Digital Media

The Nook

(Credit: Barnes & Noble)

Demand is so strong for the Nook that Barnes & Noble has begun telling new customers not to expect delivery of the soon-to-be-released e-reader until the second week of December.

When the nation's largest bookseller unveiled the device in October, customers placing early preorders were told they could expect the Nook to ship by the end of November; customers placing preorders now are being told they can expect shipment by December 11. The new shipping date was first reported by Brighthand.com.

A Barnes & Noble representative confirmed the December 11 shipping date but disputed the characterization of the new shipping date as a delay.

"Like with any hot, new consumer device, the sooner you order it, the sooner you receive it," said Mary Ellen Keating, senior vice president of corporate communications and public affairs. "We had high expectations for the Nook and couldn't be happier" with preorder sales. However, she declined to say how many of the e-readers had been preordered.

"We are working hard to meet demand for the holidays," she said.

Earlier this month, start-up Spring Design filed a lawsuit against Barnes & Noble, alleging the bookseller misappropriated its trade secrets in the design of the Nook. Spring Design had announced its Alex e-reader just days before Barnes & Noble formally unveiled the Nook. Both e-readers use the Android operating system and combine an e-ink screen with a color touch screen. It seeks both monetary damages and a halt to sales of the Nook.

The $259 Nook, a challenger to Amazon.com's Kindle, will join an expected boom in e-reader sales. In a report released last month, Forrester Research raised its 2009 forecast for e-reader sales in the United States to 3 million units from its previous prediction of 2 million sales. Forrester also expects Amazon's Kindle to command about 60 percent of the e-reader market in 2009, compared with 35 percent for Sony's Reader.

Bookseller Barnes & Noble reportedly plans to release its own e-book reader to challenge Amazon.com's Kindle.

The wireless device, which is expected to have a 6-inch touch screen and virtual keyboard, could be offered for sale as early as next month, according to a Wall Street Journal report on Thursday that cited people briefed on the matter. A price range was not revealed.

The device is also expected to run Google's Android operating system, according to a Gizmodo report that cited a source who claimed to be a mobile-application developer for Barnes & Noble.

A representative for Barnes & Noble, the nation's largest brick-and-mortar bookseller, declined to comment on whether such a device was in the works.

"We have made no announcement of an e-book reader device," said Mary Ellen Keating, senior vice president of corporate communications and public affairs, pointing out that the company was already supporting a variety of e-book reader devices. However, she declined to comment specifically on whether Barnes & Noble was developing its own device.

Barnes & Noble announced in July that it was returning to the e-book market with the launch of its own digital-book store, which allows customers to read digital books on an array of different platforms, including the iPhone, the iPod Touch, and BlackBerry smartphones. Barnes & Noble is also expected to be the exclusive digital-book supplier for the upcoming Plastic Logic eReader, which is not scheduled to go on sale until next year.

However, if the reports prove accurate, the device should compete directly with Amazon's new Kindle 2, which the online retail giant unveiled earlier this week. The new version also sports a 6-inch screen and wireless downloads, and is expected to be available on October 19.

Amazon also announced that it is cutting the price of the device by $40, to $259, and bringing it more in line with Sony's Reader Pocket Edition, which sells for $199. The retailer also announced an international version that would allow customers to download books in more than 100 countries outside the United States.

Although a bit late to the market, a Barnes & Noble device would join an expected boom in the e-book reader sales. In a report released Wednesday, Forrester Research raised its 2009 forecast for e-reader sales in the United States to 3 million units from its previous prediction of 2 million sales. Forrester also expects Amazon's Kindle to command about 60 percent of the e-reader market in 2009, compared with 35 percent for Sony's Reader.

The revelation that the device may be powered by Android comes as the 2-year-old operating system rides a wave of support from wireless handset makers. In the past couple of months, nine devices using Android have been announced, including the Motorola Cliq, which goes on sale in November, and the new Samsung Moment, which was announced Wednesday at the CTIA Fall 2009 trade show.

Amazon's Kindle.

