Amazon has recently announced two changes to its Kindle publishing program that will be of interest to self-published authors.

1] International authors now have access to Kindle publishing.

Up until last week, only US publishers were able to create and sell Kindle versions of their e-books through the Amazon site. Now the Kindle publishing option is available to publishers worldwide. Payment to all international publishers is made by cheque, direct deposit still being available only to those in the United States.

2] Amazon will soon offer publishers royalties of 70% on e-books.

Yesterday Amazon announced a new program that would allow publishers and authors to earn 70% of their e-book’s list price, net of Amazon’s delivery costs. Currently, publishers earn 35% of list on Kindle books. At first blush, the new program seems generous — which it is — but it’s also Amazon’s way of enticing publishers to play by its rules about pricing and availability. To qualify for the new royalty rate, the e-book must meet certain criteria:

• Have a list price between $2.99 and $9.99
• Be priced 20% below the lowest physical book price
• Be made available for sale “in all geographies for which the author or publisher has rights”
• Participate in a bundle of features, including text-to-speech
• “Be offered at or below price parity with competition”

Both the old and new royalty programs will exist side-by-side and publishers will be able to choose which one they wish to participate in. The new program comes into effect on June 30, 2010. Note: the 70% royalty option will initially be available to US publishers only.

Bowker, the agency that administer ISBNs in the United States, has cut its prices on ISBNs blocks. A block of 10 ISBNs is now $250 instead of $400.

The Bowker website states that the price cut was made in response to publishers requiring so many more ISBNs because of multiple formats and editions. Many books are now published not only in hard cover and soft cover, but in a wide variety of e-book formats as well.

Bowker recommends a different identifier for each e-book format, so that your Kindle edition, for example, would have a different ISBN than the Sony Reader edition. There has been heated debate about this practice in the industry. Many small and independent publishers say they simply can’t afford to use so many ISBNs for each title, and that a single ISBN for all e-book formats is appropriate.

Others remain firm in their opinion that different numbers for each format is the best way to help sales channels and consumers know what they’re getting. Industry consultant Laura Dawson, who runs a weekly Twitter chat about ISBNs, states it succinctly:

ISBNs are for saying “this one is not that one”.

So which way should a self-published author go? We recommend giving each format a different number. A block of 10 ISBNs, which now costs just $250, should be enough to handle all the different versions of a single first edition title. It’s a worthwhile investment to keep confusion to a minimum.

Amazon today unveiled a new addition to its Kindle line of e-reading devices, the Kindle DX. The most notable feature of the DX is its larger screen size — nearly 10″ on the diagonal versus the Kindle’s 6″ screen.

Amazon is touting the device as a comfortable reader for newspapers and text books, as well as e-books. Three major US newspapers — the New York Times, the Boston Globe and the Washington Post — have signed on to offer subscriptions at reduced prices.

The Kindle DX is priced at $489, $130 more than the Kindle. And yet, apart from the larger screen size, there’s not much more to love. It’s still a black-and-white display. There’s still no ePub or WiFi support.

Early reactions to the release of the DX has been lukewarm at best. Here’s at peek at some of the commentary from the publishing world circulating on Twitter this morning:

SmartBitches: Dear Amazon: please, keep it coming. I’m enjoying this way too much. I can has moar fail plz? Kthxbye!” #dud #amazonfail

paperhaus: Wondering why Amazon bothered with Kindle 2 at all. It’s not like they cooked up a 8.5×11 screen in 2 months.

ljndawson: $489 Kindle with 16 shades of grey and no discounts on subscriptions if you’re in the paper’s area = lead balloon. #dud

wmacphail: The Kindle needs to be WAY cheaper. Apple is going to kick this thing’s ass.

sarahw: Not getting over the $489 price tag. In a recession. Two months after Kindle 2 unveiled. Like reissuing bare-bones DVD w/ one or 2 extras.

kirkbiglione: No ePub, no WiFi. Kindle closed system continues and it won’t hurt Amazon one bit.

Only time will tell whether consumers agree and bypass the DX, or whether the large screen size will prove an enticement.

Following this week’s announcement that Amazon had acquired Lexcycle, makers of the Stanza e-reader app, industry watchers have weighed in with their perspectives. Here are three good commentaries on what the acquisition means for publishing:

Kassia Krozser remarks that the Lexcycle acquisition is not “the end of the world as we know it,” but neither is it great news for publishers and readers.

