E Ink, of Cambridge, Mass., would once have been a sure-fire candidate for an initial public offering. Its sales more than doubled to $18 million in the first quarter on the strength of rising sales of products like Amazon.com’s (AMZN) Kindle and Sony’s (SNE) Reader, which use E Ink technology. But today IPOs are scanty, and venture capitalists increasingly look to the mergers-and-acquisitions market as their best exit.

E Ink president Russ Wilcox said after the sale announcement that it was easier for Prime View International, its Taipei-based acquirer, to raise money by going public there and in London than it would have been for E Ink to go public in the U.S. “This is an innovative way to get access to the public markets and grow the company at a very fast speed,” he said.

Read the rest of this post at the original site

At a Q&A at the cable industry’s annual show today, Murdoch waxed on about the Kindle’s qualities, then made a reference to investing in a machine that could be even more attractive–one that boasted a large, full-color screen. I was covering the event live [original story below], and these are my notes from the relevant part of his chat. Please bear in mind that this is a very rough paraphrase, from notes I was taking in real time:

We need new models. The first inkling of it is the Kindle. You can get the whole paper there. And you can get the whole of The Wall Street Journal on your BlackBerry. We’re investing in a new device that has a bigger screen, four-color, and you can get everything there. [Did I just hear that correctly?]

After the event, I checked in with a News Corp. spokesperson, who confirmed that I hadn’t been hallucinating: News Corp. is indeed in “exploratory” talks about making an investment in a company working on e-reader technologies.

Who might that be? No guidance there. Plastic Logic, based in Mountain View, Calif., has been working on a reader with a 8.5 by 11-inch screen for several years. But that company has already raised $200 million from investors, including Intel (INTC) and Oak Investment Partners. And its device, scheduled to hit the market in 2010, will feature a black-and-white screen that uses the same E Ink technology that the Kindle and Sony’s (SNE) Reader use.

Another option: Rival publisher Hearst, which has plans for its own Kindle. But Hearst’s unnamed reader will initially be a black-and-white affair as well.

Anyone have any other possibilities? You can reach me directly at peter@allthingsd.com. Or if you want to be completely anonymous, which is understandable but less useful to me (I won’t have any way of reaching you for follow-up) you can use the blind tip box here.

EARLIER:
This year’s cable show seems lightly attended, but folks are are buzzing here about Bob Iger’s comments this morning, where the Disney (DIS) CEO alternately tried to placate and challenge the industry with his online plans. I’ve got high hopes for this one, too, a keynote speech from News Corp.’s (NWS) Rupert Murdoch, who will then take a seat and chat with three fellow CEOs: Time Warner’s (TWX) Jeff Bewkes, Viacom’s (VIA) Philippe Dauman, and Liberty Global’s Michael Fries.

Moderating the discussion: Murdoch employee Neil Cavuto, who does anchor work at both Fox News and Fox Business (and since this Web site is owned by Dow Jones, I’m a Murdoch employee, too).

I’ll be covering the Q&A live, which means that any text you read below is an on-the-fly attempt to paraphrase the speakers on stage–unless it’s in quotes, which represent my best attempt to get the words verbatim.

Starts with Q&A with Murdoch.
NC: Are things getting better?
RM: I think the long-term situation is still extremely dangerous. I’m pessimistic because every family is poorer and they’re going to save more and spend less. Even more dangerous if the government throws too much money at the problem:

NC: What if you’re wrong?
RM: “I pray I am”

NC: Markets are up in reaction to G20 plan. Is that the kind of thing you’re talking about (re too much spending from Congress, etc.)
RM: I’ve never seen any money from the World Bank that’s done much good. Maybe the IMF should be recapitalized. But it doesn’t matter, because none of the money will come back to the U.S. “I would say it’s a bear market still. We’re not going back to the old levels anytime soon. We’re two or three years away.”

NC: What about the economy?
RM: May get better in a year. “I walk around the streets of New York, and all I see is “to let” signs everywhere.” Space we rented for $80 a foot on Sixth Avenue is now $60 a square foot. On our business in general: Advertising is flowing out of the big networks, but our cable advertising is up. “They’re in good shape, and we’re very happy to have a number of them.”

