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James Robinson, Vice President of APCO Worldwide

Blooker Comments - iPad

RobinsonWhat are the benefits of digital delivery for newspapers, magazines, books and other publications?
 
JR: There are lots of benefits for publishers as well as consumers of media. Through digital delivery, publishers save costs on production, delivery and distribution while consumers benefit from the convenience of publications being available anytime, anywhere and at a reasonable cost.  For instance, when I was living in Beijing, I could only get Western newspapers the day after publication because they had to be flown into the country and then reviewed by the government censors. Today through e-readers, publications can be accessed at the touch of a button almost anywhere that has cell phone coverage.
 
There are also environmental benefits to digital delivery as well as improved searchability. Digital publications catalog information better and have tools to help consumers find specific publications and recommend similar books they might be interested in.
 
What are the drawbacks?

 
JR:  For digital delivery to work, the consumer needs to know how to use technology and needs to invest upfront to buy a device. It also makes you reliant on technology, which can be problematic.
 
Technological devices are also not as portable as hard copies. You don’t see people folding up their e-reader and putting it in their suit jacket at a bar as you would with a magazine or newspaper.
 
Also, these devices are not always accessible ... on airplanes, for instance, where you are required to shut off all electronic devices on the runway. Some would also argue that e-readers are not as “readable” as hardcopy books in sunlight and may strain the eyes.
 
What are the benefits of e-readers for readers?
 
JR: E-readers allow you to access published materials anytime, anywhere and at low cost, and can be especially useful while you’re on the road.  For instance, my parents often vacation in the South of France. In the past they had to bring several months' worth of books from the UK, whereas now they can get the books, magazines and newspapers they want almost anytime.
 
What are the drawbacks?
 
JR: You can’t share digital publications the same way you can with hardcopy books or magazines. Also, e-readers only let you read the publications that have been converted to digital media. It’s difficult to find first editions of certain books. Also, online content, such as newspaper websites, are constantly being updated which e-newspapers generally aren’t.  
 
Do you think there will come a point when many newspapers and magazines will have to switch totally to digital delivery to survive, and in order to avoid the substantial costs for printing and delivery?
 
JR: There probably will come a point when the majority of content is delivered digitally.  However, I believe making everything digital right now isn’t necessarily the best way for a publisher to survive. The technological devices that are available are in their infancy. Over time the functionality will improve and cost will come down, and content publishers will adapt their content to be better suited to e-readers. In addition to digital delivery, there are a number of other things publishers can do to improve their prospects of survival.
 
Many people say that iPad and Kindle are the two dominant e-reader models now. Do you agree, and if so, do you see that continuing? Some also have said that iPad is more amenable to newspapers and magazines and Kindle to books. Your thoughts?
 
JR: Yes, the iPad and the Kindle are the dominant hardware devices at the moment. But moving forward, I see two battles taking place ... one regarding software and one regarding the device. In terms of software, the Kindle’s software is already available on the iPad, and suspect this will continue to attract users away from Apple’s iBook store.  
 
It’s unlikely that these two will remain the dominant devices.  At some point they will have to integrate and add functions to remain dominant. E-readers today are what PDA’s were eight years ago before smart phones came in and dominated the market. At the moment there is a huge opportunity for PC makers like ASUS and HP, or Smart Phone makers like Nokia, or other e-readers such as Plastic Logic’s Que to compete more aggressively.  I think no one wants a situation where one provider effectively locks up the market, as has happened with the iPod where no competitor was able to effectively compete with Apple's merger of software and hardware.
 
Is this nation at the starting point of digital delivery/e-readers, in the middle of it or at a sophisticated stage? Do there have to be any important technological advances for this trend to grow?
 
JR: Other than Japan, the U.S. is more advanced than any other country when it comes to digital delivery and e-readers, although I don’t think anywhere is particularly ‘sophisticated.’ The whole category is new and consumers need time to get used to it.  It will evolve significantly over the next decade.
 
In order for the industry to grow, e-readers need to become less expensive and need longer-lasting batteries. Another barrier is the limitations of the current high speed data-cell networks. They need to become faster and there needs to better integration of the written word and multimedia. E-readers need to distinguish themselves from what is already available through hard copy, like what DVD did with VHS. DVD was able to replace VHS because it clearly offered new features for consumers. By redefining the take-home movie, DVD was able to dominate the space.
 
Is there anything else you'd like to say about digital delivery and e-readers? 
 

JR: This is only the beginning for digital delivery and e-readers. There is enormous potential for growth and evolution, especially for new software and applications which are just as important as the device itself.

 (Mr. Robinson, a vice-president in APCO Worldwide’s New York office, counsels clients on U.S. and international public affairs, with a particular focus on corporate responsibility and emerging markets. He also has worked at APCO's offices in Beijing and Indonesia. He graduated with both a Bachelor of Arts and Master of Arts in Oriental (China) Studies from the University of Cambridge and speaks Mandarin proficiently.)