The application itself is pretty sparse, with just a few buttons for sorting books and switching between downloaded and archived books. Amazon did not integrate the Kindle store into the application, though a prominent link in the app opens up the Kindle store in the browser. This comes as a surprise, given how easy it would be to integrate the store. While reading books, users can adjust the size of the font and bookmark a page. The app can display notes and highlights that were created on a Kindle or in the Kindle for iPhone app.

In designing the app, Amazon clearly had touchscreen and netbook users in mind. All the buttons in the app are large and the left and right edges of the application can be clicked - or tapped - to move between pages. To advance a page, users can also use their cursor keys or mouse wheel.

Users of the Windows application can not add notes or highlights to a book right now, though the company plans to add the ability to create notes and highlights in the application in the future. Amazon is also considering to add a search feature, as well as the ability zoom and rotate images. Another feature that is currently missing but that netbook users would likely appreciate is a full-screen mode.

Kindle Everywhere

Overall, the app is easy to use and works as advertised. The lack of a built-in store and the ability to add notes and highlights is a slight disappointment, though. Sony, Barnes & Noble and others offer desktop e-readers for OSX and Windows with more features. Amazon decided to keep the application as simple as possible.

For Amazon, this is an important move, as it gives the company access to a wider market. While Amazon has sold millions of Kindles, the PC market is still far bigger and the popularity of netbooks could also give the app a boost. Reading a book on a PC or laptop is not as comfortable as on a hardware e-reader with an e-ink display, but the free desktop application will allow users to sample e-books and get accustomed to the process before buying an e-reader.

The desktop application will also give Amazon a presence on all the big platforms - so while other devices may be more open than the Kindle, this argument against the Kindle becomes less potent as Kindle users can now read their books virtually everywhere anyway.

The new Twitter links, however, are a whole new story. If an Amazon Associates member takes the time to re-write the text into their own words, there's virtually no way to know by looking at the post that the Twitter update is actually an ad.

Is Amazon Spamming Twitter?

In the past, several legitimate companies have diluted the Twitter stream with promotions and contests encouraging Twitter users to "tweet to win" so to speak, by pasting in some sort of marketing message into the "What are you doing?" box or by appending a promotional hashtag to their everyday messages. But unlike these company-run Twitter promotions, there's not a hashtag to use or any specific wording that has to be tweeted in order to participate in the Amazon Affiliate program. All anyone has to do is tweet links along with the message of their choosing.

Because Amazon's marketplace is extensive in terms of the products it sells, there's a wide variety of things which can be promoted. No matter what a Twitterer's particular interest is: music, politics, technology, etc., there's bound to be hundreds of things that could be mentioned in their Twitter stream without the posts appearing to be an ad. In fact, there's a good possibility that they would have been talking about these products anyway throughout the course of the day...they just couldn't have made any money off of them until now.

Hidden Advertisements

The problem with this sort of "hidden" advertising, though, is exactly that: it's hidden. This is the internet's version of "product placement" - subtle advertising in plain sight yet never clearly identified as such. Was your favorite TV star using a Macbook? Was he drinking a Coke? Already commonplace in Hollywood, these almost subliminal advertising messages permeate our consciousness every time we turn on the TV. Now that same sort of hidden ad will soon show up in the Twitter streams of your favorite tweeters.

Soon they'll start promoting a great book they just read, a DVD they liked, or one of a million other things pulled out of Amazon's vast inventory. None of it will sound out of place given the types of informal conversations that take place on Twitter every day. You won't even know that they're advertising to you until you click through on the link and find yourself on an Amazon.com webpage - and even then, you may not be sure. Was that a referral or were they genuinely just linking to the Amazon website to be helpful?

Will the FTC Step In?

Another question this raises, at least here in the U.S., is whether or not the FTC will get involved. Having recently taken steps to make sure that bloggers were properly disclosing freebies or payments received by companies whose products were being reviewed on their sites, one has to wonder if they'll now be tempted to monitor the undisclosed advertising that's about to explode on Twitter.

