Lucius, thanks for the e-books URL. I pulled this interview for folks to look at:
Quiet Giant Buys NuvoMedia and SoftBook
Glenn Sanders
Originally posted Tue Jan 18, '00
Updated 12:00 AM PST
You've read about the new ebook software Microsoft is developing. You've heard Steve Riggio and Dick Brass talk up their eBook project. What's next? Buckle your digital seat belts! Ebook mergers ahead! Glenn Sanders shares his thoughts about the Gemstar acquisition of NuvoMedia and SoftBook.
Worries about fracturing of the ebook industry can be laid to rest. Gemstar's simultaneous acquisition of both NuvoMedia (makers of the Rocket eBook) and SoftBook Press (makers of the SoftBook Reader) virtually assures the future of eBooks.
Forces pulling in several directions were threatening to tear the delicate fabric of the fledgling eBook industry. The Open eBook working group, which includes NuvoMedia, SoftBook, Microsoft, several publishers and others has developed a formatting standard for eBooks (Open eBook). Adobe, Glassbook and Everybook have teamed up to push the PDF format. Glassbook has also been promoting its EBX standard (based on proprietary Glassbook technology) for eBook publishing. And the Redmond behemoth threatened to steal the show with the recent announcement of its future eBook software, Microsoft Reader.
However, I feel that the bold move by Gemstar promises to unify the industry behind a single standard for the content (Open eBook) and the reading devices. It also creates a solid entity and a progressive leader for the eBook industry.
Little giant Gemstar, virtually unknown outside technology circles, is a company with a $17B market cap. Gemstar's main business is licensing their patented technologies such as VCR Plus+ and Electronic Program Guide to manufacturers.
I'm excited about this merger because I feel that it will benefit the eBook industry in many ways. More titles. Less expensive reading devices and content. Much more public awareness of ebooks. More eBook and reading device sales. In fact, in retrospect, I think it is the best thing that could have happened. I'm sure you have many questions, so let me answer a few of them from my viewpoint...
Was an investment by a large company like Gemstar the only hope for the survival of this new industry?
Well, yes and no. In the long run, I feel that the industry was heading toward some pretty serious splits with respect to dedicated devices vs computers or handhelds running Microsoft Reader software. Without a united front, the eBook industry was in danger of being taken over by Big Brother Gates. However, in the short run, there is no shortage of investors wanting to invest in reading devices, ePublishing and related companies. And when you consider that the ratio of print to electronic publishing will dramatically shift in the next 10 years, that $15B publishing pie begins to look mighty tasty.
Will this result in higher prices?
On the contrary, the economies of scale brought about by unified standards, combined production, and mass production of units should lower the cost and increase quality of reading devices. Just as it has for all other electronic consumer products. Gemstar may have the power to influence prices that publishers charge for titles, as well as the discounts that bookstores demand.
Will this result in less competition?
Absolutely not. Just like when VHS won the video battle, a common hardware standard would permit a large number of companies to manufacture compatible reading devices, with more features, higher quality, and lower prices. The OeB formatting standard will stimulate the creation of more content and provide more opportunities in all areas of electronic publishing.
Will faceless corporations take over the eBook world?
Believe it or not, before the recent acquisitions, Gemstar consisted of fewer than 200 people (despite its large market cap). The company grew from a small startup with a few patents, to a small company with many patents, and has never lost sight of the personal aspect of business. Henry Yuen and Elsie Leung personally came to NuvoMedia and SoftBook to explain their company history and goals for the future. Henry is one of the most likable people I've ever met. A man of vision and intelligence.
How can NuvoMedia and SoftBook, who were competitors until this merger, work together?
The process of sharing information, technology, and resources has already begun. Both companies are very happy to be joining forces for several reasons. There was very little overlap between SoftBook and NuvoMedia with regard to capabilities of their devices and technology, as well as the markets for their products and services. Combined, the two companies can cover all the major markets and offer a wider range of models for consumers. The combined efforts will result in lower production costs for devices as well as greater functionality and a wider range of models.
Will Gemstar continue to support the Rocket eBook and SoftBook Reader, or will they become obsolete?
So far it seems that Gemstar intends for NuvoMedia and SoftBook to continue as wholly-owned subsidiaries which will continue to support and develop their products, based on the Open eBook format. Gemstar has a similar track record with the companies they have acquired in the past, which continue to exist and develop their products.
How will this affect small electronic publishers?
The only change expected with respect to ePublishers is more support from NuvoMedia and SoftBook, as well as dramatically expanded efforts by eBookNet for the entire industry, especially the smaller companies and organizations who would not otherwise be heard above the noise created by the heavy dudes of the publishing and software world.
How will Gemstar promote and benefit the eBook industry?
According to the January 18 press release, Gemstar plans to launch a "massive consumer-awareness campaign later this year [2000] to promote eBooks." This will benefit all in the eBook industry, as well as consumers of electronic editions. I look forward to seeing "eBook" becoming a household word, with two or more reading devices in every home.
Will more eBook titles be available as a result of this merger?
Yes, this should be one of the major results in the next years. Henry told us that Gemstar will work with publishers both traditional and electronic to greatly expand the amount and variety of titles available. A related effort will probably be a dramatic expansion of the market for reading devices through promotion, advertisement and other activities on the part of Gemstar, NuvoMedia and SoftBook. These efforts should be done in cooperation with eBook publishers, authors and others in the industry, to create a united effort and launch the eBook industry into a mainstream business.
Will Rockets and SoftBooks use the same format as Microsoft Reader?
Microsoft, along with NuvoMedia and SoftBook were among the original companies who drafted the Open eBook (OeB) format. Therefore, MS Reader is designed to read OeB, and publishers can publish one version for all major platforms. However, once converted and encrypted for a proprietary platform, it cannot be read on any other platform. For the eBook industry to really take off, there should be a formatting standard (OeB), plus a unified platform for all content. This would benefit publishers as well as readers who want to access to the greatest number of titles.
Will eBookNet become a mouthpiece for Gemstar?
No. eBookNet will continue to cover and promote the entire eBook industry. We may choose to attach editorial comment to some press releases to add perspective to statements that might otherwise be misleading. eBookNet will continue and expand its mission of growing the ebook industry by providing information and educating the public about ebooks. We will also continue our efforts to build the eBook community by providing a central space where ebook professionals can communicate and collaborate. I am working on several plans to expand services and exposure for ePublishers, e-authors and readers, including a comprehensive catalog of eBooks on the Internet.
What about the future? What's next?
The Gemstar press release mentions development of technology, and that "The combination of SoftBook Press with Gemstar and NuvoMedia will catapult the eBook category from a novelty to a necessity and help to realize the vision that we outlined at the inception of the first eBook - to make it a ubiquitous reading device." This, combined with the massive campaign planned by Gemstar mean that 2000 will be the year that eBooks really start to take off. And don't be surprised if future reading device models have the capacity to play digital music and expand the meaning of an eBook. Heard any good books lately? ;-)
eBookNet.com is owned by NuvoMedia, a wholly-owned subsidiary of Gemstar International Group. However, the opinions expressed here are those of Glenn Sanders, and do not necessarily reflect the opinions of eBookNet, NuvoMedia or Gemstar. |