NC: They are rioting in London against capitalism “they’re rioting against success…they don’t like rich people. Are you offended?”
RM: No. There’s only about 4,000 of them. “Makes good television, someone with blood on their face…but it’s greatly overstated.” I have had worse problems when I had strikes 20 years ago.

NC: So you don’t buy this sort of “new global class warfare.”
RM: It’s very dangerous. “We all know in the last two or three years there have been notable headline-grabbing excesses, in this country and in Europe, despite what the Europeans are saying, and we’re paying for that.” But I don’t think we’re going to have class warfare. “We do need an SEC that’s awake,” in part so we don’t have work with the French and their regulators.

NC: Everyone’s piling on the U.S. What does that mean for the U.S.?
RM: I don’t care what the French say. “But when the Chinese speak, I pay some notice.” The Chinese don’t want us in an inflationary situation, or they won’t lend us money.

NC: President Obama talked about working with the rest of the world. Is Washington saying that “we are this big global powerhouse together”?
RM: It’s very nice for the President to say that, but I don’t think Bush ever did that. He was talking to world leaders every day. He wasn’t as articulate about it as Obama. But “we’re the big boy on the block” so naturally people are jealous, but we better remain “damned sure” that we remain the big boy.

NC: But we owe everyone lots of money.
RM: That’s what worries me. I worry that we’re going to start printing lots of money, we’ll have runaway inflation.

NC: You just said Obama is brilliant. Your companies “have a reputation for being slightly more conservative than he is.”
RM: “We’re fair and balanced.”
NC: “Absolutely.”
RM: The monolithic liberal press complains when they don’t get a corner of the world; “if they want to smear you, or me, that’s fine.” Re Obama: “I’ve had a couple of very charming conversations with him.” He talks about how pragmatic he is. “We’ll see.” So far, a couple of little tests have been disappointing. With regard to Teamsters and school vouchers in Washington.

NC: So you’re saying he has a reputation for being pragmatic, but he isn’t. And he doesn’t seem to like Wall Street either.
RM: “That’s putting it too strongly” I think it offends him to see people making $200 million dollars a year, or whatever it is.

NC: Taxes are going up for the wealthy.
RM: Yes. So “we’ll go live in Texas.” It’s serious. a 60 percent tax rate is going up. Not just the federal taxes, but states, and counties. My Long Island house “is not very big at all” but what Nassau charges for taxes is enormous. The bill has gone up from $3,000 to $7,000 or $8,000. “I’m trying to sell my house.”

NC: You’re a newspaper guy. Newspapers as a physical product are dying. San Francisco may not have a paper at all soon. What do you think of that?
RM: “It’s sad. But let’s face it. San Francisco is a pretty small area. And there’s some pretty good papers in that area,” and they’re not folding. “People are getting used to getting everything on the net for nothing. That’s going to have to change.” Take the New York Times. No matter what you’re going to say about it, it has a very very good Web site. But it’s never going to make enough money to cover what it’s losing on the print side. The question is: “Should we be allowing Google to steal all our copyrights? Just take them? Not just Google but all the aggregators? Yahoo? And I feel that if you have a brand that’s strong enough, like the New York Times, they should be able to go to Google and say ‘no.’” So when you go to search on Google, it doesn’t show up. But there’s only 10 or 15 of those, probably.

We need new models. The first inkling of it is the Kindle. You can get the whole paper there. And you can get the whole of The Wall Street Journal on your BlackBerry. We’re investing in a new device that has a bigger screen, four-color, and you can get everything there. [Did I just hear that correctly?]

[Time to bring on the other panelists]

PD: “If I may, I’d just like to say bon jour to Rupert.”

NC: Philippe Dauman, you said you’re seeing some positivity in your business. Where?

PD: Theater sales are healthy. Cable is OK. Saw some deterioration in ad sales, but in last few weeks, we’re seeing some plateauing. On the kids’ cable channel upfront, we’re starting to do well. “There are some advertisers that are increasing their spend. They’re healthy, and they see an opportunity to expand market share. Advertising works, even for banks.”