Amazon could have avoided the potential threat of government involvement (not to mention the accusations that they're "spamming Twitter") by generating their links using their own proprietary URL-shortening system, something like amzn.com or amz.com for example. That would clearly identify the tweets' purpose. But instead, they opted to make their links with the URL shortener bit.ly, the one that Twitter itself uses by default. This makes the Amazon links indistinguishable at a glance from any other shortened link posted to Twitter. There's no way to tell if a tweet is an ad unless the Twitter user left Amazon's auto-generated text in place. Of course, no one is going to use that text except the laziest of Twitter spammers - people you're probably already avoiding.

Tell Amazon What You Think with #AMZNSOT

Today, many Twitter users are coming out against this new type of Twitter-fueled advertising, registering their complaints via tweets marked with the #AMZNSOT hashtag, the official tag used to give Amazon feedback about the system. These users are already branding this new effort "spam," saying things like: "Amazon now gives you cash for spamming on Twitter? Oh, swell," as Twitter user TwitBin says. "Does this just mean more Twitter spam as people try to make money?" asks NickHerbert. But there are just as many Twitter users saying nice things about the new system too, calling it "cool," "awesome," "sweet," and even claiming it "rocks."

You can give Amazon your two cents as well by updating Twitter with your thoughts and including the #AMZNSOT hashtag along with your message.

Whether you think the new Amazon Twitter integration is good or bad, there's no doubt that it will be a major game changer for Twitter. As it blurs the lines between conversation and ads, people seem to think that Amazon has either created something of genius or has ruined Twitter as we know it. Few seem to be undecided when it comes to their feelings about this issue. The question is now: which side will end up being in the majority?

Amazon already has a similar speedy checkout system known as "1-Click." When activated, customers can associate payment methods with a frequently used shipping address, such as a home address, to quickly complete purchases without having to fill out their name, address, and credit card details.

Although not designed to replace 1-Click, the new PayPhrase system is even easier to use and more flexible. Using this system, shoppers don't have to be signed in to the site with an Amazon account as is necessary with 1-Click. That saves an extra step and could lead to more impulse buys as there's no "cooling down" time, however brief, between seeing something you want to purchase and then finalizing the transaction.

The PayPhrase system also allows for the creation of multiple PayPhrases and PINs so you can associate different addresses and methods of payment with each other. For example, you could additionally have a corporate credit card tied to your office address or a pre-paid credit card your children use tied to your home address. 1-Click checkout, on the other hand, only allows for the combination of one address and one method of payment.

The PayPhrase technology will go live across all of Amazon.com as well as on several third-party sites that use "Checkout by Amazon," a service that lets other retailers checkout customers by using their personal and payment information saved on Amazon's servers. At this time, DKNY, Jockey, Patagonia, Buy.com, J&R, and Car-Toys have announced they will add the PayPhrase system on their sites, too.

Is PayPhrase the Future of Mobile Transactions?

Clearly, the new PayPhrase technology has been designed to make online checkout easier, but could there be more to it than that? Earlier this month, the company launched a mobile payments service which allows mobile application developers to integrate Amazon's checkout system into their mobile software and mobile websites. The mobile payments system also allows for the integration of the 1-Click checkout process, so there's no reason to doubt that the PayPhrase technology will now also be added to the payments platform as well.

With PayPhrase, the process of making an online purchase takes far less steps than any other checkout system today. Even PayPal forces you to sign in, choose payment methods, and complete your transaction before being redirected back to the retailer's website. While a few extra steps aren't a big deal on the web, when you're on a mobile phone, every delay makes it that much harder thanks to slower internet connection speeds, tiny keyboards, and, more often than not, a lack of time to get involved in any long process. If you can't checkout in a minute or so, it's generally not even worth bothering until you're back at home on your broadband-connected PC. But with PayPhrase, you can checkout incredibly fast - only two steps are required: one to enter your special phrase and another to enter your PIN. Although Amazon hasn't made any formal announcements about integrating PayPhrase into their mobile platform just yet, they must have had it in mind when they designed this technology.

