Are “enhanced ebooks” the CD-Rom era all over again?


Is this where I came in?

In the early 1990s, the computer manufacturers and Microsoft were doing everything they could to persuade businesses and consumers that they really, really, really needed CD-Rom drives. That Microsoft would benefit from them was very clear; the software they were selling was taking more and more diskettes to deliver in those pre-broadband, pre-Web days when all software was “shrinkwrapped.” If computer owners could take their new software on CD-Roms, the cost of delivering the product would drop dramatically.

Only a year or two before, Bob Stein had developed what we can now identify as the first “enhanced ebooks”. His company, Voyager, introduced the “Expanded Book”. These were the first efforts to use the book as the foundation to do something much more ambitious: linking in pictures and sound and video and databased information. No web links yet, because there was no web yet, but the Voyager Expanded Books really foresaw the possibilities.

Microsoft encouraged publishers to build on the Voyager Expanded Books example with CD-Roms, and, indeed, the Voyager product itself moved quickly from a diskette-based product to a CD-Rom, which gave it a multiple of the digital space to add content.

Publishers at that time had recent experience with new product forms. In the early 1980s, a few had experimented with software publishing, but that was quickly seen not to work and the publishers who tried it, like Wiley, pretty quickly got out. In the mid-1980s, audiobooks first came on the scene, however, and their acceptance, fueled by the ubiquity of tape players in cars and the relatively new Sony Walkman family of portable cassette players, was very rapid. With the encouragement of Microsoft and the hardware makers promising that all computers would soon have CD-Rom drives, many publishers jumped into what we can look back and see was an enhanced ebook business with both feet.

It turns out they jumped into an empty swimming pool. Many legs were broken.

The whole idea that people who wanted a cookbook needed video in the middle of the recipe or that people would “read” a book on a desktop computer because of sound effects in a CD-Rom version always seemed like a stretch to me. Sometime in the middle of the CD-Rom craze, I learned that McGraw-Hill had a big animal encylopedia on which something like 60% of the cost went into the sound. This was for a high-priced professional product. This made no intuitive sense. It wasn’t placing the investment where I thought anybody would find the value.

What seemed more likely to work to me at that time was to just put the book on a diskette (they were still much more common then than CD-Rom drives) to allow one to just read it on their laptop. The writer and enrepreneur Po Bronson might not remember this, but he and I discussed that idea at great length at the time. Meanwhile, I predicted in 1995 and 1996 that CD-Roms were going nowhere, that the “action” for book publishers would be online, and that the first important thing that would happen online would be increased sales of plain old printed books, all of which turned out to be utterly correct.

Now, as Yogi Berra allegedly once said, we have deja vu all over again.

In the later 1990s, the simple ebook delivery I imagined happened through online distribution, not diskettes. The devices of choice were plain old PCs (mostly reading PDFs) and handheld PDAs, reading the Palm Digital format, Microsoft’s new “dot lit” format (remember how revolutionary that was supposed to be when it first came out!), and then Mobipocket which, until Amazon bought them and largely buried them, was going to be the cross-platform standard.

Now that I had what I wanted, I was a happy guy. I started reading ebooks predominantly and I went out on the prediction limb again. I figured that PDA-reading would become widespread, and quickly.

Talk about jumping into an empty pool!

In fact, underscoring my misunderstanding, I wrote in about 2004 or 2005 that PDAs were the key to ebooks. If you carry a PDA, was my thinking, then you shouldn’t need anybody to explain the advantage of ebooks to you. It was transparent; you always had your book with you. And, conversely, I figured that if you did not have a PDA, there was no great advantage to ebooks. What I saw as the big advantage was not having to carry the book as an “extra.”

Still, ebooks just didn’t happen. I couldn’t understand it. A lot of people told me the problem was that ebooks didn’t really do anything that couldn’t be done with plain old print books. They didn’t take advantage of the opportunities afforded by digital books. No video. No audio. No web links. That didn’t seem like the answer to me. I remembered the CD-Rom fiasco.

Then Kindle came along. On the one hand, it proved me wrong because here was a device that had to be carried around (like a book) and didn’t do anything for you except let you read a book. On the other hand, Kindles sold well (particularly considering Amazon was the only place to get one) and, more important, Kindles sparked an explosion of interest in and uptake of ebooks. And that, I thought, proved that “just the book” was enough for many people to have a satisfying ebook experience.