(Credit: Amazon)

Amazon announced late Tuesday that it was introducing a new version of its Kindle e-book reader that can wirelessly download books in the United States and more than 100 countries.

The new device, which is expected to ship on October 19, is physically similar to the previous Kindle with a six-inch display. However, the new e-reader will be capable of downloading books and periodicals via wireless networks belonging to AT&T and its international partners.

"We have millions of customers in countries all over the world who read English-language books," Amazon.com Founder and CEO Jeff Bezos said in a statement. "Kindle enables these customers to think of a book and download it wirelessly in less than 60 seconds."

The online retailer also announced that it would cut the price of its U.S. Kindle by $40 to $259, bringing it more in line with Sony's Reader Pocket Edition, which sells for $199. The price cut is the second for Amazon's e-reader in four months: in July, the price of the Kindle 2 dropped from $359 to $299. Amazon also sells a larger version called the Kindle DX for $489.

The Seattle-based e-tailer said international customers will have access to about 220,000 book titles at its Kindle Store compared with the 350,000 titles available to U.S. customers. Publishers involved with the store include Simon & Schuster, HarperCollins, Lonely Planet, Harlequin, Penguin, Bloomsbury, and Hachette.

With the announcements, Amazon is attempting to position itself for a boom in e-reader sales that Forrester Research expects in the U.S. over the next few years. In a report to be released Wednesday, Forrester Research raised its 2009 forecast for e-reader sales in the United States to 3 million units from its previous prediction of 2 million sales. Forrester Research also expects Amazon's Kindle to command about 60 percent of the e-reader market in 2009, compared with 35 percent for Sony's Reader.

"This holiday season, eReaders will be one category that's a breakout success," Forrester analyst Sarah Rotman Epps said in the report. "Lower prices, more content, better distribution, and lots of media hype are contributing to faster-than-expected adoption of eReader devices in 2009."

The tech industry buzzes a lot about e-book readers. But how widely are they actually used?

Among 1,529 consumers who responded to a July 2009 questionnaire from research firm In-Stat, only 5.8 percent currently own an e-book reader. And only 11 percent of those questioned said they planned to buy one in the next 12 months, according to the In-Stat report released this week.

Those low results may be even more significant given that In-Stat's survey audience consisted of high-end consumers who typically adopt new technology earlier than the general public.

Another study released last week by Forrester discovered that consumers find e-book readers much too expensive. Extrapolating from the 4,706 U.S. consumers questioned, Forrester found that almost 65 percent of U.S. adults online would consider a price of $98 or less too expensive for an e-book reader but would still purchase one.

Fewer than 20 percent said $99 to $148 was too pricey for a reader though they would still buy one, while 14 percent said the same about readers in the $149 to $198 range.

(Credit: Forrester Research)

Those results are significant in a market where Amazon's least expensive Kindle sells for $299, even after a recent price cut, and Sony's less-pricey Pocket edition Reader sells for $199.

In-Stat's survey found a greater tolerance for high prices. Among its audience, 40 percent of potential buyers would pay $200 to $299 for a reader, 29 percent would pay $100 to $199, and 13.6 percent would pay less than $100.

(Credit: In-Stat)

Among current users of e-book readers, In-Stat found the number one requested feature is e-mail. Potential buyers cited better battery life and Internet connectivity as the two most important factors in persuading them to buy a reader.

Of the number of e-book users questioned in the In-Stat survey, more than 58 percent own the Amazon Kindle, while 9 percent use Sony's Reader. Around 45.5 percent of them spend between $9 and $20 a month on e-books.

In its report, Forrester predicted that 2 million U.S. consumers will buy an e-reader this year, in addition to the 1 million who bought one in 2008.

Forrester's blog dissected the meaning of its survey: "The maximum addressable market for eReaders as they are currently priced is substantial--but to reach the largest market possible, the prices will need to come way down. And even then, eReaders are never going to be as big a market as MP3 players, which 110 million US consumers own."

