E-Book Pricing and the DoJ Collusion Lawsuit

Agency model vs. wholesale model. Price fixing. Amazon. Apple.

There has been a lot of news lately about e-books, and this week saw the announcement of a trial date for the fate of e-book pricing, as the Department of Justice will square off against Apple and two major publishers a year from now, on June 3, 2013. For consumers and writers, it's worth paying attention.

The original DoJ lawsuit had been filed against Apple and five major publishers, alleging a conspiracy of e-book price fixing as they tried to mount a battle against Amazon and what some call its "predatory pricing."

At the heart of the matter is the charge that Apple and the publishers worked together to get the e-book industry to rely on the "agency model" of pricing, and thus raise the price of e-books. This seemed to be their best defense against Amazon, which follows the "wholesale model" that allows it to price e-books far below what publishers recommend.

Also in this arrangement was Apple staking claim to "most favored nation" status, which meant publishers could not offer their e-books cheaper anywhere else on the web than the Apple Store. This move quickly translated to higher e-book prices for Amazon’s Kindle store. Three publishers -- HarperCollins, Hachette, and Simon & Schuster -- have agreed to a settlement that has drawn the ire of many in the industry. But the two others -- Macmillan and Penguin -- are staying with Apple and fighting the suit.

For those wanting to understand this case more fully, MacStories offers a helpful explanation of what's at stake and did a tremendous job breaking down the jargon. And, pointy-headed reader that I am, I found its simple graphics went a long way in defining the terminology:

• Wholesale model: retailers buy books at a wholesale price and then sell them at a price they determine is best, whether at the publisher's suggested higher retail price or, as Amazon does to promote interest in the Kindle, at a deeply reduced price
• Agency model: publishers control pricing and simply sell through "agents," retailers like Amazon or Apple, who cannot set a book's cost 
• And a new one on me, the Most Favored Nation clause, which requires the wholesaler to provide the retailer, in this case Apple, with the best wholesale price and thus protects Apple from having to compete. Through MFN, Apple always has the lowest-possible e-book price available

Whether you see Amazon as an evil behemoth out to undercut any possible profit you could make off your book, or as a savior helping bring digital books to the masses at cheap prices, there is a lot to consider in this case.

This article from PCMag explains the week's developments -- framing what the issues are for both sides as the lawsuit moves to trial. Apple, which had sought an earlier trial date, denies the charges and says the company brought competition to the e-book world where Amazon did not. But says Attorney General Eric Holder in bringing the collusion charges, ". . . we believe that consumers paid millions of dollars more for some of the most popular titles." 

For the long view, check out indie e-book distributor Smashwords, which offers an in-depth look at the case, with both the short- and long-term effects, and what it means for authors (it has published more than 130,000 e-books) in its article written back in March 2012. "Ever since we adopted the agency model," the article states, "I had faith that in a free market ecosystem where the supply of product (e-books) exceeds the demand, that suppliers (authors and publishers) would use price as a competitive tool, and this would naturally lead to lower prices."

And for some interesting perspectives, GalleyCat features strong opinions about Amazon's actions, U.S. News says price fixing could hurt Apple, and the Consumer Federation of America's top spokesman says critics of the DoJ lawsuit "are engaging in a luddite rant against change."

Print Books Never Lose Battery Life at Bedtime

The  Joan Ganz Cooney Center has come out with some interesting studies about print books and e-books, and their peppy cousin the enhanced e-book. The results, which you can read at Digital Book World, are significant not only for the learning they show among young readers, but also for the perceptions parents have about the way young people read. Look for a complete report on the survey by the end of this summer.

There seems to be a bit of a disconnect.


One study showed that kids, ranging in age from 3 to 6 years, preferred reading an e-book to a paper book. And it looked at their comprehension rates, showing no difference between the paper format and the digital one. This study was small but is one of the first of its kind to attempt to determine if there is a preference or difference in how kids take in stories.

When you add the enhanced e-books like picture book apps into the mix, allowing for more finger swiping and tip tapping, comprehension rates drop, the study shows. Food for thought for teachers incorporating picture book apps into the classroom, but also great fodder for app producers trying to stay true to book apps as learning tools for young readers.

