E- reading A resolution or revolution

10/14/2011
College Of Banking & Financial Studies | By, Maira Cheeda

Contents
Introduction 5
Acknowledgements 7
Action plan 8
Section One – Introducing the topic
About E-reading 11
Abstract - Reasons of selecting the topic 13
Objective of research 14
Support material for research 15
History of each of the companies chosen 16
Section Two – What they say…
Voice of the industry 21
SWOT of e-Readers versus paperbacks 25
Growth & adoption of trend over the years 27
 Sales over the years 29
How publishers are affected 34
Market barriers of e-business 38
 Pricing models 39
Future prospects & challenges 41

Maira Cheeda | College of banking and financial studies
3
Section three – What you say…
People’s say 43
Online/ Virtual popularity 44
 Charts to support reasoning 45
 Translating the graphs 49
Consumer behavior & intentions 50
Section Four – Compared outlook & personal views
My views 53
Outlook & recommendation 55
 Crucial success factors 55
How does the future look? 56
Section five- Ethical & Environmental effects
E- Book: the green choice? 59
Health effects of using digital media 61
Safety & security issues 62

4
Conclusion
Methodology of study 65
Time line 65
Surveys 66
References 66

5
Introduction
Since the dawn of time man has craved for literacy. From caveman etching pictures on walls to
the marvelous creation of paper, ever since literacy has molded itself in to the grand sculpture
of time, we have produced newer ways of making it available to everyone. Literacy in its own
right is not restricted to subjects or genres; it is the widespread knowledge in all aspects with
possibilities to explore. Literacy is the thirst for the ‘unknown’ and with progressing years, we
have been successful to create ways to unravel mysteries that were deemed impossible in
centuries before us.
As most changes occurred with time- fashion, education, lifestyle and even cultures, literacy has
also branched itself from mere paper to a digital era. Today is the world of newly budding
digital cultures that are being quickly adopted from man to man. Over the past decade
technology has heightened and is soaring as we speak. And so, businesses experienced
overwhelming changes with introduction of online methods and digitalized media. Social
cultures saw the age of social ‘networking’ instead of actual interactions. These trends were
and are quickly adapted. It is now a norm, a way of life. To imagine life without internet or
gadgets such as laptops, mobiles and so on, seem ridiculous!
Since socializing was converted to digital form, naturally businesses focused on encouraging
technological knowledge because that is what is in demand. Thus it seemed like only matter of
time before literacy also passed along gigabytes and megabytes.
From a young age our parents engage us in activities which require a learning experience be it
counting numbers on colored blocks or participating in debates. The world around us
encourages us to learn and grow. Similarly we are taught to read as one of the basis of
character building, a habit instilled in us as vitality for survival. Reading has now taken up a
digital form just as the rest. We are now presented with ways to carry our own libraries in our
pockets.

6
In this research project I will explore all those ways made common for every person and
compare it with the traditional paperback reading. We all love the feeling of a page between
our fingers and to own a book by a favorite author feels like holding a dream. However with
many issues surrounding paperback and print industry we are now forced to expand our habits
and slowly accept the presence of digital alternatives.
Maybe reading such a statement would grant me a few disapproving head shakes but I would
like to stress how important it is to accept change as it comes. With that said, let us carry on
with our study. Think about it, every resolution has potential and opportunity to bring a
revolution.

7
Acknowledgements
I would like to acknowledge all supporting figures who have helped me gather the necessary
information to write a topic I personally found intriguing, starting with Eva Lau, head of human
resources & community management at Wattpad, Toronto, Canada. Her input on the topic
has been of great use and I appreciate her patience for setting online interviews just to answer
my questions. (www. wattpad.com)
PricewaterhouseCoopers (PwC), a business consulting service are the next in line of
acknowledgements. Their publications regarding E-readers and the business surrounding it
have been an immense aid to my research. (www.pwc.com)
John Soares, a free lance writer who has published over 100 articles and 2 paperbacks, he also
write for college text books and is very active on his website. His views on this topic have been
valuable and I am grateful for having so many questions answered through him.
New authors, Krissy Anne Marie Snifeld & Abigail Gibbs, who have been recently accomplished
a great deal of online sales for their books through online publishing houses, their knowledge
on the system of e-publishers are highly appreciated.
Mary Jo Martinez, friend and college mate, has helped by sharing her knowledge on the latest
gadgets and gizmos supporting e-reading applications & so forth. Her patience is undeniable & I
am grateful for having borrowed her time so much.
My professor, Dr. Raja Gopal Reddy, also for his remarkable patience with deadlines and for
approving such a controversial topic & guiding us through the process of how a project should
be.
Lastly, all the users on Facebook and members of my family who helped me through surveys &
polls I created for them to answer and comment on.

8
Action Plan
Activity Start
duration
End
duration
Total
duration
Predecessors
Primary research
 Conversations with bookstore
manager
Friday
30TH
Sept
Friday
30th
Sept
1 hour
(One day)
Secondary
research
Secondary research
 Online interview
An online interview was conducted
with the officials at Wattpadd.com, an
e-reading application website for
online reading and social networking.
The head of marketing & human
resources was asked a series of
questions.
Monday
26th
Sept
Thursday
29th
Sept 3 days
 Online sources:
Internet is the quickest way of
collecting information and so many
websites were looked into to gather
sufficient material for research. Official
company sites such as – Sony,
Amazon & wattpad were main citing
for references. Most of the information
collected to support the topic was
Thursday
22nd
Sept
Tuesday
4th
October 13days

9
sustained from various authentic
online sources as well as few social
blogs to help investigate the matter
further.
 Magazines
Although not many magazines and
newspaper articles were read, the
amount of information gathered from a
few of them was indeed helpful to the
content of the research. Magazines
such as – ‘ Y’ and ‘ H!’ were also
referred to for any general updates
and additional information
Tuesday
27th
Sept
Tuesday
4th
Oct 1 week
 Questionnaire and/ or polls
Online polls were conducted for 3
consecutive days asking for people to
give their feedback whether they prefer
between e-reading Vs print reading.
Facebook polls as well as e-mails
were sent to numerous users to collect
sufficient feedback.
A brief and simple questionnaire was
designed to answer the most basic
questions to support the purpose of
the study carried.
Thursday
22nd
Sept
Monday
3rd
October 12days
(Refer to previous page)

10

11
Introduction: About E-reading
E-reading is a form of online reading or reading done through digital publishing. E-books are
digital versions of printed books whereas E-readers are devices which support applications to
allow reading of electronic books. It is now a compliant alternative to print media and at an age
of media dominancy, every person is well acquainted with e-readers and their purpose. With
such a techno savvy youth, publishers and printing industry have now begun to reach out to
digital substitutes for paperbacks or hardbacks. E-reading is still a fairly new concept being
encouraged to the general population by large corporations such as Sony & Apple.
The industry has seen a keen rise in interest towards e-readers over the past few years. People,
with such fast changing trends and swift paced lives, now prefer to carry an encyclopedia of
information with a touch of a button rather than spend hours searching through racks in a local
library. Thus many alliances were formed between companies to create reader applications for
mobiles, laptops and other gadgets. These applications purely serve as a way of reading
wherever you go, whenever you want.
E-reading has opened newer paths for many businesses. Industries in the line of manufacturing
and producing electronics now have focused part of their attention to create user friendly
readers & thus gave the word ‘competition’ a whole new meaning. Apart from the electronic
industry, media has also benefited from such an invention. We can now see reporters, anchors
and news networkers upgrading their staff to such handy gadgets to sustain quick information.
Writers and authors now launch their own websites to sell their books online which in turn has
now given birth to online publishing wherein talent can be discovered within minutes and used
as means of profit for many.
Although attitudes vary across the globe with part populations seeming amenable towards this
trend of reading while others still reluctant to accept it. If you notice in the previous page, I
have addressed E-reading as a “fairly new concept” however what it should be versed as is
being “newly accepted”. Publishers still hold on to the fear of such an enormous