One of the main reasons why Forrester is correcting its forecast is the fact that prices have come down (and this report was actually written before the Amazon announcement). In addition, Forrester also sees increased consumer awareness thanks to the current media buzz around eReaders. While the Kindle was mentioned 8,680 times in news stories in 2008, it has been mentioned over 15,700 times in 2009 already (including the month of September). In addition, the fact that more content is now available and that manufacturers like iRex and Sony are backing the open ePub standard is also opening up the market to buyers who previously weren't interested in Amazon's closed Kindle ecosystem.

Outlook for 2010: Even Better

For next year, Forrester expects that Barnes & Noble will become serious competition for Amazon. With the iRex Digital Reader 800 and the forthcoming Plastic Logic reader, B&N will be able to offer its customers a lineup of eReaders that can easily challenge Amazon's Kindle - though not in the international market that Amazon just entered yesterday.

Forrester also expects that Apple's mythical tablet could become a major force in the eReader market, though for the time being, the Apple tablet is obviously nothing more than a rumor.

Clearly the eReader market is growing at a rapid pace. Just yesterday, when Amazon unveiled the reduced prices for its Kindle 2 and the launch of the AT&T-powered "U.S. & International Wireless" version of the Kindle 2, Amazon's CEO and founder Jeff Bezoz pointed out in an interview with the New York Times that whenever Amazon offers both a Kindle and paper version of a book, 48% of total sales now come from the digital Kindle edition. In May, this number was 35%. While Amazon doesn't release sales numbers for the Kindle, these numbers are only possible if Amazon has sold a lot more Kindles than most analysts previously thought.

Customers using the new Mobile Payments Service (MPS) will first sign-in using an Amazon MPS-enabled phone or mobile application. After this initial authentication process, they'll then be able to make all future purchases from that device without having to sign in again. This includes the 1-Click checkout functionality. 

As the MPS website shows, it only takes four steps for a mobile shopper to complete their purchase using the new technology. First, the customer clicks on the "Pay with Amazon" button which directs them to a mobile site hosted by Amazon Payments. From there, the customer can pick which payment method they want to use from the options they already have on file with Amazon. After the payment is authorized, the customer is then automatically redirected back to the original mobile website where they can then be offered the download they just purchased.

For Developers: No Extra Work Required

Developers and merchants already using the company's Amazon Payments service on their websites won't need to do any additional development work - the service will automatically detect when customers are shopping from a mobile device and will switch over to the new mobile optimized payment interface.

In other words, that means that developers can continue to use Amazon FPS (flexible payment service) APIs they've already been using to build their applications and they don't need to go back and re-code anything to make the apps mobile-compatible.

One of the first companies to launch the Amazon MPS is Handmark, a mobile content store where customers can shop for games and applications across a number of platforms including Android, Blackberry, iPhone, Palm OS, Windows Mobile, Symbian, and Java devices. The company will integrate the technology within its online store and its on-device channels.

Developers interested in integrating this technology into their mobile applications can learn how to do so via the Amazon MPS website. 

For now, B&N only advertises its iPhone, BlackBerry, and PC/Mac software readers on its site, but the company doesn't offer any compatible hardware readers just yet. Since the launch of the eBook store, B&N has announced a partnership with iRex and we are still waiting for the mythical Plastic Logic eReader to appear.

A spike in interest right after the launch of a new product is obviously nothing unusual, but this data shows that B&N could challenge the Kindle in the long run. To do so, however, B&N needs to offer users a clear alternative to Amazon's Kindle. Sony, which offers numerous eReaders that are connected to its eBook store, is obviously also trying to make a major push in the eBook market and while its numbers are slowly trending up, Amazon and the Kindle remain in a clear lead. As Compete's McGovern points out, B&N has shown that it can easily drive its customers to its eBook store - thanks, in no small part, to a very successful email campaign - but it will need to offer a hardware eReader to really take on Amazon.

Personalization has long been a buzzword on the Internet. With the glut of information on the Web circa 2009, personalization in this era means providing effective filters and recommendations. Ultimately personalization is about web sites and services giving you what you want, when you want it. That's the long-standing dream anyway. Let's see if the products of 2009 are fulfilling it.

