E-readers face tough competition

By Sarah Marsh and Georgina Prodhan

FRANKFURT (Reuters) - Electronic reading devices are gaining converts but are unlikely to replace the printed book and will have to compete hard with other ways of consuming digital media, exhibitors at the Frankfurt Book Fair said.

Sales of electronic readers such as Amazon's Kindle and Sony's Reader have been growing fast, prompting smaller companies to introduce their own prototypes at the fair and publishers to step up the digitalization of their books.

The gadgets, small and light enough to fit into a handbag, can eliminate the need to carry around books and newspapers by accessing texts from the Internet to be read on a display screen at the user's convenience. Some also come with wi-fi connection.

Some believe they could galvanize the market for digital text in the way Apple's iPod did for digital music.

Penguin publishers Chief Executive John Makinson told Reuters: "They have become mainstream in the sense that they are a genuine consumer product for which there is real appetite, so this is not the province of geeks any longer."

Makinson said Penguin was now publishing all new titles both as printed books and e-books and was digitalizing its backlist.

Technology research firm iSuppli predicts that global e-book display revenue will grow to $291 million in 2012 from $3.5 million in 2007.

Fair exhibitors said e-readers were mainly used by scientists and early adopters at the moment, but were ideal for reducing the carry loads of commuters, students and travelers.

Dutch firm Polymer Vision wowed visitors at the fair with its "Readius" prototype, which has a foldable display.

Ronald Schild, head of MVB, a leading service company for the German book industry, told Reuters the e-book would not replace the printed book, but it would have certain advantages.

"My children will still read their picture books as a printed book but I am not sure they will take a 5 kilo (11 pound) rucksack to school," Schild said.

Green enthusiasts may also be swayed by the argument for e-readers, as they are not backlit, use little energy and could contribute to reducing paper consumption.

"Basically, it doesn't use energy unless you turn a page electronically," said Jeffrey van Ede, head of Sony Germany.

CHEAPER ALTERNATIVES?

But some think the price tag that comes with e-readers will prevent it from becoming mainstream, especially in the current economic climate.