It has a turnover of £2m and 35 staff in the UK, with offices in London and the South East. The company has been working with businesses across all sectors for 20 years on scores of successful projects that range from enterprise-level business intelligence and data-warehousing to ERP solutions, vendor selection exercises, bespoke software development and the supply of skilled contract staff.
Article printed from TeleRead: News and views on e-books, libraries, publishing and related topics: http://www.teleread.com
URL to article: http://www.teleread.com/ebooks/the-flat-future-of-electronic-reading/
URLs in this post:
 Image: http://www.teleread.com/ebooks/the-flat-future-of-electronic-reading/attachment/reading-while-driving/
 Image: http://www.teleread.com/ebooks/the-flat-future-of-electronic-reading/attachment/pj_12_09_17_tabletnews-report_02/
 the Pew Research Center estimating that 29 percent of American adults now own one of the devices: http://www.forbes.com/sites/parmyolson/2012/12/04/5-eye-opening-stats-that-show-the-world-is-going-mobile/?goback=.gde_61398_member_192784613
 iSuppli warned that dedicated e-reader shipments are now well past their 2011 peak: http://thenextweb.com/mobile/2012/12/10/after-rapid-growth-ebook-readers-set-for-collapse-with-shipments-plummeting-36-in-2012/?fromcat=all
 but are now pitted against every other digital medium represented in tablet app stores.: http://www.digitalbookworld.com/2012/consumers-increasingly-choose-tablets-over-e-readers-e-book-sales-to-suffer/
 the effect that e-book discounting has had on actual sales: http://www.digitalbookworld.com/2012/how-amazon-and-barnes-noble-price-changes-affected-sales-of-harpercollins-ebooks/
 Influential Software: http://www.influentialsoftware.com
 Image: http://www.teleread.com/ebooks/the-flat-future-of-electronic-reading/attachment/andy-2/
 Image: https://www.facebook.com/teleread
Copyright © 2010 TeleRead: Bring the E-Books Home. All rights reserved.