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Apple Loses US Anti-trust Case

United States District Judge Denise Cote has ruled that Apple did indeed conspire with a group of book publishers in order to eliminate competition and set ebook prices higher, and force Amazon to do the same. This ruling came as no surprise to legal experts following the trial. And given that all of the publishers in the law suit had already settled, one cannot help but wonder why Apple insist upon going to trial anyway.

If Steve Jobs were still alive, it would be easy to imagine that his stubbornness even in the face of ridiculously long odds, would lead the company down this path. But Steve is dead and it’s time for Apple to forge a new path. Jobs did some great things, but stupid things like the ongoing legal war with Samsung and Android need to be dropped. And this misadventure will be bad for Apple both financially and in the hearts of consumers. I don’t know who Apple thought they were championing by going to trial in defense of higher ebook prices, but certainly not the average consumer.

Apple can still be a great company making cool things that empower the creative spirit in everyone. But letting Steve run the company from beyond the grave is probably not the best strategy.

eManga Revamp Brings Mature Manga to the Tablet

In the early days of eBooks, I marveled at the abundance of yaoi manga titles on the Amazon Kindle. And I wondered when more mainstream manga would make its appearance there and on other tablets. I did not have very long to wait before the collapse of large bookstore chains like Borders, coupled with the popularity of the iPad, pushed most popular manga and comics to digital formats.

At the same time, mature genres like yaoi were coming under fire. Amazon banned a number of titles from the Kindle store. And, of course, hentai was not to find a home in any of the major digital storefronts. Anyone wanting to read more adult themed manga, not necessarily anything sexually explicit mind you, had to resort to scanlations. Not the best choice if one actually wanted to support and reward the manga-ka for their work.

eManga on iPad

eManga PDF manga looks pretty good on my iPad!

This began to change with the arrival of web sites like eManga, and JManga, where many manga not likely to ever see print releases in the United States, could be purchased and read online. JManga carries a wide variety of titles including some yuri and yaoi, but no hentai. eManga, however, is very yaoi heavy with a sprinkling of other genres including hentai and some photobooks.

I’ve read many manga on JManga over the last year, but never really paid much attention to eManga until I recently received news of their site revamp in my email. Of particular interest was the news that many of their titles, previously only readable online or in print, would be available for download in a variety of formats. This included hentai titles from the recently launched Project-H. While I’m not a big hentai fan, I had followed the Project-H story with some interest because it, like the Digital Manga Guild program, appears to be an effort to license and publish manga that has been popular as illegally distributed scanlations. And in the process, harnessing the talents of many of those responsible for the scanlations in the first place.

So I updated my eManga account, found some interesting stories, and then started looking for the reader app. I looked and looked… Then I reread the email, and read the site more carefully. There is no app! GASP! I was a bit frustrated, then took a deep breath and started thinking about why eManga does not have a reader app for Android or iPhone.

*facepalm* Of course! Apple and Google are not likely to approve reader apps for hentai, or yaoi any more than they would for straight up live action pornography. That’s why readers have to download book files from the eManga site directly after making their purchases.

Currently, the downloadable formats include, EPUB, PDF, PRC, MOBI, and CBZ. And note that they have EPUB optimized for Apple and Kobo tablets as well. These are not encumbered by DRM or encryption of any kind, but the buyer’s ID is encoded into the file in some manner to discourage piracy. I’m a big fan of EPUB and it’s my publishing format of choice, so I chose this for my first download. But that turned out to not be the best choice for the Kindle readers on my Nexus 7 and iPad.

I like using the Kindle readers because of the cross platform support and the option to upload books to your document library so that they are available on all of your Kindle devices. But I couldn’t upload EPUB to the library without first converting it to MOBI using Calibre. The resulting eBook had pages that were about 75% the size of my reader screen. Not a good thing for graphic novel reading especially on the smaller Nexus tablet.

Fortunately, downloading another format was only an additional $1. So I chose the PDF option, which is also the format that eManga says gives the greatest flexibility across readers. This was much better, looking great on my Mac, iPad, and Nexus 7. I’d recommend PDF format to anyone who, like me, reads their graphic novels and manga on multiple devices. The eManga online reader also works in Safari on the iPad and Chrome on the Nexus 7, but it wasn’t what I’d call a great reading experience. You’ll want to stick with downloads for your tablets because the web site is not optimized for mobile devices.

Manga on eManga are generally more expensive than JManga, or Viz, but I expect that this is the mature content premium at work. And for DRM free titles that you can legitimately own and read on your tablet forever, it’s worth a few dollars more. So if your preferred manga fare is on the spicy side and you rock the tablet, give eManga a look.