Jeff Bewkes: We’re pretty much seeing the same thing. Advertising for print is down, cable is very strong. AOL, “not so strong.” The problem is that outside the U.S., growth rates have come down, and financial problems are much worse. “But I think it’s short-term” so we’re still investing. Invested in Eastern Europe.

Michael Fries: We’re doing OK, too. Cable isn’t immune, but we’re selling products people need. Our Eastern European markets aren’t doing great, but fundamentally we’re still growing. We’re still growing through this. Since we’re not ad-supported, we’re not having down markets or down quarters. In some of our markets, there will be some consolidation, and we can get some of our competitors out of the way.

[Missed a section on broadband and infrastructure outside the U.S. Apologies]

NC: You have great content but on the Web, but many people don’t pay for it. What can you do about that? Do you have to do deals with the likes of Hulu, and get pennies on the dollar instead of giving it away?

PD: There’s a middle ground we’re trying to follow. Consumer behavior changes, revenue models have to change, too. We put a lot of content on line, we also do a lot “windowing.” Some content like news goes online right away, and the “Daily Show.” That’s on Hulu. But you do get incremental monetization “if you do it right.” “Daily Show” ratings are up since we went on Hulu. We have to experiment and see what we can do to enhance the experience.

MF: Content doesn’t follow eyeballs. Content follows money. Content providers want first and foremost to get paid. Consumers want random access to content. They want high-quality content. I like the idea [i.e., to put all their stuff online] that Time Warner and Comcast is promoting “is a no-brainer.” Online now has a negligible impact on TV, so right now it’s something we can get a hold off.

RM: It varies from show to show. A good show can get improved ratings over time, via the DVR. Like “24.” A lot of stuff that’s DVR’d is played that evening. “There’s no loyalty to audiences at all. There’s loyalty to certain shows.”

NC: Journalists are moving to the Web, but they’re not going to get paid as much on the Web [yup]. Point being: Aren’t authors and artists who produce work for the Web, or the Kindle, going to get screwed?

PD: No. You can charge lower prices but you have lower costs. If you have a secure download-to-own business, you can protect revenues for everyone.

NC: But generally, don’t all content creators have to realize that their content is worth less?

JB: This is the cable convention. Rupert’s right about not having loyalty to broadcast networks. But there is, or at least different identities, on cable. The broadcast business has its challenges, as we know. But the cable channels have the most value and the most future….This industry can now deliver all our great stuff on broadband, and over mobile. [Rambling here but basically Bewkes is repitching his "TV everywhere" idea] “We’re not trying to make the Internet not free. We’re just saying that if you use it for free, you ought to get what you have in your home….Look how slow we’re being. We’re all being too slow to put all these channels and put them broadband….We ought to do it, and we ought to do it now….Put it on the Hulus and YouTubes if you need too, but only if people are subscribing to the cable plans. You can’t just blow up the financial structure….We ought to be taking the advertising model from cable networks and moving it over to broadband.”

NC: That isn’t what I was asking about. What about us content creators?

PD: “We treat creators of content really well.”

JB: “Yeah.”

PD: Back to Bewkes’s plan. People get the advertising model.

RM: People are used to the free content being free, and “the fact is that nobody’s making money with the free content on the Web, except for search.” We’ve got to find a way to charge.

MF: This notion that we’ll figure out how to pay for something, someday, is wrong. There’s value in aggregators and editors, and people go to Fox News because they know what they’re getting. “We have a generation below this lost generation that we can capture and retain, if this industry does it right.”

JB: Hey, want to see what that looks like? [Now it's time for Bewkes to run a promo, literally for HBO. "HBO GO." The "coolest way to watch HBO on your computer....If you have the key, it's free." I am assuming that this is a mock ad for a product that Bewkes would like to exist--HBO OnDemand, online.

JB: I apologize for running a commercial.

PD: That works well for pay cable channels like HBO and Showtime and our new channel. Not sure about other channels.

