CEO of BuzzCity, KF Lai, stated that “This double digit growth is also seen beyond the top 20 markets reported on in the study. America saw a 54 percent increase of ads served over the three months in Q1 of 2010,” he said. “This sharp increase in growth, globally and in the U.S., can be attributed to the mobile-centric agencies who are delivering more constant and structured investments in the mobile medium.”

We must note here that these numbers reflect mobile banner advertising and not SMS or mobile search advertising. Banner advertising which is currently the heart and soul of mobile application advertising has traditionally been a fraction of its other two, much more mature siblings.

It is exciting to see the Canadian numbers grow by 68%, considering that Spreed’s headquarters are in Canada and a number of a marquee clients also are run out of the great white north. Canada is still only ranked number 5 in the World for mobile advertising spending. However, this is the first year we have made the top list and all of these figures are proof that mobile is a viable channel. Those media organizations who supported the wait and see strategy in regards to their mobile strategy should definitely take these numbers to heart.

Mobile advertising is still just a fraction of mainstream digital or broadcast advertising. However, page views and overall app and mobile web usage are increasing at a rapid rate. It is important to start on a mobile strategy at some point in 2010 if your organization wants to lock down users and start building up statistics in order to attract these advertisers.

Please see the chart below for exact numbers and rankings.

Why iPad Adaptation is an Uphill Battle for Incumbent Publishers

Working hyperlinks are the very least we should expect from content like this on a device like the iPad, and they’re the bare minimum form of something notably absent in Popular Science+ — opportunity for engagement. No comment links, no way to see what the most popular content is, no way to email a picture or an article to someone else, no place to submit my own recommendations for better tools or to tweet about what I just read.

What are your favorite media apps on the iPad so far? Why are they so good? What do they do right? What distinguishes them from their print or web version? Let us know your thoughts.

• In just one day the iPad sold 600k-700k (300k in store and the rest were pre-orders)
• 1 Million apps downloaded
• 22% of new apps being built are for the iPad
• 2000 iPad apps are already available
• Unilever, Toyota Motor, Korean Air and Fidelity all have booked ad space on the NYTimes iPad app
• Advertisements on print publishers’ applications cost $75,000 to $300,000 for a few months with some exclusivity

This is a very exciting new platform and more than ever I urge digital strategists at publishing companies to think outside of the box and not recreate what they have done on the web. I usually do not do this, but here is an re-post from an Ad-Age article on which media companies are already developing apps for the iPad and what these apps look like. I love the ABC app. Here is a link to the original article.

ABC

The ABC Player for the iPad is starting off with free, ad-supported episodes from approximately 20 series, including “Lost,” “Grey’s Anatomy,” “Modern Family” and “Desperate Housewives.”

CBS
CBS is offering streaming video clips from a variety of shows as well as full episodes of “Survivor” and technology content from CNET.com. Full-length CBS programs are available for purchase via iTunes and viewing on iPad.

CBS Radio
CBS Interactive Music Group is launching a free iPad app for Radio.com that will feature live streams from more than 550 music stations and over three dozen news, talk and sports stations from CBS Radio’s network and streaming partners such as Yahoo Music. CBS will use Last.fm’s “scrobbling” technology to send music recommendations to users and share what songs friends are listening to.

Clear Channel
The radio company’s iheartradio app will launch a free iPad version of its existing iPhone app this weekend, but is expected to roll out a custom app later this year with better tailored opportunities for advertisers and local station activation.

Conde Nast
Wired’s iPad edition is under development and Vanity Fair, Glamour and The New Yorker are expected this year too, but Conde Nast is kicking off on the iPad with its GQ app, which the iTunes store says was “developed for both iPhone and iPad” but now includes optimization for the iPad. Each issue of the GQ app edition costs $2.99.

Discovery Communications
Discovery is bringing its “MythBusters” franchise to the iPad with a $4.99 app comprised of behind-the-scenes clips, outtakes from the show and three multi-level games in which users can compete against each other.

ESPN

ESPN is launching two free apps, “ESPN Pinball” and “ScoreCenter XL,” customized for the iPad. “Pinball” is an arcade-like gaming app featuring voiceover commentary from “SportsCenter” host Jay Harris, while “ScoreCenter” is an adaptation of the successful iPhone app featuring real-time score updates and play-by-play recaps.

