Tools of Change: Nick Bilton

The New York Times may very well be the only newspaper that has an R&D Lab. And as Nick Bilton boasted on Wednesday morning at a keynote address, there don’t appear to be any publishers with an R&D lab either. Bilton had called about ten publishers “just for fun” to see if any of them had an R&D department. The receptionists were baffled. But what Mr. Bilton may not understand — particularly in this publishing environment in which ebooks again represent less than 1% of the market — is that the average Joe is probably not familiar with the term.

None of this prevented Mr. Billton from some wild generation generalizations — channeled by way of his three-and-a-half-year-old nephew Luca, captured with digital tools on slides — that the generation now in prepubescent form will require everything instantly. In Bilton’s view, Generation Next will be growing up in a world in which they will expect all content in seconds. But not after they’ve been scolded by a diligent parent while grabbing for seconds before all the firsts have made room on their plates for dessert.

I was uneasy about the technological razzle-dazzle applied to toddlers. Yes, it’s a truism. But to bask in it without considering the deeper social ramifications was unseemly. Bilton’s enthusiasm reminded me of unscrupulous advertisers who have boasted about two-year-olds who can identify the Golden Arches. Or the kids who now enter a demographic before even saying their first words. But little thought has been paid to the ethics behind hitting kids up in their formative years. Instant gratification certainly gratifies, but how precisely do all the doodads aid rumination? Maybe there are some circumstances in which it’s probably best not to have it immediately. Maybe the limitations of a device produce creative and journalistic constraints that improve content. (Case in point: Because the laptop I am currently borrowing is having some issues and may shut down, and because I have approximately ten minutes to finish writing this post before heading of to another panel, I must express great care for these sentences, essentially writing this in one very careful and fast first draft, and strive to get as much here as my copious notes will allow. The technological limitations prevent me from liveblogging, as others are doing, and so I have additional time to think about what I have witnessed before writing about it. The reader may not be instantly gratified through the liveblogging. But I’d like to think, in light of the good observations made by Carolyn Kellogg, that this permits some things from not being lost between the tweets.)

Is long form content dying? As Bilton demonstrated by dragging up New York Times articles from the late 19th century, there were similar reports made when the telephone and the phonograph appeared. The “X is dead” statement has remained a constant through every iteration of technology. But I couldn’t help but consider the slide Bilton showed which read “Our Brain’s Are Changing” [sic]. Clearly, technology does have a downside. And it is, given the ebullience Bilton evinced at the possibility of going into a tangent comparing ants and those who work online, leveled squarely against individual expression. I do not view anybody who may be reading this post as an ant. I welcome outside perspectives, particularly from those who can sufficiently prove that I am wrong. I only ask that they take the time to actually understand the difference between plural non-possessive and singular possessive.

What do we lose in this greater scope when we settle for a custom version of the New York Times that conveniently elides those stories we might stumble across? And how does this facilitate — to use one of the dreaded corporate verbs I’ve heard too much around here — another’s curiosity? It is not enough to employ sensors as editors. It is vital that we use technology in a way that matches the human impulse: masticating instead of thoughtlessly devouring, listening instead of pontificating, and ensuring that the tools actually match the way our brains cogitate.

And if that means taking the cute young Luca aside and telling him that he can’t have his toys all the time, and extending these general limitations to a manboy or two here at TOC, then I think this might get us to a more constructive conversation about our relationship with technology. If we can’t factor in the concept of waiting into our daily lives, as Bilton clearly does not, then does he really have his finger on the pulse? Or is he just some guy more impressed by the flash and flicker of a new atavistic fire?

Tools of Change: Smart Women Read Ebooks

Panelists: Kassia Kroszer (moderator), Angela James, Malle Valik, Sarah Wendell

(For related coverage, you can check out my video interview with Wendell shortly after the panel.)

So if you’ve been following these lengthy reports, you’ve probably developed a sense that there is a profound disconnect between the geeks who develop the technology and the readers who imbibe it. Jon Orwant may have talked with readers during his magazine editing days, but is he really doing this to the greatest possible extent now? Do web stats and trends of the moment alone really account for what the consumers want? Thankfully, Kassia Kroszer, in a nonscientific manner, conducted a survey with 750 female readers, hoping to determine their relationship to books. Yes, they read a lot. And the development geeks may want to consider that they read two to five books per month and that 60% of the readers surveyed between ages 30 and 50.

Malle Valik pointed out that there were three development efforts she made at Harlequin: (1) downloadable audio, (2) manga, and (3) ebooks. And guess which of this digital trio was the proud winner? Harlequin readers liked ebooks. Quite a lot in fact. Valik joked that she should probably earn a commission for talking ebooks up. And when you are considering the many series inhabiting the romance genre, well, wouldn’t you be foolish to avoid making some titles online for readers? But Amazon has often done just that. Further, as Wendell pointed out later, Amazon does not tend to acknowledge the button you press when you express interest in a title. Talk about wasting an opportunity to connect with your customers. (And while I have expressed skepticism about the buzz term “social community,” I think it can generally be agreed that Amazon’s failure to respond to requests certainly represents just about the biggest asocial step you can take if you want to continue to attract repeat customers or sell them on your shiny new toy.)