Filtering the Real-Time Firehose

Personalization is often used to provide an organization layer for users on top of real-time data. As Ken Fromm put it in his primer on the Real-Time Web:

"The Internet is shifting from discrete units of websites and Web pages to discrete units of information [...] organized in ways that are relevant and personal to each individual, using data gleaned from social graphs as well as recommendation and personalization services that allow users to set their preferences."

If you use a dashboard product like TweetDeck, Seesmic or Peoplebrowsr to use Twitter, then you're able to group people, keywords and topics. This is effectively personalization at work.

Open Web: More Data About You, Better Personalization

Another aspect of personalization is the increasing prevalence of open data on the Web. A lot of companies make their data available on the Web via APIs, web services, and open data standards. And as we discussed in the first post in this series, much of that data is structured - allowing it to be inter-connected and re-used by third parties.

How does open data lead to personalization? Simply put, the more data about you and your social graph that is available to be used by applications, the better targeted the content and/or service will be to you. There are non-trivial privacy issues about this, however the personalization benefits can be significant.

There are a whole host of open data standards on the Web now. They include:

• Data portability - taking your data and friends from one site to another.
• OpenID - portable identity; single sign-on.
• OpenSocial - Google initiative for social networks, enabling developers to create widgets with one set of code; MySpace a member, Facebook isn't.
• APML - growing 'Attention' standard; Your Attention Data is all the information online about what you read, write, share and consume.

Recommendation Engines

Many consumer products on the Web aim to recommend you things that you may like. A couple of years ago, Alex Iskold outlined what he saw as the 4 main approaches to recommendations:

• Personalized recommendation - recommend things based on the individual's past behavior
• Social recommendation - recommend things based on the past behavior of similar users
• Item recommendation - recommend things based on the item itself
• A combination of the three approaches above

Amazon is probably still the best example of recommendations on the Web, but an example of something new from 2009 was Netflix launching better personalization features in March. They included new taste preferences, allowing users to (for example) choose between movies that are romantic, suspenseful, or dark. Other additions included a personalized homepage and a feature enabling users to mix and match genres.

Conclusion

Personalization has shown slow but steady progress in 2009. It hasn't been as wild a ride as Structured Data or Real-Time Web, but we consider personalization to be a key facet of the evolving Web.

ReadWriteWeb's Top 5 Web Trends of 2009:

1. Structured Data
2. The Real-Time Web
3. Personalization
4. Mobile Web & Augmented Reality
5. Internet of Things

Image credit: davepatten

In an interview with the Guardian, George Harrison's son Dhani even suggested that rights owners create their own Beatles-specific independent music store to sell the remastered versions. If Yoko is right about the catalogue making it to iTunes, it will be interesting to see the pricing negotiated on this epic release.

Greenwood's biggest complaint about MP3s was not quality or sound compression, but rather abundance. He suggests that MP3s make it far too easy for fans to hoard music without "giving it their full attention". In a recent Pitchfork article Eric Harvey suggests the opposite. Says Harvey, "The mp3 may have atomized music into millions of little pieces, but each piece, it seems, found a publicist. The average music fan now has the built-in capacity to double as promoter and distributor in an ever-expanding arena that's making and eliminating rules every minute."

Whether you see them as hoarders or promoters, one thing is certain, the iPod generation is changing how music is consumed. But if they can't depend on tiered pricing for audio quality, how can companies monetize the new music fan? While a Stanford study suggests that the iPod generation prefers the flat sound of an MP3, it doesn't mean today's listeners aren't willing to pay for their music. According to an NPD Group report purchasers of digital music downloads increased by 29% last year with iTunes controlling a quarter of all music sold. Some of the ways fans still generate revenue for bands include streaming music subscriptions, track and album purchases, concerts tickets, merchandise and paid application downloads.

Update, Ed: there can be a big difference in audio quality of MP3s promoted on the Web. For example the quality varied greatly between Radiohead's In Rainbows album and Saul Williams' album (promoted by Trent Reznor). See Kim Gaskins' post on the new Latitude Research blog Life Connected for further analysis.

