Friday, March 11, 2011

Essay: Customs Duties on Books 2011

Just got back from the post office to pick up books sent by a publisher (for review purposes and gifts, as opposed to something I purchased). Now I honestly don't mind paying taxes for books (as someone tweeted to me, pleasure derived from books is priceless). What I am asking from the government, however, is some consistency. So are the taxes on book imports lifted or not? (From my understanding, massive book importers aren't taxed anymore [but I don't work for any major bookstore so I don't know if that's truly the case] but individuals claiming packages from the post office are.) Are we honoring the Florence Agreement or not? Look, I'm not against taxing of import books per se, but if the government is just going to tax us, at the very least it should be written in our laws rather than the hypocrisy of claiming one statement and practicing another. There is also the arguable breakdown of fees charged on us citizens.

So a publisher sent me books with a declared value of $50.00 (P2,150.00). Unfortunately, I was taxed $22.23 (P956.00). Attached is a scan of the receipt but allow me to elaborate on the breakdown:



Import Duty: $2.00 (P107.5). 5% of the declared value.
BIR Taxes: $0.35 (P15.00). Probably a fixed rate.
VAT: $7.74 (P333.00). This is computed by getting 12% of the declared value plus import duty plus BIR taxes plus customs duty plus import processing fee. (Is it reasonable that 12% is computed after all the other fees? Well, my main complaint is why are there so many miscellaneous fees such as customs duty.)
Customs Duty: $5.81 (P250.00). I have no idea how this is computed. It seems that this price varies from product to product based on duties on other products I researched online. But this seems to be a relatively fixed rate for books.
Import Processing Fee: $5.81 (P250.00). Fixed rate. (This together with customs duty is an impractical amount for books. What if a publisher sent me a book with a retail value of around P500? Already happened to me last year.)

Everything amounts to $22.23 (P956.00), which isn't inclusive of the postal fee ($0.93 or P40.00).

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Sandstorm by Christopher Rowe

Thursday, March 10, 2011

Essay: Book vs. eBook

One of my pet peeves is the Book vs. eBook argument. It's a loaded question that's erroneous and perpetuating a false assumption that could, in the long run, harm the public image of both formats. It's not about choosing one format over the other. To frame the question Book or eBook is as ridiculous as making the claim that there is a war between Hardcovers and Mass Market Paperbacks. Or Books and Audiobooks. They're different formats, period. On day one, I might purchase an audio book. On day two, an eBook. On day three, a hardcover. The formats are not engaged in a battle royale where the reader is exclusively sticking to one kind of purchase. Or if they are, it does not necessitate them buying the other formats. For example, if I'm the type of person who purchases audio books exclusively (because they're part of the listening experience during the commute), if they suddenly disappear altogether, I won't suddenly be purchasing print books en masse.

What's disconcerting about the Book vs. eBook framework is that it's a lazy solution on the part of publishers and pundits. Instead of asking how both formats can profit, they are instead playing the blame game and attempt to vilify one format over the other.

Cory Doctorow making his novels available free for download is a popular example of how one could go about with the Book-eBook symbiosis: the free eBooks encourage readers to purchase the print book. Having said that, this is just one model and perhaps unsustainable in the future (or as Paul Cornell puts it, "betting against the future"). It currently works right now (or for some authors) because eBooks are just a small percentage of the market, at least compared to print. It's not a paradigm that can be practiced if your eBook sales vastly outnumber your print sales for example. Similarly, while it's not a relationship that can be outright described as parasitism (popularity of print does not diminish the digital books), it's a model that benefits the Book more than the eBook.

There are other innovative models out there but unfortunately, because they're not accomplished by major publishers, or simply within our respective industries/genres, they're overlooked. Evil Hat Productions for example has an interesting pre-order system for retailers: if a customer pre-orders a book at the store, retailers can hand them a PDF (burned to a CD) so that they walk out with something, even when the actual book hasn't been released yet in print. Paizo Publishing, at least with its gaming line, lets consumers buy the Book along with the eBook (a free PDF is thrown in for free if you subscribe to their Pathfinder line). What's great about this model is that while you wait for the delivery of the print book, you immediately have a product which you can peruse. These models complement instead of antagonizing the various formats.