But now it looks like market forces are going to tempt publishers to invest in enhanced ebooks all over again. We are awash in news of new ebook readers — meaning both software that can play on PCs, netbooks, iPhones, or various more dedicated devices and a slew of those more dedicated devices to choose from. So people are going to be reading books on devices that can do a lot more than a Kindle or Sony Reader can do.

Two other things happening at the same time also push for more complex ebooks. One is that the tool sets to deliver them — and even to allow any author working with a bright young person alongside of them to deliver them — are getting more ubiquitous. And the other is that publishers think they see a connection between more complex ebooks and higher-priced ebooks, and that makes them very interested in exploring the subject.

A lot has changed in the past 15 years since the CD-Rom era. I am not in any way suggesting that the CD-Rom disaster of the mid-1990s will be repeated in the enhanced ebook era we are heading to now. But nobody figured out what compelling consumer product could be made from a book with lots of digital space to play with then and we’d be kidding ourselves to think anybody’s figured it out now either. There will be a lot of trial and error work done by the industry in the next couple of years trying to find the book-into-something-better formula that works artistically, functionally, and commercially. The answers are by no means self-evident.

One cautionary tale from the CD-Rom era. One of the first big successes on CD-Rom was issued by Simon & Schuster and based on StarTrek. In retrospect, we can see that StarTrek was the “perfect subject”: the one thing that would work with early-adapting techie geeks even if nothing else would. Unfortunately, S&S read the StarTrek success as an endorsement of the CD-Rom product idea and rapidly expanded their new media division to do more titles. Nothing else came close to matching StarTrek’s success.


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  • Mike, great & timely post, indeed! And the comments offered are steeped in understanding of the digital upheavel in the publishing industry. I'm just an outsider that has become extremly interested in the writing & publishing industries.

    I feel you hit the nail on the head when you said the enhanced "devices" being pushed (& will be bought by those that have to have the latest thing) will be a boost to authors, content, eBook pricing & ultimately publishing as a whole...Dressed up books in tuxedos!

    I have used excerpts from your blog often on my own Writers Welcome Blog Http://alturl.com/4z88 and admire your understanding on everything publishing. I think I had trouble before linking to your blog & I thought "The Shatzkin Files" was on my blogroll...but, I see tonight it's not. I will add post haste...

  • Well, gee...

    Thanks very much!

    Mike
  • Guest
  • I am sure there is a lot of money in devices; the evidence of that is the
    number of players getting into the game.

    But I have to believe this is good for sellers of content in the short run
    as well. Amazon won't be the only place subsidizing content purchases for
    consumers as an enticement to get them to buy devices.

    Mike
  • evanschnittman
    To answer the question posed by the title, in a word - YES!

    The development and support costs aren't as crippling and the hardware isn't as difficult, but the end-use scenario's are the same. Enhancing the immersive reading experience is simply adding costs to a book.

    Its a very dangerous game for publishers as it could become an expected part of the purchase at the same price as a non-enhanced version - and ask hollywood if they get to charge more for all the extra content they now must put in the DVD packages. Also ask the music industry about their foray into enhanced CD's.

    There are areas of ebook development where enhancement is not only a good idea - its required. This is in educational content across the board from K-12 through University and into the professional realms. Learning via immersive reading is a linear experience - electronic media can offer so much more that simply taking a text and making it an ebook, is a non-starter.

    But as far as the content you refer to in this article, enhanced ebooks are the punch-line of a joke we have heard before...
  • Evan, I fear you are right that there are going to be no answers -- or very
    few answers -- that will actually "work" commercially. But I don't see any
    way the industry can avoid a lot of trial-and-error to confirm that fact. At
    least there is a possibility that the tool sets available will enable
    harnessing "volunteer" author time to the task, which will help reduce the
    burn rate.

    Mike
  • armco
    A timely post, Mike, especially given how often rich media was mentioned in 2010 predictions. We can get into this more at F+W's DBW for the panel including Scrollmotion, Vook, Hachette and Zinio on 1-26 regarding optimization of eBooks.

    I agree with Evan that the costs to develop out dynamic design can be considerable but it depends on how much interactivity you desire and would make sense on selective, high-profile, appropriate titles (if not series to stretch out the investment). The goal is for target consumers to experience their reading and for it to be more immersive. We believe younger consumers (and those who will be exposed to touch or screen devices on the horizon) expect it from their content. The ability to include social media tools within the eBook and/or track reader behavior in the form of reporting as they click, zoom, flip etc has value for the publisher too.

    Many publishers (a) lack the basic assets in terms of video/audio or (b) the manpower or ability to work with flash design. Ultimately, partners can train publishers or provide a low-touch tool that has a template and can reduce the time/$ from 3 weeks to 3 hours. Those publishers who want enhancements need to have videographers or what not actively creating the collateral.

