The link below is to an article and infographic that takes a look at libraries in the digital age.
The link below is to an article that considers the physical bookshop in the digital age.
The link below is to an article that considers the role of the Oxford English Dictionary in the digital age – can it survive?
Australia’s consumer laws aren’t adequately protecting Australians who buy digital products such as e-books and digital music. If a TV doesn’t work, or an iPod or computer is faulty, the law provides a remedy. The same is true for physical books and music media – but not for their online counterparts.
Under Australian law consumers are entitled to receive goods that are of acceptable quality and fit for their purposes, and that correspond with their description, among other legally enforceable consumer guarantees. But these guarantees apply only to “goods” and “services”.
How digital products fit (or don’t fit) into the goods and services categories has been debated for decades, and the law still hasn’t properly accommodated them.
Australia’s consumer laws went through a major update in 2010, but remain out of date. The digital world moves fast, but our consumer laws remain rooted in a system that assumes “goods” and “services” are the only types of trade. These laws still owe much to sale of goods legislation passed in the United Kingdom all the way back in 1893.
What are consumer laws?
The law generally expects that people and companies entering into contracts are able to look after their own interests. Consumer laws exist to provide additional legal protection to consumers, who are usually in an unequal bargaining position compared to the companies they deal with.
A consumer is someone who acquires goods or services that are ordinarily bought for personal, domestic or household use, or for a price of A$40,000 or less.
Consumer purchases include a range of items – TVs, iPods and computers are just some examples. Where a consumer purchases goods, the law requires that those goods comply with particular consumer guarantees, no matter what the terms and conditions of sale say.
If a new “smart TV” won’t connect to wifi, or if an iPod or computer’s battery doesn’t last as long as it should, the consumer guarantees provide a remedy.
It was during the 1980s and through to the 2000s that initial questions arose over how the law treated software. The question at this time was whether software counted as “goods”. A series of court cases found that software was considered goods only if it was supplied within a tangible object – for example, on a disk (later, on a CD or DVD).
Because of this, when consumers started downloading software over the internet they were left without many protections. If software downloaded directly from the internet didn’t do what it was supposed to do, they might have no effective legal rights at all.
In 2010, with the Competition and Consumer Act, the definition of goods was finally amended to include “computer software”. But this still excludes many common digital products, such as e-books and digital music. These do not constitute “computer software” as the law understands it.
Recent court proceedings highlight the large gap in the Australian consumer law.
In 2016, the Australian Competition and Consumer Commission brought a Federal Court case against Valve Corporation, alleging it misrepresented consumers’ rights concerning content bought through the Steam video game platform.
Justice Edelman found that Valve Corporation had supplied “goods”, being “computer software”, but also found that “non-executable data was not computer software”, and that such non-executable data could include “music and html images”.
In other words, the computer games were “goods” (attracting the law’s protection) because they were executable programs. This part of the Federal Court’s decision was not challenged in the Full Court of the Federal Court, which dismissed Valve Corp’s appeal in December 2017.
If this definition of computer software is applied in future cases, then there is a legal gap when it comes to other types of digital products. E-books and digital music (among others) require executable files to work, but aren’t themselves executable files, so would not constitute computer software.
If they don’t constitute computer software, they also aren’t goods under the law. And if they aren’t goods, consumers who acquire these digital products don’t obtain the protections and guarantees of Australia’s consumer laws.
The wider consequences of inequality in the law
Beyond this problem for consumers, this legal gap also creates an inequality for retailers. Retailers that deal in physical books and music (whether they are “bricks and mortar” or online) are required to comply with the guarantees and protections under Australian consumer law.
This means that businesses dealing in physical goods incur costs that those that sell only digital equivalents (apart from software) can avoid. Australia is in effect subsidising those who sell only digital products (many of them foreign companies) by not subjecting them to the same legal liabilities.
A simple legislative amendment can easily solve this problem. Rather than providing that goods includes “computer software”, a legal provision stipulating that goods include “computer software and other types of digital products” would capture the broader range of products we see in the marketplace today.
We can learn from the United Kingdom, where digital products are given their own dedicated consumer rights regime. The United Kingdom has a series of consumer rights applicable to the supply of goods, the supply of services, and also to the supply of digital content.