In another Cooney Center study, taking the pulse of 1,200 parents, it might come as no surprise to learn that parents prefer print books over digital when they read with their children. But the interesting tidbit here is that they believe their children do too. (Parents, see above study.)

I can't disagree with the Old Guard in this survey. And though I don't want to be lumped in with any of the hysteria around parents worrying that tablets are turning their readers into zombies, I'll be the first to admit that I still love snuggling up on a pillow with my kids and sharing a paper book. While I am fine with my kids reading a novel or picture book app on the iPad during the day, there is something intrusive about having a screen on at bedtime.

Many of us spend a big part of our day policing screen time and knocking our kids off the electronic toys and out onto the green stuff growing in the yard. So while it's good to see studies that show positives around children's engagement with digital books, it will likely take a while for parents to get behind the notion of a glowing screen on when the stars come out.

What about you? What do your kids prefer? And how do you read to them at bedtime?

Betsy Bird's Top Picture Books Poll and Apps

I love lists. Making them, marking things off of them, threatening to put my children on them. Lists for top movies and songs are always helpful when I'm feeling indecisive about what to play. And lists for books are precious for addled brains like my own when I'm at the library or bookstore and feeling overwhelmed by all my choices.

So when Betsy Bird announced a new poll on her Fuse #8 blog for top picture books and chapter books, I was very excited. It's fun to consider what stories stand the test of time, and what new authors and books are essential to any bookshelf. And for dotMomming, I want to know if the best books for kids are becoming available in digital format.

The current poll repeats the enormous feat Betsy pulled off in 2009. Here are the top 10 picture books that made the list then:

1. Where the Wild Things Are by Maurice Sendak (1963)
2. Goodnight Moon by Margaret Wise Brown (1947) 
3. The Very Hungry Caterpillar by Eric Carle (1979)
4. The Snowy Day by Ezra Jack Keats (1962)
5. Don’t Let the Pigeon Drive the Bus by Mo Willems (2003)
6. Make Way for Ducklings by Robert McCloskey (1941)
7. Harold and the Purple Crayon by Crockett Johnson (1955)
8. Madeline by Ludwig Bemelmans (1939)
9. Millions of Cats by Wanda Gag (1928)
10. Knuffle Bunny: A Cautionary Tale by Mo Willems (2004)

Way back in 2009, the iPad was only a glimmer in Apple's eye. It wasn't released until April 2010, so the idea of enhanced picture books was still a ways off. But what about now? How many of these top picture books can you download in the App Store today?

Where the Wild Things Are? Nope. And judging by Maurice Sendak's feelings about e-books, it would take a lot of convincing to bring about an app.

Goodnight Moon? What you find in app format is not the picture book. Very Hungry Caterpillar? Here's the first of these top 10 books to appear in the App Store, though it's not the picture book but rather a math game featuring the adorable caterpillar and Eric Carle's lovely fruit. The Snowy Day? Nope.

Mo Willems' Don't Let the Pigeon Drive the Bus arrived in app format in October 2011 as Don't Let the Pigeon Run This App! (Disney, $6.99). Rather than provide the same content as the paper book, Willems' app lets young readers create their own pigeon stories again and again. Willems is clearly committed to traditional reading and ventured into digital books reluctantly, describing e-books in USAToday, "With all their bells and whistles and word jumbles and assorted narrative killers, after we turn them on, they don't need us."

Make Way for Ducklings app? Nope. Harold and the Purple Crayon (Trilogy Studios, $6.99) is available in a lovely app format that made the CYBILS app finalist list this year. Madeline? Nope. Millions of Cats? Nope. Knuffle Bunny? Not yet, but there might be hope.

"I didn't want to be some reactionary luddite," Willems says in the USAToday interview. "I'm not saying everything electronic is evil."

Check out the rules for nominating your picks for the top 100 picture books and chapter books on the Fuse#8 blog and then email your favorites to Betsy Bird at Top100Poll@gmail.com. The deadline is 11:59 p.m. Eastern on April 15, 2012.

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Auryn's Founder on Storytelling Opportunities

We heard from author-illustrator Sue Shanahan last month about her beautiful new app, Love You to the Moon and Back, from award-winning app producer Auryn. This week dotMomming features Umesh Shukla, founder and CEO of Auryn, to find out more about the app market, picture books, and children's literacy.

