Ebooks and the threat from "internal constituencies"

Lessons from adjacent media companies can inform publishers' ebook strategies.
by Roger Magoulas - O'Reilly Radar
2 November 2010



A recent New Yorker article by James Surowiecki on the problem of "internal constituencies" and how organizations respond to technology and market changes seems relevant to the ebook conundrum publishers are facing.

Surowiecki highlights how Blockbuster was unable to correctly value the assets that created the company's initial success, especially when faced with insurgents like Netflix and Redbox. He ends with a warning for Netflix, and a look at the uncertain world of digital distribution to come.

The summary of how Blockbuster overvalued their "clicks and mortar" strategy may provide a catalyst for publishers to look at the opportunities and threats from ebooks. Will internal constituencies bias how publishers value and contrast print book and ebook assets and business models?

Lessons from music and movies need to be tempered by the nature of the media. Vinyl, VCR tapes, CDs, and DVDs do nothing but carry information and require a player. While some may wax nostalgic for the media of their youth (yes, the pun is intentional; note the resurgence in vinyl records sales), the media of yore are awkward and limiting, particular when compared to playing devices with enough built-in storage and connectivity to access everything users may ever want to hear or watch.

Print books and magazines --black print on white paper -- create a uniquely effective reading platform that integrates both storage and a player in a convenient package. Reading material is consumed differently than music and movies. Books generally take longer to read and aren't continually or frequently re-read, making the low storage density of books less of an issue than with music and movies. Ebooks and ebook readers are still maturing and may not be "good enough" yet to effectively replace the print book experience.

In books we may see a complementary relationship between print and electronic forms based on context, content, distribution and consumer usage. For example, students needing portable access to multiple textbooks may find the storage density of print a significant issue that pushes the adoption of ebooks (there's a funny New Yorker cover showing a young girl with a backpack leading a mule, laden with books and school supplies).

Full piece at O'Reilly Radar.