Putting the ‘E’ in Putting the ‘E’ in BooksBooks

Putting the ‘E’ in Putting the ‘E’ in BooksBooks

A comparison to portable MP3 players A comparison to portable MP3 players A comparison to portable MP3 players A comparison to portable MP3 players

Randy TeoRandy TeoLawrence KohLawrence KohEugene LimEugene Lim

Joel AwJoel Aw

ScopeScopeScopeScopeIntroduction

Key Question: Will E-Books Readers achieve greater market penetration?

Using portable MP3 players to make a prediction

E-Book Reader Features

Other factors for success

Conclusion

Introduction

Key Question: Will E-Books Readers achieve greater market penetration?

Using portable MP3 players to make a prediction

E-Book Reader Features

Other factors for success

Conclusion

E-Book ReaderE-Book ReaderE-Book ReaderE-Book Reader

E-Book Readers: Past and E-Book Readers: Past and PresentPresent

E-Book Readers: Past and E-Book Readers: Past and PresentPresent

Pioneer generation (1998): Rocket ebook and Softbook

Current generation (2006): Kindle and Sony Reader

Pioneer generation (1998): Rocket ebook and Softbook

Current generation (2006): Kindle and Sony Reader

Key QuestionKey QuestionKey QuestionKey Question

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Will E-Book Readers achieve greater market penetration?

Using Portable MP3 Using Portable MP3 Players To Make A Players To Make A

PredictionPrediction

Using Portable MP3 Using Portable MP3 Players To Make A Players To Make A

PredictionPrediction

Why the Music Retail Why the Music Retail Industry?Industry?

Why the Music Retail Why the Music Retail Industry?Industry?

Digitization: The conversion of data stored in physical objects into digital formats for use in a computer

Digitization: The conversion of data stored in physical objects into digital formats for use in a computer

SimilarlySimilarlySimilarlySimilarly

E-Books

?

Similar BenefitsSimilar BenefitsSimilar BenefitsSimilar Benefits

Digitization

Compression

PortabilityConvenien

ceCost

Savings

Portable MP3 Players

E-Book Readers

TrendTrendTrendTrend

Incremental/Modular

Saehan MPMan 1998

Radical

Portable MP3

Players

Books

HanGo

1999

First iPod 2001

2nd

Gen

iPod

2002

Disruptive!

Rocket ebook/Softbook 1998

Sony

Reade

r 2006

Kindle

2006

Disruptive?

Rio PMP300 1998

Nomad

Jukebox

Zen 2002

Inadequacies of Early MP3 Inadequacies of Early MP3 PlayersPlayers

Inadequacies of Early MP3 Inadequacies of Early MP3 PlayersPlayers

Saehan: Only 32MB storage space

HanGo: US$749 for 5 GB

Rio PMP300: Battery compartment door flap broke easily, battery cover difficult to repair, parts would crack, peel & flake

Nomad Jukebox Zen: Slow transfer of songs using USB & low battery life

Saehan: Only 32MB storage space

HanGo: US$749 for 5 GB

Rio PMP300: Battery compartment door flap broke easily, battery cover difficult to repair, parts would crack, peel & flake

Nomad Jukebox Zen: Slow transfer of songs using USB & low battery life

32mb few dozen songs at most

iPod touch 16GB for ~$300

Batt: 45 mins

32mb few dozen songs at most

iPod touch 16GB for ~$300

Batt: 45 mins

Adequacy of iPodAdequacy of iPodAdequacy of iPodAdequacy of iPod

Firewire

Battery Life

Interface

Storage space

Firewire

Battery Life

Interface

Storage space

Transfer of CD in secs

Batt: 10 hrs

Scrollwheel, clean and simple

1000 songs

Transfer of CD in secs

Batt: 10 hrs

Scrollwheel, clean and simple

1000 songs

Inadequacies of Early E-Book Inadequacies of Early E-Book Readers (Softbook)Readers (Softbook)

Inadequacies of Early E-Book Inadequacies of Early E-Book Readers (Softbook)Readers (Softbook)

Weight: 1.3kg

Price: US$599.95

Storage space: 2MB (1500 pages)

