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As e-book sales soar, so does piracy

“Hardcover sales of my last book were down 20 percent, while e-book sales were up 300 percent.” That’s what thriller writer John Lescroart told the Pittsburgh Post-Gazette recently, although he also referred to himself as “a hold-a-book-in-your-hands kind of guy.” The Post-Gazette article also quotes Cinthia Portugal, a spokesperson for Amazon.ca, as saying that the company now sells 48 Kindle books for every 100 physical books, which is up from 35 for every 100 in May. Moreover, a representative of Forrester, a business consulting firm, predicted sales of e-readers would reach three million this year, compared to one million last year.

Though certain market segments have predictably rushed to embrace the new technology, others are just as predictably suspicious of it. Guess which of the following, also quoted by the Post-Gazette, is a retired computer trainer and which is a retired librarian:

I bought a Kindle e-reader last year and really love it…. I can adjust the text size, [the screen] causes no eye strain. It’s lightweight and very portable. And it’s almost too easy to buy a new book. I will never go back to paper books.

vs.

I cannot bear the thought of technology to read a book…. I love bookstores and libraries too much. Ingesting the words off the pages and enjoying even the smell of books are wonderful sensations. Truly, books rule!

The group that remains resistant to electronic books may have one legitimate area of concern: according to a recent article in The Times, U.S. publishers estimate they lost $600 million to digital piracy last year. The article states that even before Dan Brown’s new novel, The Lost Symbol, was published, there were pirated versions available for download. Within days of its official publication, the novel had been illegally downloaded more than 100,000 times. The Times article continues:

George Walkley, digital strategy director for Hachette Livre U.K., the biggest publisher in Britain, said that while the e-book business was booming, with a 300 per cent increase in titles available in the last year, so was piracy.

Some books, such as the Harry Potter series, were being pirated because they were not available in digital format and there was “frustrated demand,” he said. But all popular authors faced the prospect of illegal copies of their works being circulated on the internet.

Digital evangelists would likely say this is just the cost of doing business online, but publishers can be forgiven for worrying, particularly given the experiences of the music and movie industries. But if e-books aren’t going away, neither are the digital pirates. Russell Davis, president of the Science Fiction and Fantasy Writers of America was quoted in The New York Times last May as saying, “It’s a game of Whac-a-Mole…. You knock one down and five more spring up.”

  • Ashleigh

    I’m always wary of defining pirated copies as “lost sales”

    Most pirated downloads are not converted from book purchasers.

    And, similar to music, those who pirate the most, also purchase the most.

    Brian O’Leary of Magellan Consulting has done some interesting research on the issue of piracy, and has found that pirated books can also boost sales.

    http://www.magellanmediapartners.com/index.php/mmcp/

    Someone who’s going to take the time to download and read a pirated copy, is also likely be excited about it and talk about it.

  • Paul

    Ashleigh says: “Someone who’s going to take the time to download and read a pirated copy, is also likely be excited about it and talk about it.”

    Though not excited enough to pay for a copy, apparently.

  • Ashleigh

    @Paul – reviewers don’t pay for copies, but they convince other sales.

  • Nic Boshart

    First, there is no possible way anyone lost 600 million due to piracy last year. The IDPF collected stats claiming wholesale ebook sales amounted to about $70 million in 2008, including retail maybe double that. That’s $140 million. So people are pirating books at 4x the rate of purchase?

    Graph: http://www.idpf.org/doc_library/industrystats.htm

    Pirated copies aren’t lost sales. Users who download tons of books probably won’t even read them, and they wouldn’t have bought them.

    Digital Tonto has a good article on new media trends. He speaks of how most people still use old media and payed-for services when watching TV (viewership was up last year in the States) and movies (also had a banner year).

    “The only sure bet is to create products that entertain, inform and excite audiences, service them well and create value.”

    That’s the best DRM.

  • http://errantknave.blogspot.com/ Francesco

    @Nic Boshart “Pirated copies aren’t lost sales. Users who download tons of books probably won’t even read them, and they wouldn’t have bought them.”

    While I doubt there’s data to back that up, I would bet that that statement is true. Personally, I can’t see piracy in being as rampant as it is in the music industry, at least as far the trade market is concerned. It would take remarkable dedication to steal several books and read them all, and that avid reader would be just as likely to recommend the book to others.

  • Paul

    Francesco says: “It would take remarkable dedication to steal several books and read them all, and that avid reader would be just as likely to recommend the book to others.”

    I don’t see how it takes “dedication” to download pirated books (any more than it takes dedication to download and watch whole movies), but if that person recommends them, they’ll probably also recommend the site they downloaded the copy from.

  • Francesco

    Dedication to read the books and make the most of the theft. How many books do people read a year? Even if the person steals a hundred or two hundred books in a year, will he or she read every one? I doubt those extra books would have been bought in the first place.

    Good point about recommending the site. I hadn’t thought of that.

  • Paul

    Since it takes such dedication to read books, it’s really pretty cheap of authors to make people steal them and read them for nothing. It’s only fair that authors start paying readers to take books and read them…

  • Nic Boshart

    Okay, Paul. So I’ll call the Internet and tell them to stop digital book downloading. Then I’ll call Sony and Amazon and let them know we’re going back to paper. Problem solved.

    So you’re right, people should pay for things. But they won’t sometimes. Lots of times, though, people will. Publishers have to adjust and start thinking about business models that include fair pricing for digital books, value added content, such as updates to text books, new works in anthologies, etc, that add value to eBooks.

    The publishing industry has done a good enough job destroying itself through (returns, author advances, refusing to price eBooks fairly) that pirates are the least of its concerns. Box stores and online shopping have done more damage than digital book piracy ever will.

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