Qu'est-ce que c'est? C'est Amazon Patent No. 7,748,634 B1

Okay, e-reader mavens, it’s time to play Name That Device. Here’s a description of a popular one:

A handheld electronic device comprising: a housing; an electronic paper display disposed in the housing and having a first surface area; and a liquid crystal display (LCD) disposed in the housing proximate the electronic paper display, the LCD having a second surface area that is smaller than the first surface area of the electronic paper display.

Sounds like Barnes & Noble’s Nook, right?

Wrong. It’s a description of a patent applied for by Amazon in 2006, a patent that Amazon never published – until now. And the United States Patent and Trademark Office has just granted the patent to Amazon!

Nilay Patel writing in Engadget calls the revelation “Juicy.”  It could be a lot more than that if Amazon decides to file an infringement claim against B&N.

Patel reminds us that “Barnes & Noble is already involved in a trade secret dispute over the Nook with Spring Design, which claims that B&N saw its Alex reader under NDA [Non-Disclosure Agreement] and then copied it for the Nook.” That case is still pending. (See Who is Alex and Why Is He Suing the Nook People?)

B&N’s patent attorneys are going to have their hands full in the coming months.

Richard Curtis

Technologist Jason Perlow has done an analysis of e-book reading apps available on your iPad, and it would be a good idea for you to see what he has to say before downloading any of them.

“The average iPad user may not be aware of features or limitations in the various e-Reader apps available on the App Store,” he says, “so I’m going to try to boil this down so that you can make the appropriate choices which best fit your reading lifestyle.”

You may be surprised, maybe even shocked, by his conclusions. Here in condensed form are his takes on some of the more prominent apps.

iBooks

“While there is no doubting iBooks’ success in terms of its widespread use, of all the reader applications we’ve looked at, it is actually the least functional. Apple designed iBooks to behave and act like a real book, and focused more on the aesthetics and UI than actual App functionality with the initial release….”

“iBooks supports syncing of DRM-free EPUB and PDF content directly to the iPad thru iTunes. This is an excellent feature, but essentially locks the user down to using iTunes as the primary data transfer mechanism and thus requires a host PC or Macintosh in order to maintain the library…”

“Unfortunately, iBooks doesn’t scale very well as the size of your EPUB library increases. While iBooks is perfectly fine for a few dozen or perhaps a hundred or so books purchased from the iBooks Store or synced into iTunes, it is extremely unwieldy once you approach 300+ titles loaded into the database.”

[One issue Perlow doesn't mention is cited by blogger Thomas Baekdal, who writes: "You've already purchased this book but it isn't available for redownload. To purchase it again at full price, tap OK" and his comment is, "ARE YOU FREAKING KIDDING ME?!?!?"]

Kindle for iPad

“Amazon still has the widest array of paid ebook content in existence, with well over 600,000 titles in inventory. However, from a feature perspective, the Kindle software is pretty weak when compared to its hardware counterpart — you can’t import other file formats into it (such as PDFs or .MOBI files) and it only works with titles you’ve purchased in the Kindle store.”

Barnes & Noble eReader

“Of all the paid content readers, by far the best one in existence is probably the Barnes & Noble eReader application. About the only negative thing I can say about it is that like Kindle for iPad, the application is limited to content purchased on the B&N website, and uses the same Safari web interface for purchasing.”

“Other than that flaw, I love this app — the reading experience is far superior to that of the Kindle application, as it has five customizable themes for different colors of text and background and has the best reading fonts I’ve seen in any of the apps I looked at, especially when viewed in the ‘Earl Grey’ theme that almost has me convinced I’m looking at e-Ink and not an LCD.”

“Margins can be adjusted directly from page view to make maximum use of the screen if you’d like. The content browsing interface is also much more elegant than that of iBooks or Kindle for iPad.”

Kobo Reader / Borders eBooks

“Kobo Reader for iPad is…extremely polished and very well-designed.
Kobo’s main benefit is that it supports many different computing and smartphone platforms, so you can have all of your content available with you wherever you go. Like Kindle and B&N, your content is stored in Kobobooks.com’s cloud, so it doesn’t matter if you are using Kobo for iPad, iPhone, Android, BlackBerry, Palm, PC or Mac…”

“The Kobo reader application is one of the nicest looking on the iPad platform, although it isn’t nearly as feature rich as B&N’s or Stanza from a pure reading perspective. However, the text display is very nice, and you have four scalable fonts to choose from plus a White-on-Black “Night Reading” mode.”