Kirkus Reviews calls the Auryn team "some of the best developers in the business." And through collaborations with legendary children's authors like Rosemary Wells, it is establishing itself as a serious player in the highly competitive children's app market. Readers who are not yet familiar with Auryn's books can get up to speed quickly this month as Auryn plans to give away a free picture book app every day in celebration of National Reading Month.

dotMomming: You have come out with some lovely apps based on print picture books, such as Don Freeman's stories (Hattie the Backstage Bat, Inspector Peckit), the Teddy books, and the Miko series. Can you explain how this model – creating enhanced, interactive books out of existing print books – is successful for an app producer?

Umesh Shukla: In any content business, working with an established brand always helps; even more, when a new format like the tablet comes along. We have been fortunate to have worked with numerous established brands. It has mutually benefited both us and these brands. While we get an opportunity to showcase our capabilities with the help of these brands, they get Auryn’s expertise in maintaining their brand value, while transforming their intellectual properties to a new medium.

DM: Do you see Auryn opening the door to original stories from new authors and illustrators? Why or why not?

US: Absolutely. Every new device presents some very unique, device-specific storytelling opportunities, and we are very keen to move in that direction with the right creative partners.

DM: Auryn is one of the first producers out of the starting gate. How has that worked in your favor? Now that the bigger houses such as Scholastic are entering into app-land, what does that mean for smaller independents such as Auryn?

US: It’s still an emerging field. We believe there is plenty of room for players both big and small. Having bigger players enter the field simply establishes the validity of the new format, and helps everyone involved in creating content for that medium.

DM: What type of books do you see Auryn creating – strictly picture books for young readers, or older interactive books for middle-schoolers, too? What do you hope to accomplish as a producer of enhanced books for kids?

US: Currently our focus is in picture books, as they allow us to showcase our patented rendering technology. But we are in the storytelling business and do plan to open ourselves to other genres in coming months/years.

DM: Can you speak to literacy learning? How do you see the uptake of books and learning changing for young readers as more classrooms open up to digital media? And where do picture book apps such as the ones Auryn produces fit in?

US: I am very excited by the emerging opportunities new devices offer in every kind of learning. School bags are going to get much lighter. Now abstract concepts can be presented in so many subtle and interesting ways to help a child grasp them better. The learning possibilities are enormous.

A small example of it would be the inclusion of pronunciation guides in our apps. While the child is reading the story, he or she can learn to relate the sound to the words. I think we are lucky to be working in a medium that is being defined and redefined everyday. We hope to play a big part in shaping its future.

Space Dog's Treasure Island an Adventure

As I read Space Dog Books' Treasure Island app, I kept thinking of one of the many wonderful lines that Violet, Dowager Countess of Grantham (Maggie Smith), utters on Downton Abbey: "Electricity in the kitchen? Whatever for?"

Treasure Island, the Robert Louis Stevenson's classic published in 1883, seems to have done pretty well for itself left all alone in its paper form. And app producers have to tread carefully when enhancing classic books in the public domain -- readers can choose to download the no-frills option for free or pay for the updated one, which in this case retails for $7.99 in the App Store.

So an enhanced Treasure Island for the iPad at first begs the same question, "Whatever for?" Well the answer, simply put, is for the sake of young readers.

Artist Matthew Cruickshank's illustrations are superb and immediately draw readers in with their playful, sly style and vivid colors. They are sophisticated without being adult, yet there is no whiff of kindergarten either. The look and feel of this Treasure Island is solidly for the independent readers.

So why an app and not just a well-illustrated e-book? There are many reasons why this version of Treasure Island is so appealing. The story has obviously stood the test of time, and this abridged version is no exception. But what has changed is the reader.

I am not saying that kids these days must have whistles and bells to hold their attention. And this Treasure Island does not pander to that notion -- there are no games imbedded in the story, no links readers can follow that take them away from the narrative. There are few gimmicks here, and kids expecting to find an escape hatch might be disappointed.

