Daily Digest for September 1st, 2010
All the News Affecting Royalties, Royalty Software, or Rights Managment for Wednesday, September 1st:
A free webcast tomorrow on e-readers; Borders bears more bad news; and DRM vs. Copyright
eReaders Webcast: The New Mass Market? (Roundtable: 9/2/10)
Does This iBook Have DRM (and, Is It Copyrighted?)
e-Readers: The New Mass Market? (Roundtable: 9/2/10)
Digital Book World provides a webcast of The Roundtable, a live, interactive gathering some of the most outspoken industry professionals to debate the hottest publishing issues of the week, as being discussed in traditional media, the blogiverse and on Twitter. This week’s Roundtable will be webcast live at 1pm EDT on Thursday, September 2, 2010. This week’s topic:
e-Readers: The New Mass Market?
Borders Posts Wider Loss
Borders Group Inc. reported that losses rose in the second quarter, following news that it will sell more non-book items going into the crucial holiday season – including, of course, the Build-A-Bear stations that have received so much attention attention and derision in the past few days.
The chain is also closing several underperforming stores, and in an attempt to compete with discount retailers like Walmart, it is introducing a paid loyalty program to leverage customer loyalty. The $20 program will offer consumers discounts and free shipping.
Borders Inc. CEO Mike Edwards said more changes are in the works. Since the beginning of the fiscal year the company has ended seven leases at underperforming stores early, and will continue to do so throughout the year.
“We are increasing our assortment in the high-end stationary and gift items, and expanding other productive non-book categories such as adult games and puzzles, which were a runaway success last holiday,” Edwards said in a call with analysts.
Borders also introduced a paid loyalty program, in which members pay $20 a year for access to discounts and free shipping.
Loss for the quarter ended July 31 totaled $46.7 million, or 67 cents per share. That compares with a loss of $45.6 million, or 76 cents per share, last year.
Revenue fell 12 percent to $526.1 million from $594.2 million.
Revenue in stores open at least one year fell 6.8 percent. This is a key indicator of a retailer’s performance, because it excludes growth at stores that open or close during the year. Weakness in trade book sales was offset by strength in the company’s bargain and cafe departments. Revenue from Borders.com rose 56 percent to $15.5 million.
Borders is focusing on its selection of electronic-book readers to drive higher revenue.
The company lowered its Kobo electronic book reader price by $20 to $129.99 and will also offer the Aluratek Libre eBook Reader Pro for $99. Borders offers six electronic book readers in its stores and plans to expand that before the holidays arrive.
Border’s chief rival Barnes & Noble Inc. last week reported a first-quarter loss, partly because of costs related to a lawsuit and proxy contest with billionaire investor Ron Burkle, who has criticized the way the company is being run. Barnes & Noble has said it is exploring strategic options including putting itself up for sale.
Borders shares fell 2 cents to $1.06 during midday trading.
Does This iBook Have DRM (and, Is It Copyrighted?)
Katie Gatto wrote yesterday on how to tell if an iBook is protected by DRM, using a few simple steps in iTunes. The article drew some quick responses, pointing out that she was conflating the concepts of DRM and copyright.
Chris Meadows’ response, on Teleread, breaks down the often-overlooked differences between what DRM means, and copyright means. He writes:
“(Gatto) begins the article with “If you want to know which of your ebooks are DRM free and which have been protected by copyright,” then mentions that this process “will let you know if a book has DRM protections or if you’re free to share it with others,” and says that if a book is listed as protected, “it has a copyright attached.” She then concludes, “Use accordingly to avoid lawsuits.”
Of course, if you use according to her advice, you probably won’t be avoiding lawsuits. It should be needless to say that plenty of non-DRM-protected e-books (such as those sold by Baen, or posted online by Cory Doctorow) are fully copyright-protected—meaning that while you might be able to share them with friends, you are not necessarily legally free to unless the holder of the copyright allows it.
Might a decreased understanding of copyright be one of the casualties of the media industry’s reliance on DRM? I didn’t think the fact that everything is copyrighted under current copyright law (including books, e-books, Internet posts, and even scribblings on the backs of napkins) was that hard to understand, let alone that foregoing DRM does not mean you are foregoing your right to protection under the law.”
The Daily Digest from Rights and Royalties News is the fast summary of any and every story relevant to the rights management, royalty software, and royalties management world.
