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The Coming Readers' Economy and Data Portability
Mac Slocum
January 23, 2009
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This is a guest post by Mark Bertils.
At the end of last year one event signaled a huge shift in how the book publishing industry will do business. It's not what you think. It was December's launch of Facebook Connect. A land grab for user identities followed. The Web's people economy is coming of age.
Facebook's Squid Tries to Eat the Internet's Whale
The Connect program wasn't new in December. It was announced in May 2008. It isn't even original. But it marks the coming-out party for Facebook's social graph. Users are now free to come and go from Facebook's walled garden. They can bring their Facebook-endorsed identity (and relationships) with them as they travel the Internet. It is a major development for the social Web. It is a further claim on the permanence and importance of these platforms. And it is the clearest marker yet that the social networking boom of the last five years has beget a new Internet-wide folks-economy.
Seemingly overnight online user identity (here I mean the entire Web -- every site, every service) became a battleground between Web giants. Google and MySpace are parrying. The OpenID foundation is the Red Cross. Everyone else is taking sides. Identity politics has never been so interesting.
But this is not simply about portable identities and the single-sign-on Web. It is a fundamental shift in the Web economy. It is a bold stride toward relationship monetization -- where user data exchange becomes the most important transactional unit on the Internet.
Readers Are The Most Important Asset
This is pivotal for book publishers and other creators of digital goods.
It is no secret that infinitely copyable products aren't worth very much, so naturally, value is moving up the food chain. As Softskull's Richard Nash recently wrote at the Harvard Business Publishing blog, in the future, monetizing and organizing relationships -- not products -- will pay publishers' rents.
To some degree this is happening already. O'Reilly Media have made conferences a large part of what they do. Harlequin's on-line role is largely to connect like-minded readers. And the reader economy is alive and well at the myriad of social networks for book lovers. But what of the other houses? How best to make this mindshift? How to redeploy the resources spent managing a supply chain of products to manage a supply chain of peoples' information?
BookDrop facilitates passing product info from one business to another. An analogue is needed for passing reader info between businesses. How is that going to happen? Who is going to do it?
Open Standards. Reader First.
The volunteers at Dataportability.org are already asking these questions. The group champions the unimpeded movement of user data around the Web. That includes user identities but it also extends beyond OpenID to include open address book standards, open calendar standards, and open standards for opinions, ratings and reviews. It is entirely grassroots and focuses on user-controlled, privacy-respecting data portability.
On their wiki, information specific to publishers and media organizations is thin but a need has been identified to standardize and provide guidance to publishers. The call is out for task-force volunteers to identify and report on the unique requirements within the generalized publishing domain.
To get the conversation started I have volunteered to be the interim chairman of the media publishers' dataportability task-force. I am hoping interested parties will step forward to fill the ranks of this group. The end goal is to publish a report that encourages the distribution and adoption of reader-friendly standards. If you, or someone you know, would interested in participating contact me at org.mark atgmail[.]com.
Mark Bertils is a grad student, reluctant technical writer, an aspiring technologist, and a book industry orphan. He maintains a blog at indexmb.com
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"None of this is good or bad; it just is"
Mac Slocum
January 22, 2009
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Lev Grossman takes a pragmatic look at the changing state of authors, readers, and the definition of publishing:
Self-publishing has gone from being the last resort of the desperate and talentless to something more like out-of-town tryouts for theater or the farm system in baseball. It's the last ripple of the Web 2.0 vibe finally washing up on publishing's remote shores. After YouTube and Wikipedia, the idea of user-generated content just isn't that freaky anymore.
And there's actual demand for this stuff. In theory, publishers are gatekeepers: they filter literature so that only the best writing gets into print. But [Lisa] Genova and [Brunonia] Barry and [Daniel] Suarez got filtered out, initially, which suggests that there are cultural sectors that conventional publishing isn't serving. We can read in the rise of self-publishing not only a technological revolution but also a quiet cultural one--an audience rising up to claim its right to act as a tastemaker too.
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Spots Still Open for TOC Roundtables
Andrew Savikas
January 21, 2009
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Despite a grim few months for the industry, attendance for the 2009 TOC Conference has remained consistently ahead of last year's numbers (and remember -- we sold out last year, so reserve your spot now). Last year's show made it clear New York was the right place to be, and this year's program and speaker lineup are shaping up to be an amazing three days (I'm admittedly partial, so don't just take my word for it).
