EBooks: changing the publishing industry, PwC

PwC

14

Digital rights management (DRM) – not an 

inherent problem

Scarcely any other subject has stirred more 

intense discussions in relation to eBooks 

as DRM. The publisher or the author is 

responsible for deciding whether eBooks 

are granted protection. DRM is not limited 

to one format and is fundamentally 

conceivable in all formats. In general, 

Adobe Digital Editions (ADE) copy 

protection is used for this purpose. In order 

to read text, users must first install ADE

on their PC or mobile reading device, and 

then register with an Adobe ID. This is a 

relatively complicated process and distracts 

the user experience.

One alternative to Adobe Digital 

Editions may be a watermark, which is 

partially visible for the consumer but not 

distracting. This means that purchased 

eBooks can be uniquely allocated to one 

consumer. The advantage of a so-called 

soft DRM strategy is that it does not have a 

negative impact on the process of reading 

eBooks.

Another option is the model introduced 

in the US by Amazon and Apple, in which 

content is registered to one user. This 

DRM policy allows the user to read eBooks 

on many devices, but not to transfer it 

to a device registered to someone else. 

The restriction often goes unnoticed and 

usually does not affect consumers.

In the long term, most experts expect 

cumbersome DRM will disappear and that 

developments on the eBook market will 

follow those that have been seen on the 

music market. Music publishers abandoned 

DRM in spring 2009, after a lengthy battle 

against file sharing. Experts believe that

abolishing DRM is necessary sooner rather 

than later because illegal content will be 

available anyway as the market develops, 

and that DRM will not be able to perform 

its protection function. Most experts expect 

that soft DRM will become established. 

The advantage of soft DRM is that the legal 

owner is easy to identify, and that the use 

and forwarding of the electronic book is 

not affected by the watermark. 

Technical complexity – not an issue for 

everybody

Online bookstores and physical bookstores 

also complain about the technical 

complexity of the devices and claim that 

eReaders should be intuitive. 

On the other hand, for experts of 

publishers or special interest publishers, 

technical complexity is less important. 

In their opinion, the problem is the 

willingness of consumers to tackle the 

problems associated with new devices for 

reading books. 

Customer interest and look and feel

Nevertheles, experts believe that 

consumers are (at least potentially) 

interested in eBooks. Even the look and 

feel argument – that consumers would 

prefer to hold a book in their hands and 

thumb through the pages – appears to be 

an unimportant factor. On the contrary, 

industry representatives agree that this 

attitude will change as soon as consumers 

have tried out eBooks and eReaders. 

No Oprah Winfrey effect

Most experts believe Oprah-moment 

consumers have not yet been adequately 

informed of the advantages of electronic 

reading. One expert believes that, in 

Germany, there has not been an Oprah-

moment for eReaders. “When Oprah 

Winfrey holds the Kindle up to the camera 

and says, ’I love this device’, at once, the 

target group that identifies itself with

Oprah Winfrey will consider whether to 

purchase such a device. This still has to 

happen in Germany.” 

The experts consider that there are two 

not-to-be underestimated arguments 

against eBooks: The book on the shelf and 

the book as a gift. Books are a prestige 

object frequently used to demonstrate the 

owner’s authority, taste, and education. 

They are also a popular gift for birthdays, 

holidays and other special occasions.