Price Wars on Mother’s Day War

Price Wars on Mother's Day

Is Amazon trying to kill its competition? Amazon’s been offering new $20 discounts on four of their Kindle Fire HD tablets through this Sunday — which is Mother’s Day in the United States. (For a shortcut to the sale, just point your browser to tinyurl.com/Fire4Mom , and enter the code “Fire4Mom” to claim the discount.) But what seems like a nice gift idea may actually just be Amazon’s way of remaining competitive. Because Barnes and Noble had already announced big discounts on their own digital reading device, the Nook. (They’ve lowered the price of their 9-inch, high-definition Nook by over $90, to just $179…)

And they’re both fighting competition from another digital reader — the Kobo. This week I was surprised to see some slick television ads been touting the Kobo as the perfect Mother’s Day gift. It shows heart-warming footage of mothers reading to their children, closing with an announcer reminding viewers that “She gave you the gift of reading. This mother’s day, give it back.” Of course, my first thought was that same slogan could be applied to the Kindle — and it looks like Amazon had the same idea. Last week I received a promotional email for Amazon’s Kindle Paperwhite which was using a nearly identical slogan!

“Mom sparked your love of reading. Give her the perfect thank you gift…”

What’s going on? I think the answer lies in a 2010 study, which concluded that 47% of all Kindles were received as a gift. Amazon knows there could be a one-time spike in sales for Kindles this month from all those people who are shopping for the perfect Mother’s Day gift — and apparently, both Barnes and Noble and Kobo Inc. reached the same conclusion. But the situation may be even more desperate for the Nook — at least, according to a Friday rumor. The technology blog TechCrunch reported that Microsoft may be about to purchase the Nook, adding that if it happens, Amazon’s War with Barnes and Noble “could be over.”

At first I thought the acquisition might be good news for the Nook — but most of the technology pundits seem to disagree. “Microsoft will probably simply kill it on purpose,” writes a columnist at Forbes. “The reason is that Microsoft will have no interest in continuing to sink money into a weak performing Android line of devices.” (Microsoft, after all, markets their own line of tablets that are powered by the Windows operating system.) And by the end of the day, Amazon’s stock had shot up in value by 1.3%.

“This will indeed be good news for Amazon and Apple,” Forbes continues, for the simple reason that “Killing off any competition is good.” So when Mother’s Day rolls around again in May of 2014, consumers just might have one less digital reader to choose from. Maybe that’s why Barnes and Noble offered such steep discounts this year on the price of the Nook.

This year’s “Mother’s Day Price War” may also be remember as The Nook’s Last Stand.

The Secrets of eBook Readers

shh - finger to lips - secret rumor

Ever wonder how other people read? It’s finally possible to know, using new data collected from ebooks. Last week Barnes and Noble leaked the patterns they were seeing among Nook readers to The Wall Street Journal, towards the end of a fascinating article called “Is Your eBook Reading You?” Citing the Nook data, the Journal reported…

  • “Nonfiction books tend to be read in fits and starts…”

  • “Novels are generally read straight through…”

  • “Nonfiction books, particularly long ones, tend to get dropped earlier.”

  • “Science-fiction, romance and crime-fiction fans often read more books more quickly than readers of literary fiction do, and finish most of the books they start.”

  • “Readers of literary fiction quit books more often and tend skip around between books. “

Some of the things they’ve determined are actually pretty obvious. For example, the first thing most people do after reading The Hunger Games is to download the next book in the series. But others have determined patterns which are even much more specific. For example, “It takes the average reader just seven hours to read the final book in Suzanne Collins’s Hunger Games trilogy on the Kobo e-reader – about 57 pages an hour,” the Journal reports. And “Nearly 18,000 Kindle readers have highlighted the same line from the second book in the series: ‘Because sometimes things happen to people and they’re not equipped to deal with them.'”

