Avid digitalmissive readers know, I have long considered the New York subway my prefered ad-hoc “test tube”, to get a read on the adoption status of the latest available digital devices and services. Turns out, when it comes to eReaders, I am really not seeing much excitement among my fellow straphangers these days.

Apart from the occasional Amazon Kindle, Big Apple subway riders don’t seem overly attracted (yet!) to the burgeoning world of portable electronic book and magazine devices.

How come?

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What’s going on? 

Of the ten or so people sitting immediately around me on the New York subway from 14th to Wall Street, an impressive seven riders actually read a book!

Yes, actually reading hard and soft cover books, one page at a time, without the help of an iPod, or Kindle, or any other digital hand-held device.

Although completely anectodal (and statistically irrelevant, I know), behind my impromptu mini sample of “analog” readership, is there more than meets the eye?

Hey, it’s probably just a push back by a few, against the omnipresent popularity of overly slick and shinny digital rich media players packaged in 21st century form factor and UI.

Or maybe it is a case of “it’s the economy, stupid”.

People reading relatively inexpensive physical books today may be an indicator that previously released Zunes and iPods are now considered way to pricy.

My money, though, is on a different point: My seven fellow straphanges have either re-discovered the age-old value proposition of printed paper, or never actually abandoned their love for it.

To them I guess, when reading a real book, the tactile experience is unqiue and remains unmatched compared to any digital e-reader counterparts.

There’s also a certain emotional bind to turning pages manually, one by one. 

Oh, and if you are into dog-ears, try that with an Amazon Kindle - can’t be done.

Long story short, companies have long started working on e-paper and e-readers to recreate similar effects, but none seemed to have cracked the code on sufficiently simulating the organic experience of holding and reading an actual book. 

Until there is a similarly satisfying “touch and feel” reading experience with e-reading devices, I’d like to assume my seven subway mates probably are the equivalent of vinyl record fans amidst a sea of DVD owners.

Nothing major. Nothing to be concerned about. It’s interesting though, as the e-reader industry seems to still have ways to go.

PS: For those of you interested in “the latest and greatest” innovation in e-books, e-reading, and the like, check out these items:

In case you missed the first one, Amazon Kindle II is coming out

Amazon to offer e-books on Apple devices

Sony going next-gen with its own e-Reader, too

The bookworm project now supported by O’Reilly

Stanza, a prominent e-reader iPhone app

Google Books now officially online

Samsung has genuine interest in actual e-paper

Consider Sony and Apple - in many ways, two similar companies: both span both the computing and CE spaces, both have intimate connections to a major studio (Sony Pictures and Disney, respectively), and both adhere to closed-end vertical silo business models.  Granted, Sony doesn’t write their own operating systems, and unlike Apple TV, the current Sony internet-video-to-the-television box (the Internet Video Link) is partnered with 3rd party services such as Amazon’s Video on Demand - but in other ways Sony represents more of a closed ecosystem than Apple: while the Apple TV will work with any HDMI-equipped TV, the Video Link will only work with Sony Bravia televisions - and while iTunes is platform-agnostic, Sony’s previous ill-fated internet TV device from a few years back (the Sony Room Link) demanded not only a PC, but a Sony Viao PC.

This past week saw some news from both companies:

• Sony announced an expected $US 2.9b operating loss for 2008
• Apple recorded a year-over-year revenue increase of over 6% for the most recent quarter - and this despite the historically horrendous macroeconomic climate of the past few months



It’s an ongoing debate among those of us who think about consumer electronics and technology: closed proprietary platforms vs. open standards-based platforms.  Stability and elegance on one hand, lower costs and increased innovation on the other - two entirely different paradigms.

In addition to their numerous other circumstantial similarities, Sony and Apple both subscribe to the former - so maybe it’s not about the intrinsic advantages of a closed or open technology model (or other factors, for that matter) as much as it’s about the quality and desirability of the product.

The groundswell of interest in finally getting internet video over to the television in such a way that avoids the clunky computer-centric workarounds we’ve seen to date is picking up steam - just in time for next month’s CES show.

