What devices and formats do your customers prefer?

Most publishers create ebooks in all formats figuring it doesn't matter whether mobi is more important than EPUB or if the content is read on an iPad more frequently than on a mobile phone. That approach means these publishers have no idea how their content is being consumed. It also means they probably don't have a direct channel to their customers or some other way of polling them on their preferences.

At O'Reilly we like to stay on top of our customer reading habits and preferences. We monitor device and format trends through surveys and download statistics (from our direct sales channel). For example, here's a chart showing which primary and additional devices our customers read our books on:

Devices

As you can see, a computer is the O'Reilly customer's preferred reading device and the Kindle family is a distant second. What I find interesting here is the fact that Android tablets are much more popular reading devices for O'Reilly content than an iPad is. In fact, for our customers the small-screen iPhone/iPod combo is also a much more popular reading device than the iPad. Another interesting tidbit is that the iPad's popularity is almost exclusively as a second option, not the primary reading device.

Now let's look at preferred formats:

Formats

Here we see PDF still dominates; we learned long ago that most of the reading taking place on the computer is with PDFs, not EPUB or mobi files. This is a trend we've seen for years now and PDF doesn't seem to be any closer to relinquishing its format leadership status now than it was back in 2009, for example. And despite the Kindle's popularity EPUB is preferred much more so than mobi.

That begs the question: If the Kindle is such an important device for O'Reilly customers (see first chart), why is mobi a distant 3rd in format popularity? Is it possible our customers are loading their Kindles with PDFs? Sounds like a great question we need to add to our survey...

These charts reflect the preferences of the O'Reilly customer. Unless you also happen to publish technology books I'm pretty sure your results will look different from ours. But are you even taking the time to ask your customers these questions?


Why B&N should abandon hardware

The ebook retailing business consists of three elements: hardware, content, and selling model. Dedicated e-readers (think eInk devices) are losing momentum to tablets. Content is mostly quick-and-dirty print-to-e conversions, or "paper under glass", if you will. The typical selling model is to buy one ebook at a time. Pretty simple. And not a whole lot of innovation happening in any of the three areas by the major players.

Recently there's been speculation that B&N is about to ditch the hardware part of their Nook business and focus instead on content and licensing. If true, that's probably the wisest thing I've heard from Riggio & Co. in a long time. Hardware has been, and will increasingly become more of, a fool's game for B&N.

They can't possibly steal Apple's mojo, so why try? I'll bet more people are reading B&N ebooks on an iPad or iPhone than they are on the Nook tablets.

On the Amazon side, B&N simply doesn't have deep enough pockets to lose money on both hardware and ebooks as long as Bezos can, so it's time to cut bait. Plus, Amazon's goal is to turn the Kindle Fire into a gateway for purchasing much, much more than ebooks. Amazon has a significantly larger product catalog outside of books, so Amazon can afford to lose money on the device if they make it up on the sale of electronics and other goods B&N doesn't sell.

So if B&N completely gets out of the hardware business what can they do to compete in the ebook world? Think app functionality, reader experience, and content sales model.

Today's e-reader apps have pretty much the same functionality as yesterday's. There's basically no innovation happening with the user experience in any of these apps, whether they come from Amazon, B&N, Kobo, etc.

Now is the time for B&N to shift all those resources they have in hardware onto the team that develops their Nook apps. What features are customers asking for? More importantly, what features have readers never even envisioned but would love to have? Channel Steve Jobs. We were all pretty content with our MP3 players back in 2000 and then in 2001 the iPod hit the scene. What a game-changer. What will be the "iPod moment" for e-reading apps?

And while they're working on that, be bold and work with publishers to develop some genre-specific, all-you-can-eat, ebook subscription programs. Romance is a good place to start but look at other verticals as well. What kind of package would compel customers to pay a subscription rate of $5 or $10 per month? They'll need to find the publishers who are willing to experiment here but that's why you focus on just one genre to start and build a success story to create others down the road.

At the end of the day B&N should continue to let Apple, Google, et al, distribute their Nook apps. They don't need to lose any more money selling devices that are viewed as commodities. They should instead focus on dramatically changing the reading experience and content acquisition model. After all, once hardware is eliminated, those are the only two other elements of ebook retailing that matter.


Next Issue: Why I recommissioned my old iPad

I had to take my first-gen iPad out of mothballs for this one. I’m talking about the Next Issue service and app. Like most of you I’ve let my print magazine subscriptions lapse over the past several years. I spend less than $150/year on my remaining subscriptions and more than half of that is just for one, The Week, which is highly recommended, btw. So why would I sign up for an online magazine subscription program that will cost me $15/month, or $180/year? Because it’s terrific.

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TOC’s Global Ebook Market report

One year ago we published the first edition of our Global Ebook Market report. We focused on the major English language territories but also featured coverage of several other popular languages as well.

A lot has changed in the past year so we recently published a completely revised edition of the report. You’ll find it here. The good news it’s totally free, both in terms of cost and DRM. :-) It’s also available in all the popular formats (PDF, EPUB, and mobi), so you’ll be able to read it on any device you own.

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Three questions for…Jason Illian of BookShout

1. What is BookShout and what makes it unique?

BookShout is a unique type of ereader that allows for sharing and discoverability. In other words, the “social” tools are built into the ereader so that users can either actively or passively share the books with which they are most passionate, increasing unit sales and notoriety. Not only can readers share notes and thoughts to other BookShout users, but they can also share them out to Facebook and Twitter.

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