E-readers set to create a bang

After iPads launch, Apple announced that iPad users have downloaded over 1.5
mn ebooks from the new iBookstore in just about a months time. The announcement
was not only a manifestation of iPads quick success but it also emphasized the
fact that versatile e-readers are knocking on consumers doors. When a leading
tech player like Apple has selected e-reading as a main application for its
cutting-edge device, it highlights the point that e-readers are going to further
draw the gaze of consumers.

E-reader (also called e-book reader) is an electronic device that allows
users to read digital content on the devices monitor. E-readers use e-ink
technology to display information on the screen. The other leading e-readers
available in the market include Amazon Kindle, Barnes & Noble Nook, Sony Reader,
and Samsung Papyrus. It is learnt that Google is also entering this market with
its device-independent content services, Google Editions.

Awareness and Commerce

A recent comScore survey of 2,176 Internet users revealed high awareness of
the iPad, with an aided awareness of 65%, the same as that of the Amazon Kindle
e-reader. Overall, consumers have demonstrated a high level of interest in these
types of devices. However, even after this kind of awareness, e-readers market
has not grown fast enough. Apparently, most consumers still preferred to buy
paper books. But, slowly e-books acceptance is increasing, as consumers are
getting value for their money in other downloadable content services like music
and movies.

Tech Temperature: 95 (on a scale of 1 to 100)

The survey reveals, 52% of e-reader owners said they were willing to pay for
newspaper and magazine subscriptions specially formatted for e-readers, compared
to just 22% of those who dont own the device. Younger consumers indicated a
high willingness to pay for news and magazines specially formatted for
e-readers.

This should be good news for the e-reader market players, as they can hope to
sell their content to e-reader buyers. However, like most other domains in the
web market, some content will always be available free of cost. But, the
specialized content like newspapers and magazines can be sold to consumers
through subscription or other sales models.

Market Shakeout

The new e-readers like iPad, for example, will attract more buyers because
iPad offers more features along with e-reading facility. Starting at $499, iPad
will let users browse the web, read and send email, share photos, watch videos,
listen to music, play games, read ebooks, and more.

As the volumes increase, e-reader market players will need to provide
ubiquitous network availability to users to ensure hassle-free reading in
diverse geographical areas. Plus, battery life will be another issue that
marketers need to address as quickly as possible. So, in the imminent market
shakeout, more innovative products are expected to hit the sales shelves.

The success of e-readers will also depend on the availability of localized
content for different markets. In India, for example, vernacular content can
help spur the market growth. And, even locally produced devices can offer more
consumers. For example, Noida based iProf Learning Solutions has ushered in a
7-inch touchscreen device iProf, claimed to be Indias first personal education
tablet. Similarly, Bengaluru based EAFT Technologies has developed a 7-inch
touchscreen mobile Internet device, MagicTile. Such devices are expected to be
cheaper than the high-end devices available in the international market.

If marketers could rightly communicate the utility of e-readers among the
potential consumers, soon e-readers will sell like hot cakes in the market. Are
marketers ready to accept the challenge?

Rakesh Raman

maildqindia@cyberindia.co.in