Photos taken from Dead Air Space

Based on this interview, we can't help but think that Nourry doesn't quite get the opportunities (and cost-savings) that electronic books will bring, though there can be no doubt that Amazon has now established $9.99 as the price for bestsellers in the US and all of its competitors like Barnes & Noble and Sony have followed suit (though it is not clear if Amazon's competitors are also currently subsidizing their eBooks).

Publishers obviously incur costs when producing a book and only a small number of bestsellers make up the majority of most publishers' revenue. In the eBook marketplace, however, where distribution costs are negligible and publishers could even cut out middle-men like Amazon and Sony if they wanted to, the profit margins for most publishing houses are more likely to go up than down, even if they have to price the majority of their books between $0.01 and $9.99.

Maybe We Won't Need Traditional Publishing Houses in the Future?

When we talked to Mark Coker from self-publishing house Smashwords last week, he argued that as traditional publishing houses start to reign in cost as the traditional business model in the industry starts to collapse, publishers will start to offload some of their costs to authors (copy-editing, design, etc.). Coker also thinks that publishers will start to look at self-published authors as a sort of farm-league for their big imprints. That could very well be true, and if this happens, then publishers will see even higher profit margins than today.

Or Maybe Books Will Just Hang On For a While Longer?

Of course, there is also still a chance that readers will just hang on to their regular books - after all, they have served us well for hundreds of years now. As GigaOm's Jordan Golson puts it, "There's nothing quite like going into a bookstore and browsing the shelves looking for your next great read, so the electronic revolution won't affect books as much as it has music and movies." There is some truth in this, of course, but every eBook vendor offers free first chapters of almost every book and the same argument was probably made by music aficionados whenever another local record store closed in the last few years.

For ReadWriteWeb's in-depth analysis of the changing face of publishing, read Bernard Lunn's series: Bits Of Destruction Hit the Book Publishing Business.

Everybody Now Offers Wireless Syncing

While wireless syncing and book delivery may not be that important to every potential eReader user, it did give Amazon a major leg up in marketing its Kindle and Kindle DX. In a month or two, this advantage will be gone. Amazon's competitors also offer more stylish devices, and some of the upcoming new eReaders will also offer touch screens - another feature that Amazon's Kindle doesn't currently offer.

EBook Price is Now the Same Everywhere, But Sony Supports Downloads From Local Library

In terms of pricing, Sony will soon offer an eReader for $199, which will put a lot of pressure on Amazon - though Sony's cheapest device will not offer wireless capabilities. As for books, prices everywhere are converging around a reasonable $9.99, the price Amazon pioneered as the default price for bestsellers in its Kindle store.

What's even more exciting is that eReader users will soon be able to borrow eBooks from their local libraries. Sony just announced a partnership with OverDrive, which supplies eBook technology to over 9,000 libraries. Amazon doesn't offer a similar program (yet).

Amazon's Problem: The Kindle is Closed

What's giving Amazon's competitors a major advantage right now is that their devices are far more open than the Kindle. As Slate's Farhad Manjoo points out, Sony and company could still be far more open and do away with all copyright restrictions. But at least you will be able to move your books to different devices, even though Sony still uses the standard EPUB format with a DRM wrapper, for example. Amazon's proprietary format, on the other hand, doesn't allow you to move your Kindle eBook to your new Sony Reader, for example.

For now, most publishers are still wary about releasing books without copyright DRM. We can only assume that the book publishing industry will go through a similar cycle as the music industry, however, and that DRMed eBooks will also go the way of DRMed MP3s.

The eBook market is still young. For now, Amazon's only other advantage over its competitors is that it currently has a lot of momentum among early adopters. But, as Forrester Research's Sarah Rotman Epps argued in a recent report, as eBooks move into the mainstream, late adopters may not feel the same loyalty towards Amazon that early adopters had.

Of course, Amazon could still come out with a new eReader and a more open strategy. But for now, it doesn't look like Amazon is planning to change its strategy anytime soon, and we haven't heard any news (or even rumors) of a new Kindle for quite a while. If Amazon doesn't watch out, it could soon be left behind, because other eBook vendors and hardware manufacturers offer a more open and attractive platform for publishers and users.