Consumers are slowly being locked into a single vendor. Publishers are being backed into Amazon’s corner. Yet, yet, yet, I ask again: where are the publishing initiatives, the fresh thinking, to protect the free market?

BookNet Canada offers a Canadian perspective on the deal and suggest three actions publishers can take to keep Amazon from a market stranglehold.

This market is developing at a fevered rate. If you want to help shape the forces that are going to in turn, influence the way you create, sell and acquire books in the future, then now is the time.

Mike Shatzkin believes the real issues brought to light by the deal are pricing and making books discoverable by readers. He calls for the big publishers to come together to develop an online bookstore of their own.

The current effort by several general trade publishers to drive traffic to their own house-branded web sites is misguided and doomed. But Amazon (and Shelfari, GoodReads, LibraryThing, and our new entrant, Filedby.com) have demonstrated that sites with information across the trade book spectrum have real consumer appeal.

Amazon has extended the reaches of its empire once again.

Late yesterday afternoon, news broke that Amazon had acquired Lexcycle, makers of Stanza, a popular e-reader application for the iPhone. Within minutes of the announcement being picked up in the New York Times, the Twittersphere was buzzing with speculation.

So far, what’s known is that Amazon has acquired Lexcycle. And … well, that’s all that’s known for sure right now. No word on the purchase price. More importantly, there remain a lot of unanswered questions as to what this acquisition will mean for the emerging e-book market.

Stanza is one of the most popular e-reader applications for the iPhone and iPod Touch. With a user base of more than 1.3 million, the app outstrips Amazon’s Kindle in market penetration. Last month, Amazon launched a Kindle app for the iPhone, allowing Kindle owners to also read books on their mobile device. However, like the Kindle itself, the app was only available in the United States. Now, with the acquisition of Stanza, Amazon has instant access to a worldwide mobile user base.

The sticky question is what Amazon will do with the Stanza software. To date, Stanza has offered support for open e-book formats. The application reads ePub files (the book format that the publishing industry has been to trying to standardize around) and files not protected with DRM technology.

Amazon, on the other hand, has been building a supply chain around its own proprietary Kindle format. Kindle books can only be read on a Kindle device or with the iPhone Kindle app. So it seems unlikely Amazon will allow Stanza’s continued support of open formats.

Here’s a summary of some of the commentary now circulating:

• Michael Cairns points out that now is the time for the publishing industry to get behind a common e-book standard. If publishers don’t act now while the e-book market is still in its infancy, they will become increasingly powerless against retail behemoths like Amazon.
• Mike Cane provides some compelling analysis on why the acquisition is bad, bad news for the industry.
• Paul Biba shares some thoughts on the acquisition’s negative implications for the “little guy.”
• Karen Templar summarizes some of the big questions the industry now faces.

E-books are gaining in popularity, but there are still some issues that hold them back from widespread pick-up. File format wars are one of them.

If you want to read an e-book, you first have to decide which reading device you’ll commit to: your PC, a Kindle, your iPhone, a Sony Reader? Books available for one device are not always available on another, and if you want to switch devices at a later date you may lose all your books.

As a publisher, you must decide which e-book formats you should invest money in producing: one, some, all? Which has the bigger audience? Who will be around for the long-term?

In the 1990s, the dizzying array of e-book formats confused the market and hobbled the industry’s success. Today, to avoid a repeat of history, a consortium of publishers, booksellers, authors, and software publishers are calling for the book industry to rally around a single file format. That rally point is ePub, a free and open digital book format based on XHTML. “Open” means the files are not protected with DRM (Digital Rights Management) technology, and can be freely read by any hardware or software with ePub capability.

A single unlocked file format makes life easier for everyone. With an ePub standard in place, you (as the publisher) only need to create a single digital version of your e-books, saving you time, money, and headaches. Readers can be assured of having access to all the e-books they want on whatever device they choose, and can even switch between different devices without losing access to their library.

The ePub format, launched in late 2007, is still relatively new but gaining good momentum. Though there’s still a long way to go yet, some believe that 2009 will be the year ePub truly becomes the industry standard.

The ePub Blog is a good resource for more information. It includes a list of devices that can read ePub files, as well as places you can download ePub books.

March 8 -14 is Read an E-Book Week. In keeping with the spirit of the event, I thought I’d try to summarize what an author should know about Kindle, the e-reader from Amazon.