    Also, depending on a publisher's contract, the enhanced eBook is viewed as a digital adaptation (not a traditional eBook) which can mean a different rights holder and another potentially higher royalty rate.

    Lastly, publishers may not be able to charge more for the enhanced eBook but perhaps it won't necessarily automatically slide to $9.99 in a consumer's point of view since its not a "vanilla" b x w eBook and has added utility, but publishers just set the digital list price.
  • Great Piece Mike!
    Your comparison with the CD-ROM market of the 90s takes me back to when I worked in the hub of London's creative Covent Garden for the visionary Dorling Kindersley.

    The CD-ROM platform gave DK the opportunity to grow the company and to demonstrate a new and exciting vision to the City, which resulted in a massive revaluation of the company's worth. This provided investment and the belief that the future was in convergent media which in turn enabled the development of some great products for the CD-Rom market. DK had vision and ambition but best of all they had the backing and the investment to quickly focus efforts on to a dedicated editorial, design, production, sales and marketing unit that gained rapid traction from a great opportunity. The real route to market was not the resistant trade but the DK Family Learning channel it owned, showing, once again, that Distribution is key to any great marketing mix.

    The platform for convergent media launched the company on a new trajectory but this did not detract from it's values of life-long learning and it was able to repurpose endless content from Eyewitness and brands like How Things which were know and popular with all those families suddenly eager for product to put on their shiny new Gateway computers in their homes. Just as soon, the centreof discovery and learning was at the heart of the home to be enjoyed together and not a solitary experience.

    In the app market we are seeing a similar trend but viral and tribal - enthusiasm for things new and experimental being shared and bought for pocket money like we do to discover a new song- There are examples of instant hits: Enhanced Editions' Bunny Monroe (Nick Cave) and Jamie Oliver's 50 Recipes, both for iPhone. Personally, I really relish waking at 4 in the morning and turning over to read, watch and immerse myself in my own world without Bunny without fear of disturbing anyone's sleep patterns but my own. Wired Magazine UK have just published a great feature on the app market in their Feb issue http://www.wired.co.uk/wired-magazine/archive/2...
    See you in NY at DBW
    Stephen
  • armco
    I have tested out the sample of the Nick Cave and see it has some good ratings (total of 30) but didn't realize it qualified as a "hit"
    Nick Cave is a talented fellow and a good match for this approach plus he has a cult following given his myriad projects. I need to get the Jamie Oliver. Do you mean the 20-minute meals for $4.99?
    The Nick Cave is $16.99 so I do wonder how many people paid for that app and if any consumer marketing occurred or if primarily viral through fan base.
  • Are you saying the DK CD-Rom foray was commercially successful (i.e.
    profitable)? If so, I wasn't aware of it being so at the time.

    Mike
  • Mike,

    This stuff is pretty well documented.

    Multimedia accounted for 12 percent (£21.2 million) of sales in 1996, up from £13.1 million in the previous year. Dorling Kindersley's sales mushroomed from £70.9 million in 1992 to £174.4 million (US$279 million) in 1996, while pre-tax net income grew from £7.5 million to £17.4 million during the same period. Multimedia played a big part in driving growth and the valuation multiple.

    Between 1992 when DK leveraged its position with Microsoft as shareholder (26%) to go public in 1992, the share price went from165p to 213p in its first day, then multiplying to more than 500p per share by the time of the Microsoft divestment occured in 1995.

    DK Family Learning channels provided a huge impetus for the CD-ROM product because families wanted it for the home computer. There were 20 000 reps selling direct and this generated significantly higher profit margins than the trade. DK Family Learning contributed £16.5 million (US$26.4 million), or 9 percent, of the publisher's total revenues 1996. Sounds like a success story to me. Mistakes might have been made after that but they were buoyant years.


  • Stephen, thanks for the information. I didn't realize that DK had such a
    financial success with this material, however short-lived it was.

    Mike
  • Great post and comments.

    Part--though I'm sure not all--of the reason CD-ROM didn't take off the first time is that it was really hard to build organizations with the full range of editorial, production and business know-how to create titles and sell them cost-effecively.

    When I was at Hearst in the '90s, I was part of a project called HomeArts which aimed to bring various multimedia products to a wider audience on traditional women's and shelter topics (i.e., *not* Star Trek). The approach to staffing was to hire from magazines and TV. Makes sense in theory, since you need words, pictures and video.