The link below is to another article taking a look at the National Library of Norway and its digital archive program.
The link below is to an article reporting on Norway’s sensible digital archive program for literature.
Today’s students see themselves as digital natives, the first generation to grow up surrounded by technology like smartphones, tablets and e-readers.
Teachers, parents and policymakers certainly acknowledge the growing influence of technology and have responded in kind. We’ve seen more investment in classroom technologies, with students now equipped with school-issued iPads and access to e-textbooks. In 2009, California passed a law requiring that all college textbooks be available in electronic form by 2020; in 2011, Florida lawmakers passed legislation requiring public schools to convert their textbooks to digital versions.
Given this trend, teachers, students, parents and policymakers might assume that students’ familiarity and preference for technology translates into better learning outcomes. But we’ve found that’s not necessarily true.
As researchers in learning and text comprehension, our recent work has focused on the differences between reading print and digital media. While new forms of classroom technology like digital textbooks are more accessible and portable, it would be wrong to assume that students will automatically be better served by digital reading simply because they prefer it.
Speed – at a cost
Our work has revealed a significant discrepancy. Students said they preferred and performed better when reading on screens. But their actual performance tended to suffer.
For example, from our review of research done since 1992, we found that students were able to better comprehend information in print for texts that were more than a page in length. This appears to be related to the disruptive effect that scrolling has on comprehension. We were also surprised to learn that few researchers tested different levels of comprehension or documented reading time in their studies of printed and digital texts.
To explore these patterns further, we conducted three studies that explored college students’ ability to comprehend information on paper and from screens.
Students first rated their medium preferences. After reading two passages, one online and one in print, these students then completed three tasks: Describe the main idea of the texts, list key points covered in the readings and provide any other relevant content they could recall. When they were done, we asked them to judge their comprehension performance.
Across the studies, the texts differed in length, and we collected varying data (e.g., reading time). Nonetheless, some key findings emerged that shed new light on the differences between reading printed and digital content:
Students overwhelming preferred to read digitally.
Reading was significantly faster online than in print.
Students judged their comprehension as better online than in print.
Paradoxically, overall comprehension was better for print versus
The medium didn’t matter for general questions (like understanding the main idea of the text).
But when it came to specific questions, comprehension was significantly better when participants read printed texts.
Placing print in perspective
From these findings, there are some lessons that can be conveyed to policymakers, teachers, parents and students about print’s place in an increasingly digital world.
1. Consider the purpose
We all read for many reasons. Sometimes we’re looking for an answer to a very specific question. Other times, we want to browse a newspaper for today’s headlines.
As we’re about to pick up an article or text in a printed or digital format, we should keep in mind why we’re reading. There’s likely to be a difference in which medium works best for which purpose.
In other words, there’s no “one medium fits all” approach.
2. Analyze the task
One of the most consistent findings from our research is that, for some tasks, medium doesn’t seem to matter. If all students are being asked to do is to understand and remember the big idea or gist of what they’re reading, there’s no benefit in selecting one medium over another.
But when the reading assignment demands more engagement or deeper comprehension, students may be better off reading print. Teachers could make students aware that their ability to comprehend the assignment may be influenced by the medium they choose. This awareness could lessen the discrepancy we witnessed in students’ judgments of their performance vis-à-vis how they actually performed.
3. Slow it down
In our third experiment, we were able to create meaningful profiles of college students based on the way they read and comprehended from printed and digital texts.
Among those profiles, we found a select group of undergraduates who actually comprehended better when they moved from print to digital. What distinguished this atypical group was that they actually read slower when the text was on the computer than when it was in a book. In other words, they didn’t take the ease of engaging with the digital text for granted. Using this select group as a model, students could possibly be taught or directed to fight the tendency to glide through online texts.
4. Something that can’t be measured
There may be economic and environmental reasons to go paperless. But there’s clearly something important that would be lost with print’s demise.
In our academic lives, we have books and articles that we regularly return to. The dog-eared pages of these treasured readings contain lines of text etched with questions or reflections. It’s difficult to imagine a similar level of engagement with a digital text. There should probably always be a place for print in students’ academic lives – no matter how technologically savvy they become.
Of course, we realize that the march toward online reading will continue unabated. And we don’t want to downplay the many conveniences of online texts, which include breadth and speed of access.