One of the best things about a conference like this is the chance to connect in person with people you've perhaps only met online or follow via a blog or Twitter. It's also a chance to get key players at the same table to agitate for new standards or practices. We added Roundtables this year to the program to give you a chance to schedule informal meetings of like-minded attendees. For example, there's a great panel scheduled for Wednesday afternoon on the universal standards that goes beyond just typical sales and distribution -- a companion roundtable to try and flesh out some concrete next steps would certainly be of interest to a lot of attendees. Sound like something you'd sit in on? Sign up to lead it.
There's limited slots open for the Roundtables, which are scheduled for Tuesday evening, Feb. 10. Plan to grab a drink at the sponsor reception, check out a few of the lightning demos, and then take a seat at one of the Roundtables.
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"Kindle Killer" Might be Hyperbole, but a Lot to Like About Shortcovers
Andrew Savikas
January 20, 2009
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The email invitation I received to check out shortcovers -- a new hybrid Web/mobile reading site from Canada's Indigo Books & Music -- touted it as a "Kindle Killer." While there's a lot to like about shortcovers, there's some shortcomings to that moniker. First, it's not a device, it's a Web site with a companion iPhone app (presumably wending its way through Apple's approval queue) and eventually other mobile apps as well. Second, while I was very impressed with their execution, I didn't see much that Amazon couldn't match with a similar mobile App.
That said, I really liked what I saw of shortcovers (though to be fair, it's hard to truly judge something you've seen only via Webex -- my comments are based on a brief demo, and apply primarily to books). In particular:
- iTunes-style previews and a la carte purchasing. Buying single chapters won't make much sense for some kinds of content, but we know from experience at Safari that a lot of readers like that kind of chunking.
- Online/offline options. Adding "buy the print version" to the iPhone equation might be shortcovers' biggest contribution to the mobile reading market. Sure you can buy books from Amazon's iPhone app, but you can't also buy/read an electronic version at the same time. A lot of our ebooks are sold bundled with the print version, and it's a great option to offer customers. (Print orders are fulfilled by Indigo in Canada, and by an as-yet-unnamed partner in the U.S.)
- Cloud-style syncing. Buy from your phone, and the book appears in your online "Library" accessible from a browser. Offline downloads won't be available initially, though apparently are on the way.
- Recommendation and annotation. This was key to Amazon's rise to dominance in online book retailing -- its database of reviews and recommendations, a system that got smarter the more people used it.
- Support for the EPUB standard, and the option for publishers to make their content available without DRM. As long as there's a choice, the market should take care of the rest.
Overall, shortcovers probably isn't the revolution they're implying, but it is a big next step for mobile reading and ecommerce.
For additional viewpoints, The Wall Street Journal's Walt Mossberg recently reviewed shortcovers, and Chris Meadows on TeleRead has this counterpoint.
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Film Criticism and YouTube Don't Play Nice
Mac Slocum
January 16, 2009
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In an essay catalyzed by YouTube's removal of a film criticism archive, which included ripped clips from copyrighted movies, Matt Zoller Seitz addresses the disconnect between takedown policies and the gray areas of digital culture:
There should be a way to distinguish between piracy-for-profit (or unauthorized, free redistribution) and creative, interpretive, critical or political work that happens to use copyrighted material. And there must be an alternative to unilateral takedowns. The issues aren't just legal, they're practical. History has demonstrated that there's no copyright protection that can't be defeated, no corporate edict that can't be subverted. And given the technological sophistication that permits digital watermarking, there ought to be a way to make sampling of any sort, authorized or not, scaled to suit the filmmakers' means, profitable for the rights holders, and as fully automated as the copyright-infringement-scouring that's currently happening all over the Internet.
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"Amazon Tax" Moves Forward in New York
Mac Slocum
January 14, 2009
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A judge has dismissed lawsuits from Amazon and Overstock.com challenging New York's "Amazon tax," which was enacted last year. From the Associated Press:
The law applies to companies that don't have offices in New York, but have at least one person in the state who works as an online agent -- someone who links to a Web site and receives commissions for related sales.
In this case, "agent" is synonymous with "affiliate." Amazon and other online retailers share a cut of revenue generated by affiliate referrals. If further appeals go against Amazon and, as expected, other states jump on the sales tax bandwagon, affiliate programs of all sorts could take a major hit.
