In a move that surprises no one, the Book Industry Study Group endorses EPUB 3

In a move that surprised absolutely no one, the Book Industry Study Group has endorsed EPUB 3. The actual endorsement amounts to little more than a solicitation for new members for the BISG and IDPF (International Digital Publishing Fourm, the industry group that created and manages EPUB):

"ISG encourages organizations interested in the advancement of EPUB 3 to become members of both IDPF and BISG in order to work directly with those creating the standard and developing best practices."

The reality is that companies that join the two groups now are going to have virtually no influence over EPUB 3--and the specifications are public, so there's no real benefit to spending thousands, or tens of thousands, of dollars to join. (Yes, I'm suggesting being a "free rider".)

In addition, EPUB 3 is less a standard than a suggestion: The IDPF doesn't require that companies implement the complete specification, nor does it prohibit implementation of proprietary extensions--which is why Apple, Barnes & Noble and Kobo all have their own proprietary multimedia extensions to EPUB 2.X. Also, Apple hasn't endorsed EPUB 3, and isn't likely to do so.

Vook launches HTML5 eReader and new pricing models

Vook just launched a new HTML5 eReader for its eBooks (to try it out, go to http://vook.com; http://www.vook.com will take you to their sign-up page for writers). The samples I've seen are similar to a conventional EPUB display with flowable, resizable text plus embedded rich media.  It can display one or two pages at a time. It also has three layout options with different typefaces. A nice feature is that Vook has anticipated that the eReader will be used on both PCs and tablets, so it supports a single-page vertical scrolling mode for smaller devices, as well as two-page mode for desktop and notebook PCs.

The company has dropped its monthly fees and now offers two options for self-publishers:

• Publish the eBook free of charge to Vook's own eBookstore; the author gets 85% of revenues.
• Create eBooks using Vook's tools and then pay the company $99 for the files, which can be uploaded and sold by the author through Amazon, Barnes & Noble and Apple. 

eReaders are great for casual readers, not so great for highlighting and notes

The Atlantic has an essay about the state of eReaders written by Alan Jacobs, an English professor at Wheaton College. Here's a summary:

• Both eReaders and tablets are making it easier to read at night, with front lights (eReaders) and dimmable backlights (tablets). 
• E Ink displays on eReaders are still far superior to LCD displays on tablets when it comes to glare. 
• The contrast of eReader displays has improved considerably. 
• eReaders have limited typeface options and do a poor job of handling kerning and spacing. (A large part of the problem is EPUB, which emphasizes dynamic page flow to the detriment of just about everything else.) 
• Highlighting and annotation, which are very important for literature studies, are all but impossible with eReaders. The trend to replace dedicated keyboards with on-screen keyboards has made annotation even more difficult. On the other hand, tablets handle highlighting and annotation much better, although they still have some quirks. For example, it's impossible to extend a highlight across a page break on the iPad (although it can easily be done on Nook and Kindle eReaders.) 

The bottom line is that eReaders and tablets are generally improving for general reading, but for engaged reading, there's been little improvement, and in some ways eReaders' capabilities are moving backwards.

Germany's PaperC raises money to fund development of HTML5 eReader

GigaOm reports that PaperC, a German eBook retailer, is trying to raise from €50,000 to €100,000 through a crowdfunding site in order to transition to a HTML5-based platform. PaperC allows users to purchase eBooks by the page, chapter or entire title, and plans to offer a monthly subscription program giving members unlimited access to the company's entire collection. The company currently has 120,000 registered users and distributes titles from more than 100 publishers.

PaperC is working with German crowdfunding site Innovestment to raise funds to launch PaperC.com, a new platform that is based on HTML5, instead of the current PDF-based platform. They've developing their own HTML5 eReader and PDF-to-ePub converter.

