Know anything about e-Books and readers?

So the UOP eBook texts are locked? By that you mean that they require a proprietary reader that comes with the book? That's the only way you can read it? How well does that work?

 

As a computer repair guy let me be the first to say that copy protection is not the answer. Encrypted, locked products are eventually broken products. When I reload an OS my costumers get to deal with all the issues caused by their now confused legally purchased music (itunes, walmart, they all stop working until further action is taken!). People who pirate get a better product at a better price . The day will come when people will stop putting up with this garbage.

Why would anybody buy a crippled product? Eventually we are going to catch on and the kindle, itunes, and all similar products will die in favor of PDF readers, Pandora and smarter distribution methods in general. There may be some bad years for many industries that sell intangible products, but they will adapt in the end and the world will be better for it. It's only a matter of time. Small-time musicians and independent movie makers should pay attention and wait for their chance during the handful of dead years that will inevitably come!

Personally I look forward with great anticipation and little sympathy for those who get left behind (I mean fat cats, not grannies!). Don't invest in record companies or movie production companies!

 

Good point, but there is no money in open distribution. It's got to evolve, but into what? How can it survive and be profitable? It's a bit of a "Catch 22" situation for producers. There has got to be a profit or there is no motivation to create the music and movies. I'm afraid that the movie and especially the music industry is headed for an implosion. ....By the way, I love Pandora.

 

I think Rickyjo makes a good point. Except for Apple (and that's a really big exception) and some gaming systems, closed architectures are eventually doomed. The key to making money isn't locking people up, it's providing a better product. Think AOL vs. Google, for example.

This can be negated when one provider is so superior, they make the others go away. Think iPod, which killed everything and took the portable music market away from Sony (remember the Walkman?). I don't see that kind of advantage with the Kindle.

Gillette taught us: give away the razor, sell the blades. This is well-exemplified by VHS, an open architecture that sent Sony (again!) with its Betamax packing. Almost no one disagrees that Beta was a better product than VHS. But VHS, because it was open architecture, delivered more movies more of the time. Consumers responded to that. VHS recorders/players became commoditized; the money was made in selling the tapes. Same with DVDs. Blue Ray still has to play out. Soooo......

I love my Kindle, but I wouldn't be surprised to see it supplanted by not one player, but a whole bunch surrounding an open architecture. But if that occurs, it really eliminates the middle man--publishers will be able to publish directly to people's ebook readers. Or does it? Will there be a need for someone to publicize and distribute (which is what Amazon does)? Probably.

I bought a Kindle DX for three reasons (beyond the fact that I wanted an ebook reader). First, it's really a cool device. Lightweight, awesome battery life, etc. Second, it is backed by Amazon, which means I get a whole bunch of titles available for (usually) very low prices. Finally, by the time I'm done with my Kindle, this thing will have played out and I can select something that might actually have longevity. And the Kindle will have gotten me through my NBT, which is a good thing.

 

I agree with your idea, Rich, but I'm not sure it can work. Gillette gave away razors and sold blades, so they still had an avenue for making a profit. VHS replaced Beta but there was still a profit to be made in selling VHS. But with open availability of intellectual and artistic property, where could producers make a profit?

 

1. Selling the devices (think Best Buy, Amazon, etc.)
2. Selling the content (think Best By, Borders, Amazon, etc.)
3. Selling new, unforeseen features (web connection?)

 

Think this way, In the future I predict when you buy a computer it likely comes with the ability to download free music, based on the music listened to or downloaded Music companies get a cut of the revenue from the tangible product (that is the computer) because they have added value to it. Just a crude example. I believe that is how something like Pandora probably works. I'm sure apple pays them and they pay the music producers (I have no info on this, just an educated guess). Intangible products will not be bought and sold for much longer. Sure, a computer or an IPOD will be, but the product that goes on them will not because it is available for FREE as it should be. We are greatly limiting the usefulness of technology. Granted nobody works for free.