Another Amazon Kindle competitor has unveiled its plans for the future. And like Plastic Logic's e-reader, the device will feature Barnes & Noble's e-book store.

The Kindle has even more competitors.

(Credit: Amazon)

When Irex Technologies unveils its consumer e-reader later this year, it will include Barnes & Noble's e-books, Irex said in a statement Monday.

Barnes & Noble's store currently features more than 750,000 titles, and it expects that library of available titles to increase to more than one million within the next year. The full library will be available for download on Irex's e-reader.

That news followed a report earlier this month that Irex's new e-reader will sport an 8.1-inch touch screen and 3G wireless connectivity. The device's touch screen will be controlled with a stylus instead of a user's fingers.

Black and white and read all over

(Credit: Screenshot by Stephen Shankland/CNET)

The Amazon Kindle world just snuck up on me and removed $45.13 from my wallet. And the experience turned out to be a pleasant surprise.

I'm not technophobic, but I honestly was planning on sitting on the sidelines for this particular episode of the digitization of the world. I figured electronic books would arrive in good time as Net access expanded, devices grew more sophisticated, publishers and distributors hashed out the business issues, and legal complications of Google Books ground themselves through the courts.

I'm not opposed to reading text on a screen, though print is easier on the eyes. I just figured that--judging by the digital convulsions in the movie, TV, and music businesses--the San Francisco Public Library would be my safe haven for two or three more years.

During that time, e-book readers would get better displays, battery life, network access, and other features, and Amazon's Kindle book readers or some equivalent would grow up to become worthwhile.

What I hadn't counted on was a free Amazon iPhone application that converted me to the new order in a matter of minutes. E-books doubtless aren't for everybody, but one idle moment when I had time to kill showed they are for me.

As it has for most of the past decade, Barnes & Noble is playing catchup to Amazon. Barnes, the nation's largest brick-and-mortar bookseller said Monday that it has launched its own digital-book store.

Plastic Logic's prototype e-book reader

(Credit: Plastic Logic Limited)

The Barnes & Noble eBookstore will enable customers to read the service's digital books on an array of different platforms, including the iPhone, the iPod Touch and BlackBerry smartphones, the company said in a statement.

In addition, Barnes & Noble will be the exclusive digital-book supplier for the upcoming Plastic Logic eReader, which hopes one day to be a competitor of Amazon's Kindle, by far the nation's most popular e-book reader.

But anyone wishing to buy Barnes & Noble's e-books on Plastic Logic's device has got some waiting to do. The device is not scheduled to go on sale until next year.

Amazon has already completed an upgrade of the Kindle.

Still, Barnes & Noble has finally returned to the e-book game in a big way and there's plenty the chain can do to cross market the books from within its more than 700 brick-and-mortar locations.

Barnes & Noble first got into e-books after they sparked a flurry of excitement in 2000 when best-selling author Stephen King experimented with the format. E-books failed to catch with the public, however, largely because there wasn't an easy or useful way to access them. The Kindle helped to change that.

Barnes & Noble ended it's first attempt at selling digital books in September 2003.

Amazon.com has filed for a number of patents that hint at ad-supported books for its Kindle e-reader--more specifically, a free or discounted ad-supported e-book for customers who buy the physical version.

Amazon Technologies, a subsidiary of Amazon, filed for a patent ("Method and system for access to electronic version of a physical work based on user ownership of the physical work") in December 2006. It was approved last month and makes it possible for buyers of a physical book to have an e-book bundled with it.

But two additional patents, filed a year later by Amazon employees (and not yet approved), are the more interesting ones: these, according to MediaPost, "clearly note that Amazon would insert advertisements throughout the e-books, from the beginning to the end, between chapters or following every 10 pages, as well as in the margins."

It looks like the story first surfaced on Slashdot last Friday.

Presumably, this could be a way to guide potential Kindle customers through the transition--which some find daunting--from consuming primarily physical books to digital ones, subsidizing the price of either or both of them in the process.

Ad money would be an additional revenue stream for Amazon too.

This post was updated at 10:14 a.m. PT.