ValoBox: Online eBooks, sold by the page

Publishing Perspectives has an article about a new online eBook service called ValoBox. The service converts EPUB 2.x eBooks into HTML. Users can purchase any portion of any eBook, from a single page to the entire title. The purchased eBooks are then stored in the cloud for the user, where they can read them with desktop or notebook computers, tablets and smartphones.

Publishers get 60% of the sale price. Whoever refers the customer, whether it be another consumer or the publisher itself, gets 25% of the sale price as a referral fee. ValoBox retains 15% of the sale price as a commission. Their primary publishing partner is O'Reilly, which is offering selected titles from its collection, as well as Microsoft Press and Yahoo Press.

Kobo licenses Access EPUB 3 eReader software for Japanese market

Kobo announced that it's licensed EPUB 3 viewer software from the Japanese vendor Access. The press release says that Kobo will be using Access' NetFront BookReader software in Japan for the Kobo Touch, Android and Windows. It appears that Kobo will be using NetFront only in Japan, and will continue in-house development of its own EPUB 3 eReaders for other markets.

eBook Wars: Browser Wars All Over Again

At the IDPF Digital Book 2012 Conference earlier this week, Michael Tamblyn, who's Kobo's Executive Vice-President for Content, Sales and Merchandising, gave a status report on his company's market success and progress in implementing an EPUB 3-compliant eReader. Mr. Tamblyn said that because there are "a half-dozen ways to do anything in EPUB 3," it's essential that his developers test Kobo's EPUB 3 prototype using live samples, but his company is having difficulty getting enough document samples for testing. He also said that some publishers are waiting to actually get commercial EPUB 3 readers in-house, so that they can develop their documents to use the features actually implemented by eReader developers.

The next day, I spoke to a manager from a document conversion and app development company on the BEA show floor. He said that his company recommends to publishers that they use EPUB 3  as the basis for creating eBooks. I asked, "But what about Amazon? They don't use EPUB 3." The representative said that Kindle Format 8 is "very close" to EPUB 3, and that Amazon might adopt EPUB 3 in the future. In any event, he said, it's fairly easy for his firm to convert EPUB 3 to KF8.

The era of "Browser Wars"

I came back from New York with a bad case of déjà vu. Anyone who was involved with the Internet from 1995 on remembers "Browser Wars," the battle between Netscape and Microsoft to dominate the web browser market. The engineering team that developed Mosaic, the first graphical web browser, at the University of Illinois, moved to Silicon Valley and wrote a new browser, code-named Mozilla, that became the Netscape browser. Netscape quickly became the most popular Internet software ever released to that date. Then, Microsoft licensed the original Mosaic code from the University of Illinois and released its own browser, called Internet Explorer.

Early on, Netscape introduced new tags and functionality to its browser at a fast clip. Some of these tags, such as frames, gave web designers more options for creating web page layouts, but the tags were implemented without being adopted by the World Wide Web Consortium (W3C,) the international standards-setting body for the Web. Microsoft adopted some of Netscape's tags and added many of its own. However, even when it adopted a Netscape tag, it would often adopt a different set of attributes (the settings that tell the tag what to do.) There were also variations in how browsers rendered tags: The exact same web page, using the same HTML tags and attributes, in two browsers that supported all the tags and attributes used in the page, could look different in the two browsers. For example, in one browser, the page might be displayed with a background color that bled all the way to the edges of the window, while in another browser, the same page might be displayed with a white border around the edges.

It wasn't only HTML that got "innovated" to pieces. The same scripting language got two different names--JavaScript at Netscape (where Brendan Eich invented it), and JScript at Microsoft. As with HTML, the two companies' implementations were different in subtle (and sometimes not so subtle) ways. This was the era of "Looks best in (Browser X)" and "We prefer (Browser X)". In some cases, web pages wouldn't even open in some browsers, and the user would be told to use or install a different browser.