The AP notes that the law applies to "companies that have $10,000 or more in New York sales." There's some confusion around this $10,000 figure -- does it apply to companies that run affiliate programs (e.g. Amazon) and generate $10,000 or more in New York-based sales, or does it refer to affiliates who earn $10,000 through revenue share agreements? According to Law.com, the company that sells the products is held to the $10,000 standard. As such, a company could not skirt the law by cutting off individual New York-based affiliates before they reach $10,000 in referral sales. To avoid collecting New York sales tax altogether, companies would have to limit the combined income from all New York affiliates to less than $10,000.
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Palm's webOS Represents Major Shift for Syncing and Data
Peter Brantley
January 12, 2009
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In an article covering the Palm Pre mobile device, Ars Technica makes a very important point about how devices utilize network connectivity, and what the assumptions are underlying their models of data storage and access:
Users just make changes to their data (contacts, calendar, mail, etc.), and Palm's webOS handles committing those changes to whatever canonical data source it is accessing in the cloud. And herein lies the most important difference between the webOS and Apple's iPhone OS: the iPhone was originally designed under the assumption that the canonical source of a user's data (contacts, calendar, music, tasks, etc.) is a Mac. Palm's webOS, in contrast, presumes that cloud-based services are the canonical source for your data (with the possible exception of media, which we don't know about yet) ...
Palm's webOS does not presume any sort of tether at all. The company has totally ditched the idea that you will use this phone in conjunction with a specific "main PC" that contains the canonical, authoritative repository of your data. Instead, webOS draws seamlessly on a variety of data services--not data repositories, but cloud-based services that actively feed the device both data and critical context.
This is a deep, fundamental break with both the iPhone and previous, repository-based smartphone usage models, and it's important enough that other smartphones are bound to follow.
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Format Comparison: PDF, EPUB, and Mobi Downloads from Ebook Bundles
Andrew Savikas
January 12, 2009
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We've been selling PDFs of our books on oreilly.com for several years, but this summer began selling "ebook bundles" of many titles, which include PDF, EPUB, and Mobipocket versions. Here's some weekly data (I can't share the vertical scale) on the relative breakdown of actual downloads from those bundles (PDF, Mobi, and EPUB are Light, Medium, and Dark respectively). PDF is still the format of choice for most people, though EPUB is getting respectable usage, with Mobi in third:
The numbers at the bottom are weeks (200901 is the first week of 2009). This is only among titles offered in all three formats -- the majority of our ebooks are currently still only available as PDF, though we expect to release several hundred more in bundle form over the next few months (not that you should wait to buy of course -- you'll get all the formats as they come available ...).
An important point to note, via Allen Noren, our VP who runs oreilly.com, is that a substantial portion of our electronic sales come from overseas, where getting a print version is often difficult or cost-prohibitive:
I know you've heard me say it before, but we became an international publisher, in a way we were not previously, when we started selling books in digital format. We're in a unique position vs most publishers, who only have US or NA rights, but it's worth nothing.
Duly noted.
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Google Doesn't Have Answers for Newspapers
Peter Brantley
January 8, 2009
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Fortune Magazine has an interesting interview with Eric Schmidt about Google's relationship with newspapers:
Maybe their time [newspapers'] has just come and gone?
No. They don't have a problem of demand for their product, the news. People love the news. They love reading, discussing it, adding to it, annotating it. The Internet has made the news more accessible. There's a problem with advertising, classifieds and the cost itself of a newspaper: physical printing, delivery and so on. And so the business model gets squeezed.
So what else can Google do?
We have a mechanism that enhances online subscriptions, but part of the reason it doesn't take off is that the culture of the Internet is that information wants to be free. We've tried to get newspapers to have more tightly integrated products with ours. We'd like to help them better monetize their customer base. We have tools that make that easier. I wish I had a brilliant idea, but I don't. These little things help, but they don't fundamentally solve the problem.