Rather, our goal is simply to remind today’s digital natives – and those who shape their educational experiences – that there are significant costs and consequences to discounting the printed word’s value for learning and academic development.
I think it’s time to take a reality check on the state of news publishers digital transformation. While digital revenue streams may be delivering, there’s still a strong reliance on print for revenue and research shows readers engage more with print.
Media economist Robert G. Picard. summarises well the key problem with digital transformation. He notes that as news publishers focus on growing digital revenue, they forget their customers and their needs.
He notes that while journalism institutions have embraced the challenge of monetising digital media and increase revenue, this “institutionally focused strategy is designed to serve institutional interests not improve its offerings”.
In fact, newspapers keep offering the wrong things to their audiences. In Picard’s words, they sell readers horses when they actually prefer sports cars.
I think his words also apply accurately to Fairfax Media. Its digital strategy is focused on increasing shareholder revenue, and has very little to do with its journalism or journalistic offerings.
My recent research focused on the digital strategies of Fairfax Media and The New York Times Co. While the two “journalism institutions” pursue different digital strategies, the outcomes for two newsrooms are somewhat different. The New York Times strategy is based on digital-only subscriptions, whereas Fairfax is betting on its digital property listing service (Domain).
The main difference between the two is that while The New York Times continues to invest in its newsrooms and expand internationally (it has journalists filing stories from over 150 countries), Fairfax continues to chop newsroom jobs. It’s currently planning to cut 25% its newsroom staff from its Australian flagship papers to save $A30 million.
Digital is growing, but so what?
In 2016 major newspapers in the United States saw strong growth in digital subscriptions: The New York Times recorded a 47% rise and The Wall Street Journal 23% growth, according to the recently published State of the News Media report by Pew Research Center.
However, the report also notes that “these gains did not translate into circulation growth for the industry overall” and the combined digital and print circulation of newspapers fell 8% – “marking the 28th consecutive year of declines”. Digital advertising revenue also declined, but the proportion of digital advertising revenue of total revenue grew to 29%, because print advertising income continued to decline.
Fairfax, currently in the midst of a bidding war among private equity firms, is still driven by digital revenue from Domain. But the management of the company changed its tune in February, in terms of its print strategy.
Fairfax CEO Greg Hywood explained “while we have considered many options, the model we have developed involves continuing to print our publications daily for some years yet”, adding that “this is the best commercial outcome for shareholders based on current advertising and subscription trends”.
In May, media industry commentator Mark Westfield said that Hellman & Friedman, which is bidding for Fairfax’s media assets, “wouldn’t be interested in buying [Fairfax] unless they saw the assets of The Age, Sydney Morning Herald and Australian Financial Review and Domain as good assets to maintain”.
The sale or closure of newspapers wouldn’t make sense as Fairfax is still print reliant in terms of its revenue, and the same applies to The New York Times. My research shows in 2016 Fairfax print still delivered 78.6% of revenue, while digital was only 21.4% of its total revenue. Digital advertising made 18.5% of the total revenue, and digital subscriptions 2.86% of total.
I also found in a six-year period from 2011 to 2016, digital revenue of Fairfax grew 69% and at the same time print & other revenue declined 31.5%.
In comparison, in a five-year period from 2012 to 2016 (when figures were available) The New York Times digital revenue grew 32% – more slowly than Fairfax’s, but its print revenue dropped less than Fairfax’s – 11.5%. In 2016, digital made 27.8% of its total revenue and print 72.2%. The New York Times also continues to be print reliant in terms of its revenue.
Recent studies by media scholars Neil Thurman and Iris Chyi & Ori Tenenboim suggest that print continues to be strong in terms of readership. A study of 11 British newspapers by Thurman shows that the readers spent more time with print newspapers than with the online edition.
In their study, Chyi and Teneboim found that the “(supposedly dying) print product still reaches far more readers than the (supposedly promising) digital product in these newspapers’ home markets”.
In the light of this, it can be argued that digital transformation is continuing, but being fully reliant on digital readers may be a myth – as academic Vincent Mosco puts it: “a captivating fiction, a promise unfulfilled and perhaps unfulfillable.”
