

Pop quiz: How much music do you buy or borrow in a month? And how many books to you buy or borrow in a month?
Next question, how much music do you listen to in a month? How many books do you read in a month?
Finally, how many times do you listen to the same album or song? How many times do you re-read a book?
I'll bet your music vs. book answers are radically different, aren't they? How you acquire and listen to music is completely different than how you acquire and read books, and in vastly different quantities. Unfortunately, the publishing industry thinks selling e-music and e-books are exactly the same thing, or at least similar. As a result, publishers are following a scarily similar DRM path in the nascent e-book business as the music industry did a decade ago.
This is not good, not for publishers and not for prospective e-book and e-reader buyers.
Two Key Questions About E-books
Let's say you buy an e-reader like a Kindle, a Sony Reader or the new IREX. You download a book you think a friend would really enjoy. Can you loan said e-book by transferring the file to their device, just like you would loan a physical book?
Now let's say you compile a tidy library of books on your e-reader. Three or four years from now you decide to trade up to a new reader. Will you be able to transfer your library to your new model?
Both are excellent questions and are critical to the future success of the e-book concept. Over the last few weeks, I've posed these questions to myriad publishing and e-reader executives and consultants who are supposed to be in the know. And the answer is: No one is quite sure.
Kindle vs. Everyone Else
In one way, the e-book business is traveling along a parallel path as the digital music industry. Amazon has developed its own proprietary formats and ecosystem, just like Apple created like iPod/iTunes ecosystem. E-books bought from Amazon will only work on a Kindle, which can read only Amazon-formatted e-books.
As long as I stick with Kindle, everything is jake — Amazon keeps all my e-books on file and can repopulate a new Kindle. E-books I bought on the Kindle 1 automatically showed up on my Kindle 2 as well as on the Kindle app on my iPhone.
As a result of getting the Kindle out there before anyone else and perfecting its closed ecosystem and seamless user experience, Amazon has grabbed a bulky early share of the e-book/e-reader business — about 60%, according to Sarah Rotman Epps, an e-book analyst from Forrester Research.
(Just an aside: Amazon's closed e-book ecosystem is ironic considering they were all about being the open, non-protected anti-iTunes music store. Now back to our regular programming.)
Meanwhile, the rest of publishing industry has adopted a standardized formatting code called ePub. Theoretically, an ePub book can be read on any ePub-compatible device. Sony's Readers are switching to ePub, and both the IREX and the coming Plastic Logic and Cool-er readers are all ePub compatible.
So Amazon has unified the competition against itself, à la Blu-ray vs. Toshiba. And if that format war was any indication soon we'll all be living in an unconfusing all-ePub world, right?
The Threat of DRM
"ePub is ePub," says Epps. "Any device that supports ePub will read ePub files. If you buy ePub books today you should be able to transfer them to another ePub-compatible device in the future."
That's great!
"The idea is ubiquitous content for whichever device," says Steve Haber, president of the Sony Reader division. "If you walk into a shopping mall, you can shop in one store or shop in all the stores. It's how you expand the industry and the market — more ereaders coming in is a good thing, multiple devices are a good thing. It's better to be open than to be closed and will help innovation in this market."
I love where this is going, except that — aside from the open ePub coding — e-books are additionally laden with DRM (digital rights management). Most folks are using Adobe Content Server 4, better known as ACS4, which defines how and where you can digitally move an e-book around. And these DRM decisions aren't up to Sony or any other non-Kindle e-reader maker.
"The publisher gets to set all kinds of rights restrictions," explains Liza Daly, president of Threepress Consulting, which provides software and services for the publishing industry. "They can limit the number of devices it will work on. They can limit the number of times it can be re-downloaded, perhaps because your e-reader fell in the bathtub."
Crap.
DRM for the Rest of Us
There is one good reason for DRM: libraries. You can (or will soon be able to) borrow an e-book from your local library. But its DRM will make your borrowed book self-destruct on its due date, so get reading.
Publishers think they have learned a lesson from the music industry's P2P prosecutions. What I hope publishers haven't missed is the lesson's final answer — Apple, the leading music retailer and seller of around 70% of all downloaded music, stopped selling copy-protected music once it realized its DRM restrictions were confusing, nay, pissing off all us law-abiding music downloaders who represent the bulk of its customers.
But all this loquacity assumes that we consume books the same way we consume music. As I think I've demonstrated, that's a completely false premise.