NC: Let's say our recession/depression lingers for a while "a real protracted type of a deal." What then for entertainment?

JB: It will hold up.

NC: What about advertising?

JB: Less.

PD: It will be slow, but we'll get through it. We have to plan for the possibility that it will be bad for a long time. You spend less, you have to be careful about not spending on things that aren't you core brands, and acquisitions, and that can be self-defeating. We're dependent on Washington in some ways, but what we really need are the credit markets to work again.

MF: Bingo.

NC: How has recession affected you personally? Do you change the way you display your wealth, or your own personal behavior?

JB: [Sitting next to Murdoch] “I tend to sit next to people who are richer than me.”

PD: Hotel managers are beside themselves because no one has business meetings, and then they have to fire working class people. But I think this “populist surge” about abuses will pass. “We’re going through an extreme period, and this is a country that still values entrepreneurial behavior.”

[Panel is over.]

On Wednesday, Fujitsu Frontech began selling the world’s first color e-paper e-book reader. Available on April 20 in Japan only, the gadget costs 99,970 yen, or more than $1,000.

Until now, e-books like the Amazon (AMZN) Kindle and Sony (SNE) Reader have been limited to black and white or shades of gray, making them OK for reading plain books and newspapers that like to use stipple drawings, but not great for colorful print media such as magazines.

But if color e-book readers catch on, one theory holds, magazines and other media that currently print on dead trees would have a cheap way to distribute–and charge for–the colorful content and ads that marketers will pay for. Recently, publisher Hearst said it wanted to dive further into the e-book business.

Fujitsu’s color e-paper technology, first unveiled in 2007, is different from the technology created by the Massachusetts-based E Ink that’s used by the Sony and Amazon. But E Ink says it is working on color displays, too.

Read the rest of this post

This week, the company released the Kindle 2, a new version that is much thinner, a tad lighter and a bit taller. It has much more built-in memory, better navigation controls and a slightly improved screen. I’ve been testing the Kindle 2 for a few weeks and consider it a vast improvement over the first Kindle, released in late 2007, which was clumsy and annoying to use. Overall, I found the Kindle 2 to be a well-designed, satisfying piece of hardware.

The new model carries the same relatively high $359 price tag as its predecessor, but it offers faster page rendering and 25% better battery life. The catalog of books available on both Kindles has now swelled from about 90,000 in 2007 to over 230,000 today, and titles still typically cost around $10. You can still subscribe to periodicals and blogs, and there is still a crude Web browser built in — but this gadget is mainly for reading books.

Like its predecessor, the new Kindle has a built-in cellular wireless modem that allows you to download books or update periodicals on the fly, without using a computer. As before, there is no monthly fee for this wireless service.

Most important, Amazon (AMZN) has remedied the most irritating flaws of the original model. It’s no longer easy to accidentally turn pages, because the page-turning buttons have been redesigned. You no longer have to reach around to the back of the device to turn it on or off. You no longer scroll through menus and text with an odd little wheel whose progress was only visible in a thermometer-like strip separate from the main window. And the book-like cover no longer falls off.

But the improvements in this dedicated e-book reader, while admirable, may pale beside Amazon’s next move. Amazon says it is working to make the Kindle e-book catalog available on other mobile devices, such as smart phones, that people already own. The online merchant, which is so secretive it makes Steve Jobs seem like Joe Biden, isn’t saying which devices will get the Kindle service or when. I would bet it will be sooner rather than later.

Amazon’s Kindle 2

This makes perfect sense. While the Kindle project has often been compared with Apple’s iPod, because both are hardware devices seamlessly connected to online-content stores, there is a fundamental difference. Apple (AAPL) offers content to sell hardware. Amazon offers the Kindle to sell content.

If, say, this electronic content were available not only on the Kindle reader, but via Kindle software apps on Apple’s iPhone or the BlackBerry, the e-book market could explode.

