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<Librius Inc. is racing against several California competitors to get its electronic books to the reading public.
The small Bellevue company, founded last year, expects to offer consumers a variety of titles they can download from the the Internet to battery-operated, book-size electronic readers, priced at less than $200. The readers will hold up to 10 titles.
Librius should have its system on the market, with thousands of titles, by late this year.
The company expects to make most of its money from the percentage it keeps on book sales, not from the sale of electronic readers. The book prices, expected to range about 30 percent less than their hard-print editions, will be set by publishers.
Librius hopes publishers will embrace its electronic system, Librius World Library, as a way to cut costs, increase profits and cheaply test the market for works by new and obscure authors.
"The Librius system virtually eliminates the direct costs of book production and the traditional costs of distribution," declared company president Don Bottoms. "By 2000, Librius expects that it will cost less than $1 to make and distribute a title, including all corporate overhead, storage and download costs."
Librius will encrypt every title to make it impossible for anyone to print or copy titles stored in their electronic readers, he said, so publishers need not worry about piracy.
"We're now working with publishers to conclude contract agreements," Bottoms said.
Bottoms said he and Librius co-founders Don Ledford and Chuck Studebaker have raised between $1 million and $10 million from investors, but declined to be more specific.
"I believe Librius is going to be a home run," said Seattle investor Lynn Wildblood. "I see the market potential as absolutely phenomenal. We're looking at possibly changing the way people read and the way the publishing industry works."
Seattle literary agent Alice Volpe, a former publisher, said that producing, distributing and promoting a book has become so costly that publishers no longer are willing to take chances on anyone other than blockbuster writers. (She represents local mystery writer J.A. Jance.)
Volpe said the kind of electronic-book system developed by Librius can make it profitable for publishers to try out new writers.
At least two other companies loom as competitors for Librius. In mid-June, NuvoMedia Inc., based in Palo Alto, Calif., announced its own electronic book and distribution system, RocketBook. It said this "revolutionary" system "allows for the publishing, distribution, purchasing and reading of electronic books safely and efficiently over the World Wide Web via a network of online booksellers."
NuvoMedia CEO Martin Eberhard told the Business Journal his company will begin marketing its product during the fourth quarter, at a price between $399 and $499, with no extra monthly charges.
Richard Frazita, an analyst with Access Media International, a New York market research and consulting firm, praised NuvoMedia's electronic reader for its clarity, ease on the eyes and ease of handling. "The screen technology is terrific," he said.
Eberhard said NuvoMedia will serve as an electronic distribution system for large booksellers such as Barnes & Noble. Indeed, the online arm of Barnes & Noble, as well as the venture arm of giant publisher Bertelsmann AG, have made undisclosed investments in NuvoMedia.
Also last month, SoftBook Press Inc., based in Menlo Park, Calif., announced its version of the latest in electronic books, SoftBook Network, which the company claimed is "the world's first complete paperless reading system."
In the company's press release, Simon & Schuster president Jack Romanos said, "The SoftBook electronic book is the right platform for testing the delivery of our titles to customers for paperless reading."
SoftBook Press CEO Jim Sachs told the Business Journal that his company plans to begin shipping its product in September. The price: $299 plus a monthly charge of at least $9.95, depending on the service plan consumers choose.
Sachs said SoftBook's electronic reader has a built-in modem that plugs directly into a phone line and connects with the company's online service, which initially will focus on publications for professionals such as attorneys and financial analysts.
Investor Wildblood claimed that of the three competitors, Librius has developed the best product. Moreover, he said he's impressed with the record and experience of Bottoms and the other Librius founders.
"We all have computer technology backgrounds," Bottoms said. "We've taken our lumps and had our successes." |
