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E-books, Piracy Peril or Promotional Possibilities?

The booming popularity of e-book readers has added a new focus to the piracy debate. As with MP3s in the late 90s, and video and movie files during the last decade, the technology to read digital books has become mainstream. What does this mean for the print industry and book publishers?

When MP3-players became popular in the late 90s the music industry started to panic about a supposed drop in revenues. Likewise, the film industry panicked when computers and dedicated equipment were able to play video files easily on computer screens and television sets.

Both claimed that such technologies, and the file-sharing networks that sprung up to support them, have decimated their industries. And yet both groups have never been healthier financially.

With the increasing popularity of e-book readers such as Apple’s iPad, the Barnes & Noble Nook and Amazon’s Kindle, many in the publishing industry are starting to make the same claims as their music and film brethren.

At the start of the year CNN ran an article about e-books, their increasing sales and the fears of piracy. But how realistic are these fears? After conducting some early research on download statistics after the iPad introduction, we also touched on the subject and concluded ‘”Don’t worry about things.” It’s a position that seems to be borne out by the evidence. Let’s look at an example.

At the end of June, David Weber’s novel “Mission of Honor” was published by Baen books. Baen is a big supporter of e-books and has run a free e-book library of some of their titles over the last 10 years, called The Baen Free Library strangely enough. One of the other ways they support e-books is to include a bound-in CD with certain hardcover editions, containing the e-book files of that title in several formats including several DRM-free ones.

Mission of Honor had one of those CDs. Mission’s CD didn’t just contain one e-book though, it had e-books for a good chunk of the author’s published works, including all the previous books in the series. Again all these files were in multiple (DRM-free) formats – there’s even an occasionally audiobook version (and yes, you guessed it, no DRM on it either).

Here’s the kicker though, Baen has no problems with people distributing the contents of the CD in non-commercial ways. Fellow author, David Drake put it best in the Orientation on one of the earlier CD’s.

The files on this CD are not encrypted. Jim [Baen] doesn’t understand the logic of making his books hard for people to read. Neither do I, though we seem to be in the minority among publishers and authors. Read them. Copy them. Give them to your friends.[..]

You’re not supposed to sell the files. “Who’d be stupid enough to buy something they could have for free?” you may well ask yourself. If you do sell them, you are a Bad Person and may later exhibit signs of wanting to run for political office; but between you and me, I’m not going to come hunt you down.

If e-book pirates are killing the industry as some people seem to believe, this free CD would have guaranteed that the book will sell badly, but that doesn’t seem to be the case.

The hardcover went on sale June 20th and the e-book CD went up the same day. Yet the book was #13 on the New York Times (NYT) bestseller list for July 2nd. It had slipped a bit to #24 the next week, and then to #26 the week after. But if e-books are killing the industry, how could a niche book (book 12 in a sci-fi series) sell so well? Especially when sci-fi fans are the ones most likely to be technologically oriented, and thus more likely to read e-books?

Can e-books improve the publishing industry? Without a doubt. One of the more innovative methods Baen uses to promote books is a teaser section. It’s not ‘official’ but it’s strongly supported by Baen. Three times a week, sections of a chapter of upcoming books are uploaded to a website called “Collected Driblets of Baen: A Frankly Promotional Endeavor…” and the author decides how much or little of his as-yet unpublished work will be previewed. In the case of Matter of Honor the previews started in February 2010 and ran until July 2nd – scoring some 71,000 hits over the publication of the 18 chapters.

The preview concept is relatively new, but it could be a huge boon for the publishing industry. Never before has it been so easy to tease potential readers, and sell more books because of it. Aside from the previews, another advantage is that people can buy books on their e-book readers and start reading straight away. This as opposed to waiting a day or two for a book to arrive, or going to an actual book store.

The question then is how best publishers should act to encourage people to buy e-books and physical books. As with films and music publishers they should address the concerns of the buying public, and treat them with respect instead of pushing DRM and revocable licenses. Trying to hide away from e-books has not worked for Harry Potter or Twilight, so pre-empt readers and convert them.