Men’s Health
Rodale, the publisher of Men’s Health, is offering Men’s Health as an iPad edition for $4.99 an issue but is making 10-page previews free to consumers. Each issue will include all the editorial content of the print edition plus extras such as video. Procter & Gamble’s Gillette brand secured sponsorship of the April and May issues of the Men’s Health iPad edition by increasing its other ad spending with Men’s Health.

MTV Networks

There are “co-viewing” apps, meant for use while watching shows, under development, but MTV Networks is starting out on the iPad with offerings such as its $4.99 Beavis and Butthead app, which includes video clips and games, and the $2.99 app VH1 Classic Presents: Intellivision Games for iPad.

National Public Radio
NPR has introduced not just an app but a new website optimized for the iPad. The free app is meant to highlight news, arts, lifestyle and music content in a “magazine-style” presentation. Both the app and site load audio players built specifically for the iPad.

The New York Times
The New York Times’ “Editors’ Choice” app is offering a selection of news, opinion and features, available free to consumers and relying on advertiser support. The Chase Sapphire card is sponsoring the app at the start.

Popular Science

Popular Science is the first iPad app from Swedish publishing house Bonnier. The science magazine app was developed on the publisher’s Mag Plus platform, which will be used to get its titles on the iPad soon. The app will feature content from the magazine’s April issue and touts flow navigation “more like a panning camera than a flipping page.” Future issues will sync with the print publishing schedule and will be on sale within the app.

Time
The Time iPad app will include all the magazine’s weekly content plus additional slide shows and video, costing consumers $4.99 per issue. Initial advertisers include Fidelity, Korean Air, Liberty Mutual, Lexus, Toyota and Unilever. “We’re proud of Time on the iPad and of the special features that will be in it, such as extra pictures, videos and a news feed featuring the latest stories from Time.com,” managing editor Rick Stengel wrote in his editors’ letter for the April 12 issue. “We were a little handicapped in part because, unlike some other news organizations, we were not been working with an actual iPad. It is the beginning, not the end, of the process, and we hope to evolve and change every week.”

USA Today
USA Today’s app will include much of the editorial content from each morning’s paper and will update around the clock. It’s free to consumers for the next three months, courtesy of a sponsorship from Courtyard by Marriott, but will require a paid subscription after that. USA Today has not yet set the subscription price.

Walt Disney
Disney is offering two read-along “Toy Story” apps from Disney Publishing Worldwide, one free and the other available at $8.99 with a year-long subscription to disneydigitalbooks.com; iPad videos from Disney movies and Disney Channel TV shows from Disney.com; three-page previews of more than 500 Marvel comic books with the option to purchase each selection in total; and more.

The Wall Street Journal
The Wall Street Journal for iPad is a free download with some free content, but complete access will require a subscription that runs $3.99 per week. The subscription will include news throughout the day, top picks from editors and access to the last seven days’ worth of print content. Initial advertisers include Buick, Capital One, Coca-Cola, iShares, FedEx and Oracle, with full-screen ad units that appear between article and section pages.

The Weather Channel
One of the top apps for iPhone and Blackberry, the Weather Channel comes to the iPad with expanded custom weather forecasts, full-length videos of Weather Channel programming, interactive maps, weather alerts and other features. The free app is sponsored by Toyota.

YouTube
It’s not just traditional media companies, of course, gunning for the iPad’s early adopters: YouTube, for example, has introduced afree iPad app tailored for the new device.

Where the study falls apart in our eyes is how they compare these stats to the average number of hours a typical European spends reading traditional news/magazines a week (4.1 hours). The study concludes that people are reading news and magazines more on the mobile web than traditionally. This seems like a flawed assumption considering that most of these reported users are in a younger demographic and are probably surfing Facebook and other geographically relevant social networks, not reading a news website.

I have no doubt that in the near future we will see more people reading the news through mobile applications and websites than traditional forms of media. However, it is important that we stay grounded in the statistics and not act to hastily.

An interesting next study for the EIAA would be to segment their data in order to find out how much of the 6.4 hours a week Europeans are spending on actual news and magazine mobile sites.

The mobile web is clearly on the rise and here at Spreed we are constantly asked whether the right mobile strategy for a publishing company is to launch a mobile website or whether it’s best to just launch an application. This is worthy of a blog post in itself, however  simply put we do not think that the two are mutually exclusive. In this increasingly mobile world that we live in, it is necessary to work on both strategies as they each address specific goals and challenges.

