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What is the Future of E-Books?

Article in SSRN Electronic Journal · October 2010

DOI: 10.2139/ssrn.1858226

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 Submitted on: 8-October-2010
What is the future of e-books?
Dr.K.Prabhakar,
Professor,
Velammal Engineering College,
Ambattur Red Hills Road,
Surapet, Chennai-600066.
[email protected]
_________________________________________________________________________________
Abstract
This paper examines the genesis of e-books. The situational analysis with respect to
different aspects relating to business organizations involvement in the industry and
authentic published information is studied with the help of secondary data. Questions
such as who is reading e-books and why they are reading and where they are reading
are analyses and insights documented. A set of conclusions are provided on the nature
of market for future of e-books is give.
Key words: e-books, marketing, electronic paper displays
_____________________________________________________________________
1.1 Introduction

E-books are the electronic versions of printed books. E-books may be defined as follows;
It is a digital version of a traditional print book designed to be read on a personal computer or an e-
bookreader (a software application for use on a standard-sized computer or a book-sized computer
used solely as a reading device)-Online Dictionary of Library and Information Science. e-book is a
term used to describe a text analogous to a book that is in digital form to be displayed on a computer
screen. e-books are books in computer file format and read on all types of computers, including
handheld devices designed specifically for reading e-books. e-books are as familiar as their print
counterparts or as unique as the electronic medium itself, containing audio, video or live hyperlinks.
E-books could be delivered by download or e-mail files attachment or sold through online book
shops like www.amazon.com.

1.2 Origin & Evolution of E-books

The first printing press with movable type that was invented in 1450 by Johannes Gutenberg
revolutionized the printing process by making it simpler and more affordable. The first hypertext
novel was published in 1987 (Afternoon, A Story by Michael Joyce), electronic books did not
capture public attention until the online publication of Stephen King’s novella , Riding the Bullet in

Electronic copy available at: http://ssrn.com/abstract=1858226

14 March 2000 and could be downloaded for 2.5$. Within 24 hours, the text had been downloaded
by 400,000 computer users 4.62 per second.
Keith Loris, president and CEO of SoftLock the organization that provided the server
support, sent to prospective purchasers, telling them that more than 200,000 orders had been
received and jamming their server, however, people waited for hours for it to download. The revenue
is US $500,000, which indicated that it is worthwhile venture and it is on first day
(www.planetbook.com). But publisher’s revenue has not solved the consumer’s issues. The majority
of eBook systems lock their content to the individual machines of purchasers to prevent piracy. And
the DRM technology initially used for King's eBook worked only with PCs or hand-held devices.
Glassbook provided the encryption and reader software for the PC version.) For the first two weeks
after its release, Mac and UNIX users could not read "Riding the Bullet”. Simon & Schuster posted
an apology on its eBooks page, noting that it was working with vendors and worked with Adobe to
solve the issue of viewing free for Mac version.
1.3 Situational analysis of e-book publishing
The modern concept of e-books became common after Martin Eberhart and Jim Sachs both
started their own companies and developed Rocket eBook and SoftBook, the first two handheld e-
book reading devices (http://www.scaruffi.com/politics/silicon/bios.html). In 1999, the e-book
industry was dominated by small U.S. start-ups like NuvoMedia (Rocket eBook) and SoftBook
and many small, Web-based, often amateur-looking e-book retailers. Presently multinational
companies like Gemstar, Microsoft and Adobe, amazon dominate the e-book industry. Nearly all of
the major U.S. publishing companies have launched extensive e-book production schemes. McGraw-
Hill, Random House, Simon & Schuster, Harper Collins and Time Warner all have extensive e-book
plans. They have all signed agreements with Amazon and Barnes & Noble, the dominant e-book
retailers. In a short span of time, a large part of the e-book industry has been brought into the global
economy by some of the most powerful companies in the world. Presently there is an increasing
interest in the use of e-books and other forms of online documentation to disseminate
information and provide global access to it. Moreover, the tremendous development in the
technology related to the production and usage of E-Books is making them more and more popular.
The factors behind the popularity of e-books include: advances in computer hardware and
software, exchange of text and data electronically as a result of Internet, compatibility of World

Electronic copy available at: http://ssrn.com/abstract=1858226

Wide Web with a wide variety of document formats, electronic files used in the production of
printed books are now being re-purposed for the production of e-books.

2. Formats of E-books

There exist many standard formats in which e-books are available. Some of the standard formats are
being discussed as und

Electronic copy available at: http://ssrn.com/abstract=1858226

2.1 Portable Document Format

Adobe Portable Document Format (PDF) is a natural choice for eBook publishing because it
is a universal standard that preserves essential attributes of the printed page. For instance, leading
publishing companies including CABI, Springer publishes their e-Books in the PDF format,
which can be seen in below table.