In fact, as Wendell pointed out, women are the customers. Her website, Smart Bitches, Trashy Books, had received 16 million hits in January 2009. These are the ebook readers you’re looking for. Women, in Wendell’s view, like pretty objects and usable design. “We will reward you,” continued Wendell. “We will tell you how good you are in bed with multiple swipes of the credit card.” Wendell rattled off recent studies in which 55 out of 96 million spent on electronics were from women, and that 80% of fiction was purchased by women. Is this an audience that any self-respecting businessman wishes to ignore or treat as dumb?

Some more interesting stats from Kassia’s study: 60% of women read ebooks on their laptop. And why is that? Probably because these e-readers are too damn expensive. So why not a $100 price point? Or perhaps, as Angela James suggested, throwing in a few complimentary ebook titles in with an e-reader purchase? And why, given this revealing data, would any self-respecting hardware publisher continue to offer closed ebook formats?

These hardware distinctions are perhaps more important than the developing geeks might think. After all, Ms. James revealed that she had broken up with he Kindle. The Sony Reader had better folder management. And the back of the Kindle kept falling off. The panelists were dismayed that they had to be pegged as criminals because of Amazon’s restrictions. Furthermore, as Ms.James noted, consider that Sony has expanded into non-American markets, while Amazon has kept its focus in America. You can’t use the Kindle’s wireless network outside of America. So what good is it when you factor in the salient realities of human migration?

Wendell noted that $10 seemed to be the “hard stop” on ebook price. If a reader is regularly purchasing paperbacks for $5.99 or $6.99, where then is the incentive to purchase a $25 ebook? There is the notion that an ebook should cost less because it’s not a tangible object that occupies space. But Wendell didn’t have a specific answer about where ebooks should be priced.

And here’s another problem with ebooks. You can’t resell them or loan them. And that’s simply not acceptable to the average reader. Sharing is a vital part of reading, and that’s now become illegal. There was a hypothetical question posed about someone emailing 100 people with the latest Nora Roberts book, with the publisher losing the sales. Valik pointed out that Harlequin was in the interest of obtaining nearly all rights and that she was certainly trying to figure out a reasonable way to ensure that sharing becomes a viable option.

Which returns us, in a more reader-inclusive manner, to the TOC buzz term “social experience.” I think, based on my Tuesday peregrinations, that I’ve observed how people think about technological developments. But I’m not so sure if they’re accounting for the reader. Certainly this panel provided a few more pertinent answers than “The Rise of Ebooks.” But I think it’s important to consider that social experience is something that emerges from the form, often with helpful and ancillary results. But it is not necessarily the form. In order for ebooks to penetrate beyond 1% of the market (and, again, the assumption here rests that ebooks will take off with Wilcoxian dreams of riches and avarice), it seems to me that they are going to have to not only listen to readers (particularly regular readers and women), but consider every aspect that makes the printed book work. These aren’t going to be easy questions to answer. And they’re certainly not going to be cleared up in three days by a bunch of excitable plutocrats at an O’Reilly conference. While the music industry has seen the phonograph switch to the cassette, and then switch to the CD, and then switch to the MP3, we really haven’t seen anything like this with books and paper. Joe Wikert suggested that emerging forms of technology look ridiculous until they’re established. But there’s possibly a greater risk in looking and acting ridiculous when you accept the emerging possibilities without healthy skepticism or learning a few lessons from the past.

(More reports on Wednesday’s events, which I am presently in the middle of, to come.)

Tools of Change: The Rise of Ebooks

Panelists: Mark Coker (moderator), Joe Wikert, April Hamilton, David Rothman, Russell Wilcox

If I had to compare Tuesday’s panel with Terminator 3: Rise of the Machines, I would say this. Claire Danes was superior to April Hamilton. Russ Wilcox, a rather cocky gentleman who spoke like some snobby Yale know-it-all with his head held high and dashed off a number of wild and extravagant and unprovable claims, would be comparable to Nick Stahl. The difference is that Wilcox isn’t living off the grid. Indeed, despite the technological benefits of his E Ink invention, he’s all too happy to smudge his fingers and sell the human race to Skynet. David Rothman was Ah-nuld, and he did okay. Regrettably, there wasn’t a nude T-X character who liked to seduce and kill, but I suppose Mark Coker, who started off stiff but began to prove his sardonic worth upon poking holes in Wilcox’s extravagant vale, will fit the bill. But Joe Wikert was the smartest guy on the panel: open to present technological realities and a man who, unlike all the other panelists, was not entirely willing to buy into all the hype.