The mobile web is great for sharing and receiving links on the go. Mobile applications on the other hand serve the purpose of content discovery. More information to come in a future blog post

The routinely strong Seeking Alpha site features a somewhat conciliatory post from media corporate financial advisor on the impending coexistence of the Apple iPad and the newspaper industry.

Dan Ramsden has some tough words for Google. He sees its recent encouragement of the newspaper industry to experiment as self-serving — the more papers try to do things online, the more Google’s search engine technology benefits.

But he makes an interesting choice in where to place the technological bet. While recent media coverage has suggested Google’s open-source design of its Android smartphone offers the greatest opportunity for old media to succeed, Ramsden begs to differ.

He is firmly in the Apple camp. It’s the technology of choice by consumers, it’s the technology company that has figured out (through iTunes and the iPhone) how to exact a premium for content, so it’s the technology the newspaper business should focus on serving.

“Newspaper and magazine owners, who are struggling to redefine their business models for a new online and mobile environment, would probably be well served to align themselves with the platform that can offer a revenue model, and a mobile marketplace, and leave the experimentation and iteration stuff to young entrepreneurs and startups that do not yet have a franchise to protect,” he writes.

He suggests: “Style, design, quality control, are all characteristics that will do much more to facilitate the popularity of paid content than one more colorful website that may or may not show up at the top of Google’s search results.”

Possibly, more interesting is the rise of online news sources on the iPhone. Flurry believes that with the release of the iPad we are going to see an even strong supply and demand for blogs and other online media sources. It is therefore essential that if your newspaper does not have an app now, to act fast. If you wait too long, the online media sources will own the real estate on users phones and other mobile devices.  More below and in the report.

Like gaming, the creation of compelling content in News is a specialized and costly operation. To source and report quality news, companies often have to span various media such as TV broadcast, radio and print, which further increases cost. It’s therefore no surprise that Traditional Media dominates the News category, controlling nearly two thirds. For traditional media (e.g., New York Times, ABC News, NPR, etc.), the iPhone represents a large channel through which to distribute their existing content. The small incremental cost of expanding the distribution of Traditional Media’s core content, and the attractiveness of reaching an educated, affluent and tech-savvy audience, makes iPhone the perfect platform through which to serve news. Looking forward, the iPad creates an even greater opportunity to increase reach because its larger screen size works better works for newspaper and magazine layouts, as well as TV broadcast.

“A new survey by the Pew Research Center released Monday found more than a quarter of all American adults read news on their mobile.” -Pew research

This headline from the March 3^rd edition of MobileMarketing Daily caught our attention.  The headline is taken from the recently release Understanding The Participatory Newspaper Consumer which is a deep analysis of the publishing ecosystem.  From our perspective as a mobile publishing company the most encouraging news for publishers is the degree to which younger readers – the readers newspaper publisher need to bring into their franchise – are using their mobile devices to access news and information where and when they want.   This table taken from the study confirms  that younger adults are much more likely to access news and information on their mobile than older adults – 43% adults under 50 expect to find  at least some of news and information that they need on their mobiles.

We are not surprised by the importance of mobile as a trusted source of news and information for younger adults.  The iPhone apps we have built for our publishing clients continue to drive double digit growth in new subscribers and page views.  As important, app publishers are experiencing month over month growth in average number of articles read.  This tells us that  iPhone app subscribers  have quickly adapted newspapers to fit their reading habits – they no longer need to be in front of the paper or online editions to access the news they want when they want it  We expect to continued growth in on demand newspaper as more and more adults move to app enabled phones.

We remind our publishing clients that Apple app editions deliver a young readership – almost half of whom are under the age of 34 according to AdMob research.– and  that these apps are the pipeline to their future franchise.

When most of us think of Apple app editions, we usually think of the iPhone as the most likely delivery device.    But as Flurry research shows, the iTouch now delivers 41% of all Apple app user  sessions

AdMob data above  clearly demonstrates that the iTouch user profile is very different from the iPhone user profile – three quarters of iTouch users are below the age of 18 vv 15% of iPhone users.  We believe that the iTouch cohort is of vital importance to publishers for two reasons.

1)      Because they can and do access the App Store just as easily as iPhone users, they are a captive audience for news and information relevant to them

2)      They are now locked in to satisfying their information and entertainment needs with proprietary Apple hardware and software.  As they mature, the migration to the iPhone and iPad will be a natural and seamless progression for them.