Springer’s E-book Format CABI’s E-book Format

Plenty of e-book formats are available in including Mob pocket Format, E-Pub Format.
However, from above the table it is evident that leading publishing companies including Springer
and CABI prefers PDF as their e-book format. Therefore, we can infer that the most common and
preferred eBook format among various eBook formats is PDF. The emergence of a commercially
significant electronic book (e-book) market in the past three years has been the result of two
quite-recent technological developments. The first, and most critical, has been a breakthrough in
the technology for manufacturing reflective electronic paper displays (EPDs), allowing for the
introduction of affordable, lightweight and portable e-book readers such as Amazon’s Kindle and
Sony’s Reader. The second has been the rollout of reliable “3G” wireless broadband networks,
which have made it possible to deliver digital books directly to reading devices without the
intermediate steps of downloading files to a PC and then transferring them to a reader. Direct-to-

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device sampling and delivery, particularly with Amazon’s Kindle and Apple’s iPhone, have
enabled impulse-driven e- commerce, which has been critical to early consumer adoption of e-
books. The technology for e-books, however, remains nascent. The Kindle and its ilk are very much
first- generation devices that deliver the minimally acceptable experience. Further development of
the business will be closely tied to future technological developments, including flexible and color
displays, format standardization and rich-media applications. As the market grows, there are
numerous opportunities for other technology players, from social networks to cloud service
providers and more. This report examines the trends and opportunities ahead.

4. e-bookreader software

E-bookreader software are popular because they allow similar options like those of a printed
book such as readers can bookmark pages, make notes, highlight passages, and save selected text.
In addition to these, e-bookreaders also include built-in dictionaries, and alterable font sizes and
styles. Some e-books can be downloaded for free or at reduced cost, however, prices for many e-
books - especially bestsellers – are similar to those of hardcover books or even higher. Some
of the most popular e-bookreader software available in the market includes:

2.2 Adobe Reader - Adobe Acrobat was the first software to support Adobe Systems’ Portable
Document Format (PDF). Formerly known as Acrobat Reader, Adobe Reader is freely
available from the Adobe Web site (www.adobe.com). It allows viewing, printing, and
searching Adobe PDF files. The latest version of Adobe Reader 8 which enable the users to view,
print, search, sign and verify the authenticity of PDF files. It also includes new document viewing
options, advanced collaboration, increased time-saving ways to work with PDF files, and other
new features to help users more securely and consistently communicate and collaborate using
PDF files. Reader 8 is now integrated with Adobe Connect™ software, which enables users to
instantly communicate and accelerate approvals with virtually anyone, anywhere, at any time.

2.3 Microsoft Reader - Microsoft Reader (http://www.microsoft.com/reader) is free software for

reading e-books that works with .LIT files and supports Clear Type Technology for easy
reading on small PDA screens. This format is based on Microsoft Compressed HTML Help format.
These books can be purchased and downloaded from large online stores, including Amazon.com. Its

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features include highlighting and doodling/scribbling designed for quick note taking, text notes and a
search function.
Other features include finding the last page you were on, your most recent page and a library
of all the e-books you own. Depending on the book, there can be a cover image and images
throughout the book. MobiPocket - The Mobipocket Reader is available for two platforms viz.
PDAs and PCs. Through Mobipocket Reader for PC one can easily transfer the e-books from
PC to PDA. One can build, organize, read and annotate entire e-book library, create reading lists,
edit metadata, filter, browse, search, customize page size, full width display, 2 or 3 column display,
touchscreen page turning, bookmarking, adjustable font size and colour, full text search or even
use the auto scroll feature.

2.4DXReader
DX Reader is an XML driven intelligent reader solution to online eBook readers with a wide range
of intelligent reading and facilities. With the help of DX Reader one can have instant Access to
the content along with the sophisticated digital tools including Bookmarking the pages, highlight
text, flipping through the content effortlessly, View illustrations, charts, etc. It also provides
powerful and convenient digital aids like full search, highlighting, annotations, etc. that reinforce a
gratifying reading experience. Additional ecommerce modules integrated with DX Reader include
eSubscribe (to manage the access and distribution control of content through subscription
agreements on an individual basis on time bound rules), eLicense (that allows the controlled
distribution of bulk content to licensees for onward distribution to consumers), eCompile (that
allows any selection of content to be assembled together and then distributed, purchased, printed or
re- published as a new work), ePrint (to control the pages and quantity of pages that can be printed
from any digital content), eCopy (that controls operations for copying and pasting text).
2.5 dotReader - It’s a new e-bookreader (open source software) and documentation platform that
is named after the late Dorothy Thompson, legendary foreign correspondent and broadcaster
and one of the most influential women in American history.is open source — available free,
owned by no one and usable by everyone. It runs on multiple platforms including Windows, Macs,
Linux, tablet PCs, and most PDAs. It reads multiple document formats with the ability to add
additional formats via plug-ins. creates a community of readers with embedded forums,

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discussion groups, polls, and shared annotations. is simple to use. The built in plug-in architecture
allows users to enhance its use by simply “plugging in” new features.