12
transformation in the industry expressing doubts on such high costs and possibilities of losing
sales of print books. And even so with vast success of E-Readers, acceptance is still a relatively
slow process. However future can only move forwards and with it technology thrives hand in
hand.
The idea of digital reading and/or readers was first presented by Sony in the 1990’s with the
Data Discman used primarily for referencing. The product was as expensive as buying a shelf of
actual books. Thus, the prospects were failed at the initial and advances were cut short. There
onwards other European, American and even German companies tried their luck at designing a
profoundly user friendly and consumer attractive product but without success. Until later
Amazon introduced Kindle which was the break point of success of E-Readers.
Reading to date is considered as the best leisure activity according to a poll conducted in 2009.
It is preferred over browsing the internet, music and even TV. So, needless to say the book
business will and has withstood with time. The business is big and publishers, distributors,
retailers still cling on to the conventional yet are curious for change.
Reasons of selecting the topic
As mentioned earlier in the introduction, E-reading is slowly and progressively making its place
in the e-commerce, publishing and electronic industry. My main reason for selecting the topic
as controversial as its perception is is because I personally believe there are high chances for E-
reading to dominate or in the least stand mutual to print reading.
Why, you ask? Well, as any average consumer & a dependant (not an independent) I think
about price before selection and actual purchase. For the past two years my medium for
reading has been either various online sources which offer free online reading or through
downloaded e-books on to my mobile. I personally find this system quick, easy and cheap.
Although it leaves much to desire because nothing can outdo the feeling of owning a hardback
copy of a favorite writer, nonetheless it has become a relatively easy –to- adopt alternative.

13
With that said, I also believe E-Reading and E-Readers have opened new gates for technological
expansion as well as a literacy evolution. So I asked myself, why not have a thorough research
on it? Why not present others and I, with facts which prove the world might be leading to
technological dependency. Being a diplomat in the topic, since it’s hard to lean on one side of
the fence or the other and an enthusiast when it comes to reading just about anything my eyes
can rest upon, I personally found this topic rather fascinating and exciting.
Businesses today crave for inventions that may improve work experience as well as sustain
efficiency and productivity hand in hand. E-readers have, to an extent, achieved to do so. These
inventions and applications have made information and reading more tangible than actual
books.
Another reason is the growth aspect of it all. Ever since I was introduced to Wattpad & its e-
reader application, I saw the steady rise in their consumer interest within matter of years. So
here are a few questions I asked myself- Will this be the same in future? What are their annual
sales? How does online publishing work? What is the cost comparison?

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Objective of research
The objective is not to compare ‘which’ is better but to decide if or whether E-reading has the
potential to bring about great changes to the reading norm. We will analyze between costs of
paperbacks versus cost of digital copies, the popularity and growth in the industry in recent
years.
Throughout the research you will find theoretical as well as figural comparison, consumer
perspective as well as producer views. The objective is also to find the most successful company
producing and manufacturing the hardware & the actual gadgets amongst many popular brand
names.
Another objective is to highlight the importance of proper distribution channels and identify
problems relating to sellers & retailers.
The project will also touch upon environmental issues concerning effects of paper waste and
electronic waste. Ethical issues such as security of author rights, exploitation of material and
‘waste sales’ due to unauthorized exposure of books & the loss it brings to related businesses,
will also be discussed.
Objective is also to expand reader knowledge amongst people & present facts as they are
without illusions or ‘sugar coating’.

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Support material for research
After spending sufficient amount of time searching for leading companies who deal within the
scope of the topic, I found the following to be most popular amongst the market:
Brand Name Versions/ Models Launch in Year
Amazon Kindle
Kindle 3 with Wi-Fi
Kindle 3 with Wi-Fi & 3G
connectivity
Kindle DX
2007
2009
2010
Sony Soy Reader
Daily Edition
Sony Pocket Reader
2006
2009
2010
Barnes & Noble The Nook
The Nook color in LED screen
2010
Apple Apple’s iPad 2010
Wattpad Mobile application 2007
In the following page you will find brief history check on each of the companies mentioned
above and how they brought about changes with their innovative methods & undeniable
patience.

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History of companies
Amazon
What initially started as an online bookstore [launched in 1994 going online in 1995] founded
by Jeff Bezos soon became an instant success diversifying to selling DVD’s, CD’s, electronics,
MP3 downloads, computer software, video games and even furniture, toys & food. Soon
Amazon.com, Inc was labeled as the world’s largest online retailers selling its first book online
in 1995 and flourishing to a multinational commerce company.
The company is headquartered in the US, Seattle, Washington and delivers to 10 major
countries i.e. From US, UK, and Canada to Italy, France, Germany, Austria, Japan, China & Spain.
In 2007, Amazon developed Amazon Kindle the first ever proper e-reader created alongside
Lab126 using electronic ink on electronic paper and allowed people to browse & read any
digital media, be it books, magazines or newspaper. On November 19, 2007 the company had
sold out all of its stock of the First Gen Kindle within 6 hours of release and remained out of
stock for the next five months. [Reference article: www.wikipedia/Amazonkindle.com]
Here onwards the company developed various iterations and version for the Kindle in order to
produce upgraded models which offered easier usage and larger memory storage. These
include, Kindle DX, Kindle touch and Kindle fire. In late 2010 in United States for the first time it
was announced by Amazon that e-book sales had exceeded that of paperback sales. Alongside
the launch of Kindle, Amazon also launched a Kindle Direct Publishing where authors could

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directly upload their works via email on to the Kindle Apps and become independent publishers
under Kindle.
Over the years Amazon formed many merchant partnerships operating retail websites for
renowned brands such as Marks & Spencer’s, Lacoste, Timex, Mothercare & etc. This created a
multichannel platform for many potential and existing customers who could interact with
online customer service and have their products delivered without physical presence in a store.
As of march 2011, Amazon’s Kindle accounted for 48% sales of 12.8 million worldwide e-book
readers thus leading the e-reader category without any disputes. An estimated 4 million kindles
were sold since mid 2010. By 2009 Amazon began selling Kindle to over 100 countries
worldwide even though reviews said originally the retail price was higher compare to the
manufacture cost which was later reduced.
To date Amazon continues to develop many features in Kindle and has expanded largely in
other sectors as well. The company also lobby’s for various government legislations and is
considered as one of the major corporations in the United States.

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Sony
In the current world of technology it is impossible to evade the name –Sony. Sony has managed
to root itself deep in to one of the core electronic producing corporations. The company is
known for its innovative designs and high quality products. The company’s primary focus is in
electronics– Sony Electronics, games – Sony Computer Entertainment, entertainment- Sony
Pictures Entertainment and financial service – Sony Financial Holdings.
The company was founded in Japan by Akio Morita and Masaru Ibuka [early 1950’s] and with
years of producing successful electronic equipment, the company had established a quality
standard like no other. Their customers to this date are loyal and find it hard to switch to other
brands even if the cost is relatively high.
Sony with its remarkable history and success is the world’s 5th
largest media conglomerate and
one of the leading manufacturers for electronics making it one of the most ample
entertainment producers.
After years of designing the best possible E-Reader In 2006, Sony launched its first successful
set of e-readers and broke in to the publishing industry. Like other e-readers Sony Reader also
used Electronic ink on electronic paper. The books are available on the Sony eBook library sold
specifically for the reader supporting JPEG, PDF, RSS & EPubs. By 2011- 800,000 of 12.8 million
e-book readers were Sony.
Barnes & Noble
Barnes & Noble is the largest known bookstore chain in the United States. In October of 2009,
the company announced the launching of their E-Reader named as “The Nook”, giving head
competition to Kindle and Sony. The prices were competitively set and feature such as the
touch screen keyboard and LCD screen, attracted portion of customer base to their side.

19
Similar to the rest The Nook also offered Wi-Fi services and online book purchasing with a high
storage capacity library. In the US the product debuted at $259 and later with newer versions
was brought down to $149.
Apple Inc.
The company was first established in 1976, January 1 and incorporated a year later. Founded by
Steve Jobs, headquartered in Silicon Valley, California, Apple is now a multinational
conglomerate and is responsible for extraordinary inventions such as the Macintosh, iPad, iPod
and iPhone. The company has brought about a revolution in the electronics and computer
industry. Though being a clear competitor for Amazon and Barnes & Noble, Apple’s iPad is still
sold on their App Stores.
They have managed to achieve a highly loyal customer base such as Sony and constantly
surprise their customer’s with newer additions and inventions. The introduction of iPad
changed the entire competitive market of E-Readers. It was seen many people switched from
Kindle & Nook to buying an iPad.
Several major publishing houses such as Harper Collins have committed to producing books
exclusively for iPad. Before Apple’s launch of iPad they had prior versions which dealt with e-
reading experience such as their Newton. However the iPad with its sophisticatedly impressive
and attractive design and easy to understand features, stole the hearts of consumers just as
quickly as the iPhone or iPod.
Apple had successfully sold out the first generation of iPad on its first day with many pre-orders
across the globe. In May 2010, Apple had sold around 3million of their iPad’s honoring it a
position in the “50 Best innovations of 2010” in Time magazine. The New York Times began
daily publishing on the iPad in the March of 2010.