While I will confess that the Brad Fiedel theme played in my head at numerous points, I can say this. With Coker and company relying on Amazon’s dodgy 10% figure, along with Sony’s extravagant claim that 300,000 Readers had been sold, I was skeptical. Ebooks, after all, represent only one half of 1% of the total market. And to my knowledge, there hasn’t yet been a figure from an independent third party to determine if ebooks are indeed the great white hope that will decimate print and get all of us fighting robots in an apocalyptic future.

Rothman said that Amazon’s DRM was what was really killing this natural evolution. In order for the ebook market to expand, it’s going to be necessary to consider open source. Wikert likewise agreed that DRM had to go away, but added that any e-reader should consider adding value to the print products. If future e-readers didn’t do this, then they would eventually hit an artificial ceiling. “When you’ve got a hammer in your hand,” said Wikert, “everything looks like a nail.” He hoped to see more exemplars of rich content. Video and dynamic possibilities. Fancy little bells. But nobody on the panel chose to consider the issue of whether it would be the author or the publisher that would provide this additional content. Still, Coker did joke that the iPhone might be programmed to vibrate at a certain tone upon a new e-volume of erotica cascading against the technological shoals.

Wikert elaborated further. One product, he said, could be calibrated based on what that person wanted to do with it. He urged the audience (and those who work in this industry) to not only study the latest technologies, but to be actively involved in using these technologies.

This sense of play and flexibility did not apply to Russ Wilcox, who should have worn a T-shirt reading I’M HERE TO PIMP MY GOODS in large lettering readable from half a mile away. Wilcox suggested that Moore’s Law now applied to e-readers. The speed of E InkTM innovations now doubles every eighteen months, all contingent upon brightness, contrast, and speed. He foresees this future: In 2010, the flexible displays expand, with a larger size permitting an advertising-driven model in which the profit machine becomes self-aware. By the end of 2010, a full color e-paper device hits the market — initially limited to pastels. Over the next eight to ten years, various color e-readers duke it out with each other and geeks presumably choose sides in the forthcoming jihad. He also cavalierly predicted — with no hard sales or trend data; because we all know that he’s sworn to corporate secrecy on the subject — that in eighteen months, 2-3% of American households would have e-readers in their homes. Coker quibbled with this, pointing out that he would need an enormous growth rate for this massive jump to happen. There was no mention of the limping economy, much less the incentive for Joe Sixpack to buy the latest Kindle at a gargantuan cost, only to see another version released less than a year later.

I am not really certain why April Hamilton was on this panel. But she brought up a notion even more preposterous than the failure to consider the time and money it would take for authors and publishers to generate dynamic content. She believed that smartphone applications would be the future. Never mind that the book is a rather specific medium and that, indeed, some books may not necessarily work this way. As Rothman observed, because of an iPhone’s limited storage space, apps have the tendency to be deleted. This prompted a rather defensive answer from Hamilton, delivered in the timbre of a beauty pageant contestant, “I would say there’s no single answer.” Well, can you perhaps agree that you might be wrong? Can anyone at this damn conference confess that they really don’t know where things are heading?

Actually, yes. Wikert was wise enough to point out that the early version of the iPhone in 2001 looked rather silly and that the current version of the Kindle will look silly in five years. It helped to talk shop with rapid technological evolution in mind. Wikert expanded on the panel’s general anti-DRM sentiment by suggesting that a Kindle App Store might open up Amazon’s possibilities.

Wilcox suggested that Stanza wouldn’t exist without Kindle. This gave him a ripe opportunity to trot out a catchphrase pertaining to the unit: “the container affects the experience.” And just as he was about to get beyond the topic of E InkTM, he then suggested that E InkTM wouldn’t really make its way onto cell phones. The outside of cell phones maybe. But I wondered whether Wilcox might somehow find a way if Nokia came to him with millions of dollars. Then he might appear on another panel, hold his haughty head up high, and remain absolutely convinced that he was right. (Note to Wilcox: If you’re going to talk like a snob, it helps to speak like William Buckley.)

I don’t want to delve into Ms. Hamilton’s Indie Author Movement (almost TM, but since it represents “the people” in a rather naive manner, I will leave subscript silliness outside of my report). Mainstream publishing just doesn’t have what the Indie Author needs. And how dare these other authors tsk-tsk their fingers against self-publishing? It’s not vanity at all to pay your hard-earned money for a slapdash operation without editorial oversight. The books industry, Hamillton proudly declared, is now as ignoble as the movie industry. Nothing more than highly commercial fare! I mean, they haven’t thought about the niche markets at all! An author publishing her work was never vanity.

“Uh, great. Thanks,” responded Coker.

By the time Wilcox brought up “tipping points,” I wondered if the bright young thing had ever considered the common reader. Fortunately, the next panel brought this very important subject to the center.