Simply, e-music and e-books are not the same thing. The lessons learned from the digitization of the former should not and cannot be applied to the latter. And while we're at it, e-books aren't like e-movies, either.
"Some in the industry are trying to treat books like music," confirms Daly. "For example, Shortcovers, an ebook vendor based in Canada, sells book content by the chapter. Publishers think that the problem with the music business is that they weren't vigilant enough in preventing runaway piracy in the first place, and that consumers will accept limitations on digital reading if they have no other choice."
Double crap.
"The publishing industry is definitely split at the moment as to how much to 'protect' e-book files from being passed around or copied," moans Mike Shatzkin, CEO of The Idea Logical Company, a publishing industry consulting company. "Publishers have managed to coalesce around a file standard, ePub. Coalescing around a protection standard would be much more difficult. I think it will be a long time before there won't be great variety in what is offered and great confusion for the consumer who wants to read a book on multiple devices or read it again 10 years later."
Geometrically increasing crap.
How This All Helps Amazon
I hope Mike is wrong. I hope publishers see that the mass of erudite e-reading consumers will pay the 10 bucks for legal e-books, especially when you don't put any confusing e-roadblocks in our e-path.
A completely open DRM that merely identifies a file as legally purchased and watermarked so if it shows up on an e-book pirate site it can be tracked down is reasonable. That won't stop me from loading an e-book I've bought onto multiple e-readers or other devices, and it's the only way publishers can build the kinds of digital conveniences Amazon offers and the only way other e-reader makers can break Amazon's early e-book monopoly.
I hope cooler e-book heads prevail.
By Insomnic at 7:34 PM ON 10/01/09
I do agree that non-DRM would be good but I wanted to point out one incorrect statement:
"..Kindle, which can read only Amazon-formatted e-books"
That is incorrect. I have over 200 books on my Kindle and only 4 of them were bought through Amazon or are in azw format. The device can read all the popular ebook formats (AZW, TXT, MOBI, PRC, EPUB and LIT)- it is just the books bought through Amazon that can't be read on any other device.
To use the iPod/iTunes analogy - the iPod could play any compatible file put on it but only iPods could play songs purchased from iTunes. The DRM is in the file, not the device.
By Lunan at 7:52 PM ON 10/01/09
I think it should be noted that one publisher has learned the drm lesson, and they learned it in 1999 when they started publishing e-books. Baen books has never used drm and does not belive in it. its webscriptions service has been providing e-books for a decade now, and they offer hundreds of e-books free, in their free library
By Anonymous at 8:02 PM ON 10/01/09
Following lunan.
Many Role playing game publishers offer PDFs of their books which are watermarked but have no DRM.
This is ideal since you can reduce piracy (just cancel the account) without attacking consumers. Attacking media consumers for wanting to acquire your product is inherently counter productive even if it is done in the name of profit.
Remember folks, you cannot stop piracy, only adjust the proportion of people who choose to acquire media that way. This is a battle that is won more easily in the court of public opinion then in a legal court room.
If this wasn't the case then how would Wikipedia et al survive.
By Jimzello at 9:43 PM ON 10/01/09
I think the E-readers are still way too much money to consider them an alternative to paper books. How about we look at this market differently.
I don't get why Amazon didn't just raise unit price of each e-book to amortize the value of the kindle over time. Something like, get a Kindle for $100 and then the rest will be paid out over time, (which would be similar to how cell phones got to be so ubiquitous at first). With higher sales, larger economy of scale will lower production costs and drive down the price in the mid-term (while profits from both book royalties and hardware sales start pouring in). It works for video game companies, it would work better here. Take my advise Amazon, and in exchange I'll ask for the credit and a free Kindle.
By bufocalvin at 9:47 PM ON 10/01/09
Stewart, I'm happy to reassure you that the future (and the current situation) is nowhere near as bleak as you fear it may become.
Your Kindle can read books that aren't from Amazon, and that's a popular thing to do. There are tens of thousands of free books (and books for which you pay) that can be read on the Kindle that are not from Amazon.
For example, it can read txt files (just like mp3 files, they can not contain Digital Rights Management...DRM) without conversion.
It's also easy (and legal) to convert EPUB files to be read on the Kindle.
I'm surprised the experts you consulted couldn't give an answer to your questions. Of course, the situation could change in the future, but the current situation is pretty clear. I think they are commonly understood by Kindle users: there are several forums out there where you can ask questions like this.
