Apple's own approach to iPad e-books could confuse

Jan 31, 2010  2:15 PM (ET)

By PETER SVENSSON
Associated Press

http://apnews.myway.com//article/20100131/D9DITDGO1.html


NEW YORK (AP) - Even as Apple's iPad will likely energize electronic 
reading, the new device is undermining a painstakingly constructed 
effort by the publishing industry to make it possible to move e-books 
between different electronic readers.

The slim, 1.5-pound "tablet" computer unveiled last week will be linked 
to Apple Inc.'s first e-book store when it goes on sale in a few months. 
The books, however, will not be compatible with Amazon.com Inc.'s Kindle 
or with the major alternative e-book system.

Apple's creation of a third choice is likely to further frustrate and 
confuse consumers if they accumulate e-books for one device, then try to 
go back to read them later on a different one. The effect could be akin 
to having to buy a new set of CDs every time you get a new stereo 
system. It could also keep people from buying new e-readers as better 
models come out if they aren't compatible with the books they already have.

This could cool consumers' enthusiasm for e-books, the way sales of 
digital music downloads were hampered by a variety of copy-protection 
schemes.

"There are going to be some potentially painful lessons" for consumers 
when they try to move e-books they already own to new devices, said Nick 
Bogaty, senior manager of digital publishing business development at 
Adobe Systems Inc., which provides the major alternative e-book system.

Before the iPad's debut, there have been two main camps in the e-book 
industry.

The e-books that Amazon sells work only on the Kindle and on Amazon's 
software, which can be loaded for free on PCs and some smart phones. 
Everyone else, including Sony Corp., Barnes & Noble Inc. and public 
libraries, have gathered around Adobe's system.

Adobe doesn't sell books itself, but provides software to booksellers 
and libraries so they can sell and lend books that can be opened on 
multiple devices. Like the Kindle store, the Adobe system uses a 
copy-protection system that prevents buyers from reselling the books or 
distributing them online.

Apple would not comment about the plans for its bookstore, but Adobe 
said its system isn't being used by Apple.

Apple already has its own copy-protection system for iTunes and can 
easily extend that to e-books.

"I don't see Apple feeling like they need to come in as 'the 
collaborator.' That's not their style," Forrester Research analyst James 
McQuivey said.

Apple has said it would embrace the EPUB format for its e-books. 
Although that's the format adopted by the Adobe camp, that alone does 
not ensure compatibility because Apple would be using its own 
copy-protection scheme on top of it.

Apple is thus set to create a third technology camp in the e-book 
industry. Consumers who start buying e-books and want to go back to 
their books after a few years would have to make sure they have a 
compatible device, or at least compatible software. That can be pretty 
complicated.

Even if Apple uses its own copy-protection system, it doesn't preclude 
books using the Kindle or the Adobe scheme from being read on the iPad 
or an iPhone as long as Apple continues to allow outside parties to 
develop e-reading software for the Apple devices. The user would just 
have to remember which book goes with which software.

However, it's unlikely that books bought from Apple's store would work 
on non-Apple devices, except for PCs running iTunes.

So far, no media industry has managed to unite on one copy-protection 
system for downloads. Music retailers, including Apple, used a variety 
of schemes before ultimately ditching copy protection entirely as 
customers found the limitations to be a big hassle. Music from iTunes 
couldn't be moved to a digital media player linked to Microsoft's store, 
and so forth.

Movies and television shows are still sold and rented with multiple 
copy-protection systems, though, so you can't move an iTunes video to a 
Microsoft Zune player.

Forrester's McQuivey believes the division into several e-book camps 
will persist for years, but may eventually narrow to just two 
alternatives, one of them being Amazon's.

He doesn't believe copy protection will ever go away for e-books. It 
died for music largely because CDs were never copy-protected, he noted, 
so consumers opted to buy them and convert them to digital files instead 
of buying downloads. Printed books, though they carry no copy 
protection, are difficult to convert to a digital format in the home.

As the market leader, Amazon has the scale to hold out with its own 
system, McQuivey said. Analysts estimate it has sold 3 million Kindles, 
and Amazon says it now sells six Kindle books for every 10 printed 
copies of books that are available in both formats.

All the same, the publishing industry has high hopes for the iPad, which 
unlike the Kindle and most other e-readers, will have a color screen 
that can show video.

Carolyn Reidy, the CEO of Simon & Schuster, said the iPad seems like a 
"terrific device," citing the clear screen and the ability to turn pages 
by touching a finger to the screen, as opposed to pushing a button, as 
the Kindle requires.

She said the fact that Apple already has 125 million customer credit 
card numbers through its iTunes store could add millions of potential 
book customers when the iPad goes on sale in two months, starting at $499.

Any disappointment because of confusion over copy protection could be 
offset, at least in the short term, by the excitement and publicity 
caused by trendsetter Apple's entry into the e-book market.

-- 
================================
George Antunes, Political Science Dept
University of Houston; Houston, TX 77204
Voice: 713-743-3923  Fax: 713-743-3927
Mail: antunes at uh dot edu

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