Few are looking forward to the launch of Apple’s tablet computer as much as the publishing industry. Here lies hope of new revenue streams and competition in the world of e-books.
Apple has had talks already with book publishers to make e-books available on the device. Books with bonuses, in fact: e-books on the colour touchscreen could come with extra features, such as embedded videos and interviews with authors.
Amazon created the e-book market by making the $9.99 price for bestsellers in the United States an integral part of its introduction of the Kindle e-book reader in November 2007. However, the Kindle lacks a colour screen and video — two elements that are likely to be crucial to the future of enhanced e-books.
Yair Reiner, an Oppenheimer analyst, said: “Contacts in the US tell us Apple is approaching book publishers with a very attractive proposal for distributing their content. Apple will split revenue 30/70 [Apple/ publisher], give the same deal to all-comers and not request exclusivity ... As innovative as it is, we believe the Kindle has disgruntled the publishing industry — book, newspaper and magazine — by demanding exclusivity, disallowing advertising and demanding a wolfish cut of revenue. The tablet is set to change that.”
Yesterday Amazon sought to pre-empt the tablet’s launch by unveiling a new royalty package for its Kindle platform, by which authors and publishers can get 70 per cent of list price net of delivery costs. To keep down its e-book prices, the option is only for books that cost $2.99 to $9.99 and are a fifth below the lowest physical book price. The move is meant to keep authors loyal.