1. Hearst has "developed a wireless e-reader with a large-format screen suited to the reading and advertising requirements of newspapers and magazines." So, what technology-based functionality could they introduce to differentiate from Kindle2?
2. "The device and underlying technology, which other publishers will be allowed to adapt, is likely to debut this year." Will other publishers embrace the underlying platform offered by one of their competitors?
3. "Kenneth Bronfin, who heads up the interactive media group for Hearst, told Fortune in an interview for a forthcoming magazine story that the publishing company has a deep expertise in the technology. "I can't tell you the details of what we are doing, but I can say we are keenly interested in this, and expect these devices will be a big part of our future," Bronfin told Fortune." The origin of this idea goes back to a project done at MIT. If Hearst Corporation truly develops best-of-breed expertise, it will signal that the executives have recognized the importance of IT in their business strategy and have responded appropriately. Will see how it plays out.
4. "Insiders familiar with the Hearst device say it has been designed with the needs of publishers in mind. That includes its form, which will approximate the size of a standard sheet of paper, rather than the six-inch diagonal screen found on Kindle, for example. The larger screen better approximates the reading experience of print periodicals, as well as giving advertisers the space and attention they require." Is the newspaper industry using technology to preserve their historical business model and revenue stream against new models of web-based search and advertising? How will it fare against news integrators like Google? and other multi-purpose devices like netbooks?
5. "Given the evolving state of the technology, the Hearst reader is likely to debut in black and white and later transition to high-resolution color with the option for video as those displays, now in testing phases, get commercialized. Downloading content from participating newspapers and magazines will occur wirelessly. For durability, the device is likely to have a flexible core, perhaps even foldable, rather than the brittle glass substrates used in readers on the market today." How will other e-readers such as Sony, Amazon (and others) evolve their design and functionality as this technology becomes more cost-effective?
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What recommendations can you offer to Hearst as they embrace this initiative? Some newspapers will decide to partner with Amazon while others may experiment with Hearst's e-reader and some may do both. How can Hearst make a success of this initiative? Any lessons from the music sector or television sector that you can draw upon as you develop insightful recommendations?
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While it's understandable that publishers want to avoid creating a situation similar to iTunes where they've given up too much power to one particular company, I'd recommend they don't do it and should explore partnership opportunities instead. They can pretend that they have a "deep experience in technology" (whatever that means) but as far as I know, they don't have the type of experience that really matters. Leave it to the pros. I can't imagine the difficulty in creating a beautifully crafted device that people will want to hold in their hands for hours on end. Few have succeeded. I feel like Amazon has (very questionably) succeeded with the Kindle because it was able to massively promote it on Amazon.com, pimping it as much as possible.
ReplyDeleteAnd that's assuming that all publishers will jump on board.
I don't think you can charge for written media content. People pay for music because it's something they want to own and use repeatedly. Books, maybe some want to own it. I think in the physical world, people like to have books out for show (and to share) and that doesn't easily translate well to the digital world. Subscriptions have mostly been a failure for music for similar reasons. Advertising is the only model... And engaging with your readers.
I think Hearst might have anything but a technical solution which might performed better or worse than the Kindle to newspaper and magazines business models. Do we want another device just for looking at the same limited content in digital ink or do we prefer a device that can display eBooks, magazines, newspaper, video, music, etc? I believe newspapers are approaching to a terrifying question. If we are going to support the Hearst e-reader we need to give a strong signal to our suppliers that we expect people buying it? What will be that signal? How costly is for Hearst to achieve the long tail that Amazon has? This is a strong case for some publishers wanting their content still be accessible in the Kindle. Magazines and Newspapers get outdated, books not necessarily, so the value of the e-reader is worthless tomorrow if it does not incorporate books. And if e-reader gets market then questions about manufacturing abilities, brand name and reputation, presence in complementary products, ability to innovate make the e-reader fall behind Amazon's Kindle.
ReplyDeleteWhat I would recommend Hearst, assuming they understand technology, is to interconnect to the larger network (Amazon or Sony) by building an adapter suitable to the newspaper and magazine industry, where lies their expertise. This adapter could for example load some sections of the newspaper or magazine or mash-up similar industry news from different newspapers.