Sony PRS-700 Reader launch in New York City

[DMcCunney]

Originally Posted by bbusybookworm

Huh?

The only video I found there was on the 505, no mention of the 700.

Its not a bad marketing video, but it isn't what I was looking for.

I didn't think it was what you wanted either. I suspect what you want, like the detailed spoec sheet, doesn't currently exist.
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Dennis

[DaleDe]

Originally Posted by DMcCunney

I didn't think it was what you wanted either. I suspect what you want, like the detailed spoec sheet, doesn't currently exist.
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Dennis

There is a specification on the web site but it is missing some key components such as the actual size of the reader. It also has some errors in the description where in one place it says the unit weighs 9 oz and in another 10 oz. I have collected the best specs I can from the available information in the wiki page PRS700.

Dale

[DMcCunney]

Originally Posted by DaleDe

There is a specification on the web site but it is missing some key components such as the actual size of the reader. It also has some errors in the description where in one place it says the unit weighs 9 oz and in another 10 oz. I have collected the best specs I can from the available information in the wiki page PRS700.

Thanks, Dale. I'll be digging for more specs in my followups, and I'll post links to what I can find.
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Dennis

[axel77]

Originally Posted by DMcCunney

The answer to "Is the market big enough" will depend upon who you are. Smaller companies can address markets that bigger companies can't touch.

It depends. Yes larger companies are generally slower and have more management work for everything. But they can come in with a decent amount of experience. For the taxi example I guess even BMW will have less expenses designing a new car, compared to e.g. me starting up a new company to design a new car. The second case would be enourmous of costs.

Simple answer: it isn't.

Exactly, so it isn't IMHO a good point to proove GE didn't want to do it, when nobody wanted so.

The usual corporate impulse is to try to maximize profit. But this is misleading, as the basic question is "How much profit is required?" The answer to that is simple: profit must be enough to cover the marginal cost of capital. That number may be higher than the maximum profit the company thinks it can make. In that case, the operation may not be long for this world...

"Cash cows" usually have already money invested in them. So even if you stop the operation immediatly they will just lose that investment forever. Its very common to set a product on cashcow state to get any money out of it, as long it exceeds the operation costs. You cannot withdraw that investment anymore to move it anywhere more profitable, because it is bound already. We usually never here of anything to be moved to a cash cow, since companies are secretive about it. But you can usually read between the lines, no more development, no further investment into a product. Product is to be cashed until it dies...

Companies will use existing operations as "cash cows" to finance other developments, but the "cash cows" have to throw off enormous amounts of cash.

As said no, cash cows need just to throw off enough money for standing operation costs. Investment has already been done, you cannot move it somewhere else.

Also financial capital is actually something in comparison quite dynamic in a company. You can catch capital if you need it from either loans, or you can even (within limits) sell or buy you own shares to move money in or out as you need it. So arguing with the optimal place of money is IMHO not a good point to start with.

On the other hand companies have fixed assets, like personnal. Altough you can quickly get rid of it, it takes a lot of time to get it, to train it, to get the teams working somethly. [Something one investor at a company I worked at didnt get. You cannot fire personnal during some bad months, hire new coders after you get better, and expect the new team even being closely as productive as the old one.

So for any company, deciding what your R&D department works on is a fundamental strategic decission. But not so much where you liquid assets are right at the moment.... because they are compared to anything else *liquid*

As an example pertinent to what MobileRead is interested in, take publishing. The industry went through an upheaval some years back as multi-media conglomerates acquired publishing houses to complement their existing operations in movies, TV, music, and gaming. They thought they saw synergies in having multiple forms of content under one roof. Those associations are beginning to unravel. For instance, TimeWarner sold off the Warner Books division to Hachette, who renamed it Grand Central Publishing. The problem was simple: book publishing can't achieve the levels of revenue and profitability possible in things like movies and TV.

Yes the question is, if having some things working together within one roof is more effective or having them work at seperate roofs is more effective. This greatly depends on what the things is. But its not so that the bigger the roof the bigger the thing needs to be.

Conglomerates in other media areas with publishing operations are finding that out the hard way. Their publishing arms are under intense pressure to boost revenue and profit (IE: publish more best sellers). and some publishing arms are being divested. They simply don't fit with what the larger company is doing. They are profitable, but not profitable enough

The question is not if its profitable "enough", the question is how you get the maximum of effciency. Sometimes this means merge, sometimes this means split.

Axel, my basic point is simple: Sony is a big company, and requires big numbers to justify doing something.

