A library at your fingertips

Nov 4th 2005
From The Economist Global Agenda

Big technology companies have pledged to make many thousands of books available online. The commercial prospects look shaky, but this new front in the battle between the world’s leading internet portals will yield a valuable resource for all

A FEW years ago, at the height of the dotcom boom, it was widely assumed that a publishing revolution, in which the printed word would be supplanted by the computer screen, was just around the corner. It wasn’t: for many, there is still little to match the joy of cracking the spine of a good book and settling down for an hour or two of reading. But a recent flurry of activity by big technology companies—including Google, Amazon, Microsoft and Yahoo!—suggests that the dream of bringing books online is still very much alive.

The digitising of thousands of volumes of print is not without controversy. On Thursday November 3rd, Google, the world’s most popular search engine, posted a first instalment of books on Google Print, an initiative first mooted a year ago. This collaborative effort between Google and several of the world’s leading research libraries aims to make many thousands of books available to be searched and read online free of charge. Although the books included so far are not covered by copyright, the plan has attracted the ire of publishers.

Five large book firms are suing Google for violating copyright on material that it has scanned and, although out of print, is still protected by law. Google has said that it will only publish short extracts from material under copyright unless given express permission to publish more, but publishers are unconvinced. Ironically, many publishers are collaborating with Google on a separate venture, Google Print Publisher, which aims to give readers an online taste of books that are commercially available. The searchable collection of extracts and book information is intended to tempt readers to buy the complete books online or in print form.

Not to be outdone, Amazon, the world’s largest online retailer, has unveiled plans for its own foray into the mass e-book market. The firm, which began ten years ago as an online book retailer, now sells a vast array of goods. No doubt piqued that Google, a relative newcomer, should impinge upon its central territory, Amazon revealed on Thursday that it would introduce two new services.

Amazon Pages will allow customers to search for key terms in selected books and then buy and read online whatever part they wish, from individual pages to chapters or complete works. Amazon Upgrade will give customers online access to books they have already purchased as hard copies. Customers are likely to have to pay around five cents a page, with the bulk going to the publisher.

Microsoft, too, has joined the online-book bandwagon. At the end of October, the software giant said it would spend around $200m to digitise texts, starting with 150,000 that are in the public domain, to avoid legal problems. It will do so in collaboration with the Open Content Alliance, a consortium of libraries and universities. (Yahoo! has pledged to make 18,000 books available online in conjunction with the same organisation.) And on Thursday, coincidentally the same day as Google and Amazon announced their initiatives, Microsoft released details of a deal with the British Library, the country’s main reference library, to digitise some 25m pages; these will be made available through MSN Book Search, which will be launched next year.

These companies are hoping for a return to the levels of interest in e-books seen when Stephen King, a bestselling horror writer, published “Riding the Bullet” exclusively on the internet in 2000. Half a million copies were downloaded in the first 48 hours after publication. But this proved to be a high-water mark rather than a taste of things to come. While buyers were reluctant to sit in front of a computer screen to read the latest novels, dedicated e-book-reading gadgets failed to catch on. Barnes and Noble, a leading American bookshop chain, began selling e-books with fanfare in 2000 but quietly pulled the plug in 2003 as interest faded.

The market for e-books is growing again, though from a tiny base. According to the International Digital Publishing Forum, which collates figures from many of the world’s top publishers, in the third quarter of 2004 (the latest available figures) worldwide sales were 25% higher than the year before. Unfortunately, this only amounted to a paltry $3.2m split between 23 publishers in an industry that made sales worth over $100 billion that year.

Both retailers and publishers reckon they will eventually be able to persuade consumers to do a lot more of their reading on the web. Some even hope they can become to online books what Apple’s iTunes is to online music. But there are crucial differences between downloading fiction and downloading funk. Online music was driven from the bottom up: illegal file-sharing services became wildly popular, and legal firms later took over when the pirates were forced (by a wave of lawsuits) to retreat; the legal providers are confident that more and more consumers will pay small sums for music rather than remain beyond the law. And the iPod music player and its like have proved a fashionable and popular new way to listen to songs. The book world has no equivalent.

So the commercial prospects for sellers of online books do not yet look very bright. But they may get a lift from some novel innovations. The ability to download mere parts of books could help, for instance: sections of manuals, textbooks or cookery books may tempt some customers; students may wish to download the relevant sections of course books; or readers may want a taste of a book that they subsequently buy in hard copy.

And the ability to download reading matter onto increasingly ubiquitous hand-held electronic devices and 3G phones may further encourage uptake. In Japan, the value of e-books (mainly manga comic books) delivered to mobile phones has jumped, though it will be worth only around ¥6 billion ($51m) in 2005, according to estimates.

Portal wars

Though the prospects for this latest incarnation of the e-book are unclear, Google, Amazon and the others may see it as a useful weapon in the wider war to dominate the internet. In the quest for visitors, and the advertising revenues they bring, the big portals have rolled out inducement after inducement, from instant messaging, e-mail and web telephony to picture-sharing, games and a host of other new services. By adding yet another feature, they hope to win business from each other—or at least ensure they don’t lose it.

The business of parting consumers from their cash for online books may not prove the money-spinner that Amazon and Google hope for. But this round of the battle between the tech giants will have the happy outcome of allowing the study and enjoyment of a vast pool of written material, much of which would otherwise prove hard to access or difficult to find. Though it may not much change our reading habits, its existence will prove a boon.

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