I’m going to assume that you’ve heard about the Kindle but you don’t really know too much about it. My aim with this post is to provide enough information for you to evaluate the market and figure out if it’s worth pursuing. So let’s get started.

What Is the Kindle?

• The Kindle is a dedicated e-book reading device, meaning it reads e-books, along with some newspapers and magazines, but not much else. Version 2 of the Kindle was released in February of this year.
• It uses E ink technology for the display. E ink is very different from a computer screen or the screen on, say, an iPhone. It is not backlit and so the experience of reading on a Kindle is very much like that of reading off paper. There’s no eye strain and it can be comfortably used for long periods of reading.
• The Kindle is relatively small and lightweight. It weighs just 10.2 ounces and has a 6″ screen on the diagonal. It’s very convenient for carrying, and many users appreciate its portability over heavy books.
• The Kindle 2 can hold about 1,500 books at a time.
• The device currently sells for $359 USD.

There are many video reviews online that will give you a more detailed look at the Kindle and its features. Here are a few good videos I have found:

• Kindle 2 first impressions from Michael Hyatt, CEO of Thomas Nelson Publishers
  
• CNET Kindle 2 review
• Kindle 2 user feedback video from Amazon

Who Uses a Kindle?

• Amazon will not release any sales data about the Kindle devices so no one really knows how many they have sold or who is buying them. Guesses from industry watchers range from 300,000 units sold to as high as 500,000.
• Contrary to what you might intuitively guess — that the biggest users are kids of the ‘Net generation — anecdotal evidence points to users 40 years of age and up as the primary market. This older audience appreciates the resizable type, the light weight and portability, and the convenience of instant access to content. Typically, they also have more money and are able to afford the $359 ticket price.
• Oprah Winfrey endorsed the Kindle on her show in October 2008, raising the device’s profile with the public in a big way. Demi Moore twitters about how much she loves her Kindle.
• Right now, the Kindle is only available in the United States. There is some speculation that version 3 will be available in other countries, but Amazon has yet to confirm that this is true.

What About the Content?

• There are about 245,000 book titles currently available in the Kindle format, including 102 of 111 current New York Times bestsellers.
• Amazon reports that Kindle books have been selling briskly, now accounting for about 10% of sales for titles where both print and Kindle editions are available.
• Kindle books are proprietary files. The files are wrapped in DRM (Digital Rights Management) technology, meaning they are encrypted. They can only be read on a Kindle or on the Kindle app for the iPhone. There is a great deal of debate and criticism in the publishing industry over Amazon’s choice to encrypt its files. Many publishers are pushing to standardize e-books around an open file format called ePub. (More on that in a later post.)
• The typical price for a Kindle book is about $9.95. Amazon keeps a 65% commission on each sale. This is higher than the 55% commission they keep on print book sales.

What’s the Upshot?
While Amazon has taken its share of criticism over the Kindle for a variety of reasons — some of it well deserved — it can’t be denied that the device is helping bring e-books to the mainstream and creating new opportunities for book sales.

If you are an author with an existing print book, or one in production, publishing a companion Kindle version is pretty easy and inexpensive. For a small additional investment, you can make your book available to an audience that craves new content and wants it quickly. This audience is relatively small right now but will continue to grow over time. It’s almost certainly a good investment to make.

The e-books are coming, the e-books are coming! I know, I know, you’ve heard this before. About 10 years ago, e-books tried to fight their way into the marketplace. Some e-readers, like the Rocket eBook, came to market…and then quietly disappeared.

If any single e-book format could be considered popular or well-used in the 1990s, it was PDF. In fact, as recently as 5 years ago, I was still advising would-be e-book authors to publish in PDF. These PDF files were read primarily on a PC screen or downloaded and printed out.

But e-books are coming back with a vengeance, and this time it’s different. No longer the domain of early adopters, and no longer confined to PDF editions, e-books are easing their way into the everyday life of everyday folks. Perhaps nothing has helped push them there more than Oprah Winfrey’s endorsement of the Kindle, the e-reader from Amazon. In an instant, e-books went from minor curiosity to major cause.

If you’re a self-published author and you’re still focused on print books, it’s time to get your electrons stirring. E-books are becoming an increasingly larger piece of the book market.