Some 80% of American adults have cell phones today, and 37% of them go online from their phones. The impact of this new mobile technology on news gathering is unmistakable. One quarter (26%) of all Americans say they get some form of news via cell phone today — that amounts to 33% of cell phone owners. These wireless news consumers get the following types of news on their phones:

Wireless news consumers have fitted this “on-the-go” access to news into their already voracious news-gathering habits. They use multiple news media platforms on a typical day, forage widely on news topics and browse the web for a host of subjects.

Among this subgroup of internet-using mobile phone users, Pew found that the vast majority get some kind of news online:

• 72% check weather reports on their cell

• 68% get news and current events information on their cell

• 49% have downloaded an application that allows them to access news, weather, sports, or other information on their cell

• 44% check sports scores and related information on their cell

• 35% check traffic information on their cell

• 32% get financial information or updates

• 31% get news alerts sent by text or email to their phones

• 88% say yes to at least one of the above

These are very interesting statistics and the report shows that mobile users and more engaged with their news brands and appreciate news more when it is highly interactive.

Since our last post we quietly launched the Globe and Mail’s iPhone application. I call this a quiet launch as the app currently does not include all the features we plan on rolling out to the mass public. We used a strong early adopter community on Twitter to test out the base application. This was done to ensure our core focus on creating a strong, best of breed, content application was satisfied. Since the initial launch we have garnered lots of fantastic user feedback both through the hashtag #globeapp on twitter and through our uservoice page. This feedback has led to a second release that includes offline reading as well as haptic feedback and has also paved the way for many more future product developments.

Thanks to our core group of early adopters, it is safe to say that the soft-launch of the Globe and Mail application was a huge success. The usage numbers are through the roof and we have already been featured on one of Canada’s most prominent technology blogs, Techvibes. Warren Frey, who contributes to Techvibes on the topic of game changing business models states that:

As an ardent news junkie, one thing I immediately noticed about the app is that it’s rock solid. Unlike the New York Times iphone app, Spreed’s app is robust and never freezes up and crashes …

It’s  not what’s under the hood that’s interesting about Spreed, though they’ve certainly done a good job of crafting a solid mobile news app. It’s their adaptation of print media to a new form in a smart way that’s most impressive.

We appreciate Warren’s understanding and excitement for our new business model and are very proud that he believes that our goal of creating a reliable and user friendly way of diseminating the news on mobile phones has been achieved.

I would like to thank Warren and all the members of our fantastic early adopter community. Without all of you this application would not have been such a great success and we look forward to working with everyone in the near future to help build a best of breed mobile newspaper platform.

I must have drank some seriously potent iPhone Kool-aid while I was in San Fran for the Web 2.0 Summit. Ever since I have been back all I can even think, dream or talk about is the huge potential behind the iPhone. The problem is that some people, in some cases even Apple, do not seem to be fully appreciating the scope of what is possible here. 

The most recent example of a company failing to see the full potential behind this new platform is Penguin Publishing. I received an email from a colleague at the start of the week letting me know about a new application that Penguin released. It’s part of a broad sweeping initiative by the publisher to embrace the new social web, so kudos to them for finally jumping on the band wagon. However their iPhone application simply does the following, and I quote, “It makes the features of the Web site—the blog, book previews, podcasts, news and Penguin-specific book-finding tools—available on the iPhone.” Wow, awesome, but am I missing something here? What about the potential of literally selling people books to read on the iPhone through the application? They now have a direct channel to a medium that users can easily read their books on, why not skip over all the book re-sellers and simply sell the digital format of these books through their app? I dont get it! I am not saying that they should stop using book stores to sell their products, but the iPhone is a highly effective tool for reading books, why not go straight to the source? 

I recently downloaded Stanza (an e-book reader application for the iPhone) and blasted through Animal Farm in 3 days flat. The reading experience on the iPhone is an absolute pleasure. I actually enjoyed reading using my phone over and above reading a traditional paper back (I may just be a seriously early adopter though). The best part about it is that I never have to lug around another book with me. All I have to do is go to Stanza’s book store, download a new book and its with me everywhere I go. If the iPhone really is to become a new medium for content, why would Penguin develop an application that does not include an ebook reader so you can simply download their new releases and old classics directly into your phone while your on the go?

The other element of this whole debacle that eludes me is why Apple has not made an e-book reader part of their own native application bundle. They have an internet browser, a music and video player, a camera, but no book reader. If this is really going to become the new media device of the future, they certainly should include the most trusted form of content … text! And whats more is they have the perfect distribution channel to be selling e-books through; iTunes! They already sell audio books, why not sell ebooks also to be read directly through an application on their phone just like MP3′s. Hell they can even include DRM for all I care, to get the publishers on the board. 