Browser developers encouraged these differences in order to lock customers in, but they were a nightmare for website designers, who had to design different versions of their sites for different browsers, and even for different versions of the same browsers. Pressure from designers and software developers on browser vendors and standards organizations reduced, but to this day still hasn't completely eliminated, the requirement to do things in different ways for different browsers. The W3C took charge of defining new versions of HTML and pushed vendors to stop implementing their own new tags until they'd been reviewed and accepted by the W3C. The W3C also adopted Cascading Style Sheets (CSS,) which over the years have made it easier to tightly define the layout of web pages that work across browsers. Ecma International (formerly the European  Computer Manufacturers Association) took over standardization of JavaScript, and changed the name of the standardized version to ECMAScript.

However, even with all these standardization efforts, supported in some cases by companies whose annual revenues exceed those of the entire book publishing industry, there are still incompatibilities among browsers, and even among versions of the same browsers. For example, Mozilla has JavaScript in its Firefox browser, and Microsoft still has JScript in its Internet Explorer. Both are compatible with ECMAScript at a basic level, but both have additional features that are incompatible with each other.

From Browser Wars to eReader Wars

eBook designers have a variety of formats that they have to work with: Amazon's .AZW (based on the Mobipocket format acquired by Amazon) and Kindle Format 8 (based on HTML5 and CSS with extensions), EPUB 2.X, Apple's iBooks (EPUB 2 .X with Apple's extensions), Kobo Color Content (EPUB 2.X  with Kobo's extensions,) Nook Digital Replica Plus (EPUB 2.X with Barnes & Noble's extensions,) EPUB 3 (HTML5 and CSS3 with the IDPF's extensions) and PDF.

To eBook designers, the word "extensions" is a synonym for "incompatibilities." Two different eReaders may perform the same functions, but if the tags or attributes that tell the eReaders what to do are even slightly different, eBook designers will have to either design around the differences or not use the functions.

Can we draw lessons for the eBook industry from the Browser Wars years? I think that we can:

1. Incompatibilities among eReaders from different vendors, and even among different generations of eReaders from the same vendor, are inevitable and won't go away.
2. Amazon will adopt EPUB 3 48 hours after Apple provides full support of Flash in iOS. In other words, it'll never happen. Amazon's eBook formats are strategic technologies for the company, and it won't allow any competitor or group of competitors to dictate how a strategic technology must work.
3. Despite the best of intentions, browsers' implementations of HTML5, CSS3 and JavaScript are still incomplete, although they're much less incompatible than they once were.
4. EPUB 3 is based on HTML5 and CSS3, and most eReader developers will either base their software and devices on an existing web browser to avoid "reinventing the wheel," or will use the customer's existing web browser and then support the EPUB 3 extensions with JavaScript. Either case makes EPUB 3 subject to lesson 3 above.
5. In order to minimize time and cost, eBook designers and developers will inevitably gravitate to a "lowest common denominator" approach, where they'll either only use features supported compatibly by the largest number of eReaders, or will design eBooks so that features that aren't supported by a particular eReader are either simulated or ignored without crashing.

EPUB's developer takes sides in the Justice Department's eBook price-fixing case

I just returned from Book Expo America in New York City. While I was there, I attended the International Digital Publishing Forum's Digital Book 2012 Conference. On the first day of the event, the IDPF apparently took sides against the Justice Department's eBook price-fixing case, and it did so in a particularly cowardly and damaging way.

First, I'll briefly describe the charter of the IDPF--it's the organization that develops the specifications for the EPUB format (the current version is EPUB 3.0.) I’m a member of two large, well-recognized international technical standards organizations: The Society of Motion Picture and Television Engineers, and the Audio Engineering Society. Despite the many political and legal battles that the movie, television and recording industries have found themselves in over the years, to my knowledge, neither group has ever taken a position on legislation, litigation or political issues. Standards organizations maintain their credibility by taking a neutral stance on everything except the technical standards that they accept and manage. That's what made the IDPF's actions on Monday so surprising.