Stanza

“Of all the applications listed here, Stanza is actually a very mature e-reader app, this despite only very recently being made iPad-native with version 3, in early June…
Stanza is by far the most sophisticated e-Reader application for iPad, as it supports not only the open EPUB format but also the legacy Mobipocket, PalmDoc (DOC), Microsoft LIT formats as well as HTML, PDF, Microsoft Word and Rich Text Format (RTF). This built-in compatibility eliminates the need for book conversion to EPUB with applications such as Calibre…”

“In addition to its connectivity features, Stanza has access to a wide variety of free book feeds… It has a wide array of font styles and color themes, and many options for text layout…”

“If you have lots of content that you’ve collected over the years, Stanza is definitely a must-have app. There’s absolutely no downside, it’s free to use and does more than any e-book reader app on this list.”

For the complete article, check out Apple iPad Showdown: Battle of the eReader Apps

Richard Curtis

Nook for $149.00. Next: $99.00? And why stop there?

The back page of today’s (June 22 2010) New York Times news section carries a full page ad for Barnes & Noble’s Nook e-book reader. The price is $149.00 for a Wi-Fi only version.  But the price of the original model introduced a year ago also dropped from $259.00 to $199.00 according to the Times’s Brad Stone. In response Amazon cut its undercut its rival, dropping the Kindle price to $189.00.

Is this the start of a price war or an adjustment that has bottomed out?  And why are prices dropping in response to the success of Apple’s iPad selling at almost three times the cost of its Amazon and B&N rivals?  Read In Price War, E-Readers Go Below $200 for some insights.

Stone quotes B&N’s CEO William J. Lynch as predicting that within a year the cost of a device will drop below $100.00, the fabled threshold below which appliances become as commonplace as pencils.  But why would prices stop there?  We have long urged the industry to consider adopting the so-called Gillette Razor model: give the device away and charge for the content. (See King Gillette and the Kindle)

A free e-reader?  As of today, we’re only $149.00 away.

Richard Curtis

No writer should ever have to complain that there’s nowhere to go to get published. There are a million places, and Barnes & Noble just made it a million and one with announcement of a platform called PubIt!™ “PubIt! Enables Independent Publishers and Self-Published Authors Access to Sell eBooks and Content to Millions of Readers on Barnes & Noble’s Online and Digital Platforms,” says the announcement.

Here’s the press release…

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New York, New York – May 19, 2010 – Barnes & Noble, Inc. (NYSE: BKS), the world’s largest bookseller, is extending its deep and longstanding tradition of supporting authors and publishers with PubIt! by Barnes & Noble, an easy and lucrative way for independent publishers and self-publishing writers to distribute their works digitally through Barnes & Noble.com and the Barnes & Noble eBookstore. The easy-to-use publishing and distribution platform offers qualified independent publishers and authors of self-published works expanded distribution, visibility and protection that only Barnes & Noble can offer.

The announcement marks Barnes & Noble’s latest move to continue to build one of the world’s largest digital catalogs, spanning eBooks, journals, periodicals and other types of reading material. PubIt! titles will be distributed through BN.COM and Barnes & Noble’s eBookstore, which currently offers more than one million digital titles to millions of dedicated customers in-store and online.

Independent publishers and writers will appreciate PubIt!’s simple and competitive royalty model and compensation process, the details of which will be available in the coming weeks. Content owners’ intellectual property will be well-protected with Barnes & Noble’s best-in-class digital rights management technology and offered in the industry standard ePub format that allows publishers’ works to be enjoyed by millions of Barnes & Noble customers on hundreds of the most popular computing, mobile and eBook reading devices.

“As a company that has achieved much of its success by building mutually beneficial relationships with publishers and authors, Barnes & Noble’s new PubIt! service represents an exciting evolution and significant opportunity in the digital content arena,” said Theresa Horner, director, digital products, Barnes & Noble. “Barnes & Noble is uniquely positioned to support writers and publishers and bring their exciting digital works to the broadest audience of readers anywhere.”

Whether online or on-the-go, Barnes & Noble customers will have access to PubIt! titles with the opportunity to browse, sample, buy and download the digital content in seconds to their devices with free BN reader software. Using Barnes & Noble’s breakthrough Read In Store™ technology, NOOK™ customers can also browse the complete contents of PubIt! titles while in Barnes & Noble stores.

PubIt! is a convenient one-stop-shop, allowing publishers to get their content in front of consumers for purchase and reading on the most widely adopted mobile devices and software platforms. By following simple steps to upload their content in an industry standard format for electronic titles, content creators can reach consumers on hundreds of devices including: NOOK by Barnes & Noble, PC, Mac, iPad™, iPhone, BlackBerry and others. For more information on free BN eReader software and apps, please visit www.bn.com/ebooks/download-reader.asp.