The data finally confirms something that I’ve always suspected. When people read the first book in a series, they usually go on to read the entire series, “almost as if they were reading a single novel. ” And the article got an even more specific example from the makers of the Kobe. “Most readers who started George R.R. Martin’s fantasy novel A Dance With Dragons finished the book, and spent an average of 20 hours reading it, a relatively fast read for a 1,040-page novel.”

But where is this all leading? At Barnes and Noble, there’s now a Vice President for eBooks who’s already begun sharing their data with book publishers, hoping they’ll eventually create books that are even more engaging. It’s still early, they tell the Journal, but Barnes and Noble has already begun to begun to act on the data. When they realized people weren’t finishing the longer nonfiction ebooks, they launched “Nook Snaps” to offer shorter dollops of information on hot topics like Occupy Wall Street or how to lose weight. And that might be only the beginning. “The bigger trend we’re trying to unearth is where are those drop-offs in certain kinds of books, and what can we do with publishers to prevent that?”

Amazon also offered a nice perspective on their ability to identify “popular highlights” and share them on their web page. “We think of it as the collective intelligence of all the people reading on Kindle.” And the Journal also notes that Amazon is both a seller and a publisher of ebooks. I was baffled when Amazon started selling “Kindle Singles” last year, since they basically seemed to me just like shorter ebooks.

But maybe Amazon has learned the exact same lesson — that readers tend to drift away from their nonfiction ebooks!

How the Kindle “Doubled” Its Battery Life

Kindle 3 vs new touch-screen Nook on battery life

A bright reporter at C|Net made the discovery. Amazon says the Kindle now has a battery life of two months. Wednesday morning Amazon released a new version of the “Kindle with Special Offers” — a 3G version that’s discounted to $164. But instead of promising the usual one month of use without a battery charge, Amazon now says this Kindle’s battery will last two months!

And Amazon’s also doubled the battery life that they’re reporting for the Kindle 3 and Kindle WiFi…

So what’s going on? C|Net’s reporter has it all figured out. On Tuesday Barnes and Noble launched a brand new touch-screen Nook — and then claimed that its two-month battery life was double that of the Kindle (calling it “the longest battery life of any eReader”). “Amazon countered by magically upping the battery life of the Kindle to two months,” reports David Carnoy. But it turns out that Amazon may have had a good reason…

The Nook’s battery life was calculated by assuming just one half hour of reading time each day. “Let the math shell games begin!” joked one user in a Barnes and Noble discussion forum. “Anyone want to lay odds on who will go to 4-month battery life assuming a 15 minutes a day reading habit?”

The CEO of Kobo also took issue with the Nook’s ‘half-hour-a-day” figures, complaining “that’s not a typical usage scenario,” and arguing that the same lofty claim could be made about the battery life of the Kobo.
“It appears that [Amazon] just took issue with how its competitor was calculating and presenting its battery life numbers,” C|Net reports, noting that Amazon also updated their Kindle product descriptions with a full explanation.

“A single charge lasts up to two months with wireless off based upon a half-hour of daily reading time. If you read for one hour a day, you will get battery life of up to one month. Keep wireless always on and it lasts for up to 10 days. Battery life will vary based on wireless usage, such as shopping the Kindle Store, Web browsing, and downloading content. In low-coverage areas or in EDGE/GPRS-only coverage, wireless usage will consume battery power more quickly.”

So the Kindle’s battery hasn’t suddenly become twice as powerful as it was before. And I thought C|Net’s reporter gave this episode the perfect epitaph. “Amazon didn’t have any comment about its number changes, but it clearly shows that the competition is intensifying in the dedicated e-reader space…”

Borders, the Kobo and The Office

Borders Kobo Reader on the Office

It’s not just the Kindle. Other TV shows are also featuring digital readers — and sometimes, in a big way. In January, NBC’s The Office built an entire episode around the Kobo ereader, suggesting that there may even have been a product placement deal — that is, that the writers were paid to work it into the plot!

