Sony exits ebook biz
I don’t know if you’ve heard, but there are these things called electronic books now, e-books for short. Now these are brand new (invented 1971, possibly as early as 1949) and understandably the devices to read them are even newer (first e-reader released 1998). So it may come as a shock to many of you that quite a few people read e-books on e-readers now instead of paper books. It will come as even more of a shock to you that the Sony e-reader has become a thing of the past.
That’s right my fellow book lovers – lovers in the adoration sense, not in the brace yourself, oh yeah, uh-huh, uh-huh, chikka bow-wow, sense – it appears that Sony has decided it doesn’t want a dedicated e-reader, in fact it doesn’t even want an e-book store. They have announced that they are pulling out and customers are being transferred to the Kobo store.
Of course, I don’t think anyone is particularly surprised by this decision. Raise your hand if you’ve ever actually seen a Sony e-reader. Now keep it up if you’ve actually owned one. If you can see anyone with their hand still raised, I’d question how you manage to turn people’s web cams on. Sony has been playing at the bottom end of the market for e-readers and e-books for quite a while now. The chart below from Goodreads shows Sony were picking up Kobo’s scraps in the market.
So what does this mean for us readers? Well, it means the big dedicated e-readers remain, the Kindle and Nook. It also means Kobo could pick up a bit more of the e-reader and e-book market. But that isn’t particularly interesting to me, I’ll discuss why in a moment. What is interesting is the Sony e-reader is probably the victim of the modern device market.
I read an interesting tech article that was discussing mobile phones. They pointed out that the companies making money on phones weren’t actually making money on the phone sales, especially at the mid to lower price points, but instead cashing in on the app stores and downloads. The phone is a loss leader for the software business they run. Nokia and their deal with Microsoft is a classic example of this, with Nokia battling to compete for market share and profits.
Translate that to e-readers and the same thing applies. It was even worse for Sony, as the other competitors were/are selling their Kindle, Nook, Kobo, etc, as a loss leader to get people using their store or affiliates. This meant that the big stores attract the users, who buy the associated tech, which locks them to the stores (to some extent at least), leading to e-book sales profits. Terrific! As long as you don’t think too hard about the slave labour making the devices.
The reason I don’t find the market positioning of the e-reader devices of much interest is down to a few things. The first is a little statistic that has been showing up in surveys from Goodreads and The Pew Institute; namely that 29-37% of people read books on their phone (23% on a tablet). A dedicated reading device is only really in the book space now because the e-reader screen has less eye fatigue. At the moment! Watch this bubble burst as phones and tablets eat away at the readability technology, such that e-reader screens become redundant. Mobile devices also don’t have to be linked to any one e-book store, so interesting times are on the horizon.
Another view on e-readers future: http://techland.time.com/2013/01/04/dont-call-the-e-reader-doomed/