At the start of one of the morning sessions, a panel discussion that included Madeline McIntosh from Random House (the only Big 6 publisher not charged by the Justice Department,) Bill McCoy, the Executive Director of the IDPF, told the audience that questions about the Justice Department's case, agency pricing and related topics would be off limits. That made perfect sense, and suggested that the IDPF was going to take a "hands off" approach.

However, after lunch, McCoy introduced Paul Aiken of the Authors Guild. Aiken took the stage and launched into an unscheduled 30-minute-long screed against Amazon and the Justice Department's case. I've written extensively about the Authors Guild's position--suffice it to say that Aiken added nothing new and did no better a job than other Authors Guild representatives of explaining how higher eBook prices from the Big 6 are good for consumers, or under what grounds the five publishers in the original case were justified in taking allegedly illegal action in order to prevent what they saw as Amazon establishing a monopoly in eBooks. There was no subsequent presentation of any alternative points of view, and McCoy led the audience to believe that the IDPF concurred with the Authors Guild’s position.

I confronted McCoy after Aiken's presentation to find out why the IDPF had chosen to take sides and refused to allow any discussion of other viewpoints, but he brushed me off and refused to answer any questions until the conference ended. In any event, should Mr. McCoy not believe it beneath him to respond to an industry analyst and blogger, I’d be happy to update this post with his response.

If Mr. McCoy does respond, here are the questions that he should answer—the same questions that I tried to ask him on Monday:

* Why was Mr. Aiken added to the schedule at the last minute?

* Did Mr. McCoy know that Mr. Aiken was going to talk about Amazon and the Justice Department?

* If Mr. McCoy didn't know about what Mr. Aiken was going to say, was misled by or didn't agree with Mr. Aiken, why didn't he make it clear at the end of his presentation that the opinion presented was that of the Authors Guild and not the IDPF?

* If Mr. McCoy did know, at least in general terms, what Mr. Aiken was going to say, why didn’t he give supporters of the Justice Department’s case an equal opportunity to present their side of the story to the conference’s attendees?

In short, the IDPF's role shifted last Monday from a standards-setting body to an industry advocacy organization, thanks to an exceptionally poor decision by Bill McCoy or his board. Companies that don't agree with the IDPF's position are even less likely to adopt or support EPUB than they were before Monday, which will result in further marginalization of the EPUB format, which is already a shambles due to incompatible extensions and DRM schemes that make it impossible to read supposedly "EPUB-compatible" documents on supposedly "EPUB-compatible" devices.

Apple's eTextbook announcements: Far from a slam dunk

This morning, Apple announced:

• A new version of iBooks that supports eTextbooks.
• Distribution agreements with five textbook publishers (Pearson, McGraw-Hill, Houghton Mifflin Harcourt, DK and the E.O. Wilson foundation) covering 90% of the high school market.
• eTextbooks priced at $14.99 (U.S.) or less.
• A free eTextbook editing application for OS X called iBooks Author.
• A revamped version of iTunes U for higher education, with a dedicated iOS app.

Apple's announcements could be very important, but the company has a long way to go, for several reasons:

• Apple's focusing on the high school market, not colleges and universities, and it's trying to convince parents and students to purchase eTextbooks directly from Apple. In most U.S. schools and districts, students get their textbooks from the school, either at no charge or as part of an activities fee. Why would parents who don't have to pay for textbooks now or get them automatically start paying for them? Thus, Apple's plan only impacts those parents and students who have to pay for their textbooks now.
• Parents also have to be willing to buy an iPad for their child. That cuts out low-income and many middle-income families.
• There are currently only eight titles in Apple's eTextbook collection--not even enough to be called a good start.
• Although iBooks Author creates eBooks that are based on EPUB 2.0, it uses Apple's proprietary extensions for supporting multimedia, animation and JavaScript-based new features. Thus, titles created with iBooks Author can only be used in iBooks. (This might change in the future, when Apple fully implements EPUB 3 in both iBooks and iBooks Author.)
• If you use iBooks Author and create eBooks that you intend to sell, according to the EULA for the software, you are prohibited from selling the eBooks anywhere except through Apple.