Treasure Island's interactivity is amusing and meant to provide a pause in the 34-chapters of action. And frankly, who wouldn't want to hear a pirate sing, "Fifteen men on a dead man's chest. . ."? A lush illustration accompanies the start of almost every chapter, sometimes providing opportunities for readers to swipe or tap the image to move a character or hear a bit of dialogue, other times just as  animations that beautifully capture the scene. When interacting with the animations, readers will hear sound effects like chirping birds, clip-clopping horse hooves, snarling pirates, and occasional dramatic music. And since this is a book clearly geared for boys, there are burps. Many burps. In glorious variety.

Small illustrations within chapters offer simple interactivity like tilting the iPad and seeing the rum inside a corked bottle slosh around, sliding a key into a lock and clicking it open, and flicking the tiny ship at sea and having it bob in the ocean. And gorgeous full-page animations capture big scenes in clever detail.

Reading is clearly the emphasis with Space Dog's Treasure Island, and while there are no "read-to-me" options as with picture book apps for a younger audience, there are still tools to help navigate the book. A pull-down ribbon lets readers return to the beginning, jump to another chapter, and see how to interact with an animation. And while there is no tool for adjusting type size, I found the text clear and easy to read and no different from a traditional book page.

I don't think young readers are too different from the grownup kind. Sometimes they want to stretch out on the couch with a good book and few distractions. With this digital updating of a wonderful children's classic, Space Dog's gorgeous Treasure Island provides just that.

Author-Artist Shanahan Debuts With Auryn

There's no denying that the way children read books and "experience" stories -- whether through gaming, downloading digital books, watching YouTube, recording videos of their stories themselves -- is changing. And storytelling is transforming right along with it. For authors and illustrators of children's books, picture book apps offer an exciting new frontier.

Sue Shanahan is one such author-illustrator who has ventured into app-land. A longtime artist focused on children, she decided to give it a go and see her work produced in digital form rather than book. Working with top-notch app producer Auryn, whose Teddy's Day, Teddy's Night, and Miko series have earned rave reviews, she has created the adorable Love You to the Moon and Back for the iPad. We asked Sue to share how she broke into the picture book app market.

dotMomming: How long have you been illustrating for children. Is the Love You to the Moon and Back app your first digital book?

Sue Shanahan: My career illustrating for children began over 30 years ago. I've been fascinated with the human form for as long as I can remember. On top of that, I'm crazy about kids. So illustrating for children was a natural fit. Love You to the Moon and Back is my first digital book. It was made from pre-existing art that I own the copyright to. With the help of a couple of SCBWI members, I wrote the poem the art illustrates. Right now I’m working on finishing up the illustrations for another picture book app for Auryn. This is a full-fledged story that’s been milling around in my brain for a years. I am very excited about finally bringing it to fruition. I have my fingers crossed that Auryn will produce it into a premium app like Teddy's Day.

DM: Was it hard to break into the app market? Have you knocked on a lot of doors, or was Auryn your first?

SS: Actually, Auryn was my first. I was surprised how quickly they called after my submission. They liked my work, but it also was extremely important that I owned the copyright to everything.

DM: Author-illustrators are particularly attractive to publishers, both in the digital realm and the printed page. Do you feel you're at an advantage compared with other writers and artists trying to catch an editor's eye?

SS: Definitely. I have a feeling with new apps, Auryn only is interested in picture book author/illustrators. They have been producing apps from pre-existing picture books but only if the book company no longer owns the rights.

DM: The Love You app merges beautiful illustrations with gentle interactivity that reinforces reading. While it can be read alone, it offers great engagement opportunities for parents to record their voices and share the message of unconditional love. Are you happy with the results of your work when you see it on the iPad.

SS: It is a wonderful feeling to read my book on the iPad. The illumination from behind brings my art to life unlike being reproduced on the printed page.

DM: Publishing in the iTunes store is a different experience than in the bookstore down the street. Love You is priced at $0.99. How have sales been so far? Would you do it all again?

SS: The app sales are moving along steadily. I was told not to worry about the sales at this point. It takes awhile for them to gain a momentum. I do appreciate the wonderful reviews customers are giving it in iTunes. Yes, I would do it again. I think this is where books are going. It's exciting to be in on the ground floor.

