Shortcovers-Smashwords eBook Partnership Has Global Implications

(MoneyWatch)  Toronto-based Shortcovers, which is an eBook distributor owned by Canada's largest bookseller, Indigo Books & Music, Inc. (IDG.TO); and the Silicon Valley-based startup Smashwords, which operates an eBook publishing and distribution system for authors and small publishers, are joining forces in a global content distribution partnership, as announced tonight.

After studying this deal and interviewing the principals, there seem to be three significant differentiating aspects to the approach Shortcovers is using to grab market share in the exploding eBook business, compared to many of its competitors, including the big U.S. booksellers.

• Shortcovers is an unabashedly global player, already supporting roughly a million book downloads in 189 countries. Michael Tamblyn, VP Content, Sales & Merchandizing for Shortcovers, explains why: "In the book industry, Canada is a crossroads nation. As you set up a book business here you have to think globally at the outset. We can sell books wherever we can obtain the rights to do so."
• Shortcovers is device-agnostic. "Our main idea is that people should be able to read on any device they want to," says Tamblyn. "Also, our eReading app is free, and setting up an account with us is free. Even some of the books are free. Others you can purchase. You also can move books from app to app, there is no charge for that."
• Shortcovers stores eBooks in the "cloud," not on a device. (Thus it's easy to move your book from app to app.) "We see the proliferation of eReaders as a huge opportunity," explains Tamblyn. "As a reader, you should not be shackled, to a specific piece of hardware. Instead, your library can follow you wherever you go."

Mark Coker, CEO of Smashwords, told me, "The idea for us is that we will now be much better at helping small and independent authors and publishers find a global audience. That is what is so exciting about this partnership to us."

Coker also explained why he considers the Shortcovers strategy outlined above as one others in the industry will have to follow:

"One of the problems with eBooks over the past decade has been that they have been tied to specific devices, like the Kindle. So part of Shortcovers' strong advantage is it is moving the library to the cloud, making It fully portable. This good for readers, but also for authors and publishers. They (Shortcovers) are really ahead of the curve with this. That plus being neutral as to device."

The Canadian company's digital inventory is still relatively small -- around 100,000 titles -- but it says that number will be increasing soon. Due to its emphasis on global sales, the company prefers books where the "world rights" are available. When those are not available, of course, it restricts sales to the allowed markets.

According to Tamblyn, Shortcovers is preparing to expand into some new countries that have "strong domestic collections of books" during the upcoming year.

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