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iPhone App Outperforms Most Print (Computer) Books This Holiday Season
Andrew Savikas
January 7, 2009
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Conventional wisdom suggests that when choosing pilot projects, you pick ones with a high likelihood of success. It's hard to argue that iPhone: The Missing Manual was a reasonable choice for testing the iPhone App waters. But while we knew it would do well, we've been quite pleased with just how well:
- If the iPhone App by itself had been a book, it would be a top 10 seller in BookScan for Computer Books this holiday season, based on just 17 days of sales
- The print version appears to have been unaffected, retaining a solid position in the top 3 for Computer Books in BookScan
- A full 1/3 of those buying the app are outside the US, mostly in countries where the print book is not readily available
There are certainly some who don't care for the book-as-app approach, preferring the library model (where one app enables reading multiple titles). It's also clear there's substantial customer interest in both options, and we strongly believe that offering a variety of options and letting customers choose is the right approach. This is a time for experimentation, and we'll be doing quite a bit more of it (format, pricing, content) in the digital -- and especially mobile -- space in the coming months.
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Newspapers Pursued New Tech with Wrong Intentions
Mac Slocum
January 6, 2009
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In a column at Slate, Jack Schafer says newspapers' overcommitment to form and content lock-in led to the industry missing Web opportunities:
From the beginning, newspapers sought to invent the Web in their own image by repurposing the copy, values, and temperament found in their ink-and-paper editions. Despite being early arrivals, despite having spent millions on manpower and hardware, despite all the animations, links, videos, databases, and other software tricks found on their sites, every newspaper Web site is instantly identifiable as a newspaper Web site. By succeeding, they failed to invent the Web.
Related Stories:
- Steve Yelvington: "Early to the game but late to learn how to play"
- Clay Shirky: "The Newspaper Industry and the Arrival of the Glaciers"
- News.com: "NYT's Sulzberger: 'We can't care' if newspapers die"
- Guccione: Print Downturn Traces Back to Pre-Internet Era
- How Hackers Show it's Not All Bad News at the New York Times
Conversation is the New King
Mac Slocum
January 5, 2009
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Kate Eltham calls out publishers who blog through a PR lens and points the way to publisher blogs that fully embrace the medium:
It used to be common wisdom that content is king. But the popularity of social media has demonstrated that what internet users are really seeking is connection. A blog may be a cheap and easy way of publishing web content but its biggest strength is that it is a platform for conversation. [Emphasis included in original post.]
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TOC Editor Note: Light Posts Through Holidays
Mac Slocum
December 24, 2008
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The O'Reilly offices are closed through the remainder of the year, so TOC blog posts will be light until January 5, 2009.
We're thrilled with the interest and enthusiasm we've experienced throughout 2008, and we look forward to more coverage, projects and events in 2009. We hope everyone in the TOC community has a restful and enjoyable holiday season!
-- The TOC editors
iPhone Updates: Missing Manual Already #2; More Book Apps Hit iTunes
Andrew Savikas
December 23, 2008
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We released David Pogue's iPhone: The Missing Manual as an iPhone App on Friday, and by Saturday it was already the #2 for-pay App in the Books category on iTunes (where it has remained, behind only the Classics App), and it continues to gain ground. In just four days, it has become one of our top sellers of the year in electronic format. Notably, even at the promotional $4.99 price, it is the highest-priced app among the top 50 paid book apps. While $0.99 pricing clearly moves merchandise, it's unlikely that kind of pricing is sustainable for most Apps, including books (for more, see this excellent post from Andy Finnell on app pricing).
Yesterday brought news that several other major publishers are rolling out iPhone Apps of popular titles, including the Twilight series (which right now is priced at $10.99), via an app development company out of New York, ScrollMotion. I haven't tried their reader, but the annotation feature shown in the screenshots looks pretty neat. We've been very pleased with how our books render in Stanza, especially for computer code, cross references, and tables -- all of which are quite common across our catalog.
Not everyone is enthusiastic about the news of more iPhone book apps, most vocally TeleRead blogger (and TOC Conference panelist) David Rothman:
Some consumers may want hundreds of books on their iPhones. Should publishers put such a crimp on their purchases? And will apps be the easiest things to organize into libraries? I'm open minded about the O'Reilly iPhone guide as an app, given its connection with the machine. But please don' make an app of every book!
While I share David's concerns about format lock-in (a big reason we offer many of our books in a variety of DRM-free formats), I think his distaste of standalone book apps is misplaced. Yes, it's true that right now the iPhone can only hold 148 apps. But given the nature of the device, I don't think it's likely that most customers will begin using it to manage/consume large numbers of books they intend to keep for long periods of time. Books on the iPhone likely serve the same function for readers as games do -- temporary entertainment, likely to be replaced by the next cool thing that comes along. I've deleted dozens of apps myself, at least a few of them ones I paid for.