While this is much as we expected, a more surprising (and related) development is the resilient strength in game console sales:

• As of October, the video game industry is up 18% year-over-year, and remains on track for a record year.
• Microsoft reports November was its biggest xBox month ever in Europe, with sales up 124% over last November.
• According to a recent Pew Internet & American Life Project survey, more than half of American adults play video games, and 20% play every day.  More importantly (because after all, this is the future we’re talking about here), a full 81% of respondents between the ages of 18 and 29 are home video gamers.  And the gender gap is less than one would think: while 55% of adult males play, surprisingly, 50%of adult females report playing as well.

Needless to say, given the current economic climate, numbers like these are quite impressive – and suggest the game console could be a much more viable solution to that pesky internet video ‘last yard’ problem than previously thought.  With that, a brief overview of the three competing platforms:

Sony Due to an ongoing price war, Sony now loses money on each PS3 it sells, according to Macquarie Securities analyst David Gibson.  However, the company is firmly committed to the PS3 as an integral part of their long-term internet video strategy, and just rolled out a newly revamped Playstation Network direct video download service for the PS3.  What’s unique about the PS3?  Sony is able to leverage its unique position as both a CE manufacturer and a major film studio, and recently made Sony Pictures’ summer Will Smith vehicle ‘Hancock’ available via download prior to the DVD release.

Microsoft The complex and expensive prospect of upgrading the home PC to Vista Premium or Ultimate just to get internet video to the television has unsurprisingly proven less than compelling to most consumers.  In contrast, over the recent Thanksgiving weekend Microsoft reports a 25 percent increase over last year’s already robust sales of 310,000 xBox units - in short, it’s clear where the growth is.  Like Sony, Microsoft has a direct video download service for their game console (and like the Playstation Network, the xBox Live Marketplace offers a large number of titles in HD).  What’s unique about the xBox 360?  The Microsoft download library is larger than the recently launched Sony service’s, and in addition, the xBox can now also stream content from your Netflix ‘Watch Instantly’ queue (in other words, but an xBox, get Roku functionality for free).  While (like Roku) titles must be added to the queue from the Netflix website, the ability to both stream and download (and the better selection for both) gives the xBox an edge over the PS3 in terms of internet video functionality.

Nintendo Here we have a bit of a wild card.  Thanks to their groundbreaking motion-sensing remote control (and a unique selection of games made possible by it), the Nintendo Wii is the market leading game console in the US, selling 34.6 million units for 2008 Q3 (compared to 16.8 million for the PS3 and 22.5 for the xBox).  The company has been remarkably circumspect regarding its plans for internet video, though – so look for some kind of announcement shortly, perhaps at CES in January.  What’s unique about the Wii?  With no hard drive, any internet video solution would be streaming-based – which is just as well, since the Wii has only 480p (DVD) resolution anyway (although it’s worth noting that real-world demand for HD video has proven surprisingly low).   But perhaps the most interesting aspect of the Wii is the motion sensing remote – as user interfaces get more advanced to support direct internet video access from the TV, we expect this point-and-click technology to replace the cluttered button-filled remotes of today.

Who knows, Apple TV and Vudu have certainly gotten a lot of things right, but neither has yet made a meaningful impact on the market – perhaps the Trojan Horse of online mutli-player video gaming will be just the added value proposition needed to make for a compelling ‘Last Yard’ solution.

Who knew? Porn on the New York subway. But then again, wasn’t it inevitable?

The place: A crowded afternoon N train from Manhattan to Brooklyn. The culprit: a Sony PlayStation Portable held by a young man sitting and watching in solitude, yet surrounded by plenty other strap hangers trying to get home.

What exactly happened here?

The first thing that got me was the audacity of it. With his PSP packed with genuine XXX fodder, simply put, what he was watching was nothing short of hard core pornographic visual certainly not intended for public transportation.

The next thing I noticed, no one seemed to pay attention. Hence - at least for the duration of my ride - no one seemed to mind.

What about the woman next to him, seemingly asleep? Another nearby busied herself reading, of all things, scripture. There were plenty  of other men and woman immediately around us while others got on and off the train.

