As content shifts to digital, books are the latest content that is becoming digitized and whose channel for purchase has shifted from retail stores to online transmission. E-books have been increasing rapidly in popularity, and they were one of the most popular Christmas gifts this year. However, they are still in the early adoption phase with digitized books only making up 1.4% of books sales at the end of 2009 although e-book reader sales are expected to double in 2010 (Kiplinger's Personal Finance; Mar2010, Vol. 64 Issue 3, p78-78, 1p). Many have compared e-books to MP3s however there are some significant differences. I would like to examine the customer experience of using E-readers and predict future adoption of the product.

In terms of comparing e-book readers to MP3 players, the value proposition is similar in many ways but also different. The ease of purchase between an E-Book and an MP3 is very similar in sense you can instantly purchase and consume from your home or anywhere Internet access is available. You are able to avoid the drive to the shopping center or mall, the search for a parking spot, and then the walk into the bookstore to search for your book. In comparison to purchasing books online, you do not have to pay shipping and then wait for your books to arrive in the mail. Also, with e-books, there is the advantage compared to going to bookstores that you can get instant recommendations based on past purchases. In terms of the differences between their value propositions, you have to look at the products they are replacing. E-books are replacing physical books while MP3s are replacing CDs. There really is no advantage that CDs have over MP3s to the typical consumer. CDs have slightly higher quality sound but the typical layman cannot tell the difference. However, there is a substantial difference in terms of the customer experience between physical books and e-books. Many people like the touch and feel of a book versus reading something off a computer screen. Also many rabid book readers view their bookcase as symbolic of their high intelligence and large knowledge base. This is where the adoption of e-book readers could differ from MP3 players.

Another topic I would like to examine is the consumer experience with e-book readers and how this can be improved. I would like to examine the purchase of e-books, the physical interface of e-books, and the usage scenarios of e-books and where they could have an advantage over traditional books. Amazon is obviously the current leader in e-books and offers a complete solution with both e-books and an e-book reader. I will examine this experience and how it can be improved. I will also examine Apple’s strategy in the e-book market space, as they have now announced the iPad and how they intend to improve upon Amazon’s e-book solution. Apple greatest attribute is their ability to enhance the consumer experience by simplifying it and offering a complete solution. For E-books this will be the ease of use of the iPad and also the ability to purchase e-books over iTunes.

E-books are posed as a disruptive technology to traditional books. Bookstores like Barnes and Noble are greatly threatened by this technology just as Virgin Music stores where threatened and eventually put out of business by the online purchase and transmission of music. It is yet to be seen if this will happen with bookstores. A good article I have found as a starting point for my research is the Wall Street Journal Article, “E-Readers: They're Hot Now, But the Story Isn't Over”. This article states, “Books are having their iPod moment this holiday season. But buyer beware: It could also turn out to be an eight-track moment.” It is clear that e-books will continue to exist as a niche product but whether they can exceed traditional books sales is up for debate and dependent on the continued improvement of the e-book consumer experience. I would like to examine this market trend and examine how the e-book consumer experience can be improved so that E-books can be move from being a niche product to being a truly disruptive technology that becomes the dominate platform for book reading.