At the O’Reilly Tools of Change for Publishing Conference in New York earlier this month, Russell Wilcox, president and CEO of E Ink Corporation, made some predictions. Wilcox believes:

• Within the next 18 months, 2 - 3 % of Americans will own a dedicated e-reading device, such as a Kindle or Sony Reader. This will be the tipping point into widescale and mainstream use.
• E-book devices priced under $200 will begin to emerge from China within the next year. Right now, a relatively high price point is one barrier to adoption. The more the price comes down, the more people will be able to buy one.
• In 2009, a variety of e-reader sizes will emerge, some small, some large, each one suited to a different need.
• 2009 will also see the commercial launch of flexible screens that can roll up or bend like plastic film. Touch and stylus interfaces will also proliferate.
• In 2010, there will be more flexible screens on the market and colour will be introduced. (Right now, E Ink devices are black and white only.) Colour will continue to improve over the next decade until e-readers will be able to deliver a reading experience similar to that of today’s glossy magazines.

E Ink Corporation is the technology used by many of the big e-readers on the market today, so it’s in Wilcox’s best interest to be bullish on the market. But even if his sales predictions are aggressive, it’s clear that e-books are a technology whose day has come. They aren’t going to fade away like they did last time, and they aren’t going to be a nice little sideline to the main business of publishing, either.

Seven or eight years ago, the big publishers would look at their print list and choose a small number of titles to also bring out as a digital edition. Today, many publishers produce both print and e-book versions of every title as a matter of course. Someday, and maybe not a day too far off, the default will be to publish digitally, and only select titles will be printed on paper.

In future posts, I’ll take a look at different e-readers and some of the practical issues around publishing e-books.

There’s a new e-book reader on the market … and it will wrap itself around your little finger. Literally.

The new Readius is made with a screen that folds up into a tidy package for carrying and is flexible enough to wrap around your finger.

The resolution and screen quality are comparable to the Amazon Kindle since both devices use E Ink technology. The Readius display is a little smaller than the Kindle — 5″ diagonal versus the Kindle’s 6″ — but the Kindle doesn’t fold up to the size of a cell phone. The Readius also lets you download email, which the Kindle doesn’t do.

Many e-book readers have launched and failed. Can the Readius put a dent in the growing Kindle market? While the Readius has a “cool” factor with the bendy screen, the Kindle has a big headstart and the Amazon infrastructure behind it.

The big downside of the Kindle and the new Readius is that they are essentially single-purpose devices. They read e-books. OK, they can both read newspapers too.

But where is the flexible screen that can do it all and won’t tie us down to proprietary file formats?

Years ago I read a prediction that said one day we would all carry a single, rollable screen that served as newspaper, book, web browser, e-mail reader and computer desktop. That’s the device I’d like to see.

So to the Readius, I say, “Good start.” Let’s see what you do next.

A new article in Publisher’s Weekly points out yet another potential casualty of the high price of gas: author readings. Bookstore owners are concerned that crowds won’t come out to hear authors speak if the price of gas goes much higher.

Already the publishing industry has been feeling pinches over gasoline shortages. Most notably, the price of paper has shot up this year, and the cost to ship books from printer to warehouse to customer is climbing also.

Yet a solution does exist, and smart authors are using it already: technology. A whole universe of media — from podcasts and viral video to live chats, blogs and Twitter — can be used to promote books and interact with readers far and wide. It’s low-cost and easy on the environment, too.

For marketing, virtual seems like a no-brainer. But how about on the production side?

The New York Times reports that among publishers at Book Expo America a couple of weeks ago, the feeling about e-books was “unease.” Seth Godin points out that publishers are missing the forest for the trees:

“The fastest-growing, lowest cost segment of the business, the one that offers the most promise, the best possible outcome and has the best results… is causing unease!”

Sales of electronic books are rising, thanks in part to the emerging popularity of Amazon’s Kindle reader. After just 8 months on the market, Kindle sales account for 6% of Amazon’s volume in books where electronic and print versions are both available.

So are we seeing the final days of print books? Not quite yet.

Many people still say they far prefer reading a print book over an e-book. Even among kids under 17 — the one group who you think would embrace a digital book — nearly two-thirds still prefer print versions.

So what’s a publisher to do? Know your market and what they want. Be open to changing tactics where it makes sense and can save you money. And keep your eye on the oil. Maybe the decline in fossil fuels will be the tipping point that pushes reading into the digital realm.