And this is where I disagree with. Really I cannot see Phillips deciding it would be smarter to make a spinoff (iRex) tells us they trust less in the future of eInk devices than sony does. Sony and Phillips just seem to have a different idea of how to run things more effectively.

The Philips management put money in a new company, so does it make iRex devotion to eInk devices any less worth than Sony's? I don't think so.

Sony wants growth. Note that the Reader operation is now a separate division. Sony appears to see a significant market in electronic literature and devices to display it, and is addressing that market. Sony is a huge outfit, with a market capitalization of 29 billion dollars. What do you think "growth" means for an outfit that size? (See here for an overview of their numbers.)

Again, big companies might be effective or ineffective compared to small companies depending on which area they work on, how they work on. But I disagree that money grows faster within big companies than within small. If this would be the case everybody would invest his money only in big companies...

And as a share holder you know that it often is quite the contrary. Enourmous companies are "blue chips", they will give you some fair calculatable revenue for your invested money. But very likely nothing extraordinary will happen. If you buy sharers of a little new company, they easly can be tenfold or more worth within a few years, or they are worth nothing.

[Argel]

I'm intrigued that so many people seem enthusiastic at the idea of buying ebooks from a bookstore. Is there evidence of any demand for this from existing users?

It sounds rather like iPod users going to a record store to download music. They don't - and they would probably just laugh if you suggested it.

Personally, as I've said before, I think that bookstores selling liseuses is like turkeys voting for Christmas. But maybe I'm missing something.

[Dave Berk]

@DMcCunney:

Thanks for attending the event. Great report!
Also, could you ask your contact about dictionary support, even as a firmware upgrade?

[pilotbob]

Originally Posted by Argel

I'm intrigued that so many people seem enthusiastic at the idea of buying ebooks from a bookstore. Is there evidence of any demand for this from existing users?

Net "enthusiastic" at all. Just saying it is possible. The store would have to find a way to make me enthusiastic. Some type of incentive or whatever. It could be a loss leader to get me in the store to buy other stuff.

BOb

[bbusybookworm]

Originally Posted by Argel

I'm intrigued that so many people seem enthusiastic at the idea of buying ebooks from a bookstore. Is there evidence of any demand for this from existing users?

Its been mostly empherical in my case.

I've run into a lot of people who like the look and utility of a reader, but are a little hesitant about having to load stuff off a computer.

I personally fell that thates one of main reasons for the popularity of the kindle. You can easily buy stuff without connecting it to a computer. And the only reason Amazon was able to do it is that the US has a large homogeneous market, where they could cut a deal with a single provider for wireless. Not so internationally.

Wifi is not going to help this market. The advantage of the Store is that its a familiar place. They go there, and can have someone do the complicated stuff the first few times. Maybe in the future they could do it them selves.

I speak from my own experience with my mom. I load up everything for her when I see her, her reader, ipod, computer updates, etc. If she had to do it herself, she would probably avoid it, or not use it. She does however read a lot, and for her the convenience the reader has bough her is great.

In her and similar cases, if the store could load book on it for her, she would probably buy a lot of book in e-book format, which she currently gets in paper.

It also gives the stores a stake in this new distribution channel, for while its going to grow fast, its no where near going to replace the bookstore for a long time. It will also put pressure on Publishers, as stores will want to be able to offer multiple formats of e-books alongside the paperbacks, perhaps offering packages of both .

[stustaff]

I would love to open up an Ebook/coffee store.

The customer experience would be like this.

You come in and sit at a table and touch the large landscape tablet PC on your table(there would be one per seat) to unlock it and then use the software to browse a library of books with full colour front and back covers, a waiter/ress comes over and takes a drinks order.
The electronic searching allows the standard title/author/genre and also then add things like if you like [insert author/book] then you will like these books, search by most popular downloaded by people who like a certain tv show or are from a specific city etc.

Make your purchases using your card in the machine and then connect your reader or type in your email address and you get your books.

I would spend a couple of hours in their every week no probs.

[axel77]

Originally Posted by stustaff

I would love to open up an Ebook/coffee store.

The customer experience would be like this.

You come in and sit at a table and touch the large landscape tablet PC on your table(there would be one per seat) to unlock it and then use the software to browse a library of books with full colour front and back covers, a waiter/ress comes over and takes a drinks order.
The electronic searching allows the standard title/author/genre and also then add things like if you like [insert author/book] then you will like these books, search by most popular downloaded by people who like a certain tv show or are from a specific city etc.

Make your purchases using your card in the machine and then connect your reader or type in your email address and you get your books.

I would spend a couple of hours in their every week no probs.