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Wattpad
Wattpad.com was founded by Allen Lau and Ivan Yuven in 2006. The website was launched to
serve for young writer and readers to display and share their stories with an online community
and try their talent at writing. Wattpad also created its own reader application supported in
various mobiles such as Nokia, Samsung, iPhone, Blackberry and etc. it is essentially a reading
and writing websites with a social network as well. The website allows users a platform to get
their work recognized and obtain ‘Fans’ to build popularity. It also showcases works of many
famous published authors, their interviews and personal tips on how to become a better writer.
The company is headquartered in Toronto, Canada and hit its 1 million users last month.
The staff at the headquarters works closely with the online community taking first hand
suggestions to improve their reading experiences. Competitions are also held wherein winners
get their books published online and earn from it too.
How to own an E-Book?
Let us first understand the process of buying an E-book to actually owning one. Most E-readers
read two file formats- ePub and PDF. ePUB can be altered to the users convenience with text
enlargements and such whereas a PDF file is a series of photographed document which will
appear exactly as the writer had laid it out from the start. Once a book is published in its
electronic version, it is made available for users with a reader account on either Kindle or the
Nook, whichever it may be. The user then logs in on his/her account and have to merely type in
the name of their wanted title and download it on to their reader. The E-Reader tries its best to
reinvent the actual reading experiences while on the E-Reader with pages being flipped as well.
Each E-Book may cost lower than that of its paperback version and can be bought just with a
click. The book is then charged on to the user’s account.

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Voice of the Industry
In the recent years the book industry has been experiencing a metamorphosis of sorts. With the
advance in technology where TV and music media are concerned, the epidemic of higher
defined electronics has spread like wildfire across most business segments. This change has
been stressed throughout the study so far and now we shall move on to producers, retailers
and manufacturers perspective.
Experts have been known speaking of the momentum gained by the e-book sector in the past 3
years. They also agree that currently the e-book market is niche and still in an infancy stage of
its business cycle. But this does not stop the continuous questions forming a queue of thoughts
in their minds. Instead of ignoring the change as it comes, they are beginning to explore future
prospects. Questions arise daily in the mass market such as- What does the market look like in
the next 5 years? How much will consumers pay for e-books? How long till the change is made
permanent?
Hence most of these industry experts are convinced that in due time the change will make a
breakthrough and eventually e-books will find a share in the mass market. Factors cited so far is
the general consumer behavior who have recently become more receptive to carry on gadgets
leading, mobile or ‘on the go’ lives, although the extent of such a transformation is still in
question.
Recent behavior in sales is also proving the evidence of the mass market transformation. To
quote:
“Amazon.com customers now purchase more Kindle books than hardcover books–astonishing
when you consider that we’ve been selling hardcover books for 15 years, and Kindle books for 33
months.”- Jeff Bezos, CEO, Amazon.com
[Reference article: The Wall Street Journal/ Amazon says E-books outpace hardbacks]

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The above statement was highlighted in several news broadcasts as a shocking revelation for
the book industry. With this being said several members within the market game began revising
the prospect of e-book as opportunity than a threat or risk.
In 2009, it was said that around $108 billion was spent on books by people. Most active readers
were found in Asia, Middle East and Europe. The popular age tallied for reading was between
10-19 and 30-40 according to the industry. Mass market books continue to increase in sales
and e-book sales still cannot be appreciated worldwide as they are relatively new to make up
for much of market share. However it has also been observed that the market is going under
severe alterations where retailing is concerned and a restructuring process is gradually taking
over.
Renowned UK publishing companies such as HarperCollins and Penguin have also expanded
their publishing from paperbacks and hardbacks to digital publishing. Penguin now has the
ePenguin and HarperCollins announced in the early 2011 they would now distribute digital
versions of their books stating that “books can wear over in time whereas e-books are purely
digital long lasting”.
According to the Association of American Publishers, last year 2010 a one month surge in e-
book sales was experienced during the month of February soaring to a magnificent 202% in
adult trade books. More recently when AAP compared the sales figures of paperback from last
June to June of 2011, there has been a drop of 60%. While many markets saw a drop in
revenue, e-books have sustained to hold its position very well over the past year.
From an opposite point of view experts also believe if digital publishing takes over print media
that this won’t negate the demand of paperbacks but will only restrict it to smaller circulations
which in turn will only increase the cost of production. On the same track, the opportunities
may outweigh the risks to digitalize books however this will only further increase costs and not
sales.

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Even so we seem to be moving forward with the digital media and most people do not seem
offset by the idea. According to the three leading E-Reader producers- Barnes & Noble, Amazon
and Sony, a positive and gradual increase can be seen in their sales.
The argument at hand is not ‘if’ the change is happening, the argument between professionals
is now ‘how long till the change takes over’. Professionals are at peace and on common ground
accepting the digitalized migration but while some say the change will triumph by 2014 and
possibly account for 50% of book sales, the other half of the majority insists that the change is
slower than the media has hyped it to be.
In a recent study conducted by PriceWaterhouseCoopers a well known business consulting
services, also agreed upon the transformation concluding that by 2015 the total e-book sales
might account for 22.5%. Experts say factors such as consumer choice cannot be controlled or
predicted but consumer behavior can be looked in to. Other factors such as reader attachment
to books cannot be ignored since it is proving to be a slowing agent.
According to PwC drivers for E-Readers is its availability, changing of consumer behavior and
user friendliness whereas obstacles can be its pricing & technical complexity.
See below- Drivers for E-Readers:
[Reference: PwC Study/ Turning the page]
Availability of content
Low price
Changes in consumer habits
User friendliness
Free content
69%
38%
46%
31%
11%
24%
55%
43%
31%
33%
Very important Important

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Obstacles for E-Readers see below:
[Reference: PwC Study/ Turning the Page]
While the drivers and obstacles may be set, bookstores have been shutting down in the past
year. Borders, another well known franchise of bookstores, recently declared bankruptcy due
to low sales of paperbacks and hardbacks.
Seeing from the industry perspective it is time businesses began creating better & full proof
business models to encourage existing and future sales in order to maintain hold in the market.
The voice of the majority of industry warns of the upcoming change & insists on changing
conventional reader mentality to meet with today’s modern techniques. Professionals have
begun evaluating their current business plans to introduce a place for such an integration in the
industry. As the phrase goes ‘better safe than sorry’, if e-books are the next gen, then
companies need to set themselves to high gear and drive through the rubble of confusion.
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Overpricing
Technical complexity
Compatibility
Lack of availibility
36%
18%
28%
38%
43%
43%
41%
45%
Very important Important

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SWOT Analysis of E-Books Vs Paperbacks
STRENGTHS E-Books Paperbacks
Its lighter weight makes it easier to
carry around.
Higher consumer preference over e-
books
Vast storage capacity with 100’s of
books stored in your pocket library
Easy availability of books
No delivery or shipment costs
Duration between buying the book and
owning is shortened
Longer durability with remarkable
battery life.
Can be transferred from one device to
another depending on the file format
Higher profit margins
Conventional print books will never
end
Gives reader a feeling of more
personal ownership
Fewer distribution channels
Lower costs as opposed to buying an
E-Reader
Publishers will always want more
paperback sales than e-book sales
Paperback is more tangible.
Weaknesses
Although efforts are made to reduce
electric consumptions, it does require a
degree for power sources
Books are lost if device stops to
function
Paperbacks wear off with time
Weight of a book is heavier than that
of E-Readers
Not as attractive as e-readers
Complaints of eye strains
Consumers and publishers are still in
process of accepting
Pricing is always an issue
Investments have higher costs
Delivery time is longer and
distribution channels consume more
time
Need a light source to read
More vulnerable to damage

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Opportunities
Authors have now begun to self
publish
Electronic market can innovate their e-
readers further for better use
Distribution channels can be shortened
Writers will now have two platforms
to work from
If books are eclipsed by e-books than
publishers can increase cost per
book
Bookstores can now expand in to
digitalized business
Price wars will reduce the prices of e-
readers and other collateral electronics
Can bring in higher revenue than that
of paper backs
Consumer interest is high therefore
reception is mostly positive
Expansion in to academic usage
Expansion to medical areas
Attracts more readers and old books
are brought back from the archives
Books will never cease to exist
THREATS
Consumer preference is always a
threat
Competition is fierce, someone else
can always invent a better gadget
Threats of switching costs, there are
always alternatives
If paperbacks become niche in
market, prices will soar
People may lose interest in
conventional methods
Publishers might prioritize e-books
than actual books
Technology creates complexity & in
time that may lose appeal
Environmental hazards
Constant changing government policies
Digital piracy is always a threat
Lower revenue if writers began self
publishing
Market restructuring can lead to
consumer confusion

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Growth and adoption over recent years
The growth of E-Books in the mass market in the past 3 years is overwhelming. Many of the
market leaders are overjoyed for having taken the initiative of bringing about the digitized
change. However this is urging companies to step out of their comfort zones and see the bigger
picture. After selling e-readers, companies such as Sony, Barnes & Noble and of course Amazon
have also branched out to providing their own hardware and software and lunching electronic
bookstores in order to gain competitive advantage. This has brought about immense changes
to the value chain & revenue models, guiding them to shift towards direct sales and end-
consumer behavior.
Print Digital
Value chain of publishing industry with e-book production & sales
[Reference: PwC Study/ Turning the page]
Content
Agregation
Production
Marketing
Distribution
Sale
Consumption
Content
Agregation
Production
Marketing
Distribution
Sale
Consumpion
Editing and digital
production without
print
Setup of computer
systems instead of
storage or delivery

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Despite the astounding figures provided by the E-Book sales in recent years, price of one
eReader compared to that of a single book is still invariably high. E-Readers have shown their
market success mainly in the United States and/or Germany with the rest following with careful
approach. Professionals believe the price of e-books will have to be reduced to minimum of
20% compared to that of its printed surrogate in order to get a kick start in the market. Only
then will e-books flourish if the price offered is lower than actual books.
Amazons e-book sales have successfully eclipsed those of paperbacks this year. This could be
because Kindle has managed to stand out in the market and consumer reception has been very
positive. Amazon also offers reduced pricing in its electronic stores for e-books which is
appealing to most people.
According to the Association of American Publishers, there was a surprising one month soar of
e-book sales back in Feb 2010 mostly due to post holiday season and terrible weather
conditions which forced people to stay in and read via e-readers. Nonetheless sales had tripled
from 2009 to 2011 to a 167% to $80 million showing an astonishing progress in e-book sales
and out doing those of paperback. Borders – as previously mentioned- had to announce
bankruptcy due to low sales and failing to enter digitizing methods like others in due time. The
book stock at Barnes & Noble’s experienced a drop over the past 5 years whereas e-book sales
persisted to increase on monthly basis.
With the intensity of success of Amazon’s online stores, bookstores now have to restructure
themselves in order to fit in to the current trends. Experts say the book industry has now
become a shark pool and to break in to this business, many conventions will also have to be
broken free from. In order to survive, bookstores need to build stronger customer- seller
relationships and undergo thorough business analysis to mark certain strategies.

30
Sales Over the years
Since 2006, digital sales have seen a rapid increase from mere 100,000 to an impressive 25
million units sold in 2011. Year after year the sales keep up an impressive record and finally
have begun to contribute to mass market starting this year. The pint sales still eclipse when
compared to those of digital of course nonetheless e-book sales do not pale in comparison as
they used to, the figure have finally attracted market attention.
To quote from an article on Read Write Web: “E-books have become the format-of-choice,
these figures suggest. In January, the AAP said that e-book sales were up 116% year-over-year,
and for the month of February that growth accelerated even further. February 2011 sales were
up 202.3% from the same time last year”
The minimum & average cost of an e-book is $2.99, which is at a lower price from its print
counterpart that may be sold at much higher cost. Keeping aside the cost of purchasing an e-
reader be it Kindle, Nook or whatever, to support the e-book because let’s face it the purchase
cost will be a onetime investment after which books can be bought online at cheaper rates

31
whereas buying print counterparts will always have varied prices according to the popularity
and cost of production. Bringing back to point, cost of one e-book [not e-reader] is relatively
cheaper than that of a paperback.
Let us compare sales figures from March of 2010 [the only month I could find released online
for comparative sales] to identify which medium met with higher increase keeping in mind that
these elude figures of independent writers, children’s books & professional books such as
medical related material.
[Reference: Figure from http://www.davidderrico.com/e-book-sales-continue-rapid-growth/]
As it can be seen from the figure provided, mass market incurred a drop of 18.1% where as the
year-over-year increase in E-Books was 251.9%. This shows us that the industry has been
gaining significant profits from E-book sales which also compensates for any discrepancies in
paperback.
According to the June 2010 and June 2011 sales figures released by the Association of American
Publishing, revenues of adult paperbacks dove to 64% whereas E-book sales plummeted to a
161%.

32
In 2010 and still going, books through print or digital have seen enormous increase in sales
without much fail in all categories. Popular genres such as –Romance & Mystery have met with
promising figures year after year. Categories such as educational books also significant increase
of 7.8% in Higher education and 3.2 % for Elementary whereas University sales of books fell to
8.2% in the last year.
E-book sales escalated up to 164% from the previous year 2009.
Fast forwarding to the latest sales stats published by the Association of American Publishers for
May 2011. E-Books now have out done adult hardbacks & adult mass market sales since both
had incurred double digit losses.
The figures for four of the categories up to date are as follows:
1) Adult mass market : $264.8 M
2) Adult hardbacks : $504.1 M
3) E- Books: $149. 8 M
4) Adult paperbacks : $576.4 M
Although the figures above show larger revenues when compared to those of e- books, we have
to keep in mind the increase of e- book sales since last year is up to 160.1 % where as others
experienced a drop in sales.

33
Interpreting the graph above, we can see sales of E-Books is steadily increasing- from Jan 2011
onwards. 2010 was a year of drastic improvement for E-Book sales and as much can be proofed
by the data provided.
Industry’s take on sales:
Experts expect the sales to further improve and increase with progressing years. With how the
figures sky rocketed in the recent years, soon E- Books will mature from its infancy and take its
place amongst the various segments within the industry. However to say with surety that E-
Books might be the primary source of reading in the next five years is still too soon to predict
and too hasty a statement to make. Age of print will never die, paperbacks will always be in
demand so say the industry leaders but the need of digital counterparts will also prevail in the
near future.
0
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100AmountinMillions
Sales
Sales
2010 2011

34
How publishers are affected
So far we have been looking through company perspectives, when a book is the subject around
which discussions are revolving we cannot leave out publishers and writers far behind. Once
upon a time publishing was a tediously time consuming process. A write would take his/ her
story to a publishing house, the draft would be read to be accepted or rejected, once accepted
it was passed to an editor, then a literary agent, then a marketing expert to retailers &
distributors and finally the end consumer. This is still the case with slight modifications.
With the option of digitized publishing, writers have now begun a trend of ‘self publishing’
where they can set up their websites or blogs and distribute stories as e- books through
internet without having to search for an agent and wait a year till they receive royalties on their
work which by the way is another factor encouraging self publishing. Any author upon selling
copies of their book in the UK would earn 1£ off it which equals to 20% royalties over all. Thus,
having the option to cut off middle men, suppliers and distributors from the picture, writers can
earn larger profits by doing so.
If this is the case, every person writing a blog on the internet will “qualify” as a writer. Bringing
Wattpad in to the picture, if you browse through the website you will notice over a million
stories written by teenagers being promoted every day, every second. The website honors each
user with a fan following. Readers can read, vote and comment and writers can share their
work sitting behind a laptop in their homes.
The website also holds competitions to select the most popular book by the community and
have it published even if it is written by a 15 year old! I am an example of such youthful writers
who have been published on a whim of luck. My poem won in a competition and I have been
published in a book of poetry collection which was sold exclusively in Canada. However the
website does not pay the writer for any of the work published, it’s like being a free- lance writer
and the website only offer’s a platform to be recognized.

35
Similarly, famous authors have now set up their websites where they do in fact sell books in E-
Book formats. The point underlined here is that with the trend of E –Books catching on and
everyone announcing themselves as writers, the publishing industry will restrict publishing to
known authors due to DRM- Digital Rights Management reasons. Online piracy is common, you
can now write the name of a famous author in the search tab and find a hundred links directing
to free access of their books. This will generate daily increase in lost sales for authors and
publishers alike.
However authors and publishers are keen on this digital transformation saying that with time
formats change, not only where books are concerned but in all areas of life. The cassette was a
marvel back in the ‘70s and 80’s but when CD’s & floppies were introduced, the format took a
shift. Similarly DVD’s took over and recently we are seeing a rise in Blu Ray popularity.
The question of E- Books has been answered by many authors who would encourage or favor
the digital change. Stephen King is a renowned writer whose name is not unfamiliar to our ears.
He has won plenty of awards and has had a lot of media coverage over the years. To encourage
Kindle sales Stephen King had written a story Ur exclusively for Amazon to sell only in E- Book
format, the book was an instant success and the Kindle second generation met with healthy
sales.
Quoting from an interview with Stephen King “he sees e-books becoming 50% of the market
"probably by 2013 and maybe by 2012." But here's the thing—people tire of the new toys
quickly." Say’s the writer when asked about his opinion on e-books.
Another striking announcement made public recently was the launch of J. K. Rowling’s website-
Pottermore.com after releasing services of her long time publishers. Rowling’s decided to
channel her books through self publishing, print and digital. She has been known to favor the
age of e-book and to quote:

36
“There’s no point trying to hold back progress, but print will never die; there’s no substitute for
the feel of an actual book. However, there are times when e-books are a Godsend. This summer
will be the first time that I take away fifty e-books to read while we’re on holiday, rather than
filling up my suitcase with print books.”
This trend has got the publishing industry worried since the industry relies on the sales and
support of big- end authors. IF these authors decide to take the road to self publishing via e-
books and websites, this could mean a breakdown for the traditional publishing process.
Authors would definitely benefit more through self publishing but this might change the entire
circle of the industry.
Eventually authors and publishers will have to partner up and target too genre specific
audience in order to keep in the market. However smaller independent writers will prove to be
worrisome for the industry. If publishers fail to bring a sufficient audience to the writers,
authors will walk the other way to self publishing and form contracts with online retailers such
as Amazon & Sony and cut off the middle men over all.
Editors, agents and publishers are slowly taking on new meaning to accustom themselves to the
digital era. Famous publishing companies such as Simon & Schuster, Penguin and HarperCollins
will gradually become icons on an internet blog or author website and the need for print
counterparts will decrease to niche.
Therefore publishers will have to integrate their business models & not repeat mistakes made
by other industries to act too slow and get nipped at the bud. They will have to produce models
that take more directives to copyrights and piracy. Also legal aspects with such piracy will have
to be underlined and dictated in business models & other forms of contracts. Hence, employees
will have to be directed on a more technological face and learn how to incorporate e-book
aspect of it all. Without such initiatives publishers will meet with downfall if they are not
prepared for the age where there is a possibility of e- books over lapping books.

37
Publishers will also reconstruct their pricing models and offer consumers greater value products
with better price offers. Fact is customers will pay more if they are given additional content and
greater service. Price maybe a factor but it is not the sole reason for the shift to e-books.
However for the time being, publishers prevail since consumer interest still highly lie in the
arms of print books. Print will never see an end but it might be met with obscurity &
infrequency sometime in the future.
Penguin
8%
Simon &
Schuster
8%
HarperCollins
5%
Amazon
1%Other
21%
Self published
57%
Best Sellers list

38
Market Barriers
As much as “the rise of e-books” has been hyped in recent headlines and news, the e- book
market has made an explosive significance to the US market only. Statistics show that E-
Readers are most used in the American market with people owning up to two e-readers in
order to store maximum content. But the case is perceived differently when we move to other
parts of the world. E-book market has managed to contribute only 5% of the UK and European
market. E- Readers are still priced high in Asia, Middle East and Europe.
The main setback for companies is the confusion of the term ‘e-book’ amongst people. Most
think any article online can be passed as an e-book. This shows lack of awareness which
companies need to focus on.
Tax is another issue connected with e- books. For e-books to be accepted as a norm, tax on
purchasing e- readers will have to be reduced. Value added tax (VAT) is another barrier to enter
international market. People are hesitant to pay taxes on products that may provide complexity
in their daily usage of a device that may end up with manufacture faults. Most e-readers are
manufactured from china for international exports even so e- books are not as popular in China
itself mainly due to cost and lack of needed digital content.
Cultural differences also prove as barriers in any market. To penetrate a market where
consumer swears loyalty towards print is high risk. To market e-books in countries with large
population but poor economies such as Pakistan, Bangladesh, India, China & so on comes with
major difficulties. People in these countries prefer to buy second hand books in good condition
from a local stall if they can. To sell high priced gadgets and expect quick response is being
impractical.
Apple and Kobo are also barriers and provide threat to retailers such as Amazon & Barnes and
Noble who are strongly positioned in US but not as much internationally. Majority of people if
asked in Oman would know Apple but will be confused hearing Amazon or the others.

39
Pricing Models
To set proper pricing to a product is crucial. As much as customer loyalties lie with branding and
quality they have been known to jump to the first opportunity to buy a product with convenient
pricing and similar purpose. As you can see from the pictures below, price of one E- Reader is
challenging for an average salaried consumer to afford.
So which would you buy of those given above? Or would you buy one at all? These questions
are such that a company has to deal with prior to launch and making the product available in
the market. E-books being intangible are hard for consumer to wrap their mind around while
purchasing. After much thought and finally purchasing an e-reader, the consumer will be less
than willing to purchase an e- book at the same cost offered in bookstores. This brings an
imbalance to the overall pricing structure because by reducing the price of an e- book,
measures have to be taken in order to compensate for over all unit sales.

40
Profit margins are pressured due to the Value added taxes for distribution and royalties which
need to be paid to the author. This leaves a very tight profit margin. If consumers decided the
product is overpriced and companies have to reduce the price of the products, then the cost of
production and manufacture will also have to be either reduced or a way has to be produced in
order to cut down these costs or compensate for them to avoid tragic losses.
The price of one e- book to that of a book is lower but the price of one e-reader to that of a
book is much higher. It depends on how you would look at it and how you compare prices to
the weight of your wallet.
In the end, producers are forced to price the products at high values and consumers will be
unwilling and hesitant to buy the product. E- Books might be sold at lower costs but the cost of
an e- reader is still one that cannot be neglected even if it is a onetime purchase. Taxes
demean the glamour of the product and re-shape it to an ugly picture in consumer minds.

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Future prospects
Even with all the hardships faced by the industry, retailers and publishers alike, the future of e-
books looks promising in the eyes of many. Currently the increase in sales keeps escalating.
Daily companies rethink their statements and become more reluctant to release any figures.
The infancy stage will soon be matured however the e-book market has a long way to go.
Experts agree upon the co-existence of e-books and print media if not the dominancy of one or
the other. Professionals expect both to complement one another instead of compete for
market territories. The demand of print books will pale in some genres and categories will
others will thrive for a good paperback. Popular categories such as Romance, Mystery, Non-
teen fiction might partner with e-books but children’s categories, life style books and specific
categories such as medical books will always demand a print counterpart.
There is still a level of confusion when it comes to deciding which medium would be preferred
on daily basis. So far experts predict mutual use and friendly success. In the end what answers
every question to quiet is the future always has surprises in store.
0
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2008 2009 2010 2011 2012 2013 2014
Salesinmillions
Year
Projected consumer sales
Print books
E-books

42

43
People’s Say
Has time changed people or did people change with time? Every decade the world hyper
speeds its pace catching people off guard with over whelming changes. Back in the 1990’s the
world saw the age of mobiles, computers and other electronics off to a kick start. Fast forward
today, mobiles are reasonably smaller and easier to carry around than those companies started
off with. And with change, people adapt, grow and move forward.
If man had never been curious to learn, he wouldn’t have discovered the written word and if he
never learned the art of writing he wouldn’t have created paper. It is this change of format that
man strives upon to better lifestyle and to challenge his own intellect. So where does man see
himself with e- books? Where do we all see E-Books going?
With the breakthrough of Facebook, MySpace, Twitter and other social networking online
culturing has become as natural as any other activities we participate on daily basis. Most
people on an average count are techno savvy and aware of the latest gadgets and doodads. So
E- readers and E- Books are words people are not unfamiliar with.
Last month Wattpad hit its 1 Millionth user. A community dedicated to reading and writing and
a website which relies on consistent user activity. With 1 million user’s daily active and
downloading the reader application in order to access e-books on their mobiles, it shows
people’s engagement with the technology. If people weren’t interested or against the concept
of e- books, the concept would’ve come to a dead end like it did back in the 90’s when Sony
tried to break in to the market but without success.
Today, people hunger for smart quick gadgets to spend their income on. They keep up with the
industry news to latch on to the first opportunity they get to acquire a device that looks
modern and impressive at the same time full fills their purpose.
This section is dedicated to the consumer/ public perspective on E- Books. You will find various
charts drawn out according to polls taken, also popularity according to the demographics and
purpose.

44
Online/ Virtual Popularity
Virtual popularity is the awareness of the existence of e-books amongst people connected to
the internet world. Internet is the main source and hub of E- Books and any kind of electronic
businesses. To identify the popularity of e-books it was essential to carry out an online polling
system so people could answer my queries.
Online consumer polls carried out over a period of 7 days
The above graph was created after setting an online poll via Facebook when questioned which
means of reading do they prefer on regular basis. The response started off with small number
of people participating in the activity but eventually progressed with a healthy figure for a
cumulative record. The number of people in favor of paperbacks was higher than those using e-
readers for e-books. By the end of the 7th
day the competition between the two mediums was
head to head.
Day 01 Day 02 Day 03 Day 04 Day 05 Day 06 Day 07
E-Books 15 11 32 27 45 58 56
Paperbacks 21 17 21 45 41 49 51
Both 32 29 15 51 57 63 72
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No.ofpeopleinfavorof

45
However, most people answered diplomatically and numbers favored in divided use of both
mediums. At the moment readers still hold on to the traditional way of paper flipping but also
prefers the ease of technological use. Their reasoning was simple; e-books are easily available
and good in quick access for information but paperbacks being the most conventional way of
owning a book cannot be replaced. While they love feeling in sync with modern times some
traditions cannot be forgotten or replaced. And so people prefer buying both versions and read
to their liking.
Charts to support the research
To conduct a thorough analysis and understanding of consumer reaction it was important to
create questionnaires to extract required feedback. After the feedback was gathered, I created
charts to support their reasoning and also provide visual demonstration. According to many
online sources the regions which are most actively using e-books are – US, UK, Germany and
Netherlands. I have also personally collected feedback from the Omani population & their
views on e-books and e-readers along with people from Pakistan, India and Bangladesh.
Chart (1) Are you aware of e- books and e- readers?
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Yes, I am No I am not Maybe Only heard of them
Numerofpeople
Oman US UK Germany Pakistan India

46
Chart (2) Do you own an E- Reader?
Chart (3) How many e- books or books do you buy each year?
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Yes No I am going to Will think about it
Oman
US
UK
Germany
Pakistan
India
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100
None 1-4 e-books 1-4 books 5-10 e-
books
5-10 books I find free
books
online
Mostly
borrow

47
Chart (4) How much will you spend on e-books?
Chart (5) How much will you spend on books?
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A lot As much as I can At least one in
two weeks
Not much Nothing
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A lot Not much As much as I can Nothing
Oman
US
UK
Germany
Pakistan
India

48
Chart (6) What do you use E- Readers for?
Chart (7) What do you use books for?
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For Work For Study For Pleasure
Oman
US
UK
Germany
Pakistan
India
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For Work For Study For Pleasure
Oman
US
UK
Germany
Pakistan
India

49
Translating the graphs
Graphs 1 & 2 provide information on the awareness and ownership of e- books. E-books and E-
readers are most used in the US with Germany & UK next in line. Most people are aware or at
the least have a vague idea of what an e- reader and e-book is. People living in countries such
as India and Pakistan clearly do not find much use of having E- readers. This shows that
companies have actually targeted to marketing mostly in the US and UK where the E- reader
and E- book concept is not alienated or rejected. Even so when asked between e- books or
books, people’s answer were confused and mixed. Most people prefer having the option to use
both to their advantage.
Over all people agreed they would not spend much on e-books or e-readers and rather choose
a more tangible medium as books. If they had to choose between spending on books Vs e-
books, most leaned on to books saying that books give the feel of ownership and also prove to
be more effective than e-books.
However, at the same time people also wish to own an E- Reader because it looks efficient and
sophisticated. Most people reasoned saying “if the price if affordable, I would definitely buy a
Kindle or Sony” but majority agreed that price is a factor while buying and so buying books is
currently a less costly method.
Seeing that majority use books and E-readers alike for study purposes, companies should
definitely focus on the educational segment and produce books on either medium to gain
profits. Students are always in need of information and to sate their hunger, companies should
make specific category books more available at lower or convenient pricing.

50
Consumer behavior & intentions:
According to studies, consumer interest is divided between price and quality. People seek
products that offer wholesome features at lower costs. While selecting E- Readers, a consumer
will look for key features such as –
a) Wide screen without backlighting that causes eye strain
b) Longer battery life
c) Wi- Fi is always needed
d) User friendly
e) Light weight
f) Maximum storage capacity
g) File sharing options
h) Smart features such as scrolling, notes, bookmarking options
i) Possibly touch screen with color display
These play an important role in selling of products. The device has to be appealing regarding
quality and optimum use. There is always a gap between interest and intention to buy the
item. Most walk in customers is interested in the product but leave without purchasing one.
The case applies to both E- Readers and books alike. While looking through the shelves of a
bookstore a consumer will have only two things in mind
1) If the book I desire is available
2) If yes, then at what price?
Maybe the expectations attached to an electronic device such an E- Reader is higher since the
price it comes with is just the same. Consumers will always look for a substitute or shortcuts.
According to various consumer reports, the recent increase in purchasing of E- Readers such as
Kindle & Nook is mainly because o the introduction of Apple’s iPad. The threat was so huge that
Amazon and Barnes & Noble had to reduce their prices in order to maintain a hold in the
market. Once prices were down, consumer interest rekindled and sales poured once again.

51
Consumer behavior is always unpredictable. As long as the company manages to satisfy current
needs of their customer by enticing them with offers and subscriptions they can’t say no to, the
customer will not look around for alternatives but as soon as the purpose of the device feels
out of useful parameters, the consumer will relieve himself from the company services and/or
products.
It is said that a large contribution of sales lies with the marketing and customer care
departments. If these work together to improve customer experience, then companies will
always stay within harm’s way. However this is rarely the case.
Consumers mainly lean towards convenience. If the product is convenient it’s a success
otherwise there’s no convincing the person to buy an 180RO e- reader hoping they will not
return it the next day. People’s buying decisions rest a lot on branding, quality and pricing of a
product be it a book or an e-book. A person will always think twice before buying from an
unknown company instead of paying more to a brand they are familiar with.
In conclusion, people have mixed feelings when it comes to choosing between a book and an
e-book. They believe both mediums can and will co-exist in the future but also find the end of
print books highly improbable. Traditions have been passed from century to century for a
reason; they know how to survive through the impossible. It will be long before people loose
hold of this tradition.

52

53
My Views
It is often when I crave for a good read, a book I could hold in my hands and absorb each word
in to my system. Reading is not just a technical or social need; it’s a spiritual experience for
some like me. Reading is a crucial activity since childhood, a habit I inherited from my mother.
So when it comes to the matter of choosing a book, I am filled with an uncontained excitement.
The local bookstores have always been a favorite visiting spot for me and when Borders opened
in Oman, I was ecstatic. But as a dependent that relies heavily on her parents for any expenses,
I have to keep in mind some financial boundaries. Personally I would save enough money to buy
a 5RO book of any of my favorite authors but that would limit to one book per month at tops.
Two years ago I was recommended a website offering free downloads of e-books by popular
authors. The website was called 4shared.com. It allowed me access of not all, but most books I
desired. Eventually websites like these were banned due to digital piracy. In 2009, I came across
Wattpad, as mentioned a few times in the project. This for me was like stumbling upon gold.
Now 2 years later, I am an active member and one of the moderators on the website who help
with improving the community, tracking copyrights and volunteer for BETA testing of their
applications. This is the reason why I chose to take E- Reading as a topic; it is personal to me
and a great learning experience.
Moving on, so what do I think of E- books? I find them handy and quick to find. Like many
others in my age group, I am an active user of internet. To have a book at my disposal
whenever and wherever I want is as close as it gets to living a dream. However unlike some I
still prefer books over e-books. But this does not restrict my preference. With the recent
accomplishment and thrive of e- book markets, I believe we are moving towards a highly
digitized era. Will I be upset with this change? -Unlikely.

54
My choice lies with the medium which proves most convenient at the time of use. I believe in
change and it does not sneak up. Change is a slow and long process which requires a lot of
convincing & understanding.
The world today is in all sorts of transitional phase, including the book industry. Years ago many
people did not believe computers would be chosen over type writers but with time, designs
improve and we make it happen. People expect and they deliver accordingly. Similarly, there is
a rising demand of e- books which cannot be ignored or overlooked. So will I trade my books for
e-books in time? – Possibly.
Reasons why I say so are because:
1) People always look for something new. New is always better in the eyes of the common
man.
2) Youth today lack patience, they expect things to be done and at their disposal in matter
of minutes.
3) The industry is slowly re-defining ‘culture’ and replacing it with modernized values.
So before we know it, e-books just might become the primary source of reading and
information. As much as we like to believe from a consumer point of view, that we have a
degree of control over products, it isn’t entirely true. If companies decide to replace all DVD’s
with Blu ray discs tomorrow and limit the availability of any alternative, we will have no choice
but to buy what is given to us. This might sound too drastic but this is how businesses work, the
process might be slow but their initial objective is never forgotten.
Nonetheless like many, I do not agree the age of print tradition will die over time. If anything,
print will survive even when e-books will be replaced with a better counterpart.

55
Outlook & recommendation
It is difficult to say for sure how fast this change will overtake the industry. Let us clear one
thing though; print will not see an end. People are bound to tradition and with it lay comfort of
familiarity. Certainly E-books have proved to bring a degree of drama and excitement to several
businesses but this does not conclude the use of print media in future. Books will always be
needed in print just as people will always go to cinemas, holidays and so on. The only major
difference the birth of e-books brought is the option of choice.
Let’s face it, people love to have broader options to choose from and that is exactly what an e-
book is – another choice. The primary driver of reading will always be print. It will be long
before books are showcased in museums as lost artifacts. E- Book, like other gadgets just
expands our variety range. It’s thinking in the line of – if I can’t have an apple today, I can drink
the carton of apple juice resting in my fridge. Choice, makes a difference and so did e-books
but to compare importance of one over the other is like saying soap is more important than
shampoo.
Critical success factors
For publishers, e-books are as much as an opportunity as a threat unless they find a way to use
it to their advantage. Honing of employees & training to the required change is crucial and
switching to other formats is also important. Publishers need to level up their game and remind
themselves of the intensity of the competition around.
Piracy & illegal distribution of content needs to be controlled by the industry in order to keep
track of sales and avoid losses incurred from online piracy. Systems will have to be setup to
keep the business strong and maintain content security of authors.
Development of new distribution & business models is of utmost priority seeing the current shift
in figures. This can be done through customer subscriptions and account history. Companies
can provide the option of ‘exclusivity’ by updating each customer about the new list of books
available. This can be achieved by email subscriptions. Account history will allow companies to

56
record customer activity. To continue encouraging print sales, they could offer package offers
where a customer could be one print book and win 2 e-books for free. Such strategies will
benefit the business. Business model should now encompass e-book marketing strategies and
tactics to keep in line with competing businesses.
Co-operation between members in the industry is another factor which needs consideration.
Each role played by a member needs to be sensitive about their successor’s profit or loss in
order to gain their own. If relationships between publishers and format producers are formed,
much can be gained with such a partnership. If Amazon joins hand with HarperCollins per say,
then either of the company can benefit from such a relationship.
Co-operation between bookstores and online stores, if this is maintained then much of the shut
downs of physical bookstores recently can be prevented. By setting up an online store in
collaboration with an actual store will provide means for middlemen jobs.
Finally rethinking of price models is crucial. Manufactures need to reduce costs in order for e-
book sales to create significance in sales.

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What do we have in store for the future?
Well, for starters we still have to wait for special interest books to showcase more commonly
on any electronic store. In time E-readers might evolve in to full time tablets with multifunction
same as Apple’s ipad. Then there’s also the still the wait for publishers switching permanently
to multimedia.
The book industry is waiting for the time when e-books will generate more revenue than print
books and that again is still a possibility. Also, prices will definitely fall with increasing
competition.
Companies will broaden their reaches outside of US and UK. They are preparing international
markets to accept the media change.
Demands of specific interest books will increase and urge writers who are specific to religious
writing, sports or other to adapt to the transformation as well.
Once consumer awareness is heightened in other regions, market shares will rise and this is
predicted to happen by the year 2015.

58

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E- Books: the green choice?
When we think between papers and electronic, we assume paper is greener. After all, paper
does not require metal for its parts or electricity to run but you’ll be surprised to know that
many researchers concluded E- Books is the eco- friendly way to go. Let’s take a minute of
practical assessment from a general knowledge point of view. To produce paper, trees need to
be cut down; water consumption is high and then considering the gas pollution from truck
deliveries and later burning of paper, there is a lot of carbon footprint taking place just so you
could feel the weight of paper in your hand.
E- Books require E-readers to be read, to produce one E-reader metal, plastic and glass is
needed. Recycling of such material is difficult of course but there are ways to make your E-
Reader eco- friendly. Companies such as Sony & Apple have already taken the initiative of going
green. By using LCD & LED instead of fiber glass for screen, they are saving a lot of waste
production.
Coming back to paper, if you purchase 3 books per month for four years it will release 1074Kgs
of CO2 in to the atmosphere whereas one Kindle produces 168Kgs of CO2 throughout its
lifecycle. Of course the carbon release & water use from production of paper was not added to
the figure; it is only using and discarding of books that add up to 1074Kgs of CO2. Carbon foot
printing is a serious issue where books are concerned.
Thinking electricity wise, well the E- reader does not consumer as much as electricity as you
think it does. An e- reader can go on without charge for nearly 5 days. However carbon
footprint is still an issue where e- books are concerned as well. Of course paper does require
high usage of fossil fuels from shipping, delivery, production and water waste but E- readers still
contain chemicals which companies fail to mention in most reports. Although Sony claims their
products is Vinyl/ PVC free but how many others share the same?
However companies and studies still favor E- readers when it comes to environment talk since
paper production is increasingly leading to deforestation. In the end, it is mostly agreed that e-

60
book and books, cause like damages to the environment. The hazards of e- books are relatively
low than those of books and paper production but then again electronic use have other side
effects such as health. The fight between which is more eco- friendly mostly concludes with
acceptance of both being if not equally, then mutually involved in leaving carbon foot print.
Let’s have a quick pro’s and con’s scan of both medium:
Pro’s Con’s
Paper:
 Reusable & easy to recycle
 Longer lasting
 CO2 is not used while reading
 Affordable
 Aesthetical
 No health effects
Paper:
 Demands use of at least 11% of fresh
water for production.
 62.7 % harvest and forest impacts
 Larger carbon emission while
manufacturing
 Use of fuel for transportation
E- Books:
 Easily available
 E- paper is not harmful to the environment
 More ways available to make a product
eco friendly
 No use of fuel for reading or delivery
 No direct effects on deforestation
E- Books:
 Chemicals used during manufacture are
toxic
 Disposing is a problem, more electronic
waste
 They become obsolete over time till a
newer model is introduced
From weighing of both pros and cons, you can see that both e-books & books are equally
harmful and useful.

61
Health effects of digital media
Computer vision syndrome (CVS) is a common health effect from using too much of any devices
such as the laptop, mobiles and E- Readers. We all complain about headaches and blurry vision
after sitting in front of the laptop screen for hours in a row. To deny the fact is silly. Use of E-
readers and computers does cause significant eye strain.
Eye strain due to screen reading is not solely because the light from the screen causes damage
to the pupil. This has more to do with ergonomics and the way a person uses his gadgets. If you
stare at the screen without blinking too long or lie on your back with the laptop on your chest
will cause fatigue. The heat radiated from the battery will tire the muscles it is rested upon.
Doctor’s debate the topic saying people’s mannerisms with technological use is what causes
most of the health hazards and not the device itself.
The same applies with book reading. If a person decides to read a book in a poorly lighted room
or lying in a position with your head on the ground and feet on the bed, will also result with the
same effects as the ones when reading from a screen
According to an article, to quote : When we read, Dr. Hedge explained, a series of ocular
muscles jump around and can cause strain, regardless of whether we are looking at pixels or
paper. “While you’re reading, your eyes make about 10,000 movements an hour. It’s important
to take a step back every 20 minutes and let your eyes rest,” he said.
Therefore, your health is in your hands. It is how we treat our body that affects us. Overuse of
electronics will lead to exposure to radiation; over use of books will have ‘lead effects’ from ink
and carbon pencils. It is recommended to take a 20 minute break in between any activity to
keep the mind from exhaustion and the body running.

62
Safety and security issues
Digital Rights Management is a control of access over e- books and rights of the books accepted
by most companies such as Sony, Amazon & Apple. It limits the use of unnecessary digital
content and protects from copyright infringements online, although the use of DRM is still very
controversial. Companies who are pro DRM, say it is important to have security locks on books
to secure them from online piracy.
There are two ways this is achieved (1) through restrictive license agreement between software
producers, companies and authors to help with copyright problems (2) Encryption of files to
ensure backup and tagging of content.
Nonetheless, piracy is still common on the internet. Many small time hackers and software’s
that help break security locks are actively partaking in illegal distribution of books. You can
enter a name in Google and find at least dozen links directing you to a free download. Some
people say piracy is also a strategic move by companies who can afford to lose a degree of sales
in order to put the word out and keep the excitement running.

63

64
“If a man will begin with certainties, he shall end in doubts; but if he will be content to
begin with doubts, he shall end in certainty.” – Francis Bacon
The purpose of my research was to present you with facts and allow you to perceive them in
your own manner. To doubt the revolution brought upon by the electronic age is to certain it is
here to last longer.
As I have repeated this many times in the study, E- books will not pale the importance of books;
if anything it will revive the love for reading. Books will always be a treasure but to share
knowledge selflessly by using the modern techniques provided to us as selfishly as possible will
only confirm intelligence of man. E-books, for years now, have been a resolution on hold which
now has finally begun shaping the intended revolution.
Soon E- books might be replaced with a more efficient device while books will prevail through
time. But to deny technology of its hype and attraction is like denying we are not trapped in its
seduction.
To conclude my research, I would like to highlight the importance of awareness of technology
and E- reading. Why can’t we use to our benefit and make the most of it? Why do we need to
debate over which medium is better when both serve the same purpose? Only time can ensure
the rise or downfall of e-books, but for now it is a fast growing trend which seems to me has
more to gain from than to lose.
Finally I would like to thank my Professor for accepting this topic and bestowing me the
opportunity to learn and enjoy the experience.
*****************

65
Methodology
Framework for Analysis
His research investigates on the trends and behavior of e-book reading against conventional
reading. Extensive market research was carried with great support of various online sources.
The research discusses and highlights importance of technological use in today’s age & the
awareness needed to ensure success. Famous companies were looked in to with respect to the
scope of research.
Timescale
Data and information collected regarding the topic was done over a period of 3 weeks through
various internet searches. 6 hours of each day was dedicated to writing down the study and
reading from several articles. 2hours of which were committed to reading and understanding
the market and format. Online surveys were carried out over a period of one week and
interviews took maximum of 15 minutes each.
Method of research
First sub topics and titles were decided to form the content of research. These were used as
guidelines to have an order and organize each issue with connecting reasoning. After which
interviews were carried. A questionnaire was emailed to several recipients in order to gain
general outlook from people. These helped in producing consumer charts. PwC study: Turning
the page was referred for figural information. Facebook polls were created to have a vast base
for consumer research, with over 400 people participating in the activity.

66
Surveys
One questionnaire was forwarded to a list of people to conduct fastest way of survey and
online polls were found helpful
Interviews
Only one face to face interview was conducted over the weeks with a local bookstore manager.
3 face-to-face online interviews were also conducted via web chat with Wattpad HQ – Eva Lau
to gather added information.
Some expert interviews by professionals were read from articles for understanding publisher’s
point of view.

67
References:
1. http://en.wikipedia.org/wiki/Comparison_of_e-book_readers
2. http://blogs.wsj.com/digits/2010/06/21/the-e-reader-price-war-what-will-
consumers-do/
3. http://webcache.googleusercontent.com/search?q=cache:wHNJr-
PqOmUJ:www.economist.com/node/16478931+Economic+studies+on+e-
readers&cd=7&hl=en&ct=clnk&gl=uk
4. http://online.wsj.com/article/SB10001424052748703846604575448093175758872.
html
5. http://www.educause.edu/EDUCAUSE+Review/EDUCAUSEReviewMagazineVolume4
3/EBooksinHigherEducationNearing/162677
6. http://smartdatacollective.com/paulbarsch/40678/three-implications-rise-e-readers
7. http://www.physorg.com/news201497998.html
8. http://www.squidoo.com/will-ereaders-replace-paper-books
9. http://www.bodyearth.net/environment/how-green-are-e-readers/
10. http://www.bbc.co.uk/blogs/haveyoursay/2011/01/have_you_turned_your_back_o
n_t.html
11. http://coeus.hubpages.com/hub/Ebooks-Versus-Paper-Books-The-Pros-and-Cons
12. http://www.sony.co.uk/hub/what-is-ereading
13. http://en.wikipedia.org/wiki/Amazon_Kindle
14. http://www.top10tag.com/top-10-self-publishing-services/
15. http://online-book-publishing-review.toptenreviews.com/

68
16. http://online-book-publishing-review.toptenreviews.com/learning-center.html
17. http://michaelhyatt.com/top-ten-u-s-book-publishers-for-2009.html
18. http://michaelhyatt.com/the-top-ten-publishers-in-america.html
19. http://www.guardian.co.uk/world/richard-adams-blog/2011/jan/28/amazon-kindle-
ebook-paperback-sales
20. http://news.yahoo.com/blogs/technology-blog/amazon-kindle-books-now-
outselling-paperbacks-too-20110128-073659-185.html
21. http://www.dailymail.co.uk/sciencetech/article-1388779/The-end-paperback-
Kindle-ebook-sales-exceed-print-sales-time-ever.html
22. http://goodereader.com/blog/electronic-readers/a-brief-history-of-ebooks/
23. http://www.theweek.co.om/Archive/disCon.aspx?Cval=5507
24. http://online.wsj.com/article/SB10001424052748703720504575377472723652734.
html [Wall Street Journal]
25. http://www.digitalbookworld.com/2010/ebook-vs-hardcover-beyond-the-
headlines/
26. http://finance.yahoo.com/blogs/daily-ticker/e-books-extend-campaign-destruction-
against-actual-books-20110415-084624-586.html
27. http://davidgaughran.wordpress.com/2011/04/19/you-can-go-your-own-way-
european-publishers-double-down-on-americas-mistakes/
28. http://www.lifebridgeblogs.org/2011/05/27/do-e-readers-cause-eye-strain/
29. http://www.mobileread.com/forums/showthread.php?t=16890

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30. http://www.techwatch.co.uk/2011/09/12/e-readers-more-likely-to-use-internet-
for-health-issues/
31. www.writing-world.com/publish/ebooks.shtml
32. http://www.guardian.co.uk/technology/2009/feb/17/ebooks-stephenking
33. http://www.greenpressinitiative.org/documents/ebooks.pdf

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