Apple's decision to focus on high school textbooks before going after the college market is questionable: College students pay far more for textbooks than do high schoolers, and parents are far more likely to purchase a tablet for a new college student than for a high school student. However, that's not the most important reason why I believe that Apple will have an uphill battle. When Apple launched the iBookstore initially, with the support of five of the "Big 6" trade publishers and the agency pricing model to eliminate Amazon's price advantage, it looked as though Apple would eventually become as dominant in eBooks as it already was in music. The results, however, have been far from what Apple and its boosters expected.

Even today, Apple has a minuscule share of the U.S. eBook market, far below those of Amazon and Barnes & Noble. Apple's eBooks can only be used on Apple's devices, while Amazon's and Barnes & Noble's eBooks can be be used on those companies' popular eReaders and tablets, as well as with software eReaders on PCs, tablets and smartphones. Amazon in particular has set up an effective self-publishing program for authors, while Apple is just taking the first tentative steps today.

In short, Apple's new eTextbook initiative could make a big difference eventually, but it's far from a slam dunk.

Is there a market for "enhanced" eBooks?

Shortly before Christmas, The Huntington Post published an interview with David Prichard, the President and CEO of Ingram's Content Group. Ingram is the largest book distributor in the U.S. and operates Lightning Source, which is one of the largest publishing-on-demand services companies, and a major vendor to self-publishers. In the interview, Prichard talked about the future of publishing, and one of the things he talked about were "enhanced" eBooks:

"Enhanced e-books are only in their infancy, allowing authors to add alternative endings or interviews. Down the road, who knows what's possible? Maybe we will have biometric devices that can sense your pulse and body temperature and change the plot based on your feelings -- and you think Stephen King is scary now." 

"...for example, a biography can to come to life in many ways. Jacqueline Kennedy: Historic Conversations on Life with John F. Kennedy has all of the interview audios, videos, photographs, text, and transcripts available. Even classics -- Penguin has updated Pride & Prejudice with clips from the movie and even instructions on dancing. For the 75th anniversary of The Hobbit, HarperCollins released an e-version with exclusives including J.R.R Tolkien's book illustrations and recently discovered Tolkien recordings. Publishers are still learning what added value readers will or won't pay for. I expect we'll continue to see lots of experimentation in this arena." 

Seth Godin, well-known author and marketer, responded on paidContent.org to Prichard's remarks:

"It (the interview) is filled with breathtaking visions of the future, and they are economically ridiculous. The Long Tail creates acres of choice, so much as to make the number of options almost countless. But at the same time, it embraces (in every format) much lower production values. For what Michael Jackson and Sony (NYSE: SNE) paid to produce the Thriller album, today’s artists can make and market more than 5,000 songs. You just can’t justify spending millions of dollars to produce a record in the long tail world." 

"The same thing that happened to music is going to be true of books. The typical e-book costs about $10 in out of pocket expenses to write (more if you count coffee and not just pencils). But if we add in $50,000 for app coding, $10,000 for a director and another $500,000 for the sort of bespoke work that was featured in Al Gore’s recent “book”, you can see the problem. The publisher will never have a chance to make this money back." 

"Sure, there will be experiments at the cutting edge, but no, they’re not going to pay off regularly enough for it to become an industry. The quality is going to remain in the writing and in the bravery of ideas, not in teams of people making expensive digital books."