1. Can you loan e-books to a friend? If they are compatible file types and you have an appropriate license, you can give them to them (loaning isn't quite applicable here, unless you give them the e-reader). For example, if I read a .txt file of a public domain book, I could send it to someone with any of the device types you name, and that person could read it on that device.
2. If you upgrade to another reader, can you read your library on it? It will again, depend on the formats and the licenses. Currently, .azw, .azw1, and .tpz files (the proprietary ones from the Amazon store...the latter two are the same, with a different extension only being the result of the delivery method) could not legally be read on a device besides a Kindle, iPhone or iPod touch. That may change in the future.
I've also written about the use models of music and e-books...and the difference seems to me to be an argument that favors DRM for e-books over music. Music is typically consumed repeatedly, books are commonly consumed once...although some fans (or fen, if you prefer) do read the same book many times. So, a single time listening to a song is less likely to forestall a purchase than a single time reading a book. That doesn't mean that DRM is the right way to go, but it isn't an argument against it for e-books, in my opinion.
I'd be happy to point you towards more specific information, if you like. I've found that Kindle users tend to be friendly and helpful...a post on one of the forums alerted me to this blog entry, for example. :)
By Old Man Dotes at 10:25 PM ON 10/01/09
I won't buy anything with DRM (which is properly called Technology Users Rights Denial Systems, aka TURDS). In fact, it is *imnpossible* to buy anything with DRM - because you don't really own it. Amazon proved that by taking back _1984_ - you've only rented it and you don't even know for how long.
So there's no reason to buy an ebook reader, is there? Waste of money.
By John Dowdell at 11:15 PM ON 10/01/09
Hi, sorry if I missed the core in there, but your headline seems to say that certain options must not be permitted to exist. Can you summarize, so that I could pass your argument along to others?
tx, jd/adobe
By tmpesq at 1:53 AM ON 10/02/09
I buy far more books than music and hence the ereader for me is an excellent idea and I hope that they continue with such
By Emanuil at 3:47 AM ON 10/02/09
About lending e-books. Why not just make it so that when you transfer an e-book the old copy disappears? So just like a normal book there is only one copy of it in existence that you own, and because of that you will want that book back at some point or you can just gift it to someone.
E-readers should be able to "read" every text format out there.(Or at least most of them :) )
There must be some kind of protection for copy and use to maintain some kind of order.
Limit the transfer only from e-reader to e-reader (or from an account to other account ) and the download should be only from the online stores. Watermark the books so it's known who bought the book in the first place, and when a "new" book is loaded on a e-reader it should check if there are other copies of this book somewhere else and if there is: Lock the book and alert the e-store(or someone)
Sorry if this is already done, never used e-reeder and probably won't in the near future (not from US). But i'm looking forward to having one :) so i do care what happens to this new tech.
By kunfumike at 5:09 AM ON 10/02/09
I just bought a 32$ writers guide for 20$ downloaded. what I did not notice till after I bought is was that if was only for 180 days in .vbk making it cheaper for me to buy the book insted of paying for a two semester deal
By Mihos at 7:34 AM ON 10/02/09
eBooks are having the same problem that downloadable games are having in that they leave the price on them comparable to the bought version as to not undercut retailers. They do this even though the production and distrobution cost are throught hte floor on the download version. There is a price point on books or anyother thing that once you pay it, you have a need to hold something tangible in your hand. And no one likes being told what they can and cannot do with something they have bought.
By Phigment at 7:56 AM ON 10/02/09
I have a Sony touch, and prior to that I had the Gemstar 1100 ( .RB books). I also have been getting *all* my books through Baen. Since I'm a SciFi specific reader, Baen has everything I want to read. When I upgraded from my Gemstar to the Sony, it was a cake walk to download the free calibre, and have it mass convert 800+ Rocket ebooks into epub format, which is compatible with the Sony. Also Baen even has books for the Kindle, and will send it to your kindle device. any book that I want that's not available at BAEN, i can generally get it as a LIT book. And it's pretty easy to get a lit book into another format, that you can pull into calibre and convert it into what ever format you need to read with. So, boycott Amazon Books, until they get their crap together. Every book I have i've paid for. At least baen is fairly priced for their books. Especially when you consider, that there's really only 1 copy of the book, and your just getting a copy of it. So why the high prices? There's not printing costs, or shipping costs involved anymore.