The success of the eBook does not preclude the death of the book (and vice versa). The real innovators in the industry will find ways to make both formats work without being detrimental to the other.

March 10, 2011 Links and Plugs

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Lightspeed #10

Wednesday, March 09, 2011

Essay: What's Required for an eBook Ecosystem

One of my criticisms is that outside of the US/UK (and Japan), a lot of countries simply don't have the "infrastructure" for eBooks to flourish. I want to break down the points when I talk about infrastructure.

Ubiquity of eBook Reading Devices: While I think it's possible to nurture an eBook-using community using desktop computers, the popularity of eBooks--at least the ones you pay for--is due to the rise of portable eBook reading devices. What consumers from the US/UK take for granted is the price of these devices and how uncommon they are in other countries. For example, daily minimum wage in the Philippines is $8.00 (that's $8.00 a day, not per hour!) so even the cheapest Kindle is never an impulse buy--at least to the common Filipino. That daily wage is better spent buying a cheap novel (there's a lot of cheap romance novels here with Harlequin-esque covers) for under $2.00, hence my skepticism of paperbacks becoming obsolete here (at least at this point in time). I'm part of the middle-class/upper-class and my budget for books tends to be in the $8.00 ~ $10.00 price range, so I have more leeway when it comes to eBook purchases, but the "upfront" cost of a dedicated eBook reader is still a significant investment. The only time I can imagine eBooks taking off here (as far as this criteria is concerned) is with either the rise of cheap eBook readers (around the $20.00 mark) or if it was somehow subsumed with an existing, prevalent technology (such as mobile phones, which IS ubiquitous here and other countries).

The second problem is the availability of eBook Reading Devices themselves (I'll qualify this statement though in my third point). Do you think Kindle devices are being sold in local stores? Or Sony Readers? The only device that's become commonplace is Apple's iPad (which isn't a dedicated eBook reader per se), and not only is it expensive, we're also far from Apple's list of priorities (For example, I got an email from Apple with "Introducing iPad 2" in the subject line and "iPad 2 is currently unavailable in the Philippines" in the body). Related to this is also the consumer's knowledge: do they know how to operate the device? Do they know about the different eBook formats, and whether their device can support their format of choice? At the end of the day for example, owning a Kindle is moot if you don't know how to use it. (For the record, I don't think Kindles are hard to use, but it is an issue for those devices that don't have their own ecosystem and lack elegant design.)

The third problem is simply lack of knowledge and awareness. Do Filipino readers know that we have local eBook readers like Redfox's Wizlib G51 E-Book Reader or CD-R King's 7" TFT Multimedia E-Book? (I'm not promoting these devices by the way; I've tried CD-R King's reader and it wasn't an elegant experience.) Or that you could read books via SMS with Wattpad? You can have solutions, but if the public is not aware of them, then the point is moot.

A System to Purchase eBooks: Owning (and knowing how to use) an eBook Reader is just one part of the equation. The device is useless after all unless you can load books into it. The first hurdle is where to purchase eBooks, and to anyone outside of the US/UK, that's not an easy answer. For example, Amazon? Sure, but that's assuming a) you own a credit card and b) that credit card is recognized by Amazon (i.e. valid in the US). Also depending on where you are in the world, Amazon is charging you an extra $2.00 (way to go to encourage developing countries to buy eBooks). Barnes & Noble doesn't sell me eBooks outright (or to anyone outside of the US and covered territories) while Apple's local iBookstore has a very limited selection when it comes to fiction (i.e. mostly books in the public domain). For science/fiction fantasy, there are vendors like Wizard's Tower Bookstore and Weightless Books, or even individual author websites, but the problem goes back to consumer awareness. This is also, in part, due to geo-restrictions on eBooks (which, to the casual consumer, sounds counter-intuitive to the technology).

