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Kitabi · 12-02-2010, 08:11 PM

I just managed to grab the gist of the OP and could not read any further so that's what I am responding to. Apologies if I end up repeating things others have already said.

I think the essay is stating the obvious and neglecting what's relevant.

Case in point - "innocent DRM". If there is anything that Amazon and B&N have proved, it is that they are willing to use technology (specifically, file formats and DRM algorithms) for customer lock-in. So, in the real world, DRM is not so innocent at all. To worsen matters, publishers have been acting paranoid to the extent they are alienating customers. There was a recent thread about Harper Collins asking people to download the DRM'd files as they were closing down the distribution. What option do Amazon's or Harper Collins' customers have? They paid money for these books in good faith. Now they find themselves locked in (Amazon) or locked out (Harper Collins).

If one were to concoct a paper book equivalent of this, it is as if you could read pbooks sold by Amazon or Harper Collins (and many others) only by putting on special glasses they sold. Nobody else made these glasses so if they went out of business or started charging a bundle for the glasses, you'd be shit out of luck reading even your not-chewed-by-your-dog pbooks.

Solution: Everyone adheres to industry standards in a way that content a customer buys is accessible from any device or software. Customers must be shielded from technological obsolescence - possibly for a price.

The second issue pertains to ownership and usage rights. Pbooks could be borrowed and lent. They could be bought and sold used. DRM is enabling publishers to curtail these rights. So, for prices in the same range as pbooks, a customer is not allowed to spread his costs (borrowing and lending) or recoup them (by reselling). One cannot give away an awful book or lend a particularly good one any longer (the 14 day lending is a joke).

Solution: Have a netflix-like renting service for books. I know I'd be happy to pay ten bucks a month to have 1-2 books out at a time. Libraries are often restricted by the number of copies they can lend. If I know I would only read a new book once and don't want to wait for it to become available at the library, this would be a good option.

The third issue pertains to pricing. Publishers are using DRM as a stick to execute an unwise pricing strategy. With the pricing of eBooks out of whack, people are encouraged to either not buy, wait or grab a copy from the darknet.

Pricing of a book depends on the following factors - how early is one buying it (initial runs are hardcovers priced high), how long is the copy going to last (theoretically, a HC lasts longer than a PB), what is the demand for the book (higher demand - more valuable IP, higher price), how long has the book been on the market (the longer it has, the greater the availability of used copies and borrowable copies - from libraries or friends). These rules are not being suitably translated into the eBook world in a uniform fashion.

There are cases where eBooks are priced higher than paperbacks and at times, ridiculously enough, higher than hardcovers. IP price being the same in all media, an eBook is not guaranteed to be available longer than a pbook (technological obsolescence), it is not resellable or lendable or accessible on industry standard readers. The only value proposition is portability and space saving for which one pays in the form of buying an eReader/other mobile device - repeatedly, I might remark. So, what exactly is one paying for when one pays an eBook price equal to or higher than a pbook price?

Solution: Selling differently licensed eBooks. So, let's say, a book with a user restricted license costs $5 but a book with lending rights (say, lendable for a 100 day maximum) costs $10 or a family license (3 readers) goes for $12. Sellers may charge a bit extra for obsolescence protection. So, $15 says, you would have the content available to you for 20 years irrespective of technological change.

The publishing and seller industry is showing a remarkable lack of foresight in dealing with customers right now. A large number of sensible readers would be happy to pay for eBooks. They want to encourage authors, they know the industry has to make profits. The question is if the authors and industry want to maintain good relations with them or loot them with impunity. Unfortunately, the current situation is closer to the latter. I hope it changes for the sake of everyone involved.

12-02-2010, 08:11 PM	#108
Kitabi Connoisseur Posts: 77 Karma: 66 Join Date: Nov 2010 Device: Nook	I just managed to grab the gist of the OP and could not read any further so that's what I am responding to. Apologies if I end up repeating things others have already said. I think the essay is stating the obvious and neglecting what's relevant. Case in point - "innocent DRM". If there is anything that Amazon and B&N have proved, it is that they are willing to use technology (specifically, file formats and DRM algorithms) for customer lock-in. So, in the real world, DRM is not so innocent at all. To worsen matters, publishers have been acting paranoid to the extent they are alienating customers. There was a recent thread about Harper Collins asking people to download the DRM'd files as they were closing down the distribution. What option do Amazon's or Harper Collins' customers have? They paid money for these books in good faith. Now they find themselves locked in (Amazon) or locked out (Harper Collins). If one were to concoct a paper book equivalent of this, it is as if you could read pbooks sold by Amazon or Harper Collins (and many others) only by putting on special glasses they sold. Nobody else made these glasses so if they went out of business or started charging a bundle for the glasses, you'd be shit out of luck reading even your not-chewed-by-your-dog pbooks. Solution: Everyone adheres to industry standards in a way that content a customer buys is accessible from any device or software. Customers must be shielded from technological obsolescence - possibly for a price. The second issue pertains to ownership and usage rights. Pbooks could be borrowed and lent. They could be bought and sold used. DRM is enabling publishers to curtail these rights. So, for prices in the same range as pbooks, a customer is not allowed to spread his costs (borrowing and lending) or recoup them (by reselling). One cannot give away an awful book or lend a particularly good one any longer (the 14 day lending is a joke). Solution: Have a netflix-like renting service for books. I know I'd be happy to pay ten bucks a month to have 1-2 books out at a time. Libraries are often restricted by the number of copies they can lend. If I know I would only read a new book once and don't want to wait for it to become available at the library, this would be a good option. The third issue pertains to pricing. Publishers are using DRM as a stick to execute an unwise pricing strategy. With the pricing of eBooks out of whack, people are encouraged to either not buy, wait or grab a copy from the darknet. Pricing of a book depends on the following factors - how early is one buying it (initial runs are hardcovers priced high), how long is the copy going to last (theoretically, a HC lasts longer than a PB), what is the demand for the book (higher demand - more valuable IP, higher price), how long has the book been on the market (the longer it has, the greater the availability of used copies and borrowable copies - from libraries or friends). These rules are not being suitably translated into the eBook world in a uniform fashion. There are cases where eBooks are priced higher than paperbacks and at times, ridiculously enough, higher than hardcovers. IP price being the same in all media, an eBook is not guaranteed to be available longer than a pbook (technological obsolescence), it is not resellable or lendable or accessible on industry standard readers. The only value proposition is portability and space saving for which one pays in the form of buying an eReader/other mobile device - repeatedly, I might remark. So, what exactly is one paying for when one pays an eBook price equal to or higher than a pbook price? Solution: Selling differently licensed eBooks. So, let's say, a book with a user restricted license costs $5 but a book with lending rights (say, lendable for a 100 day maximum) costs $10 or a family license (3 readers) goes for $12. Sellers may charge a bit extra for obsolescence protection. So, $15 says, you would have the content available to you for 20 years irrespective of technological change. The publishing and seller industry is showing a remarkable lack of foresight in dealing with customers right now. A large number of sensible readers would be happy to pay for eBooks. They want to encourage authors, they know the industry has to make profits. The question is if the authors and industry want to maintain good relations with them or loot them with impunity. Unfortunately, the current situation is closer to the latter. I hope it changes for the sake of everyone involved.