E-book revolution still waiting to happen

The stormy relationship between Apple and Amazon, the two giants in the increasingly complicated world of high-tech commercialism, continues to perplex their fans and watchers. There were two developments last week that may or may not be related, but are intriguing all the same. 

First, the two companies, in the words of a news website, “agree to stop stupidly suing each other over the ‘App Store’ name”. Then Apple was dealt a heavy blow in another legal entanglement with Amazon, when late Steve Jobs’ company was found guilty of a conspiracy to keep prices of e-books high.

The e-book price-fixing charges may dwarf the end to the squabble over the “App Store” name. The latter controversy certainly has affected consumers less. 

Nobody actually cared whose “App Store” was called what. Only the two companies did, and they have apparently realised that they should not have.

When it comes to e-books, buyers are directly at the centre of the controversy. A US court has found Apple guilty of conspiring with major publishers to drive up the price of e-books, costing consumers hundreds of millions of dollars. The alleged conspiracy was said have been conjured up because Amazon’s ability to sell e-books at cheaper prices was threatening other players in the industry.

Apple was accused of being the ringleader of the conspiracy. Five publishers alleged to have conspired with Apple – HarperCollins, Simon & Schuster, Macmillan, Penguin and Hachette – reportedly settled with the US Department of Justice before the case went to trial. Within hours of being found guilty, Apple vowed to appeal the ruling, which could cost the company hundreds of millions of dollars in damages.

How the case finally ends could help determine the future of the e-book industry, which has been torn between a more “liberal” atmosphere that promises to be more rewarding for self-publishing, and attempts by conventional publishers to hold on to the status quo of commercialism. 

Against the backdrop of Apple’s latest legal controversy is the question about profit sharing between platform owners and content providers.

There are a few complications where the e-book market is concerned, but at the end of the day, the growth of the e-book industry depends largely on how cheap e-books are. Even with Amazon’s relatively “cheaper” e-books on its store, the prices are not attractive enough. 

If e-books can be sold in accordance with the lower investment, the industry can see an exponential growth.

E-books are meant to “liberate” writers and help democratise consumption. As of now, where print products go and how much they should be sold are decided by traditional publishers. E-books won’t change the status quo overnight, but children in some less privileged countries can now download the latest Harry Potter sequel as soon as it hits the online store. 

It’s a promising situation, but whether or not products like the iPad can help turn the world into a learning paradise will very much depend on how much e-books cost on the devices.