Book Addicts to Get New E-Fix

Gemstar's pricey new e-book reading device made its debut Thursday, with the company's chief executive pledging to try to lower the price tag from a steep $299 to a more palatable $100 before the end of next year.

Reducing the price for the REB1100 eBook, however, will depend on technological advances and customer demand, according to Henry Yuen, chief executive officer of interactive-TV giant Gemstar, which owns TV Guide. Nevertheless, Yuen believes readers who fork over $27.95 for a hot new title in hardcover will be willing to shell out $299 for an 18-ounce device that allows them to download electronic books over a phone line and read in bed with the lights out.

Top publishing executives swarmed the press conference to ooh and ah over the REB1100 and its color-screen cousin, the REB1200, which will sell for $699. The devices, which are manufactured by RCA, will be available by Thanksgiving. Six titles from well-known fiction writers will be offered on the eBook before they are released in hardcover, though they will precede the print version by just a few days or weeks.

Are Readers Ready?

Of course, the market for e-books remains a big unknown. Major publishers have made splashy forays into electronic publishing, yet analysts remain skeptical that reading for pleasure from a computer screen will ever be popular. A study by Andersen Consulting predicted that sales of e-books will account for just 10 percent of the total book publishing market by 2005, but it also forecasts sales of 28 million e-book reading devices by then. (See "E-Books Go Mainstream.")

Gemstar's strategy puts it in competition with Microsoft Reader, the software company's e-book software, which can be used on Pocket PCs. (See "Microsoft Reader to Reach PC.")

Books Only

The REB1100 eBook is essentially the next generation of the Rocket eBook, which was produced by NuvoMedia before Gemstar acquired it. The pricier version grew out of SoftBook, which Gemstar also bought.

Gemstar has been heavily criticized for making the device too expensive and not versatile enough. The company decided not to equip the eBook to play MP3 music files or have a calendar function because it says consumer surveys indicated customers weren't enthusiastic about those features. The MP3 function will be available as an add-on down the road, however.

"Reading is an important enough consumer habit to deserve a dedicated device, " Yuen says. Those reading addicts will be able to download a dozen magazines and newspapers to the device. And should eBook owners ever tear themselves away from reading to pursue that other entertainment medium known as television, the eBook will help with that, too: The device will soon be loaded with TV Guide listings customized for the eBook owner's city.