Others have picked up on the discussion; for example, the Teleread blog summarized Godin's post, and as of now, every comment on the Teleread post opposes Godin's position. I agree with what Godin wrote, with some reservations. First, let's leave the "long tail" arguments aside--the long tail theory has largely been debunked. The long tail only makes money for distributors, who can aggregate small numbers of sales from a large number of publishers/writers/producers. However, the market is being flooded by titles from self-publishers, and it's harder than ever for consumers to separate the wheat from the chaff. Price is no longer an indicator of quality. The most likely outcome is that there will be a small number of titles that do well (as usual), and an ever-larger collection of titles that barely, if ever, earn back their investment in time and money.

Many of the Teleread commenters objected to Godin's statement that it costs "$10 in out of pocket expenses to write" an eBook. He doesn't include editorial, design and eBook conversion services, which can cost hundreds to thousands of dollars if an author farms them out, but that's not what the commenters objected to. Their concern was that Godin made no accounting for the value of the time that authors spend writing. I understand their arguments, but I'm not sure that they're realistic, especially in today's climate. In the 1990s, I wrote two computer books, one for Prentice Hall and the second for Ventana. The first one earned back its advance and sold around 12,000 copies domestically, as well as local-language reprints in a variety of markets. The second one was never released in the U.S., but was released by Ventana's partner in Japan as a local-language title. It didn't earn back its advance. Considering the time I spent writing the two books and the amount I earned, I would have made about the same amount on an hourly basis if I'd worked at Burger King. That's why I stopped writing books.

Your market value is what your customers or clients will pay for your time. In the case of a self-publisher, it's the income that you get from your title divided by the number of hours you spent working on it. If that number doesn't satisfy your financial requirements, you have to increase the number of copies you sell, change your pricing, or do something else that pays more money.

Now, to Godin's central point: Most publishers and self-publishers are very unlikely to recoup the additional cost for adding rich media and interactivity to their eBooks. His cost estimates may be off, but his logic is correct. The fact is that most "enhanced" eBooks to date have sold poorly. If you're creating a native app for iOS or Android and you have to hire developers to do it, that costs money. Even if you're sticking with, say, Apple's EPUB extensions for rich media, Barnes & Noble's extensions for Nook Kids, Kindle Format 8 (when it becomes available to all publishers) or, in the not-too-distant future, EPUB3, there's a cost in time and money for adding interactivity and rich media. For now, at least, you're unlikely to earn back that cost. Thus, the most reasonable approach is to create conventional eBooks.

At some point, enhanced eBooks will "crack the code" and become widely popular, and the additional front-end expense to produce them will be justified. Today, however, that's not the case.

PressBooks eBook publishing service opens its doors to the public

PressBooks, a Montreal-based startup, took its eponymous online eBook production service public today. There are lots of services and software for creating eBooks, but PressBooks has some interesting features for self-publishing authors (and even for established publishers--more on that in a minute.) PressBooks is an online service built on top of WordPress. If you're familiar with the WordPress dashboard, you can jump into PressBooks right away. The service creates fully-formatted EPUBs and PDF files, as well as HTML online eBooks and XML documents. It's primarily designed for text-intensive trade-style eBooks; if you're planning to create picture books or heavily-formatted multi-column text titles, there are better tools than PressBooks. However, you can import book covers and images into a built-in media library.

PressBooks uses a simple WYSIWYG editor for creating and editing text; text can also be edited offline and then uploaded. A small variety of templates are available for automatically formatting eBooks; PressBooks is working on more designs. Multiple authors and users can be defined, and the site can be public (anyone can read the eBook) or private (only specified users can access the site). Users can enter metadata in the Book Information section, including title and subtitle, descriptions, names of editors and translators, print and eBook ISBNs, and prices.

PressBooks has already been used for creating two commercially-published eBooks: "Book: A Futurist's Manifesto", which was edited and published by the PressBooks team for O'Reilly Media while the software was under development, and "Nine Things Successful People Do Differently" by Heidi Grant Halvorson, published by the Harvard Business Review Press.

At the present time, PressBooks is a free service, but that's likely to change once it exits beta. Here's a presentation that demonstrates most of the service's features:

Pressbooks Demo Deck