More information on PubIt!, which will be available this summer, and the benefits of joining Barnes & Noble’s expansive and trusted digital content catalog can be found at www.bn.com/pubit.

When Galley Cat invited me to make some predictions for the coming decade, I conjectured that sometime in the near future we would see the merger of a major retailer and a major publisher. Here was my reasoning: “A combined publisher/retailer solves many problems for both.The retailer owns the content and doesn’t have to pay a premium for it. The publisher does not have to pay a premium to distribute its books. There would be huge efficiencies of manufacturing and distribution.”

I’ve had about a month to think about what I said, and I want to revise it. The efficiencies of a retailer/publisher combine would not merely be huge. They would be decisive. If you don’t believe it, ask Barnes & Noble and Amazon.

In 2003 Barnes & Noble acquired Sterling Publishing, described at the time as “one of the top 25 publishers in America and the industry’s leading publisher of how-to books.” Publishers were gravely concerned, and they had every reason to be. Barnes & Noble’s own titles were like a supermarket’s house brand, often undercutting the prices of outside purveyors.

And now Amazon is a publisher too. It started with its Encore program aimed at identifying overlooked books and authors. That was followed by the creation of a service called CreateSpace aimed at self-published authors. And now Amazon has begun publishing mainstream authors like Stephen King and recently acquired Stephen (The 7 Habits of Highly Effective People®) Covey for the Kindle.

The potential for mischief created by such combines was cogently articulated a few years ago by Morris Rosenthal and I urge you to read it. In essence, the savings generated by dissolving the barrier between seller and buyer enable the combine to lower prices below – sometimes far below – those charged by publishers that do not own their own retail branch. To state the case as simply as possible: Barnes & Noble and Amazon.com, the two most powerful retailers in the book business, have become competitors of the very publishers they serve.

Though these retailers have no qualms about becoming publishers, publishers on the other hand are terrified of becoming retailers for fear of provoking the wrath of their key accounts – B&N and Amazon! When publishers do dip a timid toe in the water and try to sell their books direct to the consumer, they offer them at full list price, which cannot possibly compete with the deeply discounted prices charged by B&N and Amazon. Yet, if they wanted to, publishers could sell their books directly to the public at 40% discount or higher and thus level the playing field.

The solution? To survive, to remain competitive, publishers may have no choice: they must either become retailers or end up being acquired by them.

At this moment Borders, one of the best and most popular bookstore chains in the business, is in a life and death struggle to remain viable. If a publisher were smart it would rescue Borders and go into the retail business.

Retailers, I said a while ago (see Direct Sales: Publishing’s Last Stand), are intermediaries in a world that is rapidly disintermediating. As big as they are, retailers like Barnes & Noble and Amazon are vulnerable to market forces bent on eliminating middlemen, and that’s precisely why they have begun publishing books. The digital revolution demands a direct relationship between content provider and consumer. Merging a publisher and a bookstore like Borders would bring both struggling enterprises a little closer to that direct relationship, to profitability and to competitiveness.

Do I hear any bids?

Richard Curtis

Sometime in the first half of this year Google will open the doors to its bookstore, called Google Editions. Ian Paul, in PC World, writes: “Unlike Google’s biggest competitors, Amazon and Barnes & Noble, which rely heavily on restrictive DRM, Google’s store will not be device-specific – allowing for e-books purchased through Google Editions to be read on the far greater number of e-book readers that will flood the market in 2010″

That spells good news for the makers of all those new e-reading gadgets that may be well engineered and loaded with fun features but are hard-up for content. Amazon has its Kindle, but because its system is closed (that’s what DRM means) you can’t easily get Kindle content on a non-Kindle device. Same goes for B&N and its Nook.

Now you’ll be able to download Google’s vast (half a million at launch) library on just about any device available. Since most publishers have not given their content exclusively to Amazon or B&N, you’ll be able to find and buy it from Google editions and read it on your Que, Skiff, Cool-Er, Flepia, or any other device. Just try not to be embarrassed when someone asks you the name of that e-book reader you’re holding in your hand.

The deal Google offers publishers is 63 % of gross sales. This compares favorable with the 50% offered by most e-retailers. But Google is also offering to partner with retailers. If you decide you’d like to open an e-book retail store but don’t know how and where to acquire the content, Google will furnish it. Your company would get 55 percent of revenues less a commission for Google.

“Google’s e-books would reportedly be indexed and searchable like many books are now through Google’s Book Search,” says Paul. “Unlike titles offered through e-readers, Google Editions books would not have to be accessed through a dedicated reader or special application.Instead, any device with a Web browser will be able to access a Google Editions book. After you purchase and access your online book for the first time, it will be cached in your browser making the book available when you’re offline.”