In the press release about this partnership, B&N's president William J. Lynch and Irex's North American CEO Kevin Hamilton both stressed that the two companies "share a distinctive, open view of the eReader market."

3G Connectivity

Given that the Irex reader will feature a 3G wireless connection, B&N looks to be in a very good position to compete with the Kindle. While we confirmed with Irex that the new eReader that B&N will use will indeed have 3G wireless connectivity, neither Irex nor B&N were ready to confirm which wireless carrier in the US will power the wireless connectivity.

Currently, the ability to download and sync books wirelessly is one of the Kindle's real advantages over other readers. The mock-ups of the new Irex reader look very good, and B&N currently offers a wider variety of eBooks than Amazon at similar price points. Sony also just announced its new line-up of readers for the holidays and the company is set to announce yet another new product later this week (possibly a reader with wireless connectivity as well).

DRM and Defective By Design

The petition states, "We believe in a way of life based on the free exchange of ideas, in which books have and will continue to play a central role. Devices like Amazon's are trying to determine how people will interact with books, but Amazon's use of DRM to control and monitor users and their books constitutes a clear threat to the free exchange of ideas."

To add your name to the petition visit the Defective By Design site.

Turf War and the Future of E-Readers

The current nature of the eReader market has many of us convinced that books and ideas lose their value simply because they've been shared, and the truth cannot be further from that. It will be interesting to see if Defective By Design can gain the momentum to keep digital books from following the familiar path of content lock down.

Their struggles in the old model have been well documented (of course, we should have expected them to write about their experiences): the starving writer up in the garret who uses rejection letters from publishers for wallpaper is an established literary hack. In the new world of print on demand, e-books and social media marketing, the author takes center stage. Those with an appetite for it can really take control of their work and commercial fortune.

In Part 1, we looked at the three big waves crashing down on the traditional book publishing business: Google Search, e-books, and print on demand. In Part 2, we tried a bit of science fiction, speculating on how this might play out for all participants: readers, authors, printers, publishers, retailers, and e-book device vendors. In Part 3, we looked at the economics of returnability and the impact of the Espresso Book Machine on the supply chain. In Part 4 here, we focus on authors, without whom we would have nothing to read.

Narrative or Reference?

The impact of digitization depends on the type of book you're talking about:

1. Narrative books, such as novels, biographies and other stories. The printed book is an ideal format for narrative books. Amazon had to recreate the print-reading experience to make the Kindle work for narrative books. Using an e-book device scores on many counts: choice, delivery, price (possibly), storage; but whether it beats the experience of reading a good old fashioned book is still unclear. In any case, narrative books are not well suited to typical online or mobile devices. Reading a novel on a laptop browser or iPhone is a degraded experience.
2. Reference books, such as education, scientific/technical/medical, and business books. Historically, these have been squeezed into the book format because no better alternative existed. The online experience could be far better than print in this case. Online, you can search, link to related works, drill down into details, see and hear rich media, etc.

Thus, we expect the impact of digitization will be much bigger and more immediate on reference books than on narrative books. Both will be affected, but reference books may see a music industry-style wave of change, while the change to narrative books may be slower and more nuanced.

New or Established Author?

This is another huge factor. This quote from an excellent report by Gilbane on "Beyond E-Books" says a lot about the business from the author's perspective:

"During the 2009 O'Reilly TOC Conference, Jason Fried of 37signals described the book that he and his colleagues had written based on lessons learned from creating and servicing their successful project management and collaboration product named Basecamp. They published their book with Lulu.com and report sales of almost $500,000 in the last several years. This enabled them to reach number three on the Lulu bestseller list at one point. Ideally, this story would have a happy ending, and they would publish their next book with Lulu.com. Alas, the success of their previous book motivated a traditional publisher to offer them a significant advance for their second book. The offer was too tempting to refuse. They now have to hope that the traditional economic model, with 10 to 20% royalties, will generate more than Lulu.com's 80-20 split. In essence, they are wagering that the traditional publisher will be able to sell at least four times the number of books that Lulu.com would have sold.