The second problem, even as I mentioned alternatives above, is the fact that not every consumer owns a credit card. This is poignant in the Philippines, as even my co-workers have to be rejected multiple times by the bank in order to avail of a credit card (and even then, only half of us owns one). What's more common are alternative micropayment transactions, such as prepaid cards for mobile phones and Internet. In our case, solutions might be GCash or Smart Money for mobile phone users. Other countries have similar micropayment schemes such as Paymo and Zong. Dao Pay enables consumers to pay via their phone bill. Another possible solution is to simply sell eBooks as physical media (for face-to-face transactions), like CDs (or flash drives and SD cards for those with higher budgets) locally.

A question I get asked is how can this can be established by a local publisher. And that's honestly a big hurdle. Big companies like Amazon and Apple have the luxury of having a good back-end (i.e. if you lose a copy of your eBook, their website has a copy which you can re-download) and name recognition. A local fledging publisher for example would have to train consumers to shop at their website, as well as establish an online server that's not only intuitive for consumers to use but secure as well for transactions to be conducted with confidence.

These are, in my opinion, two requirements which have various implications. And I'm not yet delving into formats, DRM, rights and copyrights, etc.

March 9, 2011 Links and Plugs

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Apex Magazine #22

Tuesday, March 08, 2011

Essay: Will eBooks Kill the Mass Market Paperback?

With the rise in popularity of eBooks, one of the theories is that it will come to replace mass-market paperbacks since they both seem to fill the same niche: cheap, accessible books (as opposed to limited and collector's editions).

I have no problem with this theory except it needs to be qualified. One of the significant points most people ignore, when talking about eBooks, is context. The US and UK currently have the infrastructure to support eBooks. In such a place, the death of the mass market paperback in the future is conceivable.

But in a country like the Philippines wherein majority of the population can't afford dedicated eBook readers (nor to mention lacking the previously mentioned "infrastructure"), that's hardly going to be the case. If you're going to be a best-seller that's selling in the tens of thousands, it's simply cheaper and more efficient to release your book in mass-market. I imagine that's also the case for regions like India.

Culture is also another factor to take into consideration. In Japan, the rise of the cellphone novel (which includes comics) hasn't marked the end of phone book manga which is format that's very disposable (it's discarded in trash bins after the commute). This is a scenario of both print and eBooks co-existing as both industries are booming there.

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One More Unfortunate by Kaitlin Queen

Friday, March 04, 2011

Essay: Of Publishers and Libraries

In history, people--especially those who profit from the current status quo--are afraid of new concepts. In at least one point in time, the following have been accused of causing the death of their respective industries: secondhand bookstores, photocopiers, radio, cassette tapes, VHS, the Internet. Now, when we look back at them, some have become ubiquitous, such as radio, while others have simply been accepted, in the case of secondhand bookstores. That's not to say they don't receive criticism now and then, but for the most part, they are objects of the past as the industry looks for new scapegoats.

Libraries, in my opinion, would have faced the same kind of scrutiny if it weren't for their long history. Most people simply assume that they are part of the common good. You would look like an idiot if you suddenly said "libraries are causing the death of the publishing industry!" But with the rising popularity of eBooks, in the US/UK at least, you can't help but feel that this is the sentiment of many publishers. The obvious culprit would be HarperCollins putting a 26 loan cap on eBooks purchased by libraries. But that's not the entire picture. At the very least, HarperCollins had a policy when it comes to eBooks and libraries. Macmillan and Simon & Schuster for example do not allow eBooks to be circulated in libraries (so I find it ironic that the target of the call for boycott is HarperCollins when there are worse offenders; I mean 26 loan cap is better than a publisher that doesn't allow loaning books right?). It's also interesting that the EULA--tied not to the book you purchase but usually to the devices/software you use--is usually inadequate when it comes to covering library support or even to the concept of books in general.

