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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
% p
enetr
ati
on w
orl
dw
ide
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