3. Process Involved in E-book Conversion

In the this chapter we will examine the process of converting content to e-book format. There are
two models. The first model is conversion of hard copies to e-books. Conversion of soft copies to e-
books.

Model 1: Conversion of Hard Copies into e-Books

SOURCE WORKFLOW

TYPESETTING

TYPESETTING
OCR & SCANNING

XML CODING/TAGGING

FORMAT SELECTION

HARD
FORMAT CONVERSION
COPIES

E-BOOKCREATION

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Model 2: conversion of soft copies into e-books

SOURCE WORKFLOW

TYPESETTING

SFOT
COPIES XML CODING/TAGGING

FORMAT SELECTION
(HTML,
FrameMaker
, Quark,
MSWord, FORMAT CONVERSION
etc)

E-BOOKCREATION

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4. E-Books – The End User Perspective ((Source: Springer’s report)

An End User Perspective on e-Books

1. After years of development efforts and high expectations, eBooks have begun to cement their
place as a central part of the information experience. Research and academic libraries are
gradually building their eBook collections into a valuable resource for their users.
2. A 2007 Springer survey of librarians at six institutions found that many libraries recognize eBooks
as an ideal opportunity to expand collections while enhancing users’ research experiences.
3. And in a recent Publishers Communication Group study, 43 percent of the librarians surveyed
said that their budget for eBooks would likely increase in 2008. While most librarians
acknowledge that eBook programs are in their early stages, they also clearly recognize the
significant impact that eBooks will have on the future of research and information retrieval.

End User Awareness and Usage of eBooks

1. Despite the relative newness of eBooks as a resource, most of the users surveyed were
aware of their existence and had used them at least once, whether through their libraries
or through another source.
2. The study found that between 52 percent and 84 percent of respondents at each institution
were aware of the availability of eBooks through their libraries.
3. Moreover, between 58 percent and 80 percent of respondents at each institution had used
eBooks at least once, whether through their library or other sources.
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4. For example, at University of Turku, 84 percent of users said they were aware that they
had access to a large number of eBooks through their library, and 73 percent said they
had used eBooks at least once.

Springer’s findings on the prevalence of eBook usage are consistent with a recent Joint
Information Systems Committee (JISC) study in the UK,

2. The JISC study also found that while 46 percent of users obtained the last eBook they
used through their library, nearly the same number (43percent) obtained their last
eBook via the Internet.
3. Clearly, even if users do not realize their library contains eBook offerings, they are
encountering eBooks in their online research through sources like Google Book
Search. Libraries have the opportunity to position themselves as a central, convenient
source of extensive eBook content for users who would otherwise turn to the Internet
for their eBook searches.

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4.1 Trends in eBook User Behavior

Frequency of eBook usage varied by institution, with most users indicating they access
eBooks on a weekly or monthly basis. Users also said that they primarily use eBooks for research or
study purposes, rather than for leisure or teaching purposes. For example, at the University of Illinois
at Urbana-Champaign, 78 percent of users said they use eBooks for research while 56 percent
reported using eBooks for study, but only 10 percent mentioned teaching or leisure. Given most
users’ existing experience with seeking information on the Internet, research is a natural entry point
for eBook usage.

Types of e-books

1. Reference works
2. Textbooks
3. Conference proceedings
4. Reference works

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 4.2 Locating e-book Content

4 End User Evaluation of e-book Advantages and Disadvantages

Advantages

1. Encouragingly, users overwhelmingly indicated that eBooks are useful to them and that
they would like to use more eBooks.
2. Almost all respondents found eBooks useful, with between 85 percent and 96 percent of
respondents at each institution rating them as either very or somewhat useful.
3. Moreover, between 79 percent and 92 percent of users at each institution said that they
would like to use more eBooks.

Disadvantages

1. Users cited the difficulty of reading books from a screen and a preference for traditional
print books as the primary reasons for not using eBooks more often.

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2. Given users’ comfort level and long history with print books, the challenge of making
eBooks easier to read is a difficult one.