DM: I liked the inclusiveness of your illustrations -- children are features from all walks of life, including a little girl with Down's syndrome. This is so rare to see in a mainstream picture book. How has the book been received so far?

SS: My art has always reflected the beauty of all kinds of kids. Long ago, I was miffed when an art director insisted I stylize my art like the "Gerber Baby." I stubbornly refused to. My thought was, “How is a child supposed to feel good about herself if there are no images of her in the world?” Who decides what's beautiful anyway? One of my heroes is Norman Rockwell. I figured if capturing real people worked for him it could work for me too. Today people respond to the diversity in my art. Truly, what's different about us is what makes us beautiful.

Grover Takes Home Cybils for Best Book App

The Cybils were announced today, and I am delighted to see The Monster at the End of this Book as the winner in the brand-new Best Book App category. Sesame Workshop and Callaway DigitalArts get it right with this effort, engaging young readers in the truest sense through highlighted text, hilarious narration, and a fun storyline. While often we see kids zone out with digital devices, Monster leaves no room for passive observing: Grover spends all his time trying to keep the reader from turning the page and getting to the end of the book. It is an app they'll go back to again and again.

Judging for the Cybils was an honor and a thrill because this new medium is still so wide open. And our expectations for what picture book apps can and should be are so varied. Looking at the finalists, you can see the range of styles: Hildegard Sings stays true to its picture book roots with traditional presentation of text and adorable interactivity. For young readers, it feels like a natural extension of a book, with a great deal of fun added in. Click on thought bubbles to see what characters have in mind, tap on a plate of food to feed our hungry hippo, throw tomatoes at the stage after a performance. Hildegard is a great example of an "enhanced" book, taking something that worked great in the paper world and making it interactive and fun for the digital one.

At the other end of the spectrum is Bobo Explores Light, which is a completely original book that takes the game to a whole new level. Top-notch illustration, animation, and -- get this -- education. I felt like this was the definition of digital learning, and I see it as the future of books. If you buy anything off this list, go right this second to the iTunes Store and purchase this app. I was blown away by how much information is right there at, well, your fingertips.

Bobo is a nonfiction effort to introduce kids to scientific concepts, and it covers a lot of turf: lasers, telescopes, lightning, reflection, bio-luminescence, and sunlight. Readers are accompanied on their journey by an adorable robot named Bobo. While Bobo communicates and helps the reader navigate the page, Bobo does not narrate. So kids have to do the work of reading, and there is a lot of material. But they are rewarded throughout by pulldown screens that show videos, games using lasers and mirrors, and so much more.

Bobo is for an older audience, so it was a challenge to compare an app like this against the adorable ones for the pre-reading set. Perhaps next year we'll see a variety of Cybils app categories to even the playing field. It felt odd comparing Harold and the Purple Crayon against Middle-School Confidential, a book about self-image for tweens.

And the visually dazzling Fantastic Flying Books of Mr. Morris Lessmore prompted some great discussion. Part book and part movie, this William Joyce effort is a stunning ode to books and storytelling -- and as if proving their point, you can also get Morris Lessmore as a paper book and see the short film, which has been nominated for an Oscar. While I loved this beautiful app, it felt more like a movie-watching experience than a reading one. Again, a passive experience vs. an active one. Great app to buy right this second to see for yourself and test-drive with the kids in your life.

And that brings us to the seventh and final nominee, which was Pat the Bunny. I loved how this app brings us full circle. It is based on Dorothy Kunhardt's cutting-edge "touch and feel" children's book published in 1940, which introduced generations of babies to books by letting them pat the bunny's soft fur and sniff the sweet-smelling flowers. Revolutionary! With this app, pre-readers are once again engaged in creative ways through playing peek-a-boo, finding where the bunny is hiding, catching butterflies, and much more.

If you're curious about the potential picture book apps have for early literacy, these books are great examples of the best that you can find. They are definitely worth checking out. Congratulations to all the finalists.

And if you want to get involved in some of the conversations, visit the blogs of my fellow panel of Cybils judges, such as Mary Ann Scheuer's terrific Great Kid Books, as well as Alyson Beecher's KidLitFrenzy, Elizabeth LeBris' LeBrisary, and Dan Santat's website.