An American Editor

January 22, 2010

From the Frying Pan to the Fire: Amazon to Apple

Let me begin by saying this: I just don’t get it. What hallucinogen are publishers imbibing? The music industry would love to trump Apple and the publishing industry would love to trump Amazon; but only the movie industry is thinking the matter through.

There are lots of problems with publishing’s looking to Apple for salvation; here are a few: First, if there is a bigger control freak in the media industry than Jeff Bezos, it is Steve Jobs. Have publishers forgotten that the music industry was unhappy with iTunes pricing but couldn’t budge Jobs? Publishers can’t budge Amazon’s $9.99 pricing, what are they going to do when Jobs demands $6.99 pricing?

Second, if rumors are right and that what Apple is bringing to the table is a tablet and not a dedicated reading device, what makes publishers think tablet buyers will suddenly become book buyers? Why do publishers think the tablet will be the Damocletian sword over Amazon’s head? Or do publishers plan to simply cut out Amazon altogether even though it commands 20% or more of the book-buying market?

And what about the expected premium price for the Apple tablet? If book buyers are complaining now about what a Sony Reader or Amazon Kindle costs, what makes publishers think they’ll jump at Apple’s pricing?

In addition, studies show that when a multimedia device, which the tablet will be, is used, the user’s time is spent listening to or watching audio and video media or playing games, not reading books. All a publisher needs to do is read the most recent Kaiser Family Foundation study of children and teens ages 8 to 18 years and how they use their multimedia devices for the publishers to know they are barking up the wrong tree.

Third, are publishers so lacking in imagination that they have to give up control of their industry to not one player but two? What are they going to do when Google starts throwing its weight around? Close their doors?

Yes, there has been drooling by some ebookers for the Apple tablet, with pundits assuming its arrival will cure whatever ails all media businesses. But what ails publishers is not curable by any device. It’s like having a fever and assuming that a thermometer will cure it — it isn’t going to happen. If anything, publishers are setting themselves up to fail and fail mightily, especially if there is an initial but unsustained burst in book sales concurrent with Apple tablet sales.

Let’s assume that publishers get very favorable terms from Apple. How long do publishers think that honeymoon will last? My guess: until Jobs decides that people really do read books and realizes that he needs to do to publishers what he did to the music companies. This may be a win for consumers, but not for publishers.

As each day goes by, I worry more about the world of publishing. Publishers have been important to the spread of quality literature and of knowledge, but they are rapidly marching to their funeral pyres. Publishers need to recognize that their salvation lies in their own hands, not in the hands of the Bezos’ and Jobs’ of the world.

If publishers need a role model to emulate, look to the video industry. The Economist reported that 5 of the 6 big studios (Disney is working on a similar solution by itself) want to join, along with some other firms and retailers — but not Apple — to create a single download video format and a single firm to track purchases. They are looking to create what I called a repository in an earlier Modest Proposal. The consumer will buy the video online at a partnering retailer who will then link the buyer to the repository. According to The Economist, “Consumers will be able to buy a film once and then play it on different gadgets….[The] initiative aims to stop a company doing to film what Apple has done to music and Amazon threatens to do to electronic books.” At least the movie industry is thinking with its brains and not sitting on them. Shouldn’t publishers be doing this?

Publishers need to grapple with their problems themselves and not look to external fixes by companies and persons that they ultimately can neither influence nor control. Trying to use Apple to thwart Amazon is jumping from the frying pan of to the fire — it is the tolling of the death bells for the big publishers.

2 Comments »

  1. Good points, I think I will definitely subscribe! I’ll go and read some more! What do you see the future of this being?

    Like

    Comment by Me — January 23, 2010 @ 7:48 am | Reply

  2. […] on the pas de deux between Apple and the Big 6, the blog An American Editor asks a very pertinent question: “Let’s assume that publishers get very favorable terms from […]

    Like

    Pingback by Amazon, Apple and the ‘Big 6′ Get Ready to Rumble in the E-books Jungle « Caribbean Book Blog — February 5, 2010 @ 10:18 pm | Reply


RSS feed for comments on this post. TrackBack URI

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Blog at WordPress.com.

%d bloggers like this: