William F. Garrity

Again, from the June 5, 2008, The Economist: 

Book publishing in America

Unbound

Publishers worry as new technologies transform their industry

JEFF BEZOS, the founder and chief executive of Amazon, destination for nearly four-fifths of online book buyers, appears harmless. But to some in the publishing industry, he looms like a recurring nightmare. Having upset booksellers' apple-carts in the 1990s with his online stores, he is now widening his assault on the industry, as he personably explained in a speech at Book Expo America (BEA), a trade fair in Los Angeles, on May 30th.

From the outside, book publishing looks like an impregnable edifice: 411,000 new titles were published in America last year, and more than 3 billion books sold there. Growth was 4.3% in the “adult trade” segment, the mainstay of the market. In fact, the existing order is fragile. Reading in America, as in many rich countries, is down. A study by the National Endowment for the Arts, an independent federal agency, says leisure reading is declining, especially among the young. Since 1985, books' share of entertainment spending has fallen by seven percentage points.

Books have changed very little in half a millennium, but they may now be on the verge of going digital. The first high-resolution e-book reader, made by Sony, came out in 2004. Last November Amazon launched the Kindle (pictured), a $359 e-book reader with a high-speed wireless link to the firm's online store, allowing e-books to be downloaded in seconds. Mr Bezos says Kindle e-books now account for 6% of sales of the 125,000 titles available in both print and electronic formats.

Though they are an improvement on a computer screen, e-book readers remain crude simulacra of books. A poll released by John Zogby at BEA found that 82% of Americans strongly prefer paper to pixels. None of the handful of e-book manufacturers will divulge sales figures. First-quarter sales of mass-market e-books in America have tripled since the same period in 2005, but they were worth just $10m.

 But Kindle and its kind are merely the first generation of a product that is sure to evolve quickly in the coming years. Eventually, e-books point the way towards a cleavage of content from platform, threatening publishing with the wholesale change that has hit the music industry. It is a familiar story: fearing piracy, publishers are already adopting various mutually incompatible security technologies that are sure to annoy readers—although ePub, a new standard backed by many big publishers, may clarify things.

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