We've been writing a lot about eReader devices, but let's focus on the content for a moment. Why? Because selling a lifetime of eBook content to consumers is the end game of many companies in this space, especially Amazon and Barnes & Noble. They sky's the limit here. Consumers don't own digital libraries of books, as they did with music: When mp3 players came out, most consumers owned CDs that could be easily burned to a computer and downloaded to a device. Not so with books.
And the market for digital books, while catalyzed by the existence of dedicated eReader devices, will extend across multiple devices including desktops, laptops, mobile phones, netbooks, tablets, MIDs, portable gaming devices, and devices that haven't been invented yet. As we discuss in a new Forrester report, Forrester's data (based on a mail survey of 4,711 US consumers conducted in Q3 2009) shows that 3% of US consumers read eBooks on their desktop computers today; 2% read on laptops; and fewer than 1% read on dedicated eReaders, mobile phones, or netbooks, respectively. When it comes to future demand, 19% of US consumers say they're interested in reading eBooks on their desktop PCs, 14% say they're interested in reading on eReaders, 11% voice interest in reading on netbooks, and 5% say they're interested in reading on their mobile phones. What this means: Consumers are reading books digitally on multiple devices, and they will continue to do so.
2009 has been a breakout year for eReaders and eBooks--device sales will have more than tripled by the end of this year, and content sales are up 176% for the year--but 2010 will be anything but boring. Here are Forrester's predictions for what will happen in the next year:
Tomorrow, Barnes & Noble (B&N) is expected to announce its own B&N-branded eReader device--the Nook, as the Wall Street Journal reported this evening. The device is expected to be wireless and touch-operated, with dual screens--a 6" E Ink display for reading, and a smaller color LCD screen for navigation, video, and...ads?
In other words, the B&N eReader could be a Kindle and an iPhone put together.
I knew from conversations with my own sources that this would be a cool device, but I didn't expect that it would be priced, as the WSJ reports, at $259. This puts the Nook competing squarely with Amazon's Kindle 2--most likely with a razor thin margin, if any, for B&N. To steal market share from Amazon and make up for lost time, B&N is pricing the Nook as aggressively as possible.
Getting the price right is crucial to success in this emerging device market. As we published earlier this year, most consumers expect eReaders to be $99 or less. But we expected something in the range of $399, which would make the device competitive with the other touch + wireless eReaders on the market, the Sony Daily Edition and the iRex DR800SG, both of which will be sold at Best Buy among other retailers. Pricing the Nook a full $140 below these other devices sends a strong signal that B&N is focused on Amazon, not Sony, as competition.
Today iRex announced the launch of its first consumer eReader, which will be available for sale for $399 at Best Buy, Costco, and other US retailers this holiday season, with distribution in Europe coming in Q2 2010. The skinny:
On Friday, Forrester published new research on one of the most active groups of people ever seen when it comes to social participation -- buyers of technology products in the business-to-business (B2B) sector.
I teamed up with Oliver Young to write the report, "The Social Technographics of Business Buyers," based on a survey conducted online between December 2008 and January 2009; you can access the full report if you're a Forrester client, or arrange to buy it if you are not. You can also register to download the slides or hear the replay of our Webinar on the topic.
Two things before I start: 1) A big "Thank You' to everyone who commented on my blog posts, emailed me, or spoke to me by phone about the research called "How To Avoid B2B Marketing Obsolescence", and 2) No, I really don't believe B2B marketers will become obsolete. That was just a title that would get you to read further!
For those of you frustrated by the survey tool at which I pointed my last post, I would like to apologize for wasting your time and missing the opportunity to engage you when you were most interested.
Merv and I are are providing expertise and contributing the Forrester brand name to the Customer Reference Forum for this survey. We are not working directly with the survey execution team. The CRF has been terrific to work with, but I did not check a few of the small details on survey access parameters before posting this and now those details have bitten me as links that don't work or make the survey look closed when it is not. This is also why I haven't replied in Web 2.0-time to your posts pointing out the problem.
I think the area of research will prove very interesting as we bring it out early next year. For those of you still willing to participate -- thank you so much for your patience! -- you can find the survey link here.
Again, thanks for your patience and support on this.
Great customer references fuel great B2B marketing. But getting customers to testify or submit case studies is challenging. Good references require investment. But how do you keep customers from feeling like shills for their vendor firms? By involving them in communities of like-minded advocates! That is one hypothesis I plan to explore further in 2009 -- investigating the connection between social activity and greater customer advocacy.