    In practice, the way the people worked together showed some fundamental conflicts. I'll risk stereotypes for the sake of clarity. TV people could make video and were comfortable with new technology, but were used to bigger budgets, longer lead times and had trouble thinking interactively. Magazine people were used to working comparatively cheap and fast, were often pretty good with interactive, but couldn't make video and were often slow to pick up new tools.

    So there was a clash of cultures, but I think it also pointed to a fundamental business problem. CD-ROMs were simultaneously expensive, slow and hard to do well, and they were going after a tiny market. This'll be familiar to anyone who has bootstrapped into a new medium, but I think it was particularly severe.

    I think anyone jumping into this pool now may not find it empty, but will find they need a big and well-stocked life raft if they want to get anywhere.

    For what it's worth, HomeArts ended up throwing its weight behind the web (after a flirtation with the totally empty pool of Microsoft's Blackbird authoring tools for a proprietary MSN). That was no cakewalk, but it went a lot better.
  • Your analysis of why CD-Rom was so hard and what's changed since feels right
    to me. I agree that we won't face the same debacle this time, but we still
    have the challenge of figuring out what the product is and, as you point
    out, getting people with different skill sets and perspectives to
    collaborate on the problem-solving.

    Mike
  • An interesting article, Mike.

    I guess that the starting point for any publishers should be to try fix on which problem they are trying to solve for their readers.

    Coming from a tech publishing background, network engineers buy both printed books for reference at their desks, as well as ebooks for when they are in the field and need to search for details quickly. That's not news.

    Schools now use many more eBooks in the form of enhanced, digital textbooks which they use on whiteboards, computers and web browsers. Many of these type of ebooks started out as available through a network but they are now moving online so teachers can access relevant pieces of text and resources for creating customised lessons.

    eBooks and eReaders help a particular problem which is the bulk and weight of carrying around a bunch of books when you go on holiday and don't necessarily have enough baggage allowance for both books and clothes!

    So, I think the challenge for publishers to keep thinking about their customers or readers challenges and problems and whether ebooks or enhanced ebooks. Of course, some innovation will help and I agree with the point about the film, Avatar, which started with a strong storyline and enhanced it with 3D. 3D made a huge impact on what I thought of that film but it was the story that made the film.
  • Thanks for your comment, Will. I agree that the objective is to "keep the
    reader in mind" but that mantra alone doesn't lead to all the right answers.
    *The* reader is *the* problem; different ones react different ways. As we
    change the familiar book to an unfamiliar something else, we're going to
    find we're bringing some old readers along and we're scaring some of them
    off.

    Mike
  • Mike, I agree with your point about the reader being the problem and not knowing what they want effectively until someone shows them an idea which they can understand, after which they can start giving an opinion on whether they like the idea enough to try it.
  • All of which takes time!

    Mike
  • jilldehnert
    Really insightful article. I think it goes back to another point you have made in a different post which is that to survive in this industry, if you are publishing, means you have to find your niche or more appropriately for the enhanced e-book, your audience. With an enhanced e-book, as you so accurately illustrate, the audience will not be everyone that reads books, or even everyone that reads e-books. The audience for enhanced e-books will be those who are interested in enhancements, like Star Trek fans, or I would go as far as to say Twihards...YA audiences that are hungry (should I say starving?) for anything having to do with the content they love. Plus, and this may be an unfounded observation from someone new to the e-book era (meaning that I didn't pay much attention to the rise and fall of the CD-ROM because I don't think I was old enough to notice), but I think that YA audiences and middle grade audiences will take a special interest in enhanced e-books if they are done right. It is the digital age, kids are used to technology, and if there is anything that this generation does well, it is consume...but it would have to be the right project and it would have to be done exceptionally well. But I would say that if the Twilight series came around with an enhanced e-book version, sales would explode. I don't know if I would say the same for Under the Dome or The Lost Symbol.
  • There may be a Twilight book in ScrollMotion (an iPhone app) which might be
    enhanced. Certainly that's a platform that enables it.

    I think you're right that, as a gross generalization, the younger the
    audience the bigger the opportunity. The challenge is that the possibilities
    are, virtually, limitless so it's going to take a long time to figure out
    what works *best*. Or sometimes what works at all.

    Mike
  • KatMeyer
    I know this is an industry constantly in search of a game changing moment, but what if there is no ONE perfect digital solution for all books? Do all publishers and content producers need to invest in enhanced books? Do all books need to be enhanced? No. searching for one book-into-something-better formula misses the point.

