The next-generation of e-book readers have arrived, and consumers are buying them up faster than retailers can stock the shelves.
But while many have touted these new devices as the first to bring e-books to the masses, it doesn't look like that will happen any time soon.
"I would not use Christmas 2000 as an indication of the success or failure of the category," said Louis Lenzi, Thomson's vice president of new media services. "Our goal is to get started in 2000; 2001 will be the year that we really put the machine behind it to retail."
Gemstar, licensing its technology to Thomson Multimedia's RCA division, recently launched this year's highly anticipated new reading devices, the REB1100 and the REB1200.
The new devices are billed as lighter, more durable and easier to read than ever before. But with hefty price tags and limited content, they may not lure many holiday shoppers.
"I don't expect it to be a big, merry Christmas for Gemstar," said Dan O'Brien, senior analyst for Forrester Research. "They're looking for success on the scale of the Palm. I'd be very surprised if they could do that."
Despite mounting hype, e-books have drawn only a niche following so far, not a mainstream audience.
Gemstar and Thomson are trying to tap that mainstream audience through a nationwide advertising and marketing campaign. Oprah Winfrey recently promoted the REB1100 on her television show, giving away 350 devices to the audience.
Weighing only 19 ounces, the REB1100 is about the size of a paperback book and is priced at $299. The 1200, about the size of a hardback book, weighs 33 ounces and costs a hefty $699.
Critics say that price is too high for a single-purpose, mass-market device.
"The vendors are going to be disappointed by the sales," O'Brien said. "We think there will be some novelty interest, but they're priced very high for quick consumer uptake and don't really deliver the goods in terms of readability, selection of content and ease of use."
"To really get to the mass market, we've got to get below $299," Lenzi conceded.
But in the next couple of years, the price should drop.
"You'll see sub-$200 readers and ideally we'd like to get to the $99 range," he said.
Others say that even if most consumers won't empty their pocketbooks, avid e-book fans will still snatch them up quickly.
"I think every unit they make through the end of the year will be sold out," said Glenn Sanders, founder of eBookNet. "Anyone who liked the Rocket eBook is gonna love this one."
With a rubberized grip, the REB1100 is ergonomically improved over its predecessor, the Rocket eBook. The device has a sharp, back-lit black-and-white screen, making reading easy in dim light.
With 8MB of memory, the REB1100 stores approximately 20 novels, or 8,000 average pages. A long-life battery allows users to read for 20 to 40 hours without recharging.
With a larger color display and faster modem, the REB1200 is ideal for displaying graphics-rich content. The 1200 can store approximately 3,000 color-intensive magazine pages or 5,000 typical book pages.
Both devices feature a built-in dictionary, word search, and a touch screen for users to navigate, highlight, bookmark, underline and make notes. Users can also adjust the font size, back light, or the page display.
Both REB devices also have an internal modem, so users can use a standard phone line to directly connect to the Gemstar eBook catalog, where they can purchase titles and add them to their personal library, without having to connect to a PC.
Titles for the REB devices are available at Gemstar's eBook online bookstore or at participating Internet booksellers such as Barnes & Noble or Powell's Books. Titles cost roughly the same as their hardcover equivalents.
Readers can also select an issue from over 30 magazines and newspapers like the New York Times, Newsweek or Time to download to their REB device.
But content is limited to titles that are negotiated by Gemstar, so bibliophiles may be unable to find the niche or genre titles that they are looking for. Although users can find authors like Stephen King or Patricia Cornwell, often before they are available in print form, they may not be able to find authors such as Ernest Hemingway or John Steinbeck (although the Cliff's Notes to The Grapes of Wrath are available).
"RCA is really focused on new bestsellers," O'Brien said. "I think that's a mismatch of the medium to the device.... That's limiting what the devices can do and that's not what consumers want."
RCA says its bestseller focus is part of its strategy to jump-start the category before turning its attention to other markets, such as textbooks.
"Once you've decided that you're going to go after the mass market and to get people into the retail shops, then you do need to have to have some of the Ludlums and the Folletts," Lenzi said. Much to the chagrin of Rocket eBook fans, RCA removed the popular RocketWriter feature, a utility that allows authors to create their own files and convert them to REB format.
"Content will move this product and in order to assure the content owners a secure environment, we had to disable that feature," Lenzi said. "We took a lot of heat for that (from the e-book community). It's a small community, but it's hardcore."
But RCA is looking to include a self-publishing tool in the future.
"While we can't do that right now that is definitely on the roadmap," Lenzi said. "If you want to be a budding author or you have material you want to take with you ... to be able to access those documents for this platform is something we're interested in."
RCA's new e-books aren't the only e-reading devices on the market this holiday season.
For those seeking a cheaper alternative, Franklin Electronic Publishers' eBookMan is expected to hit stores this January.
At 6.5 ounces, the eBookMan is lighter than the RCA devices. The dedicated device will be available in three models for $130, $180 and $250.
Unlike the REB1100, which has a nonfunctional musical icon on its touchscreen, the eBookMan is expected to have MP3 audio capability. Users will also be able to download and play audio books. But the eBookMan's screen is smaller than the REB1100 and 1200.
Titles will be available on Franklin's website and are expected to be offered in Microsoft Reader format by next spring.
Rather than buying these dedicated devices, some consumers may prefer to use Palm, Handspring and Pocket PC handheld devices for their compact size and multi-use functionality.
"If people are determined to read on small screens, Palms are already out there and there is a good market," O'Brien said. "I think it's a better platform than the restriction of RCA devices."
Unlike the RCA devices, handhelds such as Handspring's Visor, Palm PDAs and PocketPC devices have small screens with low resolution, making extensive reading difficult.
PocketPC devices can also be difficult to use. Since the current version of Microsoft Reader can only display unencrypted titles, consumers are unable to display trade titles on their devices.
"You can buy a PDA with a small screen and some of the other shortcomings," Lenzi said. "But how many people are going to read on a PDA? We think there's definitely a large market for a dedicated reading device."
Instead of buying these e-reading devices, consumers may prefer to download and print e-titles from sites like Mighty Words, which are optimized for reading in print, rather than on screen.
"That's a more natural way for people to read," O'Brien said.
While e-books may not draw mass converts this holiday season, analysts suggest that the end is not in sight just yet.
"Ultimately, I think we'll end up with handheld devices that look and feel more like a magazine ... the kinetic experience of reading that people are used to," O'Brien said. "I don't think the current or next generation is going to be enough to make that switch."
