By Kim Yoo-chul
Electronic book (e-book) readers were supposed to be the next big thing in the technology industry. However, the high prices of the devices and the lack of a content ecosystem seem to be sucking the life out of the nascent market.
Adding to the uncertainties over the future of e-book readers are the expected emergence of competing products, such as tablet computers inspired by the success of Apple's iPad, which reads as "iPain" for companies like Samsung Electronics, which jumped early on the e-book bandwagon that is becoming squeaky.
Because of the murky outlook of the market, book publishers are in no hurry to convert their existing material into e-book content, and this is resulting in a paucity of excitement among consumers.
According to industry analysts, the country's e-book market will struggle to reach 50,000 sales by the end of this year, a mark that would be significantly lower than the pre-year expectations.
"To me, it's simple ― I have not and will not by an e-book device. Hardly anything on the shelves seems worthy of their 300,000 won (about $250) or higher price tags, especially when there's not much to read," said Cho Young-hee, a 32-year-old employee of a Seoul-based Internet company.
"Korea has still yet to find an intriguing device like Amazon’s Kindle to create a significant buzz. Nobody is really excited about e-book devices here."
Samsung, which already released a series of SNE-branded e-book readers, wasn't comfortable enough to unveil its sales figures.
The company's timid start is certainly disappointing, as it appeared to start with an edge on the content front by partnering with Kyobo Bookstore, the country’s largest book retailer.
Samsung is believed to be considering scrapping its plans to sell its e-book readers globally, due to its low brand recognition and uncertain profitability, although company officials are declining to confirm this.
The reality is perhaps even worse for smaller manufacturers of e-book readers. BookCube sold only 5,000 of its e-book readers that was released in February, while its rival Neolux is hoping it could manage to sell 10,000 of its products by the end of the year.
Even the bright start into the e-book reader market by iriver, the music-player maker, is largely based on its sales overseas.
"The country's e-book market will crash on its face, and isn't likely to make a real noise in the next few years. The interest from Samsung and other major markers already seems to be waning," said an industry watcher.
Unlike Korea, where electronics makers appear ready to wash their hands of e-book readers, the major American players seem to be aggressively tackling the challenge provided by the iPad and other competing products, lowering the prices of their e-ink-based products and jolting marketing efforts.
Amazon recently boasted that that it was selling more e-books than hard-covers on its website. The late Stieg Larsson, known particularly for his collection of crime fiction, became the first author to sell more than 1 million e-books, Amazon said.
"It's hard to imagine a Korean company duplicating Amazon's success here, as the copyright issues are a lot more complicated. The passiveness by content providers in expanding their distribution mediums is also a letdown," said the industry official.
"It could pay for publishers and bookstores to show a sense of urgency though. Bricks-and-mortar bookstores are increasingly finding themselves caught in a difficult and out-dated business, as evidence by the way they try to grab every last penny from their in-house coffee shops and book signings."
Korea's publishing market was the world's fifth largest last year. A report by the Korea Electronic Publishing Association (KEPA) forecast e-books to account for 20 percent of total publication by 2012, from the expected 5 percent this year.
Despite the murky outlook for the e-book sector, there is a dedicated group of bookstores and device makers who remain convinced that their returns will someday justify their investment.
The market may become more lively when the prices of the devices becoming more reasonable, according to an official at iriver.
"We remain positive over the potential of the domestic market, as the content pool will eventually catch up," said Lee Sang-won, a senior iriver executive.
"Tablet computers will help, as they will drive e-book prices lower. Devices based on e-ink are still retaining momentum," said another official at Neolux.
Interpark (www.interpark.com), an online retailer, remains committed to its e-book reader, Biscuit, and recently established a specialized business unit to promote the sales of the devices.
Interpark is also developing content for iPads and the iPhone smartphones, while BookCube is also planning to ride the popularity of Apple's devices.