In that way, music and TV/movies differ from books in that the physical object of a book is different from the digital version; holding a book in your hands is different from holding and reading an e-book. Rather than treating e-books like the great Satan (as many publishers and authors do), or a replacement (as Amazon currently does), Baen has done very well by treating them as promotion. Eric Flint, author, editor, and ‘Librarian’ of the Baen Free Library made the following observation back in 2000.

“Dave Weber’s On Basilisk Station has been available for free as a “loss leader” for Baen’s for-pay experiment “Webscriptions” for months now. And — hey, whaddaya know? — over that time it’s become Baen’s most popular backlist title in paper!

And so I volunteered my first novel, Mother of Demons, to prove the case. And the next day Mother of Demons went up online, offered to the public for free.

Sure enough, within a day, I received at least half a dozen messages (some posted in public forums, others by private email) from people who told me that, based on hearing about the episode and checking out Mother of Demons, they either had or intended to buy the book. In one or two cases, this was a “gesture of solidarity. “But in most instances, it was because people preferred to read something they liked in a print version and weren’t worried about the small cost — once they saw, through sampling it online, that it was a novel they enjoyed. (Mother of Demons is a $5.99 paperback, available in most bookstores. Yes, that a plug. )

E-books have the potential to increase sales of physical books as well as provide their own source of income. That is, if authors and publishers are willing to accept them and deal with their users fairly, instead of hiding behind curiously high prices or DRM. E-books are the future. Last month Amazon reported it was selling more e-books than hardcovers. E-books are not going to go away any time soon, nor are they a flash in the pan. The lessons should have been learned from the 10+ year music fight. Throwing money at enforcement and litigation doesn’t work. Instead embracing the medium can be beneficial.

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  • ads

    does anyone have a good source for ebooks? not found a good tracker yet

  • Jo Dean

    /Spam Removed

  • Silver

    Honestly, I like the feel of a book in my hands. Also, there’s the added benefit of destroying my eyes at a slower rate… Just saying.

  • methylik

    here’s what I would do and advise other writers to do as well:

    publish the books as pdfs on their website. this way, you lose the costs of printing. if anyone really wants a paper book, he/she can print it and bound it on his/her expense.
    make a paypal (or some other such service) account and encourage people to donate/pay for the books after they read them.

    in this manner, people will buy the good books and will allow the authors to continue writing and sustaining themselves.

  • lulz

    Being a David Drake fan… I totally love their outlook on things, it’s just too bad it’s a minority.

  • Zush

    Not being a David Drake fan… I totally love their outlook on things, too.

  • lulz

    We welcome you anyways, Zush :-P

  • Izkata

    Don’t forget readers on smartphones… It’s surprisingly easy on the eyes, as long as it’s in Night Mode…

    I already own all of Animorphs, and would be willing to buy them again (granted at a far, far cheaper price) to have GOOD versions in epub format.

  • ok

    #3… most ebook readers (kindle, sony, nook, etc) all use e-ink screens. they look just like paper and don’t constantly refresh like LCD’s. so no eye-destroying :)

  • http://neuron2neuron.blogspot.com Ben Jones

    Jo, yes, people read ebooks.

    I should disclose, I’ve been a big ebook reader for years. I use Microsoft Reader on the desktop, and my (very battered) Palm Vx to read on the go. The Vx is very easy on the eyes.

  • Mike

    Just a pet peeve of mine: The IPad is NOT an e-book reader. AT ALL. It is a digital webenabled slate computer. There is a Astronomical Unit’s difference between an actual e-book reader (Sony Reader/Kindle/et al) and the monstrosity that is the IPad. This is the second article I’ve seen within the last 5 days that has lumped that damned Apple slate in with e-readers. (The previous article was so poor, they didn’t even interview or quote anyone that DIDN’T use an Ipad. Article ended up feeling more like a commercial than an article.)

  • x

    Just a warning to anyone who would consider following links like the one posted by “Jo Dean” (#2)…

    “Ultimate Privacy” or “Ultimate Anonymity” from Cyber Solutions is a solution to avoid like the plague.