Merja Myllylahti, Project manager and author for Journalism, Media and Democracy (JMAD) Research Center
While just a few years ago, headlines predicted eBook supremacy and the demise of the paper book, that’s now reversed. They’re now saying the Kindle is clunky and unhip and paper books are cool and selling well as eBook sales crash. But are today’s claims any more accurate than those of 2012?
The latest round of headlines was triggered by UK Publishers’ Association figures noting a fall in consumer eBook sales of 17% in 2016, while physical book sales rose 8%. This statistic seems straightforward enough on the surface, but it pays to go deeper.
Mainstream media have long been in the habit of relying on figures from publishers’ associations, retailers’ groups and Nielsen data, but the industry has changed. While these measures are accurate, they are only accurate in terms of what they measure, and they represent far less of the industry than they once did. They are no longer a proxy for the industry.
A recent history of eBooks
Amazon’s Kindle was launched in November 2007. Barnes & Noble followed with their Nook in October 2009 and Kobo with their eReader in May 2010. Apple’s launch of the iPad in January 2010, meanwhile, introduced a non-specialist device that gave a pleasing eReading experience. US eBook sales rose 1260% between 2008 and 2010. By early 2011, US advisory group Gartner reported that industry researchers were predicting a 70% annual growth rate for eReader sales globally.
In February that year, the REDgroup, the parent company of Angus&Robertson and Borders in Australia – chains responsible for 20% of the country’s book sales – went into receivership. Retailers across the industry in Australia were noticing a downturn. After 5% growth in 2009, Australian book sales contracted slightly in 2010, then dramatically in 2011, with falls of 13% in volume and 18% in value, and significant falls continuing into 2012.
In January 2011, Amazon announced that, for the first time, it was selling more eBooks than paperbacks. According to Nielsen figures, US eBook sales went from US$69m in 2010 to US$165m in 2011, a 139% increase. They increased a further 30% in 2012 and 13% in 2013.
Nielsen figures, though, only record sales of books with ISBNs, something many independently published eBooks do not have. Despite not counting many eBooks, Nielsen still recorded sales as increasing, albeit probably at diminishing growth rates each year.
With increases in both average smartphone screen size and smartphone use, the 2014 to 2015 period marked another shift – the phone was becoming a significant reading tool. According to US Nielsen surveys, while the percentage of the eReading population reading primarily on tablets had increased from 30% in 2012 to 41% in 2015, the number of eBook buyers who used their phones to read at least some of the time increased from 24% to 54% in the same period.
Judith Curr, publisher of Atria Books, stated in 2015 that,
“The future of digital reading is on the phone. It’s going to be on the phone and it’s going to be on paper”.
EBook sales in the US, though, appeared to plateau at 2013 levels, according to Association of American Publishers figures, and then dipped early in 2015. In the UK, the Publishers’ Association reported digital sales for the year 2015 falling slightly and print sales growing minimally. “Readers take a pleasure in a physical book that does not translate well on to digital,” the Publishers’ Association stated, and declarations of “peak eBook” became commonplace. Those figures, though, do not tell the whole story.
As Simon Jenkins admitted in The Guardian last year when declaring that peak digital was at hand, the adult colouring book fad made a contribution to print sales in 2015. Unlike fiction blockbusters, sales of colouring books are almost entirely in print format.
In the case of the UK market, the £20.3 million generated by adult colouring books in 2015 matched the growth in the overall print market. Without it, the pattern of zero or negative growth seen in the preceding seven years would have continued. In the US, Nielsen reported that sales of adult colouring books surged from one million units in 2014 to 12 million in 2015. Australia was also part of the adult-colouring craze. Nielsen BookScan’s November 2015 Australian top 20 featured eight colouring books, each one of them outselling the most successful Australian novel.
Other factors were at work as well. Following the renegotiation of pricing between major American publishers and Amazon, eBook prices rose in the US Kindle Store in late 2014 and 2015. Until then, Amazon had pushed publishers to keep prices no greater than $9.99, and buyers had become conditioned to paying less than $10 for eBooks.
Publishers that increased prices above that mark subsequently recorded a fall in eBook receipts, and some identified higher prices as a factor. According to journalist Jeffery Trachtenberg, publishers viewed this pricing change as involving “some sacrifice, but they felt it was worth it to keep Amazon in check”.