"When asked about this, Young was nonplussed. He simply stated that his goal was to publish their third book and to make them loyal authors in the future. It is his number one goal to help his authors become successful."

This will be music to the ears of traditional publishers. They can leave first-time authors to self-publish via print on demand (POD), because once the authors are established, they will want the kudos, branding, and distribution that only traditional publishers can deliver.

Well, perhaps. We are still in the very early stages of this wave of change.

Get Me Into the Book Store

Publication doesn't feel real to an author until they see their book in a traditional bookstore. Seeing it on Amazon.com is nice, but everyone knows that shelf space is unlimited online. The real prize is occupying scarce shelf space at Barnes & Nobel and independent bookstores. What the author wants to know from their publisher is, "How are you going to get me into that bookstore?"

Pure online players will respond with something along the lines of, "Well, if a lot of readers find you online, then enough of them will buy your book for a traditional publisher to become interested in you, and then that publisher will get you into bookstores." That is a relatively weak answer.

But the traditional model of stuffing shelves with "returnable" books, many of which end up getting shredded by the publisher, is clearly unsustainable, as we explored in Part 3.

How this will play out is far from clear. But one thing is clear: the landscape will look quite different.

And Do It NOW!

If you are writing a timeless classic, then the traditional three- to four-month lag between the completion of the manuscript and the book's appearance in bookstores is fine. If you are writing about something timely, that just won't cut it anymore. Bloggers and online writers will steal your thunder before your book hits the shelves. The immediacy of print on demand and e-books eliminates this time lag.

Write About What You Know

Writers do love to write, so it is not surprising that some are starting to document their experiences in the new world of POD and e-books. One that caught our eye is Literary Adventures in POD, but there are many more.

Literary Agent 2.0

In the old model, first-time authors usually had to find an agent, who then found a publisher. This site has good FAQs on the process and on deals.

These relationships -- between author and agent, and agent and publisher -- are often very personal. As such, they can be totally wonderful or totally awful, and there are plenty of tales of both. They are typical "Let's do lunch" relationships. So, bringing Web technology to this match-making experience is logical; one venture that has done this is Creative Byline.

Four Big Changes for Authors

1. Fewer advances. The lack of an advance will be compensated for by...
2. A bigger share of the pie. We expect this to grow from 10% to 30% (or more) of the retail price. The retail price will likely drop, too, and so authors will have to...
3. Create the finished product themselves. Authors will have to pay for cover art and editing out of pocket, as well as...
4. Become savvier about online marketing. A lot of tools are out there: social media, affiliate networks, email lists, SEO/SEM, and so on. Some authors will leave this up to intermediaries (the next form of publishers), and some will do it themselves.

The future of authors can thus be summed up as: do more of the work, get a bigger percentage of the retail price (which will be lower), and hustle online.

We would love to hear from authors about their experiences.

While Sony has always offered very attractive eReaders, the prices in Sony's eBook store were a deal-breaker for many who had been considering buying a Sony eBook reader. Amazon generally charges $9.99 for an eBook, but until today, Sony often asked for $11.99 or more.

At $199, the Pocket Reader is now a very attractive option for more cost-conscious users (Amazon's cheapest Kindle costs $299, though it comes with a slightly larger screen). It is also important to note that none of Sony's devices currently offer the convenience of Amazon's wireless transfer anywhere within the U.S., but Sony is committed to delivering a wireless device in future.

In contrast to Amazon's Kindle, however, the Sony devices can read files in the open EPUB format and Sony now also offers over 1 million free public domain books through Google Books. The new Sony eBook Library software (available for Macs and PCs) also makes it easy to convert PDF and Word documents and transfer them to Sony's eReaders.

The Default Price of eBooks: $9.99

The new price of $9.99 per book in the Sony eBook store is quite interesting. As David Rothman points out on the Teleread blog, Amazon is actually subsidizing its eBooks to keep the price at $9.99. The question then is whether Sony got a better deal from the publishers it is working with or whether Sony is also subsidizing the price of the books in its store?