    They are allegedly based in the US and so assumably can be held to the standards of US law and can have logs demanded from them easier than many other VPN providers, etc. – There are additional reasons to suspect them of even worse, but I’m not into propagating conspiracy theories without having solid, credible evidence.

    Their anonymity solution: An interface that sits atop a pile of 3rd party software and services that are nearly all free if you use them elsewhere or directly.

    Cyber Solutions – An ex-scat-fettish porn peddling operation turned uber-spammer, actively violating the ToS of over 10,000 websites with their spam for a product that gives a false sense of security and represents nothing but a rip-off.

    You’ve been warned!!! ;)

    — To Enígmax and Ernésto: —

    To minimize their chances of success, mod-flag posts containing:

    (urls removed by TF)

    Sorry if the above seems over dramatic but Ultimate Privacy/Anonymity is a scam and although TF readers are obviously quite savvy, there are probably a few who could get sucked in, especially with general opinion being that we should all be relatively cautious about exposing ourselves to those that litigate against filesharers.

    Peace!! :)

    TF: Thanks for the advice. We’re well aware of this outfit, they spam us continually and although the list of URLs you listed is useful (I’ve removed them to avoid anyone testing them) they are just the tip of the iceberg. We have a few dozen blocked and they just keep creating more, it’s a never ending battle.

  • 133t

    what 3 said , like my books in paper back or hard cover, i like my longggg shelves filled with them infact all my extra money goes in buying books , new, old, flea markets :P

    the smell of a good paper back can only be com[ared to a smell of a new car or puxxsy :P an E just can’t give that feeling

  • x

    @11.. “digital webenabled slate computer”

    is that fancy talk for “jumbo iphone”? :D

  • yepyepyep

    Even though I like to read these articles… I really just don’t like to read books at all. I guess all those book reports my English teachers gave me just made me not like books.

  • General Snus

    I prefer reading an actual book too. I usually get my books from the library, so don’t pay anything anyway. And when I do buy a book, it’s usually used, and I usually give it away when I’m done.

    But I have thought of do see one good thing about e-books/readers. If I were to go on a long trip, like backpacking around europe, or a world cruise, etc, and didn’t wanna carry around a lot of books or have to keep finding new ones, it’d allow me to take 100 books in a very small light space.

    There’s still the disadvantage of having to take care of something breakable and stealable tho… a paperback I can let get dirty or wet and not care, and I’m not too worried about someone stealing either.

  • Anonymous

    I don’t read many books, electronic or otherwise, but I do try to get as many textbooks as possible in electronic format, because the alternative is to get violently wallet-raped by greedy textbook publishes.

  • Tomas

    @16 General Snus

    I am backpacking around the world right now and I can tell you its been difficult enough just looking after my smartphone.

    Also I’ve found that a lot of hostels have book swaps where you can leave a book and take one.

    But then I also like the feel of a book in my hands. That’s a big advantage that is probably not factored into the calculations of ebooks vs real books.

    I don’t care about owning a physical copy of my films or music because I consume them through digital mediums. I just can’t get into ereaders though, so books I will always buy. Yeah if it came with a free CD of the authors other books I’d see if I liked them. But then I would buy them, nbecause I like to read printed books.

  • Ellen

    When you state for a fact that the movie industry has never been healthier, please be more specific. What movie industry? Talk to the indie filmmakers who don’t have theatrical releases and depend on VOD and DVD sales to make any money….talk to the folks who work behind-the-scenes building sets, catering, setting lights and ask them why the jobs are disappearing or moving to cheaper locales….talk to the companies like GOOGLE that make huge profits (via AdSense) off pirated films streaming on the web (while looking the other way as their balance sheet growns). It is an insidious and destructive cycle…P2P was one thing, but now a huge industry has developing streaming, selling, and replacing legit sales. Good content doesn’t come free and if folks enjoy watching (or reading) they should be willing to give up that latte at Starbucks and shoot a couple bucks in the right direction.

  • Anonymous

    “the technology to read digital books has become mainstream.”

    As if putting a text into a computer screen is a big deal and calling pompously and Ebook.

    Hello!

    Is it the same guy who declared the web dead?

  • Srivatsan

    Most of the Pirated E-Books are not properly formatted. No idea how they will look on E-Book reader.