Nexus 7 First Impressions

My Nexus 7 arrived yesterday and after a night setting up and playing with it, here are some first impressions of Google’s 7 inch tablet. First off, it feels pretty good in my hands. It’s solid, but doesn’t have the dense heavy feel that my wife’s Nook Color has. And its compact size is perfect for the use I have in mind for it. I decided to get a Nexus 7 as a replacement for my eInk Kindle and Nook readers. Don’t get me wrong, I still love my eReaders, but they aren’t that useful for me on the road where they often cannot take advantage of the nearly ubiquitous free Wi-Fi at shops and cafes. My new Nexus should have no problems with wireless connections anywhere I shop or eat lunch. Additionally, I’ll be able to read my eBooks, comics, and digital manga on it regardless of whether I bought it from Amazon or Barnes & Noble. I could do this with my iPad too, but it is simply too big for my daily load out.

So how does the Nexus 7 compare to my iPad? In a word, it’s okay. A frequent iPad user will immediately notice the lack of finger tip real estate the 7 inch form factor brings and typing on the smaller screen is a bit of a pain. I didn’t realize just how much I depended on having the keys on the onscreen keyboard jump up at me as I typed. So it’s taken a bit of getting used to. An iPad user will also have to get used to the Android way of doing things. Apple’s lawsuits not withstanding, Android and iOS offer significantly different user experiences. Which you prefer is a matter of personal taste as either will get you where you want to go.

Another thing I noticed was that the Nexus seems a hair slower than my iPad. The interface responds fast enough, but I felt a little sluggishness using the apps. Now in fairness, this is just a first impression and I had a lot of stuff open as the night went on. That said, I like my Nexus. I spent a lot of time in the reader apps from Amazon, Barnes & Noble, and Viz. From text to manga, it was a pleasure using the Nexus 7 to read my books and comics. This is why I bought the Nexus, to have all of my books, manuals, and graphic novels in one convenient, network connected, and portable package. Plus, I now have my own Android reference hardware for my Android development projects. Amazon and Barnes & Noble make some nice 7 inch tablets too, but the one from Google is pure Android, which is what I want for development.

So on the whole, I’m liking my Nexus 7. It’s not an iPad, but I don’t need it to be.

And The eBook Prices Came A Tumbling Down

money going up in smokeWhen I started looking for some new iOS programming books for my Kindle last week, it wasn’t something I was looking forward to. The last time I had engaged in such a search, I was frustrated by the high cost of these books even in digital format. This time I was in for a surprise. Lower prices!

In the aftermath of the U.S. Department of Justice (DoJ) settlement between three of the major eBook publishers and retailers, I had expected that eventually eBook prices would come down. But I wasn’t expecting it to happen so fast. Nevertheless, Ars reports that eBook prices are already falling. As part of the DoJ settlement, publishers HarperCollins, Hachette, and Simon & Schuster, agreed to abandon the agency model in which eBook prices were set by the publisher, giving that power back to the retailer.

While Amazon, Barnes and Noble, and Google Books have already started selling some eBooks below list price, no such luck at the Apple iBookstore yet. Apple is among the holdouts, publishers Macmillan and Penguin, determined to meet the DoJ charges in court next year. I can only hope that they will come to their senses and realize that lower eBook prices for the consumer can only grow the market for eBooks and other digital goods. While it means the inevitable decline of the hardcover printed book, major publishers still have back catalogs of thousands upon thousands of books waiting to find new readers and new life as eBooks.

A Perfect Storm For eBooks

X-Men_StormWith the U.S. Department of Justice putting the hit on Apple and a cabal of publishers for alleged collusion and price-fixing on  one side, Amazon brings a smackdown on the other announcing plans to lower prices for eBooks on the Kindle. While a number of the publishers have decided to settle with the DOJ, Apple and five others did not, leading the DOJ to formally file suit against them.

Apple has denied any wrong doing, but it seems clear that regardless of how things turn out, the prices that consumers pay for most eBooks are about to tumble. I’ve seen a lot of gloom and doom on the net about what this will do to publishers and small bookstores, but I think that in the end a perfect storm may be brewing for eBooks to take the center stage of reading, just as digital downloads on iTunes has done for music. Despite the high cost of eBooks relative to what many readers think they should be in relation to their printed siblings, the eReader market is booming. I think a critical mass of Kindles, Nooks, iPads, and other tablets has been reached. The only thing holding the eBook back now are the artificially high prices being propped up by the old guard of publishers, aided, unfortunately, by Apple.

