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Graeme Neill

Graeme Neill is retail reporter of The Bookseller.

Digital D-Day

23.07.08

So the worst kept secret in publishing is finally out in the open. For months publishers and retailers have been gossiping about Waterstone's plans to stock the Sony Reader from September. The companies' plans to reveal the launch on Thursday also fell victim to gossip, with several opportunistic electronics websites breaking the embargo of the press release a day early.

However, this probably won't affect the magnitude of the launch of the Sony Reader. It's probably the biggest thing to happen to the publishing industry this year. Aside from the geeky tech excitement related to yet another piece of shiny electronic kit, there are several knock on effects for the publishing industry.

Publishers have been falling over themselves of late to convert their lists to the .epub format demanded by the Sony Reader. Penguin, HarperCollins and Random House are  gearing up for an autumn roll-out of their own e-book titles. With a definitive outlet for e-books selling in more than 200 stores and online, more publishers are bound to leap in with their own e-books. Will Simon & Schuster and Hachette be the next to roll out their e-book programmes for example?

What will also be interesting is to see what Seattle's finest do in response. Amazon's Kindle has been sold in the United States since November but the UK business has consistently refused to discuss a possible release date. Will their hand be forced now? It's highly unlikely they would want to see Waterstone's, and to a lesser extent Borders', reap the benefits of e-book sales.

The battle between agents and publishers regarding e-book royalty rates will probably gain volume in the coming months. Random House c.e.o. Gail Rebuck has already proposed a royalty of 15% of net receipts on digital sales. Granted, it's higher than the standard 10% royalty rate on hardbacks.

However, the figure is lower than the 25% currently received by authors in the US for e-book sales. Simon & Schuster in the US was rebuked this week by The Authors Guild after it attempted to set e-book royalty rates at 15% of the "catalog retail price". These arguments are bound to come across the Atlantic in the coming months.

However, the most interesting thing that will happen over the 12 months is whether the public are convinced. A £199 price point is attractive to early adopters but according to our features editor Tom Tivnan, the only member of The Bookseller to use the device, it is clunky to use. With the likes of the Nintendo DS and iPod on the market, the public is used to beautifully designed products that scream 'must have'. Will the Iliad and Sony Reader capture the imagination in the same way?

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By friend of rachel worth

Sony may not get it just right with the first generation ereader (I've seen one in the states and think it is pretty good) but i cant think of many format wars that sony have lost except the mp3 players. Their first attempt were awful however the latest versions are now seen as some of the best on the market although too late to threaten the ipod dominance. Dont think they will make that mistake again. I think the biggest challenge wont come from kindle or the borders stocked one - but when content is opened up to all multi media devices. Apple managed to make this almost irrelevant by pumping loads of effort into itunes, where for ages there was no legal competition that was any good Therefore as with apple the money long term wont be in the hardware but in the selling of the software. Therefore whichever retailer / website canpull this off with authority and confidence is the one that will be smiling in the longer term

23 Jul 08 20:52

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By Graeme

I think that's a good point. I showed an e-book reader to a friend a few months ago who seemed impressed until she asked 'how do you get onto the internet?'. When I told her you couldn't, she seemed somewhat bemused that people would buy *just* an e-book reader. I think people are spoilt by technology now and expect a lot from their devices. Look at the popularity of e-books in Japan. Readers are consuming electronic books on a multi-functional device - their mobile phones. I think perhaps the ultimate crossover point for e-books will be when it can be consumed on a device where you can browse the internet, listen to mp3s etc etc. That's not to say the Iliad and Reader will remain unsold - there is already a massive audience for it of excited publishers weighed down by heavy proofs, let alone a tech-obsessed public. But, like the iPod, it will probably be the third or fourth version of these devices, with added bells and whistles, that will take off properly.

24 Jul 08 09:52

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By newbie

Is 15% of net receipts higher than the 10% of published price that is standard as hardback royalty?

24 Jul 08 10:07

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By Gwyn Evans

The 505 /is/ Sony's 'third generation' reader (Libre & 500 were 1 & 2) and 'clunky' doesn't spring to mind. I use mine daily, and it means I don't have to worry about finishing a book while out & about, nor about packing a number of books while on longer trips.

28 Jul 08 20:42

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By KS Augustin

However, the figure is lower than the 25% currently received by authors in the US for e-book sales. And MUCH lower than the 40% given to authors who sign with e-publishers, as opposed to print presses. I fail to see why such a low royalty is paid when there are no source-material / printing / transport / returns costs involved, as there are with print books.

29 Jul 08 04:38

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