Meanwhile, Kindle’s design has gone from chunky and clunky to smooth and sleek. The power switch is now easily reachable on top of the device, and the all-important buttons for paging forward and backward through a book are now smaller — and work by pushing them firmly inward toward the screen instead of outward toward the edge of the device. This means they can no longer be easily activated by stray finger movements.

The weird thermometer system has been replaced by a little joystick that moves an on-screen cursor. The Home button is now large, and has been moved off the keyboard, which has been reduced in size, but is still quite usable.

The screen is the same 6-inch, high-resolution E-Ink display, which has a comforting contrast ratio for reading and uses battery power only when you turn the page. But, while it still can’t display color and still can’t be read in the dark, its gray-shade graphics are much more detailed.

The battery is now sealed in, but it is larger. Amazon claims you can read for four or five days with the wireless turned on, or up to two weeks with it turned off. In my tests, those claims proved true. I took the Kindle on a trip for a week with the wireless turned off and the battery indicator barely budged.

Memory has been greatly expanded, so you can store 1,500 books, up from 200, though you can no longer add extra memory.

There are also a few cool new features. The Kindle 2 looks up words in the dictionary automatically, as soon as you move the cursor to them. It can optionally read books aloud in a computer voice that’s surprisingly decent. And, if the wireless function is on, the Kindle service will remember the last page you read in a book and synchronize a second Kindle to that same place in the book.

There are some drawbacks. You still can’t organize your books into groups of your choice. Amazon now charges $29 for the cover, which was formerly free. And the Kindle still doesn’t work with some of the open e-book formats that other devices support.

But for serious book readers who are tired of toting around stacks of books and periodicals, the new Kindle is finally a pleasure to use.

Find all of Walt Mossberg’s columns and videos online, free, at the All Things Digital Web site, walt.allthingsd.com. Email him at mossberg@wsj.com.

]]> http://allthingsd.com/20090225/amazons-kindle-2-improves-the-good-leaves-out-the-bad/feed/ 0 http://allthingsd.com/20080908/one-make-that-two-words-plastic-logic/ http://allthingsd.com/20080908/one-make-that-two-words-plastic-logic/#comments Mon, 08 Sep 2008 18:00:07 +0000 John Paczkowski http://digitaldaily.allthingsd.com/?p=4614

[ See post to watch video ]

]]> http://allthingsd.com/20080908/one-make-that-two-words-plastic-logic/feed/ 0 http://allthingsd.com/20080908/one-two-words-plastic-logic/ http://allthingsd.com/20080908/one-two-words-plastic-logic/#comments Mon, 08 Sep 2008 17:28:03 +0000 John Paczkowski http://digitaldaily.allthingsd.com/?p=4594 Founded nearly a decade ago on patents for printing active-matrix electronic display panels on thin, flexible plastic substrates, Plastic Logic spent the ensuing years developing a lightweight plastic screen that mimics the look–but not the feel–of a magazine or newspaper. And this morning, the company uncrated it. Thinner than a typical pad of notebook paper, the Plastic Logic Reader boasts a letter-sized–8.5-by-11 inches–touchscreen capable of displaying not just newspapers, periodicals and books, but a full range of business document formats as well.

Like Amazon’s (AMZN) Kindle, the Plastic Logic Reader uses a highly legible black-and-white display technology developed by E Ink. And like the Kindle, it can be updated wirelessly. But unlike the Kindle, the Plastic Logic Reader includes touch-based markup and annotation features. It’s also about one-third the Kindle’s thickness and its screen is more than twice as large. It would appear, then, that Plastic Logic’s device will significantly raise the bar on electronic reading devices when it debuts in Jan. 2009, perhaps even beyond the reach of Amazon’s rumored Kindle 2.0.

]]> http://allthingsd.com/20080908/one-two-words-plastic-logic/feed/ 8 http://allthingsd.com/20061012/sony-reader-good-draft/ http://allthingsd.com/20061012/sony-reader-good-draft/#comments Thu, 12 Oct 2006 00:01:00 +0000 Walter S. Mossberg http://ptech.allthingsd.com/20061012/new-sony-reader-is-a-good-first-draft/ The electronic book reader, a hand-held gadget that would store a whole collection of digital books and other material, has always seemed like a good idea. But nobody has been able to pull it off. The last serious contenders, launched in 1998, failed due to lousy battery life, poor screens, high prices and a weak selection of titles.

