After traveling 5,000 miles in three days to speak about digital disruption (I know, it's odd that my physical body has to go somewhere to talk about being more digitally disruptive), I fell asleep on a train yesterday and missed one of the most noteworthy events of the week: Amazon acquired Goodreads.
Full disclosure on this one up front: Amazon published my recent book, Digital Disruption. At the same time, I am a Goodreads member for more than five years; in fact, if you have read any of the most-liked reviews of the Twilight books on Amazon, chances are good you've read mine. That is to say that I am not exactly neutral on this one. But I'll do my best to be objective in answering all the anger being expressed on Twitter and in the trades when I point out that Goodreads was not saving itself for Amazon like some virginal tribute. It has been sitting there, all along, waiting for the right offer to come along. That's how venture capital works, people.
That's not to dismiss altogether the reactions I'm seeing, which range from Amazon wants to own the whole world (and to be fair, maybe it does) to How could Goodreads do this to us. But among all the hurt feelings and handwringing about the fall of publishing and the eventual reign of cohabitating cats and dogs (oh, I do hope you get that reference), I have an important question to ask, one that I am stealing from author Nick Harkaway (@Harkaway) who wrote this on Twitter the morning after:
eReaders are set to have one of the shortest growth life cycles in device history. Between 2009-2011 the average annual sales of dedicated eReading devices in the US grew by more than 100%. In 2012, US dedicated eReader sales growth will be negative. The decline of the eReader is driven by the availability and affordability of tablets, with global tablet sales in 2012 set to reach more than 120 million.
The Forrester Research eReader And eBook Adoption Forecast, 2012 To 2017 (Global)analyzes eBook adoption drivers across more than 50 countries. Heavy readers like eBooks. In the US, eBook readers read an average of 24 books per year compared with just 15 books for non-eBook readers. In addition, eBook readers are becoming more device-agnostic, with similar eBook reading levels observed across tablets and dedicated eReading devices.
We used the following drivers to calculate our forecast for eBooks and eReaders
Brace for impact. What I'm about to say is going to make a lot of people angry, including some of the people at Google who are going to rightly point out that when they pre-briefed me on today's Google eBooks announcement, we never once discussed ad-supported reading.
Instead, they told me all about their plan to establish a set of tools that will offer eBooks to people looking for book information through Google's search engine. They explained that this will make it possible for the millions of people who conduct book-related searches every day to have easy access to 3 million books -- some out of copyright, some out of print but under copyright, and a full range of in-print titles including bestsellers. They also described how independent booksellers will be able to use the same set of web-based commerce and reading tools to build their own branded eBook stores to finally extend their brick-and-mortar customer relationships into the digital space.
Since then, I've spoken to half a dozen reporters who were also pre-briefed and they have all had a similar set of questions: can Google compete against Amazon (no, but it can compete against Barnes & Noble), is it too late to make a dent in a mature market (no, less than 10% of online adults in the US read eBooks, there's plenty of room to grow), is Google's cloud-based strategy unique (yes and no, it supports all devices except the Kindle, but the Kindle platform actually supports as many devices as Google will).