    Your example of the S+S StarTrek CD-ROM demonstrates that. Why was that successful? It was successful because the story lent itself to the technology and the audience. The storytelling experience was enriched with pictures, audio, music, and any elements that helped readers (largely fans who were already quite familiar with the fictional setting) become further immersed in a deeply rooted cultural mythology/fantasy world.

    A few years ago I learned of "Chop Suey," and "Smarty," two acclaimed CD-ROM games created in the early '90's by the late Theresa Duncan with the artist Monica Gesue. I have searched far and wide (and to no avail) for copies of these CD-ROMS since the descriptions I've read sounded so intriguing and, the CD-ROMS were quite successful with their audience. The premise for theses CD-ROMS?: Adorably illustrated, explore-your-own-direction stories featuring young girl protagonists. Why were they popular? They served the needs and desires of their users -- young girls -- a notoriously underserved segment of the gaming audience.

    I guess my point is -- CD-Rom was not necessarily a failed technology - it was a successful bridge technology that demonstrated how particular stories can work really well as enhanced books.

    The story should dictate the medium, not the other way around. Consider Avatar. John Cameron refused to make that story come to life until the technology existed to tell it the way he wanted it told.

    No book should have to be all things to all people. It's the responsiblity of the creator and the publisher to produce and deliver the story in the way or ways that best serve the story itself, and ultimately in the ways that best serve the reader/user/customer. Keep making printed paper books for the stories that work in that format. Make basic ebooks for the customers who want to read their books that way. And if you have a story that is best told in digitally enhanced format, then you should make your story digitally enhanced.

    Ain't no silver bullet (though I have heard tale of a magical unicorn...)
  • kongjie
    @KatMeyer: I can probably get an original copy of "Chop Suey" if you really want it. Let me know. FYI Monica Gesue was not involved with the making of "Smarty Pants" as it was done post-Magnet after Gesue and Duncan ended their working partnership.
  • KatMeyer
    holy crap, for reals? I would be forever grateful. email me at Kat@thebookishdilettante.com and thank you so much! And thanks for info about Gesue. I must have misread an article somewhere along the line.

    best,
    Kat
  • Kat, you're quite right. I was sloppy if I implied that there was one
    solution that fits all. There certainly is not. Of course, that makes it
    even harder for publishers to figure out the formulas: different ones will
    apply to different intellectual properties!

    And CD-Rom was not a "failed technology": it clearly "worked" for some
    things. But *books on CD-Rom* were a problem that was never solved!

    Mike
  • KatMeyer
    Oh, Mike I know YOU don't think there's one solution, but the media (in particular) has been harping this idea to death. What device/software/format will win?

    No doubt there *will* be victors among the technology players, and we all need to keep tabs and make some big decisions based on those outcomes, but in the meantime -- publishers really need to get back to thinking about the story. It seems to be left out of so many of our discussions.

    cheers!
  • Kat, the idea of an "iPod moment" for books is one I've been ridiculing for
    the past several years every time it comes up. It's akin to the notion that
    we look at the music business for solutions to our problems. Well, at least
    you and I agree!!!

    Mike
  • Mike, once again you put your finger on a key issue that all the hullabaloo over e-books has obscured. You are right that publishers are interested in enhancing e-books because they can charge more than they would for a "plain" e-text. But--even if consumers want books plus video, audio etc, which remains an open question-- to fully exploit a medium that can do so much more than print *has to* involve a much greater investment in creating that content. I posted on this in more detail at http://bit.ly/754F2P .
  • jc
    Some of those Voyager titles were fantastic (A Day In The Life, Maus, etc.)

    This is a very smart article. I don't think you were so far off base about PDAs though--it's just that PDAs didn't really survive and have largely been replaced by smart phones (however you want to define that). My own reading habits involve using my iPhone when I'm on the go (so I'm not carrying an "extra"), and the Kindle at home for longer reading sessions.

    In fact, it's a bit off topic, but I would argue that syncing between devices is Kindle's single biggest utility. If I could get a physical book to sync with my iPhone (and if publishers would toss me a digital file with my hc/pb purchase), I wouldn't have as much need for a Kindle. (Okay, fine... Being able to buy a book in 30 seconds is pretty convenient too).--jc
  • Thanks for the observations, JC. I know others like you that find the iPhone
    problematic for longer reading sessions but I know I'm not alone in not
    finding that a problem because I just had lunch with a friend who, like me,
    does all his book reading on an iPhone!

    Glad there's somebody in the audience "out there" who remembers the Voyager
    Expanded Book!

    Mike
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