I’m just fascinated by these little moments of pop culture that show how the Kindle and other readers are working their way into the popular imagination. They’re appearing in stories that would never have occurred to anyone in even five years ago. This episode opened with Michael Scott (Steve Carrell), who plays the boss at the Scranton branch of the Dunder-Mifflin paper company. “January 23, 2011,” he says into the camera. “A day which will live in famously.”

He’s not the one using the digital reader. (He’s just worried that his former girlfriend had gotten engaged – although he does add that “If she’s engaged, I’m going to go crazy and I’m going to start attacking people.”) But back among the workers, there’s a lively discussion about New Year’s resolutions, with creepy Dwight Schrute teasing his former girlfriend that his goal for 2011 is “Meet a loose woman”. (And his co-worker Andy agrees.) “You know what you guys should do?” suggests Darryl from the warehouse. “Go to the bookstore at lunch. There’s tons of cuties and it’s easy to talk to them. ‘Hey, what book is that? Cool, let’s hang out tonight. Sex already? Whoa…!'”

Suddenly this strange sitcom is veering towards a visit to the bookstore. And it’s really because digital reading devices are a hot consumer trend in 2011. The writers, based on whatever motivation, now find themselves leading their characters into a Borders bookstore. They cut away to a private interview with Darryl, where he reveals that he isn’t really going there to pick up women. Darryl’s New Year’s resolution was to read more books — and he’d really just wanted a ride to the store!

And that’s when the Kobo appears.

Kobo reader with Daryl from The Office

“Well, if you read a lot, you should check out our ereaders,” a sweet, middle-aged cashier tells Darryl at the register, adding…



“They’re really neat.”

“I work at a paper company. Those things terrify me. They could put us out of business. I heard those things hold like 10 books at once.”

“Actually, it’s 10,000.”

“Holy ####! What? Let me see it…”


Darryl is impressed. (“It’s so light. Like a croissant.”) But his co-workers are having no luck picking up women, and Dwight announces “This place is kind of tapped out, so let’s roll.” But as they’re leaving the store, it turns out that Darryl is carrying a bag that he doesn’t want his co-workers to see. He claims it contains “A book about oceans,” then later tries to claim that it’s pornography. But later in the episode — as the men somehow end up at a roller-skating rink — Darryl is seen slipping away, to read on his brand new Kobo.

Darryl reads his Kobo with Dwight and Andy at the skating rink on the Office

In a way, I feel bad for the Kobo, though. On their Facebook page, they announced a contest to celebrate the episode — asking “What are you reading at the Office.” You didn’t even have to own a Kindle to enter the contest — the prize was 10 free ebooks or a Kobo eReader — but the response was underwhelming. They received just 40 photographs from people entering the contests. You could also enter just by leaving a comment on their web page, but the total number of comments was just 218. (Although to be fair, you could also enter the contest just by clicking the “Like” button the Kobo’s Facebook page, and there’s now 15,712 people who have done so.)

Maybe they would’ve gotten a larger response if they’d given away a Kindle!

A Funny Comment on the War Between Print Books and eBooks

This was too good not to share. “I had an interesting/amusing experience today at the mall,” writes my friend Mike in Bridgewater, Massachusetts.

“Went into a Borders Express to see if I could find some titles that aren’t available for Kindle yet. I noticed that there was only one Leisure Horror title available. The cashier and I got to talking and she started complaining about e-books and how they were killing off the bookstores. I was the only one in the store. As I walked out, I noticed she went back to reading whatever book she was reading — on her Kobo.

“I was chuckling as I walked out of the store…”

Mike posted his comment in a Kindle discussion forum, where it drew an even funnier reaction from Andrew E. Kaufman, author of the ebook While the Savage Sleeps. What did he think of the employee at Borders?

“A clear case of e-denial.”