Publishers are drawing a distinction between the rights of the consumer vs. that of libraries. And that's fair. The usage and needs of a consumer is different from that of a library. Having said that, you can't help but feel that publishers are ostracizing libraries. Contrary to what publishers might believe, librarians aren't amoral. They do want to give publishers and authors their due. That's why when they set up an eBook library, they (usually) employ services like OverDrive and NetLibrary to guarantee that the eBooks have DRM (I'm usually anti-DRM but it's understandable in this case) and expire once the due date is past.

The problem is that publishers are treating libraries as if they were a detriment to their business. For example, the flaw in reasoning with HarperCollins's 26 checkout rule is that a print book doesn't expire after 26 usages. That's why libraries are taught how to care for and restore books, to prolong its lifespan. And when the book finally breaks down, it doesn't automatically mean the library buys a new copy. It might entail a slot for a new and different book.

There are two things that's not readily apparent to people: how a print library works and how an eBook library works. With the former, librarians are constrained by shelf space: they cannot infinitely expand their collection. If they are to acquire new books, one of two things must happen: they must either expand their real estate or discard existing books in their collection to make room for the new one (which is why libraries end up selling some books). Now the first possibility is unlikely to happen and costly so it's usually the second that takes place.

eBook libraries, on the other hand, have the possibility to infinitely expand for minimum costs (i.e. real estate is not a problem). Now this might seem like a big benefit to libraries but there's a significant hurdle eBook libraries have to take into consideration: overhead costs. Establishing an eBook library means starting over. First, you need to create (or license) a system that lets users browse, read, and borrow books. Then you need to train the librarians and staff. Then you need to purchase machines (computers, eBook readers) and other necessary equipment (i.e. router, Internet connection, etc.). Finally comes the actual purchasing of eBooks. Those things don't come cheap (which is why librarians from other countries have a problem with HarperCollins on an abstract level rather than a practical level because they can't afford the overhead to start their own eBook libraries, at least at this point in time) and there is a bigger burden on the library vs. that of an individual user. A consumer's computer can be used for other tasks (such as their business). A computer in the library used for reading eBooks will only be used for reading eBooks (although it can be subsumed into other services the library might be offering, such as browsing the Internet).

Now a library interested in pursuing an eBook collection is making a big investment. The problem with the HarperCollins policy is that it's increasing the burden of an institution that's designed to actually drive interest in the publisher's books. I won't even delve into other problems a library might face, such as format wars, device wars, etc.

Some commenters said that the best solution is for libraries to simply stick with print. Unfortunately, that's short-sighted, as more and more readers (in the US/UK) are getting accustomed to reading books on a screen. Remember how the big publishers and bookstores initially ignored eBooks?

Libraries, at least in the US/UK want to stock eBooks. Unfortunately, the eBook infrastructure, especially those from publishers, aren't--or don't want--to deal with them. They perceive libraries as a big threat when they are, in many ways, their biggest supporters and fans. The tragedy is that some readers who don't find eBooks available in libraries won't necessarily buy them from legal retailers or vendors. There's always piracy and publisher policies only end up hurting themselves.

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Nightsiders by Sue Isle

Thursday, March 03, 2011

More eBook Disparity

So Barnes & Noble doesn't sell me eBooks (doesn't "ship" internationally), few fiction books at the local iBookstore, and Amazon charges me extra $2.00 for all their Kindle books (http://bit.ly/gckrLf). Is there any doubt for US/UK disparity when it comes to eBooks?

My recommendation is to buy/support from Weightless Books (http://weightlessbooks.com/) and/or Wizard's Tower Books (http://www.wizardstowerbooks.com/)

March 3, 2011 Links and Plugs

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 Burn Bright by Marianne de Pierres

Wednesday, March 02, 2011

March 2, 2011 Links and Plugs

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 Yellowcake by Margo Lanagan