Consider in the music industry. Quite a few bands are apathetic to piracy (disturbed for example) because they believe that the wider the distribution of the music the more people will come to see their shows where they (apparently) really make their money. Obviously not everybody feels this way, but it's a fact that many do.

Sure, some people make less of a profit, but it will just revitalize the industry with fresh blood, musicians who are not going to whine about making less of a profit than the current big musicians (if they can cover their cost of living they will be more than happy! Local bands are the only CDs I purchase). Having seen many local bands in my city I would suggest the damage to the music scene will be low or in fact force it to improve. The record companies would be temporarily crushed, but who gives a crap about them? Besides, they will adapt kicking and screaming, eventually. Let the technology progress and let's get out of our self-imposed boxes (especially with music!).

The movie industry is a bit more complicated, but how taking a step in the right direction? FOX and others are black-balling services like Red Box which really are at least a step in the right direction if not the ultimate goal. Not everybody has the patience to pirate movies so I suspect that their time will come after the music industry's. But it WILL come, one day we will legally watch movies for free. The budget may be a bit lower on any given movie, but they will find a way to make a profit. They just have to be creative. Sun wouldn't have helped produced Open Office if they did not think they could make a profit (not sure if they did or not), people donate, people click on ads, people click on links, there are ways to make money with free products. Everything Microsoft has ever produced is available in some form for free. That's the beauty, it's already there, people just have to wake up.

Ad driven revenue is a great example. How about a very small ad in the corner of your movie? This would be fine for people who currently pirate (often results in low quality or movies that stop half way etc), an ad would be superior to that! Or Ads along with previews, etc.
Now of course this would not work for everybody. I suspect they will gladly go to their local movie store and buy a now much discounted DVD. Sure, somebody is making less money; however, the industry doesn't die and the consumer wins. I'm very confident we are going to get there someday and we should be happy about it.

No more sending people to jail for actions that are hardly criminal, no more nuisances and extra security when pirating, full quality movies at a low price if you don't want ads, real artists getting their shot even if they are not currently rich. The benefits are endless, the downside is negligible.

As for books, Ad driven as an option as opposed to purchase only is an option there as well, but they are not required to distribute electronically YET. So that is a bridge yet to cross. Of course, it will happen. Technology cannot be stopped and the good it will do for the world is mind boggling. If we can make entertainment nearly free people who lack an income and self control will have a much-needed hand up. Hell, I guess this could even take a bite out of poverty.

If the internet didn't keep me so entertained, if there wasn't hulu, pandora, etc, my cost of living would be much higher. We are starting to catch on, free radio and television, ad driven mediums, those are good things! Just think when your TV and your computer are the same thing (it's coming! Look at the Wii and PS3), ad driven movies will make even more sense.

 

I hope that post does not make me unpopular. People deserve to be paid, but technology can save us all and if a few fat cats get a bit less fat I find that a small price to pay.

 

Yes, but that's hardware sellers. Artists and authors are not in that business and are not likely to be. You won't have much of a market for intellectual and artistic content if it's available for free. That fact has all but destroyed the record industry. (I speak from personal experience here) I agree that it has got to happen, no other choice really, but I think the availability of good content is going to decline as a result.

 

The problem is already solved

eReader has already solved this problem. It's basically a minor software issue. eReader works on numerous devices and systems that includes phones, desktops and dedicated ebook devices like Foxit. Basically, all it takes is the eReader software and the unlock code to open your books. I have a collection of ebooks I've gathered since 2004 and have moved from device to device. I bought them for my old Palm, but now have them on my cell phone. No store holds a monopoly on the books. I bought them from several places and everyone made their money, everyone except the printers I guess. The unlock code is a combination of one's name and credit card number, which most people would not care to mass-distribute. Mobipocket has a similar system.

 

That's a good answer and probably where it will all end up. Although I doubt it can end pirating. There has to be some charge for the content or we'll no longer get good content.

