Showing posts with label financial times. Show all posts
Showing posts with label financial times. Show all posts

The iPad 2 and the e-reader app situation

APPLE IPAD-2 NEWS IN CONNECTION WITH E-READER/KINDLE INTEREST
In the articles linked and summarized below, note the Apple-device revenue-sharing issues that were described in a blog entry Feb. 24.

Many Kindle owners also own iPads for color-intensive books, web-surfing, and shorter, lower-light reading sessions, and many are (according to article comments) waiting to hear what Apple plans are for Kindle, Nook, Sony, and Kobo apps for iPhone and iPad in July.

"Why you should wait before buying an iPad 2"
That is the headline for a Communities Canada parenting blog by Chad Skelton, who makes the following points:
' Of the people I know who have an iPad, or who want one, one of the reasons they want one is to use it as an ebook reader... in addition to Apple's own iBooks, you can also download other ereading apps for the Kindle and Kobo -- even library ebook apps like Overdrive.  It's the one device that doesn't force you to lock in with a particular book buyer -- meaning you have the broadest possible selection to choose from and can comparison shop for the best deals.

  But all that versatility is at risk.  Apple's new subscription and in-app purchase policies -- which will require apps like the Kindle to cough up 30% of every book purchase to Apple -- may well force other ereading apps off the device.
  [The wording should be "might require" rather than "will require" as the wording is still for subscription apps until we know more.]

Which would, in one stroke, turn the iPad from the most versatile ebook reader to the least.  Instead of having your choice of several ebook stores, you'd have a choice of just one: iBooks. '

Now that Random House is adding 17,000+ e-books to Apple's iStore, it could be that some Apple execs could decide to consider B&N, Amazon, Sony, et al, "middlemen" -- said to be of no interest to Apple, and the way to get them off the iPad and iPhone/iPod Touch would be to just grab 100% of the revenue-share of these competing online bookstores wishing to have their apps included on the Apple devices.  One can understand a 3-10% fee, but 30% from 'middlemen' who get only 30% in the first place would be indicative of unparalleled, open greed.

 If that turns out to be the case, I don't know why Apple wouldn't just say they no longer want competing online bookstores on their devices.  I think that's better than just saying they want 100% of the revenue that the other stores would normally get (30%).

The article ends with:
' But if you're interested in using your tablet as an ereader, you'd be wise to wait a few months to see what happens before plopping down $500 or more on what could be a very lame ereader come this summer. '
The many comments to the February 16 article linked in the quotes are an indication of how many Kindles (UK: K3's) might be bought due to such a decision by Apple.


"THE IPAD 2: LIPSTICK ON A PIG"
"Apple’s new subscriptions policy takes the lustre off launch"
This mentions other apps that may not be available on the Apple devices.
The New Stateman's Jason Stamper
' Rhapsody said in a statement that, "An Apple-imposed arrangement that requires us to pay 30 per cent of our revenue to Apple, in addition to content fees that we pay to the music labels, publishers and artists, is economically untenable. The bottom line is: we would not be able to offer our service through the iTunes store if subjected to Apple's 30 per cent monthly fee vs a typical 2.5 per cent credit card fee." '
  Rhapsody will be looking, with its market peers, at "an appropriate legal and business response to this latest development."

  Apple did buy Lala last year, though, and may have its own plans, Stamper said.  Also:
' The chief executive of Pearson, the publisher of the Financial Times, said on Monday that it may pull the FT out of Apple's ecosystem if it refuses to give up customer information.  "It is unclear how their proposal is going to work, we are still talking to them," said Marjorie Scardino.  "The important thing to remember is there are many, many tablets coming out and multiple devices ... [from] Kindle to mobiles.  If indeed Apple are not happy to give us customer data then maybe we will get it somewhere else." '
Stamper adds:
' It's little wonder that if the Wall Street Journal is to be believed, the Justice Department and Federal Trade Commission are "looking at" Apple's new rules for possible antitrust violations.  At the heart of the issue isn't the 30 per cent fee but that requirement that in-app subscriptions have the same price as offers outside the app. '
  The coming (March 11) iPad 2 is considered "more an update than an upgrade" by some reviewers, and as a result some expect an iPad 3 in September with real changes instead of something to keep momentum up while the myriad of tablets are released in the next few months, while others feel that Steve Jobs's statement Tuesday that 2011 will be the year of the iPad 2 means this is IT for this year unless they also release a 7" of some type (whether a large iPod or a small iPad).  In any case, those who prize the e-reader capabilities available today will be waiting for further developments before dropping money automatically for Apple's latest edition of the iPad.

  Already, although Android apps are not plentiful yet, the Xoom WILL support Adobe Flash, will have true multi-tasking (apps actually running in the background rather than suspended, and their activity showing in a window), have a USB port and an SD slot and, most important for book readers, will run the various e-reader apps.


Kindle 3's   (UK: Kindle 3's),   DX Graphite

Check often: Temporarily-free late-listed non-classics or recently published ones
  Guide to finding Free Kindle books and Sources.  Top 100 free bestsellers.
UK-Only: recently published non-classics, bestsellers, or highest-rated ones
    Also, UK customers should see the UK store's Top 100 free bestsellers.

Murdoch Rebuffs Amazon's terms for Kindle model

Financial Times's Kenneth Li and Andrew Edgecliffe-Johnson report Murdoch's strong resistance to Amazon's Kindle business model.

Proposing a new revenue stream for newspapers, Amazon apparently wants as much as 70% of any subscription revenues earned through the Kindle, per a statement by James Moroney, the chief executive of the Dallas Morning News during a Senate hearing on the future of Journalism.  Moroney mentioned that Amazon also wants "the right to republish the newspaper’s stories on other portable devices," per the FT writers.

 It's been established (but not mentioned in the FT article) that Amazon offers Kindle book publishers 35% of the List price but can discount their own selling price to $10~ while still paying the publisher 35% based on the publisher's price.
 So, if a publisher sets the List price at at $25 and Amazon sells a book at $10, Amazon pays the publisher almost $9 from the sale and keeps about $1.

Murdoch is quoted as saying that though News Corp could make money from customers' interest in using a mobile device to read the news, "We will not be giving our content rights to the fine people who created the Kindle."

At the same time he said one of his general newspapers will start charging for its content online, within the year.

The New York Times and the Washington Post are backing the Kindle model (though the pricing could vary somewhat for each company).  And the FT adds that "Textbook publishers Pearson, owner of the Financial Times, Cengage Learning and Wiley are also to offer some books on Kindle."

UPDATE 5/8/09: - Financial Times is puzzled by this, since Wall St. Journal and Harper Collins are part of his operation and are already on Kindle.  Is he threatening to withdraw? (Not ultra likely)