    I lend books from library to read. Thinking of getting Kindle 6″ Wi-Fi model.

  • anonymous

    same old story. companies want people to buy the latest hardware/software. in a lot of cases, it is the same companies that produce the movies and music that produce the hardware/software as well. they then complain that people are using their hardware/software to do exactly what they developed it for instead of buying the hard copies of media. either they need to stop developing new hardware/software or stop making the hard copies of disks or, better still, give people the option of having the means to download their media from the internet at fair prices and drm free, so people can use the hardware/software without being complained about. it is basically a case of wanting everything from everyone, but still moaning that it is not enough! total greed as always!!

  • JSWolf

    The Kindle is not compatible with Library eBooks.

  • anonymous

    ‘stop making the hard copies of disks’
    should have been ‘stop making the hard copies of media’. mistake. sorry

  • Anonymous

    Just to clarify a point, the NYT best seller list doesn’t monitor what’s being sold at the retail level but what’s being bought by the stores to sell to folks. The drop in NYT ranking could be because the book isn’t selling.

  • Noanon

    @12. Thx for the heads up.

  • The United Hackers Association

    um it became mainstream btw 4-5 years ago

  • Booger Bender

    @12
    This is also true for twitter. Marketing spammers everywhere. makes me wanna write a grease monkey script to instantly report spam and block content. I’d give it away free open source for people to either improve on it or share among your peers for free. Nobody should ever have to pay for creativity. It should be shared.

  • m3

    If I was to buy every book (make money on the internet), scammers would love me & it would only help all the scammers. I have been scammed over $12,000 from all those books so if you are trying to tell me to buy more of them, go eat sht. I get all of my “make money on the internet” books free now instead of feeding the scammers…

  • Booger Bender

    I would love an ebook with motion clips that would be awesome now. ebooks with animation clips in the story.

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  • m3

    How about those “this is taking the internet by storm” “this is going to be huge get in now” etc that I have recieved If I got paid for every time I read something like that, I would be rich now also. Bottom line, get your stuff for free and if & when it works, then give back. If the stuff is a scam & you got it for free, ten you can be glad that you did not feed the scammers by buying their newest book. If the books will really make your inbox full of “payment recieved from” messages, in my experience those are all fake and not really “payment recieved from” because they then say “would you like to see these in your inbox everyday? Send up $ and you too can be getting more of these messages”.
    Anyways one of those ebook scammer places has now Currently Active Users: 3696 (1214 members and 2482 guests) as I speak selling snake oil. Best solution get it for free and if it works then pay for it. Marketing 101 also says try before you promote it so if you haven’t tried and tested the product, you have no business promoting it. Link not posted to scammer site because it would only promote it more…

  • Truther

    In essentially every case of authors giving away some of their writings, they end up have either that book or their future books become best sellers. The power of free helps spread word of the author, after all how else do you discover new books other than hearing about it from someone else? Written entertainment is on the decline, because most authors and publishers refuse to evolve in the new world.

  • stinkyt22

    Does anyone know a good place to download textbooks from? School starts next week!

    Thanks

  • neostyles

    Ebooks won’t have nearly the effect on the movie or music industry. Books aren’t a digital medium, they are a physical one. An ebook cannot replicate the experience of reading a book, which makes gives people incentive to buy the book. You can’t “copy” or “share” the physical qualities of a book that make it different from a PDF file.

    Movies and music are digital. DVDs and music CDs are physical objects, but the medium is ultimately experienced digitally.

  • lulz

    @34 You’re not forward-looking enough. Times are changing.

    http://www.bismarcktribune.com/lifestyles/fashion-and-style/article_6d9ec60c-6ebd-11df-93a0-001cc4c002e0.html

    Imagine when every school has done this. Is the paper industry going to whine as bad as the RIAA? Who will give half a rats butt?

  • powerless consumer

    Who’d pay for something they get for free?
    In 2008, sales of bottled waters accounted for 7.5% of CCE’s total revenues. CCE produces three different brands of water:THATS COCA COLA MOTHERF*CKIN ENTERPRISES.