When prices drop, the flood gates will open on sales of eBooks and reading devices. Obviously, Amazon stands to gain a great deal from this. Ironically, so will Apple which should see an increase in iPad sales as well, especially if they see greater adoption of their tablet by school districts. The fighting is going to be fierce and there’s a big question as to whether Barnes & Noble is likely to survive. The Nook Tablet is a great reader, but Barnes & Noble may not have the resources to fight toe to toe with Amazon. If they’re smart, they’ll be in talks with Google right now for a partnership or buyout.

Change happens. But I’m more excited about the world of digital literature to come, than fearful of the end of things I’ve known in the past. At the end of the day, a book is more about the thoughts the author shares with us, than the media that delivers them.

Do Not Pass Go! eBook Prices May Drop As EU And US Double-team Apple And Publishers

Do not pass go do not collect $200Ars reports that the European Commission is teaming up with the US Department of Justice investigating allegations of collusion and price-fixing in the eBook market by Apple and several large publishers. Apple and publishers Harper Collins, Simon & Schuster, Pearson’s Penguin, Hachette Livre, and Macmillan are accused of working together in order to keep eBook prices artificially high, in some cases higher than the printed edition.

This alleged collusion is behind the move to the agency model in the eBook market by Amazon, Apple, and Barnes & Noble. In the agency model, publishers, rather than the retailer, set the prices of eBooks. Prior to that change, Amazon set its own prices for eBooks, often at a deep discount over the paperback cover price. Most Kindle eBooks costs $9.99 and less during that time, much to the chagrin of publishers who feared a rapid erosion of the printed book market. This changed after several of the large publishers threatened to withhold their books from the Kindle store unless Amazon agreed to the agency model they had worked out with Apple. Following this change, eBook prices rose dramatically, in some cases exceeding the cost of print.

If the EU and US actions against Apple and the publishers is successful, they will likely see large punitive fines and be forced to abandon the agency model. This could see a reduction in eBook prices which in addition to increased happiness for book readers, in this writer’s opinion, could also spark a boom in sales of eBooks and readers. Anything that grows the eBook market is quite welcome here!

Is the Sun Setting On the Nook?

NooksetAgainst the backdrop of Amazon Kindle Fire sales that may have exceeded 5 million units last quarter, Barnes & Noble made statements last week that implied they were seeking to spinoff the Nook division. All said, Barnes & Noble may not have the resources needed to grow the Nook business into a profitable competitor to the Kindle.

Ironically, many credit the Nook and eBook sales with helping Barnes & Noble avoid the fate that befell long time competitor Borders last year. It’s hard to see exactly how they would benefit from spinning off the Nook. It’s believed that both Amazon and Barnes & Noble sell their eReaders at a loss, intending to make up for that by profits on the content sold through that hardware. It makes sense that Barnes & Noble would want to escape the loss making part of the equation, but what partner would want to pick that up?

Much of the popularity of the Kindle Fire has been ascribed to its $199 price point. This low entry price is credited with a small decline in iPad sales in December. And it seems likely that despite some quality and usability issues, the Fire will take the number 2 tablet position behind the iPad. Again, one of the reasons Amazon can do this is that their profit comes from content sales on the Fire. A hardware only tablet maker has to make a profit on the hardware itself, which may not be possible at a $199 price point, or even the $249 of the Nook Tablet. If that is true, then Barnes & Noble will have a hard time finding a partner with the deep pockets needed to take that kind of risk.

Then what is the point of the announcement? Is this some tasty bait being dangled before the likes of Google perhaps? While Google already has an eReader tablet, it has not been a great success, nor has their eBooks store relative to Amazon and Barnes & Noble. The Nook Tablet is powered by Google’s Android operating system, and is arguably one of the best Android tablets on the market. A Google Barnes & Noble partnership could be profitable for both and give publishers a viable counter balance against Amazon. Still, it’s hard to see this happening. And in the absence of additional resources, the sun may be setting on the Nook far too soon.

Amazon Brings The Pain With KDP Select!

As a runner, I was always taught to never look back at the competition. Keep moving forward, never slow down. With its introduction of the KDP Select program for self-publishers, Amazon clearly intends to add to its already commanding lead in the eBook market.

KDP Select adds a number of new features that self-publishers on the Kindle have been asking for for some time. These include the option to offer books for free, and to participate in the Kindle Owners Lending Program, with an attractive cash incentive in the form of a $500000 fund for participants. KDP Select adds a terrific toolset for promoting your eBooks, but there is just one little catch. Books enrolled in the program must be Kindle exclusives for at least 90 days.

That last little catch won’t be much of a stumbling block for most authors who already publish on the Kindle. But it’s virtually a nuclear strike against Amazon’s eBook publishing competitors such as Barnes & Noble’s PubIt!, Smashwords, and Apple’s iBookstore. The marketing and cash incentives are simply too good to pass up. While Learncrest has no plans to pull our current eBooks from other stores, new titles will very little be enrolled in the program.

