With print circulations in decline and e-reader sales slowing, could Amazon’s new technology breathe new life into both industries?
New technologies are in development that will bring together the convenience and versatility of a tablet computer, with the comfort and portability of using an e-reader in one device, which could present new opportunities for reaching upmarket women who are the super-users of e-book technology.
In March this year, Mintel reported that “There is potential for a device that can facilitate both
an e-ink screen for reading as well as a colour LCD for entertainment. In August 2012 Amazon filed a patent for a device that incorporates an HD and an e-ink display.”
Heavy to medium users of e-books have a propensity to be educated AB women (Source: GB TGI 2014 Q2) and the new technology could offer new touchpoints for reaching this lucrative market.
In 2012, ownership of tablets exceeded sales of e-readers for the very first time (See Fig 1). Consumers who at one time may have had a laptop and an e-reader now have an additional choice of a tablet that offers them a range of functionality such as internet, e-mail and video at increasingly affordable prices.
It is now possible to pick up a range of tablets for less than £120 and this presents consumers with a decision to make at Christmas, birthdays and other occasions about upon which devices to spend their money. If technology companies can offer a device that effectively fills the dual purpose there would clearly be a market for the convenience of an e-ink e-reader and tablet in one.
These devices will be the key to growth in the e-reader market, which has already reached its peak with its current formats. There is currently no set release date for the dual purpose tech but Amazon’s HD Fire is already a step towards bringing e-readers and tablet features together. Any new product is likely to launch through Amazon’s websites providing them with enormous market potential. According to comScore Amazon attracted 19 million unique visitors from the UK during May 2014.
The new technology could also present opportunities for reaching newspaper readerships , which after a period of decline, could face a new and growing opportunity to reach their audiences as the device prices cheapen and content becomes available to a broad range of audiences for whom reading long-form content in a comfortable format is appealing.
A new report published by Mintel, Media Consumption Habits June 2014 highlighted that:
“Print newspaper purchasing is now infrequent enough that consumers are as likely to have bought a book as a newspaper over a three month period.”
While men are more likely than women to own a desktop computer, women are more likely than men to own a portable laptop/netbook, tablet computer and e-reader (See Fig 2). Since the launch of e-readers reading is back in fashion and they remain an influential source of information complementary to other media. Deloitte’s Media Consumer Survey 2013 reported books as the third most popular pastime by 39% of respondents after TV (63%) and the Internet (42%). Having the Internet and e-books in one place on a single device also brings leisure activities together with easy cross-over of media while the audience is in a single frame of mind.
The most popular types of books to read are Crime and Thrillers (46% of readers), Classic Literature (25.6) and Fantasy & Adventure (21%) (Source TGI GB Q2 2014).E-books tend to be read in bed, in communal living areas, the garden and outdoors during the day (See Fig 3). While book readers may not wish to have interruptions to the content of a good book there are opportunities to influence dependent on the type of content that the reader is consuming. For example advertising could be viewed in online newspapers and bloggers could be discussing products and markets that may be of interest to the audience.
Consumers can read e-books on tablets and tablets have the clear advantage of offering more than just reading; however e-readers use an e-ink display which is more comfortable on the eye and a must for avid book readers who want to enjoy a read without the worry of the eye-strain associated with LCD displays when viewed for long periods.
Whilst some read books on a tablet (13%), twice as many choose to read on an e-reader (26%) (Source GMI/Mintel Sep 2013). It takes hours to read a book, hence the need for a comfortable read.
For the book market, e-readers are ideal, but if manufacturers want to innovate into other areas this is a space that is being filled by the tablet. Hence a dual purpose device with dual screens could be the answer for further growth for Amazon or any other provider able to fill this space.
Amazon has the number one position in the e-reader market, with over 75% market share (Source: GB TGI Q2 2014) which has been growing at a phenomenal rate since their first e-reader product launch in 2009. Amazon has led the way through selling e-readers at cost price and making their money through book sales via their online channels.