4.3 End User Evaluation of E-book advantages and disadvantages

5 .The Future of eBook Usage

While users acknowledge that adoption of eBooks will continue to increase, they do not envision print
books disappearing within the near future. Users expect that the transition to eBooks will happen fastest for
research-related activities, rather than study, teaching, or leisure purposes. They also expect that reference
works will most quickly make the transition to eBooks, followed by research monographs and textbooks.

1. The user survey found that users most frequently locate eBooks through general search
engines like Google as well as through online library catalogs
2. Users also said that they primarily use e-Books for research or study purposes, rather than
for leisure or teaching purposes.
3. The types of eBooks most frequently used are reference works and textbooks.
4. Users value the convenience and ease of access that eBooks provide and are engaging in
new forms of book content usage to take advantage of their libraries’ growing eBook
collections.
5. Print books are perceived to have an advantage in ease and enjoy of reading
6. Finally, while e-Books will not replace print books in the near future, users are rapidly
adopting them as complementary to print books.

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 It can be discerned that

2. The user survey found that users most frequently locate eBooks through general search
engines like Google as well as through online library catalogs
3. Users also said that they primarily use e-Books for research or study purposes, rather than
for leisure or teaching purposes.
4. The types of eBooks most frequently used are reference works and textbooks.
5. Users value the convenience and ease of access that eBooks provide and are engaging in
new forms of book content usage to take advantage of their libraries’ growing eBook
collections.
6. Print books are perceived to have an advantage in ease and enjoy reading.

7. Finally, while e-Books will not replace print books in the near future, users are rapidly
adopting them as complementary to print books.

14 Size and dimension of e-book market

6. Who is reading e-books?

As expected, students, researchers and professionals have adopted ebooks much faster than
the larger consumer market. This is likely due to the instant accessibility of ebooks, and the fact
that you can search the entire contents of a book in a second.

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 E-books are very popular with travellers because of their portability: you can carry 50 books
in your smart phone and thousands on a laptop, and download more while you're on the road. One
surprising statistic to emerge from e-book adoption data is the number of people who just seem to
like reading books on a computer screen. Of the ebooks sold by eBooks.com, 74.6% are read on
computers, while the remainders are read on a vast variety of hand-held devices, including personal
digital organizers (PDAs), mobile phones and e-book devices.

7. What is being read on ebooks?

The reading tastes of e-book users are very similar to those of mainstream book buyers.

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The following is the top e-book subjects

Subject Percentage
Fiction 65.2
Business 8.2
Computers 2.6
Family & Relationships 2.4
Body, Mind & Spirit 1.6
History 1.6
Children’s and young adult fiction 1.5
Religion 1.4
Languages arts & disciplines 1.2
Health & Fitness 1.2
Other 13.1

8 .Where are e-books being read?

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 STM eBook Sales by Region

9.Market size of e-books

1. The International Digital Publishing Foundation (IDPF), a US-based industry group,

estimates the current e-book market to be about US$50 million per annum.
2. The IDPF's figures are drawn from data provided by US trade (consumer) publishers.
If library, educational and professional electronic sales are included, that figure will
be closer to US$155 million.
3. The overall English language book market is over US$50 billion, which makes the e-
book segment 0.31% of the total world book market. There's a long way to go. The
printed book will be with us for a long time to come.

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 10.Conclusion

The overall characteristics of e-book market

1. The market for online books is projected to reach US$9.5 billion by 2010.
2. United States is the largest market for online books worldwide. The market is estimated at
US$4.8 billion in 2007 as stated by Global Industry Analysts, Inc.
3. Europe is the second largest regional market with a projected value of US$2.76 billion in
2009.
4. The US and Europe together account for close to 95% of the global online books market.
5. The global and regional markets are expected to register CAGRs ranging between 13% and
17%.
6. Online sales of consumer books are estimated at over US$4.2 billion in 2007.
7. E-book sales worldwide will jump from $323 million in 2008 to nearly $9 billion in 2013,
according to a new In-Stat forecast.
8. E-book shipments, meanwhile, will soar from under 1 million to almost 29 million in the
next five years.
9. “The total e-bookmarket is about $ 350 million in the year 2008 and expected to double or
even triple to reach billion dollar market in 2009”.
10. Academic and professional books are forecast to register sales worth about US$3 billion in
2011.
11. Thirty percent of e-bookmarket is comprises of academic and professional books.

Reference
1. http://www.planetebook.com/mainpage.asp?webpageid=39
2.http://partners.nytimes.com/library/magazine/home/20000813mag-
king.html?scp=10&sq=riding%20the%20bullet&st=cse

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