So for it looks like Christmas has come a little early for many eBook self-publishers. But Amazon’s eBook rivals may be getting lumps of coal this holiday season.

Runners in Different Races: Amazon Fire vs iPad

As expected, Black Friday sales of the Kindle Fire were very good and some analyst project that Amazon will sell 4 to 5 million Fire tablets before the end of the year. While there have been some indications that sales have cooled a bit, right now there’s no reason to believe that the Fire is going away any time soon.

The thing I find most interesting about the news I see is the continuing comparison to the iPad. Many stories cast the Kindle Fire as a potential “iPad killer” when clearly the hardware and software indicate a different target. Amazon’s new tablet is first and foremost, a Kindle. It’s an eReader first and was probably initially intended to be a response to the Nook Color than the iPad. As I’ve ranted here before, the Kindle Fire was made for book lovers making the initial move into digital. The Fire and iPad are horses running different races. If anything, over the long term, the lower spec’d Fire is more likely to drive iPad sales as many Fire users get hooked on digital media and seek out a more capable tablet still compatible with most of the media they’ve already bought.

It’s too early to tell if the Fire has made a significant dent in iPad sales, but it does look like it has claimed at least one victim as Dell has recently dropped its own 7 inch tablet. Dell has always been pretty quick to drop products that have no long term profit potential, so this move speaks volumes. As for the Nook, Barnes & Noble has been claiming good sales and a doubling of its Nook business since last year. We won’t really know if the Nook tablet has gained any traction until Barnes & Noble’s next quarterly report.

Competition is generally a good thing for the consumer, so I hope the Nook tablet won’t fall victim to the Fire too soon. However, the days of other 7 inch tablets that lack strong ties to eBook and media stores may be numbered.

New Nook Tablet Plays With Fire At High Price

Barnes & Noble unveiled their new Nook Tablet today, boasting higher specs than Amazon’s Kindle Fire in nearly every measure, including price. The new Nook weighs in at $249 versus $199 for Amazon’s tablet. Barnes & Noble also announced immediate price cuts of the current Nook Color to $199 and the Nook Simple Touch to $99.

kindle_less_is_more

Sometimes Less Is More

Clearly, these moves are in response to Amazon which makes the higher price of the new Nook rather puzzling. Even more puzzling given that anyone who’s been watching the iPad vs. everyone else tablet wars has already seen this movie played out before. Barnes & Noble calls the new Nook a better value than the Kindle Fire because it has a faster CPU, more system memory and data storage. And they’re right, in a rationale world, the higher spec’d, better performing tablet should command a higher price. Consumers should flock to it, right?

But isn’t that what a number of tablet makers claimed when they went into battle against Apple’s iPad? They offered tablets with more features, raw processor speed , and memory than the iPad. And some of them could play Flash videos and games too which the iPad still cannot do. This greater performance came at a greater price than the base iPad which was entirely reasonable being a better value. But in the end, most of these tablets were utter market disasters. Even the most successful of them have scarcely made a dent in the market share of Apple’s iPad.

Consumers are looking for value, but that doesn’t always correspond to the better hardware. Amazon has an enormous media and online retail data infrastructure to plug the Kindle Fire into. This is entirely analogous to the integrated ecosystem that Apple has built around iOS devices. When you buy an iPad, buying movies, music, and apps is drop dead easy. If Amazon produces a similar user experience with the Fire, the higher spec’d Nook won’t even get a chance to play. Sometimes less is more.

It is good that Barnes & Noble seems to have gained an ally in Netflix, but launching a new tablet at $50 more than the latest from the Amazon juggernaut could be a fatal mistake. Techies love the faster hardware, but they are not the market that is at stake here, nor are the people happily using iPads and other full function tablets. The real market consists of that larger, aging population of people who are increasingly annoyed that so many physical bookstores are disappearing.

These book lovers are being forced by necessity into buying their first eReaders. Little do they know just how quickly they’ll be hooked on eBooks. Once that happens, they’ll be well primed to buy other digital content. This crowd is not going to go for the tablet that costs $50 more than the one from the company that they’ve probably ordered books from in the past. I mean, really, who hasn’t bought something from Amazon in the last 10 years?

I think, B&N can build some advantages with their physical stores and the ability to not only showcase the Nook, but also popular and up and coming authors. But they’ve seriously got to lose the $50 premium. Price matching the Fire with the slower, older Nook Color is not going to cut it either. I think this fall is setting the stage for whether the last major U.S. bookstore chain survives or closes the book on the era of popular printed literature.

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