There is a lot of potential here in the field of text based content on the iPhone that a lot of people seem to be looking over in favour of more flashy features. I love all the potential behind some of these new innovative features but In my opinion (please keep in mind the line I stated off with, that I definitely drank some potent iPhone kool-aid) the iPhone has the potential to destroy Amazon’s Kindle business and in turn the future of Amazon’s e-book sales. Who wants to lug around an extra device or another book when you already have everything you need in your pocket? Not me, thats for sure.

Dan talks about how Make and Craft magazines were among the first available on the iPhone editions via Texterity which is an iPhone based Magazine distribution service. Dan states that, “We like trying different things. About 80 percent of our total circulation signups come through all the online marketing that we do.”

With print publications fighting to stay relevant amongst a mass of declining circulation numbers, it is fantastic to see someone actually increasing circulation by embracing the digital world. Read the full interview below:

Dan Wood, Associate Publisher, O’Reilly Media: Magazine Publishers Association, Digital Driver Edition

Q. Looking ahead, what would you say are your top priorities?

A. Our next big thing is how to get our events localized and bring our brands to local communities in, say, Seattle oith that already. Online traffic is strong for our store, Maker Shed where we sell kits and projects. Traffic really builds there in the November-December holiday season. For the last three months, traffic has been up an average of 45 percent versus the previous year. A few weeks ago, the store moved to its own dedicated server to handle more traffic.r Austin.  And our ability to integrate e-commerce and retail with magazines. We’ve had enormous success w

Amazon Growth Slows a Bit; No New Kindle in 2008: Publishers Weekly

CFO Tom Szkutak said that while sales of the Kindle have exceeded expectations, it does not plan to release a new version of the e-reader until 2009 “at the earliest.” He noted that Amazon has ramped up manufacturing capacity for Kindle, and the device is in stock. When the Kindle was introduced last November, the readers quickly went out of stock. Amazon said the e-book reader now accounts for more than 10% of unit sales for books that are available both in digital and print formats. Bezos said purchase of e-books is “additive” to sales of print books with Kindle e-book buyers tending to buy as many print books in addition to e-books.

Oprah Comes Out For Kindle: The Guardian

Today in Chicago, and on TV screens across the USA, Oprah Winfrey is going to recommend her new “favorite gadget,” which is Amazon’s Kindle ebook reader. A brief video has appeared on Amazon’s website to plug the show — as spotted by Chris Nuttall at the Financial Times — which will also feature a guest appearance by Amazon founder Jeff Bezos.

Kindle in the University: Brave New World Blog

Yale, Oxford and the University of California have all adopted Kindle programs, and now Princeton University Press will begin publishing Kindle-edition textbooks, launching, Robert Shiller’s new economics book “The Subprime Solution” on the device two weeks before the hard copy. Princeton plans to roll out hundreds of books through the Kindle’s online store. The questions over over the commercial ‘revenue sharing’ arrangements are between the parties and whether , as some may say, Amazon is buying trade. 

I am one of those 395,000 people and can say that I love their application. The form factor on the phone does make it hard to read the books at times, however if they were to integrate Spreeds technology into their platform, they could have a seriously killer application. I am very excited to see how this and the host of other e-book reader (that I am sure are currently waiting to be accepted by Apple) progress in the market. Maybe Amazon is wrong. Maybe people don’t want yet another device to carry around. Maybe people are happy enough reading their books on their phone while on the go and reserving the physical copies for when they get back to their home libraries. Only time will tell.

I am going to disagree with the general thesis here and say that e-textbooks are in fact cheaper, however the publishing industry needs to be innovative about how they package and distribute these products. Firstly, I am going to disagree with the fact that students can return their books for 50% of the face value. I am not too far removed from my university years to remember going back to the campus bookstore with a bundle of textbooks cradled in my arms hoping to come home with a nice sum of cash. Year after year I would be dissapointed by the measly amount of money I was refunded and in some cases the amount was so negligable that I chose to keep the textbook. Therefore to base an argument on the fact that students are receiving 50% of the money they spend on physical textbooks back seems flawed.

On another note educational publishers, like Taylor and Francis, are becoming very innovative in the ways that they are packaging their textbooks for students. Students can now pick and choose which chapters of the textbook they want to buy instead of forking out $1000 for the entire book. Many professors will only assign a handful of chapters as requird reading for a given semester and by only buying the chapters they need, students can greatly reduce the money they spend on textbooks.