Now, I know New York subway commuters have long learned to mind their own business.

But the video that unfolded in front of all of us (the sound was muted) clearly lowered the bar on anyone’s standard of privacy; clearly was so out of the ordinary that for it mere ostentatiousness I figured someone would have to bring it up.

Above and beyond my own discontent about the young man’s obvious lack of social skills, I quickly found myself rather intrigued by something else in this - the apparent disconnect between device and audience.

What used to be a consumer video experience “curbed” by the lack of technology’s reach, a TV set and a VCR simply didn’t lend itself to any practical use in full public view.

This kept anyone’s viewing choice a private matter. No matter how sexual, violent, or mundane the footage was, consumption and intent remained locked inside the home.

Fast forward, today’s “anytime anywhere” video consumption capabilities have changed the playing field. The new paradigm: Anyone’s personal video experience is super-portable, devoid of any particular time, place, and for that matter choice of companion viewers.

Think about it.

Sprint Nextel recently started delivering WiMAX-enabled wireless broadband service powerful enough to give you downlink speeds of 25 Mbps or more while driving down the highway.

Essentially an open pipe into and out of the World Wide Web, it’s going to be interesting to see what passing cars are watching in the back seats once content is no longer limited to wholesome satellite subscription services or Disney DVDs brought along for the kids.

And what about in-flight Web access, such as the service recently announced by American Airlines for select domestic trips?

No matter whether on a highway, on an airplane or inside a subway car in New York, what’s OK for the person to the left of you might be unacceptable to the one on the right.

Clearly, with the pervasive nature of digital content and enabling delivery devices, the meaning of “privacy” is undergoing change.

As to my personal opinion, I am in favor of self-regulating one’s public conduct. Anything beyond that might quickly collide with core principles such as net neutrality or freedom of speech.

Still, our old-world definition of privacy seems to be changing as more of our new world trends towards digital and portable at once.

It’ll be interesting to see how this pans out.

I’ve been thinking lately about how business issues (the shifting landscape of allegiances between companies) affects what (and when) technologies become available.

Not for nuthin’ (as they say here in New York) - here are a few thoughts…

no Flash on iPhone’s Safari browser
I think Adobe would be more than happy to write an iPhone Safari Flash player, but Apple is probably hoping the growing number of iPhone users will drive wider adoption of their Quicktime platform for streaming.  More on that here.

no Hulu-iPhone app
OK, so no Flash - but at least we get a bundled YouTube iPhone App that streams via QuickTime - because despite YouTube’s parent Google being behind the competing android smartphone platform, the two companies get along quite well, thank you (witness the iPhone’s rock solid gmail support).   Why not, then, a similar Flash-workaround Hulu iPhone App?  I imagine Hulu would love to see the swelling ranks of iPhone owners use their service (batteries permitting),  but don’t hold your breath: AT&T would have a major problem with that, because of the additonal bandwidth required (the average Hulu program is a lot longer than the average YouTube snippet).  This, by the way, is also the reason you won’t see an approved iPhone App any time soon allowing you to use the camera to shoot rudimentary video - as cool as that would be, AT&T doesn’t want us emailing anything that big around…  (although ‘jailbroken’ apps are out there if you’re brave and/or foolhardy enough to go off the Apple reservation and unlock the thing).

no Disney/Pixar content on Amazon’s ‘Video on Demand’ service
As a result of selling Pixar to Disney in 2004, Steve Jobs became Disney’s largest individual stockholder, and was given a seat on the Disney board.  iTunes video (via Apple TV) happens to compete directly with Amazon Video on Demand (via TiVo and the Sony Bravia).  Although Jobs has described Apple TV as nothing more than a ‘hobby’, could Apple have influenced Disney/Pixar not to play ball with such a direct internet video competitor?

no NBC/Universal content on Sony’s ‘Video Store’ service
NBC/Universal is the only major studio absent from the recently launched Sony Video Store service - since NBC is partnered with Microsoft on MSNBC, could NBC be a little reluctant to sign a deal with Microsoft’s game console arch rival Sony?

I’m just sayin’….