But regardless of where your personal opinion lies on that issue, if you're a publisher there are several things to keep in mind as you consider the App Store as a distribution channel:
- Apple has tremendous power in this relationship. They're taking 30 percent right off the top, and they alone decide if and when your app appears. For many of your potential customers in this new market, that's just fine. They don't care about you or your other products. They care about entertaining/amusing/informing themselves.
- The App Store is a vibrant and thriving marketplace, but it's still in its infancy. There is a lot to learn about how to price and promote books this way. For example, here's a list of sites that promote new apps. Some are pay-to-promote, which sounds kinda gross, but isn't much different from co-op. Here's more from the same site on pricing.
- While this depends a lot on the types of books you publish, it's likely a small but very active segment of your audience feels the same way David does, and will reward you for offering standards-based, DRM-free versions of your books that they know will outlast you, the device-of-the-month, or the DRM format you're using.
- Speaking of DRM, stop worrying about piracy. One of our best selling books in electronic form this year is Real World Haskell, which was written out in the open, and is still available in its entirety from the book's website. For free. This is not an isolated case, and this book has been a commercial success not in spite of its open availability but because of its open availability.
If you're interested in reviewing the iPhone Missing Manual App, and are willing to share your review on your blog and in the App Store, drop me a line at andrew AT toc.oreilly.com. I have a limited number of promo codes for free access to the App, and it's first-come, first-served.
Related Stories:
- O'Reilly Ebooks: 130 Top Titles Now Available, Plus an iPhone App and Head First PDFs
- Experimental O'Reilly Ebook iPhone Integration with Stanza
- Open Question: Standalone iPhone Ebooks vs. E-Readers
- Q&A; with Developer Who Turns Ebooks into iPhone Applications
- Q&A; With Co-Creator of Classics iPhone E-Reader
O'Reilly Ebooks: 130 Top Titles Now Available, Plus an iPhone App and Head First PDFs
Andrew Savikas
December 19, 2008
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While there will always be a demand for printed books, few of those books will have a life entirely disconnected from the wider digital Web. In that sense, all publishing is becoming digital publishing, and all writing is writing for the Web. That's a big shift, and it will take time for the existing players to make the transition (and we'll almost certainly lose some along the way). For now, here's a roundup of where things stand for us at O'Reilly on the ebook front:
- David Pogue's iPhone: The Missing Manual is now available as an App in the iPhone App Store. It's available for a limited time at an introductory price of $4.99 (the regular price will be $9.99). The App was built by Lexcycle, creators of the popular Stanza App, so you get the same rich reading experience (including live linking and cross references) as when you read our other books on Stanza. More titles will follow in the coming weeks.
- More than 130 titles, including many of our best sellers, are now available as ebook bundles, which can be read on a variety of ebook devices and systems, including Stanza on the iPhone, Bookworm, Amazon Kindle, and the Sony Reader. A full list is available at oreilly.com/ebooks, and includes the following: We're working to release the bulk of our backlist as ebook bundles during the next 90 days.
- All of our in-print Head First books will be available for purchase as PDFs within the next 24 hours (two of them already are via the Rough Cuts program). Those of you familiar with our Head First titles know their layout would not translate well to reflowable formats like EPUB. We regularly evaluate alternatives, but in the interim, we're happy to finally deliver something a lot of customers have requested--the option to purchase Head First books in digital form.
- In total, more than 700 of our books are currently available for sale as DRM-free PDFs or Ebook bundles (and even more are available through Safari Books Online). As more Ebook bundles become available, those are included as free updates for anyone who's already purchased just the PDF from oreilly.com.
- Our "Media Management" account pages for customers who have purchased ebooks from oreilly.com are now much more mobile-device friendly, and are accessible from oreilly.com/e. A screenshot from my iPhone below:
In the coming months we'll be working to make more of our new book content mobile-friendly, better integrate our book content with the Web, and continue exploring how to deliver our content in ways that take advantage of all that being digital has to offer.
If you're a publisher trying to figure out how to deal with digital, registration is open for our 2009 Tools of Change for Publishing Conference. Lexcycle's Marc Prud'hommeaux and Neelan Choksi will both be speaking. New York area publishers should also check out StartWithXML, our one-day forum deep-diving into how and why to move to flexible formats for more nimble book content.
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