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  • Rawr

    There are plenty of success stories of authors giving away their content for free. Just look at podiobooks, Cory Doctorow, or Scott Sigler for examples.

  • Tim Kuik

    I think I will write a book about my erotic encounters with Werner Müller and become rich. And if someone dares to pirate it I and whole might of the BREIN will hunt you down!

  • Celery

    I use ebooks all the time, on my phone.

    I know that SOUNDS horrible, but it’s been really really nice. I’m currently reading a series, and I have the real, physical copies of all of them and read them at home (sometimes), but when I’m out, or I want to read with the lights off, or any other number of reasons, I’m reading on my phone, with Microsoft Reader.

    I don’t think I’d ever buy a Kindle or other ereader though.

    Why?

    It doesn’t fit in my pocket, and I don’t plan on lugging that thing around. I can take my phone out when I’m waiting in line somewhere, or on a train…

    I’ve been telling myself I like the real books more, but more and more I read like 80% of the book on my phone and barely touch the paperback.

  • Chi Chi

    Piracy of ebook is bad or good is useless discussion. Take my example, I downloaded an ebook of supposedly popular author which I never read. after running through 100 pages I found him interesting. I wanted to complete that novel and hence purchased the book. The publisher had fairly priced the paperback edition and I thought it worth the purchase to support the author who gave me some joyous moments. later I purchased his entire collection though available on lots of sites.

    But, had it not been on piracy, he would have missed a fan.

  • Stiggle

    Cory Doctrow, Neil Gaiman are just 2 authors who advocate sharing of books.

    Cory puts a copy of everything on his website for people to download.

    In a talk Neil asked “Who found their favorite authors by randomly browsing in a bookshop, or were they lent a book by a friend?” Almost everyone was lent a book by someone.

  • FOX 41

    Anyone looking for ebooks? come on over to myanonamouse.net :) we have ebooks and audiobooks for download, we have over 45000 torrents!

    Visit http://www.myanonamouse.net/inviteapp.php for info on signing up

  • me

    I was very skeptical of eBook readers up until recently. I finally decided to give ‘em a try and bought a Kindle DX (DX, because I have a lot of DIN-A4 formatted technical books as PDFs, so everything with a smaller screen was not practical). Even though importing them to Europe incurs a hefty import tax, they are still affordable, IMHO.

    Up until now, I’m not disappointed yet. The screen is big enough, and eInk is… well, very readable, even outside; and the battery life is (with 3G/GSM turned off) acceptable (around 2 weeks, depending on the number of page turns and the complexity of the PDFs).

    The only minus so far is the Kindle’s horrible flat file system (you can put your files in folders, but that won’t show up in the Kindle’s interface, and collections are a very poor substitute to a real file system structure), but this is a software thing they may (or may not) still decide to fix with an upgrade.

    What I’d wish though, is the ability to run FBReader on it. Some brave souls are hacking on that right now, so it may happen soon, if not officially, then as a hack. Of course, it’s always possible to convert almost anything to PDF or TXT (including CHM, LIT etc…), and upload that to the Kindle DX, which behaves like a regular USB stick anyway.

    As to content, there are enough good torrents on the usual sites (some of them with very big collections of thousands of eBooks), and on the usual newsgroups, to last for a lifetime of reading.

  • Anonymous

    Me I am cooler than all of you because I print Ebook with my 3D printer so I have a real book not a cheap kindle!

    Next I am going to download and print myself a Benz! Ha Ha!

    Also I have a 65In 4D color screen HD TV because 3D is not good enough!

    (What do you mean there is no such thing as a 4D TV?)

  • Anonymous

    does anyone have a good source for ebooks?

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  • Nix Winter

    fictionwise.com is a good source for ebooks. I buy a lot of kindle books because you can read them on ipod, ipad, mac, and pc. Ebooks.com has a lot of academic works. Of course bn.com has ebooks too.

  • Big D

    I really like this publisher. I have the ebooks but I also buy hardcovers just to support them. There are several sites that host the CDs btw. Look for them.

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  • Booger Bender

    Animated Comic books in an ebook form would be so kick ass.. hmm.. maybe i’ll make one :)

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