 

I agree that you can't completely end pirating, but it should even out in the end. With ebooks there's no second hand books. Almost everyone has to buy a new copy. People might hand off their personal information to friends and family, but I doubt people will openly post their credit card number to allow everyone to use their books.

 

Yea, the credit card number might be a good way to do it. People might resist using their credit card number in that way, but, if you can get past that, it may be a solution

 

I'd almost forgotten, but Kindle already allows buyers to read books on a variety of platforms. Currently, you can download Kindle readers to your PC and iPhone/iTouch and more platforms. I believe Barnes and Noble is doing the same with its Nook reader. The big book sellers seem to focus on the book sales and not on forcing their devices on you, although Nook and Kindle are both worthwhile.

 

Oops I misunderstood what you guys were talking about by "locked." I meant password protected and it has to connect to the Internet to verify the login/password info you provide.

 

Everything electronic is already available for free. You have to make people believe they are not paying for it to be profitable in the future, that's why the round-a-bout profit is going to be essential. Websites make money, youtube makes money, free television actors make money, hulu makes money, I would imagine Pandora makes money, these venues are profitable and already exist! Ad driven works, and if the distribution is high enough it wont take very many or particularly intrusive ads. HULU is the best example of the distribution methods of the future.

As for the recording industry, I listen to local bands that are far superior to the well-known bands and stars all the time...but they won't get their shot unless the current hierarchy takes a damaging hit. I think the silver lining is brighter than the cloud is dark. Solid musical content will never go away. You couldn't get rid of it even if there wasn't the slightest bit of profit motive, and for most it will only improve with any damage to the profit potential of current stars.

I would gladly become a movie star if the pay was 1/100th of what it is now for some of these people, and I'm sure many much more talented people also would. In a bloated industry like this (like sports, like music, etc) a strong loss in profit is not going to damage the industry as long as it comes out of the star's profit and not the working stiff; however, even that may be required TEMPORARILY to accommodate progress. Pissed off people invent things and become innovative. If a certain product, service, or method never becomes unacceptable to somebody nobody invents the next step. So welcome profit loss to certain industries if you desire innovation and free stuff! The "problem" is not a problem at all if it doesn't get artificially curbed.

You guys don't believe me, but it's going to happen

 

The kindle reader for the PC & iPhone/Touch are great. I've toyed with the B&N reader a bit, and my wife has ordered a few books on it, but she's been having issues with the reader not working correctly, and a few of the books being corrupt (on the distribution level, not just the file she pulled down for them). They seem to still have a little bit of work to do with it.

We're going to get her an iPad when it comes out. Hopefully the iBook store (Ok... I like the product, but I'm really getting annoyed by the iEverything names.. <shudder>) will have good quality control. The ability to run apps like Goodreader (which I swear by on my touch) to read PDFs and word docs,
really is helping hit the ball out of the park for me with the iPad. The only thing I can't wait for is for the price to drop on them a bit.

If schools start getting their proprietary readers working on the iStuff, I might have to get one myself.

 

I'm a studio guitarist for a small record label so I can speak from personal experience. I have never made a lot of money doing it, but now the situation is terrible. There might be a few "fat cats" that deserve to taken down, but most of us in the music industry have never been "fat cats", never made it rich and currently have really suffered from the collapse of the industry.

 

Math of Publishing Meets the E-Book
http://www.nytimes.com/2010/03/01/business/media/01ebooks.html?em

 

RickyJo. Sorry, got pulled away from that last post and didn't finish my reply.

To continue with my thought from the previous post, your statement about there still being good content available may be partially true, however, you are missing a point that most people don't even think about The little people in the music industry, people like me, who are large contributors to the quality of that content, will not be able to survive. I firmly believe that the quality and quantity of the content will diminish in the current environment of free downloads. Your statement that, if there is any money to be made at all, there will still be content, is not totally accurate. Like most high profile industries, it's the little guys who make it all work, and they will not be able to survive on tiny fractions of money. They all have to make a living.