Details in Google Editions Embraces Universal E-book Format

Richard Curtis

An official Barnes & Noble, Inc. press release reports that the bookseller suffered its second holiday season decline in a row, with sales – $1.1 billion – down 5% over 2008 for the the period from November 1 2009 through January 2 2010. Michael Cader of Publisher’s Lunch reminds us that the firm’s holiday sales a year ago were off 7% over 2007, so the compounded declines were sufficient cause for concern to trigger a reduction in earnings projections.

That’s the bad news. The good is that BN.Com saw a 17% jump in sales from $114 million to $134 million. The hike was probably due to Nook sales which analysts place at at $10-20 million.

“We’re pleased we were able to ship all holiday orders for nook in time,” said Steve Riggio, CEO of Barnes & Noble. “Orders for nook remained strong throughout the holiday season, and, in fact, accelerated after we announced that we had sold out our initial supply. Demand remains strong in the New Year and greater than our supply, however, we expect production to catch-up with demand and be fully stocked in our stores in the next few months.”

Pictured here is our kind of book nook.

RC

“At least one major publishing company will be acquired by a retailer,” predicts Richard Curtis in Galley Cat. “For instance (and this is NOT a prediction, just a for-instance), Amazon could acquire Random House or Apple could buy Simon & Schuster.”

That is one of eight prognostications offered by Curtis in a response to an invitation by Jeff Rivera to share his vision for the publishing business in the next ten years.

“A combined publisher/retailer solves many problems for both.” Curtis amplified on his prediction of a publisher/retailer hybrid. “The retailer owns the content and doesn’t have to pay a premium for it. The publisher does not have to pay a premium to distribute its books. There would be huge efficiencies of manufacturing and distribution.”

You can read all eight here.

The “Last Look” feature on the last page of Vogue is usually reserved for the most chic and preposterously priced items like $20,000 handbags, megastylish shoes and ragingly expensive bling. The last item you’d expect to see on that page is an e-book. But there, on the “Last Look” page of Vogue’s January 2010 issue, opened to Chapter 2 of Pride and Prejudice, is Barnes & Noble’s entry into the e-book sweepstakes, The Nook, advertised for a modest $259.00.

It shares the page with a deliciously buttery-looking calfskin case called the “Electronic Porta Libro,” manufactured by Tod’s, in which you can, um, show your Nook off at the Venice Biennale or the casino at Monte Carlo. At $525.00 it’s a little closer to the opulence and elegance one expects on that page of the magazine. If that’s too rich for your blood you can pick up a leather Kindle jacket with one of three New Yorker cover images from Conde Nast for $49.99.

RC

Ruminating about the current controversy about whether publishers should delay e-book reprints of hardcover books, Mike Shatzkin had an epiphany. And when Mike Shatzkin has an epiphany it usually ends up kicking the paradigm shift a hundred yards up the road.

“This is really about the agents and publishers trying to take control of ebook pricing, and value perception, back from Amazon,” says Shatzkin. One proof of his contention is that Barnes & Noble, a retailer that few consider to be a friend of publishers, actually agrees with the publishers’ position. B&N Chairman Len Riggio says holding off e-book reprints is “in keeping with the long-held practice of issuing paperback editions after the initial hardcover.”

“If the other biggest bookseller, which also has a dedicated e-reader and an aggressive attitude toward consumer pricing, seems okay with this idea, it strengthens my belief that it is about controlling Amazon, not about controlling ebook pricing,” says Shatzkin. “The desirability of restraining Amazon is certainly something the big publishers and Barnes & Noble can agree on.”

Shatzkin then touches on the essence of the power struggle: “If the big houses can do this, they can do much more than this. They can sell ebooks direct off their own web sites.”

Direct Sales of Books and E-Books by Publishers

Almost two years ago, in an article entitled Direct Sales: Publishing’s Last Stand, we surmised that a war between publishers and booksellers was inevitable, and the only effective weapon publishers have in their arsenal is direct sale of their books to consumers. “Publishers have awoken to the horrible realization that by allowing themselves to ” we said. “As their profit margins wear down to transparent thinness, they understand they must recapture the advantage or risk being marginalized even more than they are now.

“There is only one way for publishers to recover the initiative,” we concluded, “and that is to sell books directly to the consumer.”

War to the death? “It is hard to imagine this battle ending peacefully anytime soon,” asserts Shatzkin. Read about his epiphany at length on his blog: The ebook windowing controversy has subtext.

Richard Curtis