But this month, Sony is taking a new whack at the problem with a sleek, attractive $350 device called the Sony Reader. The Reader tries to take advantage of two developments since 1998: cutting-edge technology for improving screens and battery life, and the example of Apple Computer’s iPod and iTunes, which showed how a great gadget with strong software and abundant titles can create an end-to-end digital content solution that consumers will embrace.

The Reader can hold about 75 books at one time in its internal memory and can accept add-on memory cards to expand its capacity. In addition to books, the Reader can also store and display Microsoft Word documents, text files and Adobe PDF files, so you can take personal or work documents with you. It even works with music files and photos.

I’ve been testing a Sony Reader for about a week and have been evaluating not just the hardware itself, but the whole system. That includes the PC software that downloads and organizes the material and transfers it to the reader; and Sony’s new online electronic bookstore, where you can buy books for the reader.

My verdict is mixed. The Reader is a handsome device with a stunning black-and-white screen and terrific battery life. But it has some serious limitations. The software, called the Connect Reader, is simple and plain, but effective. The online bookstore, called the Connect eBook store, has only a modest selection compared with a physical bookstore and is hard to use.

The Reader itself is small, slim and light — about the length and width of a large paperback book, just a half-inch thick and about nine ounces in weight. It’s cloaked in a flexible black cover that folds back to reveal the screen and a handful of easy-to-use buttons.

The key feature of the Reader is its high-contrast, but low-power, six-inch screen, which is quite different from the screens on laptops. Unlike those power-hungry displays, the Reader uses a new technology called Electronic Paper from a Massachusetts company called E Ink. This screen needs no backlighting and consumes no power until you change what’s being displayed by electronically “turning a page.”

The contrast between the black text and the light-gray background isn’t as good as on a paper book, but it’s easy on the eyes and makes the Reader usable even in bright sunlight.

You can select from three text sizes for books and switch the screen between vertical or horizontal orientations.

Because it uses so little power, the Reader has strong battery life. Sony says the Reader can perform 7,500 “page turns” on a single battery charge. Most people could go days, even weeks, without having to recharge, unless they play a lot of music or view a lot of photos.

The Reader’s screen can’t display color and is only fair at graphics because it has just four levels of gray. So photos appear in gray, and titles that make heavy use of charts and graphics don’t display well. Also, it’s too easy to accidentally press buttons and land far from the page you were reading.

The electronic books cost less than print or audio versions. I bought Bob Woodward’s “State of Denial” from Sony for $13.59. Amazon.com charges $17 for the print and audio editions. In at least one of the books, George Orwell’s “1984,” which comes free on every Reader, I found typos that were inexcusable.

In my tests, Word documents looked OK, if not perfectly faithful to their layouts. But the Reader’s claim to display PDF documents proved hollow. In every PDF document I tried, the text was nearly unreadable and the text resizing feature of the Reader didn’t help. Sony concedes that PDF documents work well on the Reader only if they are created for the Reader’s screen size and resolution. But it includes no conversion software to make them fit.

Another big disappointment: The Reader lacks a bunch of features that would enhance the reading experience. You can’t enter notes, search inside books or documents, or look up words in a built-in dictionary. And while you can bookmark pages for later retrieval, you can’t highlight passages. Sony says it’s working on a future version of the Reader that can perform these tasks.

The Reader software was fine at organizing and transferring books, and at importing your own documents, music and photos to your PC, then transferring them to the device. But it doesn’t automatically synchronize material. The online bookstore is poorly organized and has an awful search function. Its 10,000 titles are only about 10% of what you’d find in a typical big bookstore.

Overall, I’d call the Sony Reader a good start — impressive in some ways, but clearly a work in progress. I enjoyed using it, but would advise all but hard-core ebook fans to wait for an improved version.

• Email me at mossberg@wsj.com.

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