The specific books published from one year to the next had an impact too. Some publishers noted that 2015 saw fewer “hot” titles. With nothing to match Frozen and the Divergent series, children’s and young-adult eBook sales fell 45.5% in 2015 in the US.
eReading growth not counted
While the Association of American Publishers’s figures are based on a survey of 1200 publishers and often seen as authoritative, the Amazon Kindle Store stocks many independently published titles and titles published by small and micro publishers not captured by the survey.
At the same time as the association was reporting a drop in overall eBook sales, Amazon, the retailer with the majority of the US eBook market, reported increases in sales in terms of both units and revenue.
And other avenues were opening up that facilitated continued growth in eReading that was not feeding into the statistics. Public libraries were lending eBooks and subscription eBook libraries were opening for business – Oyster in September 2013, Scribd the following month and Amazon’s Kindle Unlimited in July 2014.
While subscriber downloads earned an author readers and, in the case of subscription libraries, revenue, they did not count towards sales.
David Montgomery, CEO of publishing services company Publishing Technology, drew on these factors to declare last year that publishing had split into two markets, with a widening gap between them.
Self-published and micro-published authors, particularly those writing genre fiction, were pricing their eBooks much lower and claiming an increasing share of the market, particularly through Amazon, while large publishers were increasing eBook prices in a way that reduced eBook sales.
This pattern has continued, and the rhetoric that pits one format against another appears to be continuing too. At the Digital Book World conference in January 2017, Nielsen presented 2016 data from more than 30 traditional US publishers showing a fall in eBook sales from 2015 to 2016 and hardback unit sales overtaking eBooks for the first time since 2012.
Despite their data being an estimate and covering relatively few publishers, Publishers Weekly ran its story on the presentation with the headline “The Bad News About Ebooks”. The week after the conference, the Sydney Morning Herald published a Bloomberg-sourced piece headed “How Print Beat Digital in the Book World”.
Association of American Publishers (AAP) data released in February 2017 appeared to confirm the decline of eBooks, with eBook sales for the first nine months of 2016 down 18.7% on the year before.
However, at the Digital Book World conference in January, other evidence was presented that attracted less media attention.
An analysis by the Author Earnings website (an aggregator and analyser of eBook sales data) identified that, outside the world of traditional publishing, authors who were self-published, independently published or published directly by Amazon imprints, had sold more than 260 million eBooks worth more than US$850 million in the US in 2016.
Total eBook sales by Amazon – which makes up 83% of the US eBook market by volume and 80% by value – rose by 4% from early 2015 to early 2016, at the same time as eBook sales recorded by the AAP were falling.
While no direct comparison exists for the UK market – where the Publishers’ Association reported a 17% fall in consumer eBook sales from 2015 to 2016 – 42% of eBook sales in that market are by self, indie or Amazon-published authors. This added up to 40 million of the 95 million units sold in the UK in 2016 – a percentage that is growing as the eBook market share held by the larger members of the Publishers’ Association falls.
The publishing industry has changed. It is no longer solely the domain of members of publishers’ associations and books with ISBNs that allow easy tracking and accumulation of data that appears robust but tells much less of the story than it once did.
Moving beyond the ‘format wars’
It is too easy to have our attention grabbed, and sometimes our biases or hopes confirmed, by an appealing set of statistics from an authoritative source, and to misunderstand what those statistics are measuring.
It is also too easy to fall into viewing the evolution in eBook and print sales solely through the prism of Amazon and its often public power struggle with publishers, and to be drawn too deeply into seeing the future of publishing as one format versus another.
While it is possible to speculate about the future trajectories of the eBook and paper book markets, many confident pundits have been wrong before, as new factors have emerged that have significantly impacted reader behaviour and sales patterns.
From the practical perspective of writers wishing to connect their work with readers, it is prudent to see both paper and eBooks as significant for any book-publishing project in the present and near future, and to develop strategies to meet both of them. It is also prudent to look beyond both platforms to another, one that had long been regarded as a peripheral player: audiobooks.
All we can be sure of is that the digital platform is still evolving. What will an eBook be 20 years from now? What will a book be?
The link below is to an article that once again takes a look at the print versus digital books debate.