By gorehound696 at 6:04 PM ON 10/02/09
ereading books is krap.sorry but you could not pay me enough to stop reading real books and collecting real books that i can buy/sell whenever i feel like.
and i won over 1,000 scifi and history books.lots of rare harcover 1st editions.
hahahahaha !!! how much will you get for one of your DRM used ebooks. (NOTHING)
By Saif at 10:45 PM ON 10/02/09
I have a few requirements for books.
1) I lend and borrow books
2) I buy used books
3) I read on the toilet, in the bath, on my bed and on the bus.
Until ebooks can meet all the above requirements, I'm killing trees.
By CWilson at 4:12 PM ON 10/05/09
Note that the author of the article includes a comment about paying $10 for a legal ebook. He or she has already been suckered by Amazon into thinking that $10 is the only price for an ebook. Most small publishers and university presses selling specialized monographs cannot support a $10 price point for ebooks. Amazon is pricing these books at $10 even though they are paying more than $10 from many publishers. They are taking a loss now to set an artificially low price point to pressure publishers later. Also, they can raise the price for consumers once they have enough of the market to themselves. To use the author's own point, books are not the same as music and there is no reason why an ebook version of a $50 hardcover archaeology text should cost the same as Mariah Carey's new MP3 download just because Amazon says it is so.
By LarryPalm at 2:36 AM ON 10/08/09
I have been reading ebooks since the firs Palm reader - which is now free and available for Iphone, windows mobile, blackberry etc. I own many and would like to loan them out. I prefer the ereader (palm pdb) over the mobi and have yet to try the epub. I am already a O'Reilly person so I will probably try the epub mobile if it is compatible - that will give me 4 readers on my mobile device!. Remove DRM and let's keep moving on! Read-on!
By Randolph Lalonde at 11:21 AM ON 10/08/09
As a consumer I'm beyond sick of companies telling me how and where I can use their content. When I purchase something, I want to be able to transfer it from device to device and use it on whatever gadget best suits me at the time.
As an independent author who makes a living thanks to people who purchase and read my eBooks, I have to admit that going non-DRM was a little frightening at first. That didn't stop me from finding an online retailer who would provide my work DRM free to everyone who chooses to enjoy my books. Why?
The proof is in the results. When I announced that my books would be available through Smashwords (this DRM free wonderland for indie authors), my readers sent me numerous emails thanking me for not limiting them. Many of my readers see DRM as a punishment for the honest consumer, and I have to agree.
My books are still sold through sites that force DRM onto the books, but at least any of my readers can choose to grab a copy of my work through Smashwords instead and be free of the irritation provided by most online retailers.
By necrosage2005 at 12:01 PM ON 10/08/09
I'd rather see an article on here about, "Why the e-reader market needs to DIE!" Get a virus in it, its done. Nowhere to charge? Done. New tech? Done. Dropped? Guess what. DONE! I don't really know that many people that want to carry around a few hundred books all the time, anyway.
By leodavinci at 1:37 PM ON 10/08/09
I agree with the author that DRM needs to disappear, but someone needs to do a little more research. And in more than one area, I'd say from a couple of other comments here.
Apple didn't institute it's DRM to lock in consumers to the iTunes store and iPods. That's another piece of anti-Apple FUD that just won't die.
DRM was mandated by the music labels. Starting with EMI (if I remember correctly) Apple was eventually able to convince the labels to drop DRM.
FWIW, Apple's DRM was probably the least onerous format and allowed users to share music files across several computers. At first it was limited to 7 computers but later dropped to 5. In fact, Apple actually gave users a rather simple way to remove DRM if they wanted.
By Andrew at 8:45 AM ON 10/09/09
I'm surprise that in the 'research' for this article the author completely missed the leading provider of econtent for libraries. http://www.overdrive.com/ Overdrive provides lending services for hundreds of libraries including the New York public library. They provide over 150,000 copy protected ebooks, including new works like the latest Dan Brown novel. As someone that works in library services I can say that this service is unbelievably valuable, they provide the lendable copy of the ebook in a self expiring format. Simply put we can lend an ebook that deletes itself in 14 days, and the system also automatically handles stock, we can't lend more copies then our institution owns, and finally it eliminates the overhead of books returns and collections. When the 14 days are passed the system releases a new copy for loan because the previously lent copy is auto expired.
One exception it can't loan books to a kindle, by design kindle has a 40 digit ID and Amazon has taken legal action to prevent any other service from supporting a 40 digit DRM unit ID.
Andrew:
I'm surprise that in the 'research' for this article the author completely missed the leading provider of econtent ...More »