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Feb 1, 2010

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Tech Today: E-Book Pricing Put Into Turmoil, Intel Moves to Disqualify Rosch

    • First, there will always be some market for printed books. Desk references are a good example. Trade publications of fiction and non-fiction books for mass markets are another.

      However, electronic publishing represents a high order disruptive technology in this industry, if there ever was one.

      Probably the greatest forces that electronic publishing will have are (1) dramatic reductions in pre-press operations (2) near total elimination of the manufacturing process, save books that are expressly printed in hard copy format (3) dramatic reductions in capital tied up in inventory at all stages (4) elimination of waste in sending book on consignment into the retail channel; very rapid revisions and publication of second to n editions (6) elimination of middle men and associated headaches in marketing channels (7) neat total elimination of shipping costs at all stages of production (7) near total automation of retail storefronts (8) near total elimination of product-related accounts receivable (8) abundant derivative opportunities for online training, etc and (9) virtually instantaneous distribution to a world wide audiences that will most likely not be confined to Kindles, iPads, etc., but anyone with a computer.

      As with music, software, YouTube, etc, electronic publishing will create world wide opportunities for smaller companies. Fire will be once again given to the tribes in the hills, and this is a very good thing.

      As the author suggests, for the first time in the entire history of publishing, authors and publishers will be confronted by the central question in publishing, "What is the pure, real value of content." With the marginal costs of production and distribution driven down to rock bottom levels, by historical standards, the only thing that will cause a customer to buy electronic publications will be perceived value of content. There are significant issues here. For example, does content in electronic form add value for customers? In some cases yes. How do publishers plan to price print v. electronic publications with the same content. Same price, which is pretty much how pricing is done now, or some differential.

      This will be a fascinating one to watch.

    • >>>Intel Moves to Disqualify Rosch

      Interesting: Intel does not trust its one employees. Mr Rosch worked for Intel. If Intel has no faith in one of theirs, like Mr. Rosch, what Intel is up to?

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