In his personal blog, Andrew also makes an interesting comment about the sales of print books. “Regardless of all the gloom and doom we hear about the publishing industry, there are still some authors who are ten feet tall and bulletproof.” (James Patterson, for example, was paid $100 million for the rights to his next 17 novels, and Stephenie Meyer will earn $40 million this year…) And according to Amazon’s own figures, no Kindle ebook has ever sold more than one million copies. (Stieg Larsson has sold a total of one million ebooks, but that’s for all of his titles combined, according to Amazon’s recent press release.)

PC World reported that Nora Roberts is just now closing in on 500,000 total ebook sales, though she’s already sold over 280 million print editions of her books (according to Wikipedia). And in the same article, PC World suggests Stephenie Meyer must be close to selling one million ebooks, though she’s sold over 100 million printed books. J.K. Rowlings has sold over 400 million print editions of her Harry Potter novels, and Robert Ludlum has sold more than 290 million books. Even the Goosebumps series has sold more than 300 million print editions — and they aren’t even the best-selling authors of all time.

Wikipedia offers an amazing rough list of the best-selling fiction authors of all time. Agatha Christie is tied with William Shakespeare for the #1 spot, with at least 2 billion books sold. Harold Robbins has sold 750 million novels, and romance novelist Barbara Cartland is somewhere between half a billion and an even billion. It’s a staggering amount of printed books, especially when you consider that for ebook sales, there’s only one author who has ever squeaked out of the six-figure range.

I’ve started to become skeptical of Amazon’s claim that the ebook is outselling the printed book. I’ll share more data in a few days, but it’s always exciting to hear stories from the actual bookstores. Maybe it’s the “front line” in the war between printed books and ebooks.

And if so, this next year will be very interesting!

Amazon Promises Still More New Kindle Features!

Amazon has announced even more new-and-exciting features that are coming up for the Kindle.

* When can you give an ebook as a gift? That’s the question bothering a reporter at PC World — and he took it straight to Amazon. They’d organized a press event which included executives from Amazon, and “Since I had Russ Grandinetti, Amazon’s vice president of Kindle Content, in the room, I decided to get to the bottom of this…”

Amazons’ response? “Stay tuned. We know gifting is important. We have a long experience with trying to make people’s holidays really good…” And then he’d added that Amazon is, in fact, working on making this year’s holidays good.

“He wouldn’t get into detail on how this might work,” the reporter notes, “but I think it’s a good bet that gifting novels will become a reality this year.” And he predicts that when Amazon does it — Barnes and Noble will offer the same feature for the Nook almost immediately!

* Is Amazon building a Kindle App store? Back in January, Amazon announced plans for a kind of Kindle “app store” like the one that’s currently selling fun third-party software for Apple’s iPhones. Amazon had already lined up top-notch developers, and promised there’d even be some free applications (plus apps with a one-time fee, and some requiring a regular monthly subscription). But in the six months since, Amazon hadn’t said a word.

Fortunately, BusinessInsider magazine didn’t forget, and a few days ago they phoned Amazon demanding an update. Amazon’s response? “We’re working on it. We have some great developers in the beta…”

* Are the Kindle’s competitors doomed? There’s a dire prediction from another reporter at PC World — that Amazon’s new $139 Kindle “spells disaster for other e-reader makers, who have either relied on prices or features to hold some kind of edge on the Kindle.” The argument goes that it’s almost impossible to compete…now that there’s a cheaper and multi-featured new version of the Kindle. The article then goes on to list four digital readers “whose future is now in jeopardy” — Sony’s Reader, the Kobo from Borders, plus Plastic Logic Que and Spring Design Alex.

* And finally, there’s a professional football whose name is Sergio Kindle. This has nothing to do with Amazon’s book-reading device whatsoever, but some people apparently haven’t figured that out. I swear I’ve seen feeds on Twitter which seem to automatically share the URL for any news article that mentions Amazon’s device — but that are only searching on the word “Kindle.” So sometimes instead of learning about Amazon’s ebook reader — you end up reading news articles about an NFL linebacker!