Ebook Standards

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Transcript of Ebook Standards

  • 1. E-book Standards

2. Definitions: Proprietary vs. Open Standards
Standard: A set of rules and/or requirements governing how data is stored and transferred.
Proprietary Standard: A standard that is exclusively owned by an individual or organization, the use of which generally would require a license and/or fee.
Can be licensed for others to use or kept completely private.
Open Standard: A standard that is publicly available and has various rights to use associated with it.
http://www.acq.osd.mil/osjtf/termsdef.html
en.wikipedia.org/wiki/Open_standard
3. Architecture of the E-book Market
Consumer
Dedicated Device
Additional Software
Content Aggregation & Distribution
New Market
Capabilities
Digital Rights Management
Connectivity Capabilities
Content Editing, Marketing, Etc.
Current Market Capabilities
Content Creation
4. Sony vs. Amazon
Sony eReader launches in fall 2006.
Amazon Kindle launches in fall 2007.
Both use proprietary, private file formats and digital rights management (DRM) technology.
Why?
http://www.slate.com/id/2151525
http://www.engadget.com/2007/11/19/live-from-the-amazon-kindle-launch-event/
5. Proprietary Standards: User Experience
Consumer
Proprietary standards enable more effective vertical integration with better control over the user experience.
Better control improves chances for market adoption.
Dedicated Device
Additional Software
Content Aggregation & Distribution
Digital Rights Management
Connectivity Capabilities
Content Editing, Marketing, Etc.
Content Creation
6. Proprietary Standards: Lock-in
With proprietary standards, it is difficult for consumers to leave your platform.
Content purchased for a Sony eReader is accessible only on Sony devices.
Strategy: Invest in new customers in order to make the platform more attractive to publishers.More publishers (i.e., more books) attracts even more customers.
7. Proprietary vs. Proprietary
Proprietary, private standards enable and reward growth, making it difficult for smaller companies to compete.
In early 2009, Amazon was growing its Kindle user base while Sonys was lagging far behind.
8. Any Downside?
In competing to become the standard, or at least to achieve critical mass, consumer expectations are critical. In a very real sense, the product that is expected to become the standard will become the standard. . . . As a result, companies participating in markets with strong network effects seek to convince customers that their products will ultimately become the standard, while rival, incompatible products will soon be orphaned.--Hal Varian and Carl Shapiro, Information Rules
9. How to Fight Amazon: Sonys Strategy
New
Embrace open standards in order to:
Modularize the market
Eliminate winner-take-all market dynamics
Sony announcement in 2009 of its intention to abandon its BBEB file format and instead sell ePub content wrapped in Adobe DRM.
ePub is an open standard.
Adobe DRM is a proprietary, but licensed standard.
10. Sonys Strategy: Modularized Market
New
11. Sonys Strategy: Modularized Market
New
12. Sonys ePub Logic
An increase in the size of the new, open platform will offset the decrease in the companys share of that platform.
Take a smaller piece out of a (hopefully) much larger pie.
13. Apple iPad: iBooks
Impact is far from clear:
Announced support for ePub but no word on DRM technology.
iPad will support other e-book apps, including Amazon Kindle and Barnes & Noble.
14. Apple iPad: iBooks
Impact is far from clear:
Announced support for ePub but no word on DRM technology.
iPad will support other e-book apps, including Amazon Kindle and Barnes & Noble.
Consumer
Device
Additional Software
Content Aggregation & Distribution
Digital Rights Management
Connectivity Capabilities
Content Editing, Marketing, Etc.
Content Creation