Finally I need to address the fact that 3/4 of unviersity students said they do not feel comfortable reading textbooks on their computer and instead would opt to print them out. There are two points that need to be made here. Firstly, as e-readers become widely available (Amazon may actually be creating a Kindle specifically designed for students … think easy highlighting and in-line note taking) students will find that they only need to pay for the upfront cost of the reader and that reading using tools like the Kindle are actually even more comfortable than reading on printed paper. This will greatly reduce the cost of going to the copy shop and printing out an entire book. However, publishers must not disregard the fact that 75% of students said that they would not feel comfortable reading on a computer screen. Most students in the early days will not buy Kindles and the publishers and e-book distributors need to find ways of making students more comfortable reading on their screens if they want to make e-books economically attractive. This has been a major topic of focus for us here at Spreed. We are dedicated to the field of eye science to understand how the end-user receives information from a monitor. We have developed a very unique way of displaying text on a screen so that students may find it far easier to read their textbooks on their computer instead of printing them out. Publishers must search to find ways of presenting their textbooks on computer screens in a way that students will not feel the need to run to the copy shop.

The bottom line is that the article really only gives one side of the story and does not look too far into the future. The trends are pretty clear and as publishers and students become more comfortable with this changing industry, we will find that e-textbooks are far cheaper and superior in quality to the printed textbooks of the paste. However, please take a look at the LA Time’s article that can be found below and come back here to leave your thoughts on this topic.

E-textbooks may not be cheaper than printer ones, report says: LA Times

A sharply critical report released Monday asserts that commercial publishers are going about the digital textbook revolution the wrong way. Commercial e-textbooks are no cheaper than hard-copy editions when you take into account that students can sell print books back to the bookstore for half the cover price, according to the report from a national coalition of student public interest research groups. And restrictions on printing and online access make commercial e-books unfeasible for many students, the report said.

The Font Blog

Here is Dr. Larson’s bio, just reading this and his corresponding blog makes me wish I had the chance to buy him a coffee and pick his brain for an hour (or two, or three …):

I am a psychologist who has been working for Microsoft in different capacities since 1996. In 2000 I completed my PhD in cognitive psychology from the University of Texas at Austin studying word recognition and reading acquisition. I joined the ClearType team in 2002 to help get a better scientific understanding of the benefits of ClearType and other reading technologies with the goal of achieving a great on-screen reading experience.

During my first year with the team I gave a series of talks on relevant psychological topics, some of which instigated strong disagreement. At the crux of the disagreement was that the team believed that we recognized words by looking at the outline that goes around a whole word, while I believed that we recognize individual letters. In my young career as a reading psychologist I had never encountered a model of reading that used word shape as perceptual units, and knew of no psychologists who were working on such a model. But it turns out that the model had a very long history that I was unfamiliar with.

The big question for me is that even though these numbers are high, can e-books really win over the mass-audience. Two recent articles, one from Naomi Alderman and another from Peter Conrad of the UK’s Guardian give light to the different sides of this debate. Naomi on one hand advocates the move toward e-books. She is fed up with the piles of books overwhelming her apartment and finds the Kindle easy to use and convenient. Peter on the other hand stuggles to accept that e-books are the future. He argues that reading ebooks actually left him feeling alienated from books he used to love growing up. These two perspectives highlight the seperate camps very well and it is hard to say whether either one represents the mass public at this point.

I personally do not think that we are going to see a sudden move to e-books in the next couple of years. The cost of an e-book reader is still a large up front investment when compared to the one off price of a paperback. What I will say is that in certain segments, where people have to buy large amounts of books that they must use on a regular basis, the student market for example, we will see a fairly substantial adoption of e-book technology. Students can offset the cost of the reader by only purchasing individual chapters of textbooks as they need them, thus reducng their overall spending on textbooks for years to come. This makes perfect sense and I see the student (as they often do) leading the proliferation . The only hurdle I see holding students back is the inability to easily highlight text. Yes, you are able to click and drag, but nothing will ever replace the relaxing sensation of passing a hightlighter over a line of text.  

This is going to be a very interesting industry to watch over the next 5-10 years and if the new projections are correct, Amazon is very well positioned to ride the wave (as they usually are). See Mark Mahaney’s numbers below:

Motoko’s Article can be found here