Three companies predict books will go the way of eight-track tapes. As a result, they are heating up the electronic reader market.
A year ago, Amazon.com introduced its Kindle reader that allowed people to download books right on it. The company emerged as a leader in the e-book market through its content delivery service. Partnering with Sprint to enable Kindle users to wirelessly download digital e-book content to Kindle through the Sprint EVDO network.
But, the market offers enough business for others to step in.
Sony Corp. knows all too well that books are history. In August, Sony said it will add two new e-reader machines to its product line. The PRS-300 and PRS-600 are aimed at direct competition with Kindle. Sony plans to distribute the products through large retailers, such as Wal-Mart and BestBuy.
Besides these, Sony announced The Sony Reader Daily Edition, a reader with 3G connectivity through AT&T, allowing more free and paid-for e-book content to its users.
Barnes & Noble couldn't let Sony and Amazon.com to have all the fun. It introduced its own electronic book reader and priced it comparable to Amazon's. According to B&N's advertisements, owners will be able to lend e-books to friends. B&N has its own e-book store that are available to Apple's I-phone users.
Companies See Opportunities Ahead in E-Reader Market
Because digital books divisions are a growing segment of the publishing industry, electronic companies see what national publishers are failing to see. As more people become connected with cell phones and smart phones, the more they’ll want information immediately. Other reasons include:
- More people want to read their news from their phones or computers. Hand-held computers, such as the e-readers can travel like books can. Sony, Amazon and B&N are going to capitalize from this new attitude.
- Publishers also will save money on paper and warehousing fees. That financial reason alone will push them to embrace the new technology. Already, many of them are switching to print-on-demand, a step toward nothing but e-books.
- Libraries also can benefit from a world of e-books. They have limited space for the large quantities of books printed every year. E-readers take less space.
- More and more newspapers are going solely digital.
- International expansion of e-book availability is expected to fuel desire of e-readers.
Challenges Must Be Overcome for E-Reader Market to Succeed
Of course, Sony, Amazon and B&N must overcome obstacles. The biggest obstacle facing the e-reader market is copyright laws.
In the digital age, protecting artists' copyright is becoming more and more challenging. Lawsuits already have gone after online companies that allow anyone to download protected works.
The solution to this problem is requiring a fee for each e-book downloaded so the copyright is protected. However, that presents another problem. People expect to get their downloads for free.
Worldwide e-reader shipments are expected to reach 28.6 million units in 2013, up from 924,000 in 2008. Aggressive pricing for the low-end e-readers and the availability of wireless e-readers will move the market forward. It will appeal to all types of consumers.
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