ebook standards
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E-book Standards
Presentation Created By Scott Lowe. http://www.publishingbits.com
Definitions: Proprietary vs. Open Standards
• Standard: A set of rules and/or requirements governing how data is stored and transferred.
• Proprietary Standard: A standard that is exclusively owned by an individual or organization, the use of which generally would require a license and/or fee.
• Can be licensed for others to use or kept completely private.
• Open Standard: A standard that is publicly available and has various rights to use associated with it.
http://www.acq.osd.mil/osjtf/termsdef.htmlen.wikipedia.org/wiki/Open_standard
Presentation Created By Scott Lowe. http://www.publishingbits.com
Architecture of the E-book Market
Connectivity Capabilities
Content Aggregation & Distribution
Digital Rights Management
Dedicated Device Additional Software
Content Creation
Consumer
Content Editing, Marketing, Etc.
Current Market Capabilities
New Market Capabilities
Presentation Created By Scott Lowe. http://www.publishingbits.com
Sony vs. Amazon
• Sony eReader launches in fall 2006.
• Amazon Kindle launches in fall 2007.
• Both use proprietary, private file formats and digital rights management (DRM) technology.
• Why?http://www.slate.com/id/2151525 http://www.engadget.com/2007/11/19/live-from-the-amazon-kindle-launch-event/
Presentation Created By Scott Lowe. http://www.publishingbits.com
Proprietary Standards: User Experience
Connectivity Capabilities
Content Aggregation & Distribution
Digital Rights Management
Dedicated Device Additional Software
Content Creation
Consumer
Content Editing, Marketing, Etc.
Proprietary standards enable more effective vertical integration with better control over the user experience.
Better control improves chances for market adoption.
Presentation Created By Scott Lowe. http://www.publishingbits.com
Proprietary Standards: Lock-in
• With proprietary standards, it is difficult for consumers to leave your platform.
• Content purchased for a Sony eReader is accessible only on Sony devices.
• Strategy: Invest in new customers in order to make the platform more attractive to publishers. More publishers (i.e., more books) attracts even more customers.
Presentation Created By Scott Lowe. http://www.publishingbits.com
Proprietary vs. Proprietary
• Proprietary, private standards enable and reward growth, making it difficult for smaller companies to compete.
• In early 2009, Amazon was growing its Kindle user base while Sony’s was lagging far behind.
Presentation Created By Scott Lowe. http://www.publishingbits.com
Any Downside?
In competing to become the standard, or at least to achieve critical mass, consumer expectations are critical. In a very real sense, the product that is expected to become the standard will become the standard. . . . As a result, companies participating in markets with strong network effects seek to convince customers that their products will ultimately become the standard, while rival, incompatible products will soon be orphaned.
--Hal Varian and Carl Shapiro, Information Rules
Presentation Created By Scott Lowe. http://www.publishingbits.com
How to Fight Amazon: Sony’s Strategy• Embrace open standards in order
to:
• Modularize the market
• Eliminate winner-take-all market dynamics
• Sony announcement in 2009 of its intention to abandon its BBEB file format and instead sell ePub content wrapped in Adobe DRM.
• ePub is an open standard.
• Adobe DRM is a proprietary, but licensed standard.
New
Presentation Created By Scott Lowe. http://www.publishingbits.com
Sony’s Strategy: Modularized MarketNew
Presentation Created By Scott Lowe. http://www.publishingbits.com
Sony’s Strategy: Modularized MarketNew
Presentation Created By Scott Lowe. http://www.publishingbits.com
Sony’s ePub Logic
• An increase in the size of the new, open platform will offset the decrease in the company’s share of that platform.
• Take a smaller piece out of a (hopefully) much larger pie.
Presentation Created By Scott Lowe. http://www.publishingbits.com
Apple iPad: iBooks
• Impact is far from clear:
• Announced support for ePub but no word on DRM technology.
• iPad will support other e-book apps, including Amazon Kindle and Barnes & Noble.
Presentation Created By Scott Lowe. http://www.publishingbits.com
Apple iPad: iBooks
• Impact is far from clear:
• Announced support for ePub but no word on DRM technology.
• iPad will support other e-book apps, including Amazon Kindle and Barnes & Noble.
Connectivity Capabilities
Content Aggregation & Distribution
Digital Rights Management
Device Additional Software
Content Creation
Consumer
Content Editing, Marketing, Etc.