Just to play the devils advocate:

What would be the real advantage to a traditional library? Since you have to be in the place, the high mobility of electronic readers doesn't quite count. Acknowledge in a magazin based library it takes an hour to order a book out of the magazin. However for example at our natonal library I pay 10€ / year and I have access to an enourmous amount of books and I don't have to pay anything per card for any pay-per-use stuff. Also you have all the major daily newspapers for free there.

And all this digital searching and ordering by clicking OPAC can do for years already.

I love our national library, they got very comfortable chairs, good coffee machines, a big lot of books, and is usually swarmed by beautiful wormen. Too bad I soo seldomly take the time to go there.

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EDIT: Ok I get it now, in you ebook store you can take the copies at home. Sorry my fault, I thought you ment a place where you can go to read stuff on the "shops" eInk displays...

I think you are right, what I think is missing is the "salesman". A little expert you can go to and ask questions about stuff you want to buy. You don't get it. Yes amazon got some features like "others who bought that did buy this"... but it by far doesn't replace the expert you get in a good bookshop.

[DMcCunney]

Originally Posted by Argel

I'm intrigued that so many people seem enthusiastic at the idea of buying ebooks from a bookstore. Is there evidence of any demand for this from existing users?

We don't know.

It sounds rather like iPod users going to a record store to download music. They don't - and they would probably just laugh if you suggested it.

The two aren't comparable. iPod users are generally downloading individual tracks, not full albums. The equivalent for a book would be getting a chapter at a time.

Paper books aren't going away. Pbooks and eBooks will co-exist for the foreseeable future. People go to bookstores now to buy the paper versions. If they have a reader, why shouldn't they be able to buy eBooks in the same trip?

Personally, as I've said before, I think that bookstores selling liseuses is like turkeys voting for Christmas. But maybe I'm missing something.

You are. Where would you buy a reader?

Folks at MR may be comfortable with online ordering, but not everyone is. And a reader has intangible factors like look and feel. For a lot of folks, the tipping point will be able to hold one in their hands and play with it. You can't do that online.

Partnering with retailers who sell books is a natural for a reader manufacturer like Sony. They sell devices, through retailers, now. The are trying to reach people who read, and give them an opportunity to actually see and try the product before purchase. Where else might you suggest they find them?
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Dennis

[DMcCunney]

Originally Posted by Dave Berk

@DMcCunney:

Thanks for attending the event. Great report!
Also, could you ask your contact about dictionary support, even as a firmware upgrade?

I already mentioned it's on my followup questions list. When I know something, I'll post it.
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Dennis

[nekokami]

Originally Posted by axel77

EDIT: Ok I get it now, in you ebook store you can take the copies at home. Sorry my fault, I thought you ment a place where you can go to read stuff on the "shops" eInk displays...

I think you are right, what I think is missing is the "salesman". A little expert you can go to and ask questions about stuff you want to buy. You don't get it. Yes amazon got some features like "others who bought that did buy this"... but it by far doesn't replace the expert you get in a good bookshop.

You might be able to have the waitstaff provide book advice, too (and even reader device info), but you'd have to pay them more, which would drive up the price of the beverages, etc. sold in the café. I still think it could work, especially if you had events like book clubs, author readings, etc. I keep hoping for something like this to happen. I'd spend tons of time in a place like that.

[DMcCunney]

Originally Posted by nekokami

You might be able to have the waitstaff provide book advice, too (and even reader device info), but you'd have to pay them more, which would drive up the price of the beverages, etc. sold in the café. I still think it could work, especially if you had events like book clubs, author readings, etc. I keep hoping for something like this to happen. I'd spend tons of time in a place like that.

I live within walking distance of a Borders and a Barnes and Noble superstore with cafes. I would not expect the waitstaff to provide that information, or know anything about it. Aside from having to pay them more, if the cafe is successful, they are too busy selling and serving food and beverages to the customers to have the time required for that sort of assistance.

I do expect the sales folks on the floor to have some knowledge of the books they sell and stock, if only to tell me whether they have a title in stock.

You would want something like a docent, who could provide information on readers and available electronic books. That person might well either be based in the cafe, or give scheduled talks on the matter in the cafe, though normally based elsewhere.
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Dennis

[adinb]

Dennis --

First, thanks again for attending and giving us this great writeup. You mentioned that you'd be following up with some contacts in the following days, so I have a quick question that you can hopefully pass along....

What is the OS X (or Linux, or anything) compatibility going to be with the new software and reader? Is sony going to have a method of buying from their store from OS X (again, or Linux)? Are they going to push other stores towards host OS neutrality?

Will the 700 keep the functionality of appearing as a USB Mass Storage Device to OSX/Linux?

Thanks!