June 27, 2011
E-readers more popular than tablets: Pew report
Many news organizations have launched iPad apps, but few have offerings that target e-reader devices. This publishing strategy could prove to be backwards. A new Pew report finds that e-readers are more popular, and growing faster, than tablets…
The headline from the Pew Internet and American Life project reads: E-reader ownership doubles in six months: Adoption rate of e-readers surges ahead of tablet computers. Here are the key statistics:
Last winter, tablets were slightly ahead. Pew reports that at that point, 7% of U.S. adults owned a tablet computer of any kind, while only 6% owned an e-reader device. This Spring saw a surge in e-reader adoption. By May 2011, 12% of U.S. adults owned an e-reader. Meanwhile, tablet ownership expanded only to 8% of U.S. adults.
So right now, the e-reader audience is considerably larger than the tablet audience. This trend is likely to continue, and the gap should widen considerably—for good reason: E-readers are far cheaper than tablets.
Right now you can buy the least expensive Kindle brand new for $114 (with sponsored screensaver ads), and Amazon has hinted that they may start giving away the Kindle for free at some point. And on the high end, the top-of-the-line Nook Color e-reader starts at $249.
In contrast, the most basic (16GB, wifi only) current models of the iPad, Android tablets, and the BlackBerry Playbook all start at $499—and considerably more if you want to add 3G or 4G wireless data network access.
Blurring the tablet/e-reader line. Tablet and e-reader technology exist along a spectrum. Most notably, all tablets can read e-books—although the e-book format each accommodates varies by device and available apps. So: If you have a tablet, you also have an e-book reader.
Flipping that around: The Nook Color is really a modified Android tablet. In fact, it’s possible to hack the Nook Color to turn it into the cheapest full Android tablet now on the market.
It’s likely that in the future more e-readers will adopt tablet-esque hardware. But since low cost is a key part of the e-reader’s consumer appeal, it’s also likely that many lower-tech (and thus lower cost) models will remain on offer.
How news orgs can tap the e-reader market
The most basic approach is to sell e-reader subscriptions to your periodical content. Kindle, Nook, Sony, and most other e-bookstores have “newsstand” sections. This requires some initial investment in setup and testing, but after that the sales, publishing, and distribution processes are automated. Furthermore most e-bookstores don’t take nearly as big a percentage of subscription revenues as Apple does.
The New York Times recently reported that magazine sales on the Nook Color rival, and in some cases surpass, iPad subscriptions. Similarly, leading consumer magazine publisher Meredith Corp. has an aggressive strategy to “go wide on e-readers, narrow on iPad,” according to EmediaVitals.
Like any subscription business, e-reader subscriptions require active marketing. So if your news organization promotes e-reader subscriptions via your print, web, mobile, and social media channels, your e-reader subscriptions will likely increase. But if you expect e-reader users to find this option entirely on their own, then curb your revenue outlook.
Most e-readers in consumer’s hands today use black-and-white e-ink displays. these devices offer a relatively clunky experience of reading a periodical such as a newspaper or magazine. However, all e-readers (regardless of hardware) excel at displaying books. This is yet another reason why news orgs should consider repurposing content as e-books.
Earlier I wrote about this emerging revenue option, with tips from BookBrewer founder Dan Pacheco on how to turn news/feature content into sellable e-books.
If your news org is currently investing in (or considering) tablet offerings, it makes sense to also explore your options in the larger and faster-growing e-reader market. It may be less glamorous than a fancy iPad app, but it might be better business.
The News for Digital Journalists blog is made possible by a grant to USC Annenberg from the John S. and James L. Knight Foundation.
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Tags: research, business models, pew internet and american life project, ipad, e-books, subscriptions, e-readers, tablets, nook, kindle
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