Battery life: 5 hours

Connections: Analog telephone

Screen: Conventional

Weight: 1.3kg

Price: US$599.95

Storage space: 2MB (1500 pages)

Battery life: 5 hours

Connections: Analog telephone

Screen: Conventional

E-Book Reader E-Book Reader FeaturesFeatures

E-Book Reader E-Book Reader FeaturesFeatures

Background to E-InkBackground to E-InkBackground to E-InkBackground to E-Ink

Comfort

Comprehension

Recollection

Attention span

Comfort

Comprehension

Recollection

Attention span

Compared to printed media, screens negatively affect:

E-Ink (Modular Innovation)E-Ink (Modular Innovation)E-Ink (Modular Innovation)E-Ink (Modular Innovation)Display technology designed to mimic the appearance of ordinary ink on paper

Enhanced comfort over conventional displays

Display technology designed to mimic the appearance of ordinary ink on paper

Enhanced comfort over conventional displays

Wireless Technology Wireless Technology (Modular Innovation)(Modular Innovation)

Wireless Technology Wireless Technology (Modular Innovation)(Modular Innovation)

Wireless delivery of e-books straight to Kindle devices

3G access to Amazon’s Kindle E-Book store offers about 390,000 titles

Potential to include electronic newspapers & magazines

Wireless delivery of e-books straight to Kindle devices

3G access to Amazon’s Kindle E-Book store offers about 390,000 titles

Potential to include electronic newspapers & magazines

Incremental InnovationsIncremental InnovationsIncremental InnovationsIncremental Innovations

Specifications

Softbook (1998)

Kindle (2010)

Storage Space

8MB 180MB

Battery Life 5 hours 7 days

Dimensions26.75x22x3.25

cm19.1x13.5x1.8c

m

Weight 1.3kg 300g

Other Factors For Other Factors For SuccessSuccess

Other Factors For Other Factors For SuccessSuccess

High Initial InvestmentHigh Initial InvestmentHigh Initial InvestmentHigh Initial Investment

Model Cost (US$)

Softbook (2000) 599.95

Amazon Kindle (2007) 399

Sony PRS-700 (2008) 399

Sony PRS-700 (2009) 349.99

Amazon Kindle (2010) 259

Sony Reader Pocket Edition (2010)

199.99

Assuming 1 printed book = S$15

Sony Reader Pocket Edition = 19 printed

books

Rise of E-Book PricesRise of E-Book PricesRise of E-Book PricesRise of E-Book Prices

Consumer threshold: US$10

KeyReader (S’pore E-Book Reader) can access the National Library’s entire collection - FREE

Consumer threshold: US$10

KeyReader (S’pore E-Book Reader) can access the National Library’s entire collection - FREE

‘‘Ripping’Ripping’‘‘Ripping’Ripping’

CDs can be ‘ripped’ Rip books?

PiracyPiracyPiracyPiracy

Piracy ‘mitigates’ high initial investment, rising E-Book prices & inability to rip

Publisher/Author resistance

Piracy ‘mitigates’ high initial investment, rising E-Book prices & inability to rip

Publisher/Author resistance

Dan Brown’s new novel ‘The Lost Symbol’ downloaded 100,000 24 hours after release

Dan Brown’s new novel ‘The Lost Symbol’ downloaded 100,000 24 hours after release

Publisher ResistancePublisher ResistancePublisher ResistancePublisher Resistance

Unsettled about the time of release of e-books vis-à-vis paper books

Afraid of ‘cannibalisation’ of paper book sales

Unsettled about the time of release of e-books vis-à-vis paper books

Afraid of ‘cannibalisation’ of paper book sales

Incumbents resistant to adjust to new techIncumbents resistant to adjust to new tech

MarketingMarketingMarketingMarketing

ConclusionConclusionConclusionConclusionThe features of E-Book Readers puts them in a strong position to penetrate the market. However,

these features alone are insufficient. The tipping point

still hinges on factors like marketing and price.

Paper books will still retain their appeal and remain in the

industry, albeit with little or even negative growth.

Q & AQ & AQ & AQ & A