<관련 영문 기사>

Kyobo launches subscription ebook service

By Kim Ji-yeon, Intern reporter

Korea’s biggest bookstore chain Kyobo Book Center has launched a subscription-based e-book service ‘Sam’ and a dedicated e-book reader, sparking disputes about whether its pricing might undercut smaller rivals in the nascent market.

In a press conference held on Thursday, Kyobo said its e-book service offers a one to two-year membership to readers, during which they can enjoy a certain number of titles every month. The company also rolled out its own e-book device that runs on Android targeting Sam subscribers.

Kyobo’s Sam e-book service comes as a steadily growing number of Korean readers are embracing smartphones, tablet computers, Amazon Kindle and other devices to read books electronically.

It remains to be seen, however, whether the country’s leading offline bookseller can kickstart the long-dormant e-book market, plagued by copyright protection and pricing issues.

Kyobo, in fact, is not a new e-book service player in the local market. It previously teamed up with Samsung Electronics a couple of years ago to infuse energy into the market by launching a joint e-book reader, only to see tepid reaction from mainstream readers.

This time round, the company is taking aggressive pricing to bolster its service. Under the Sam plan, readers can sign up for a one-year membership and “borrow” five e-books for a monthly fee of 15,000 won ($13.82). Kyobo also offers a bundled package of e-book rentals and its own e-book reader, luring potential bookworms with a discount. Other pricing options are also available, mostly the differences set at the number of titles a member can read for a certain period of time.

Kyobo’s pricing is roughly 3,000 won for a single title, which is far lower than average e-book titles. Smaller e-book sellers here are expressing concerns that Kyobo’s pricing is too aggressive in a way that hurts other companies.

“The reason why we offer this book service at such a low price is because Sam aims to increase the reading population in Korea. Instead of possessing books permanently, readers can have downloaded books saved in the device for six months and download more afterwards. The core concept of our service views books as part of consuming,” Jin Young-gyun of the Kyobo Book Center PR department told The Korea Herald.

As for extra services, Kyobo provides customized book recommendations to its readers based on their previous selections. The reading note feature also keeps a record of the books members read, reflecting their reading patterns and preferences. In addition, readers can choose from the books recommended by publishing companies and experts.

The device comes out in two different colors, black and white, weighing 202 grams. Supporting Wi-Fi connection, the device allows readers to download books from Kyobo e-book center. Members can also use their own smartphones, tablet computers and laptop computers to read their Sam titles, thanks to Kyobo’s multiplatform strategy.

Kyobo’s current e-book sales are estimated to be worth about 14 billion won, accounting for only 3 percent of its total book sales, the bulk of which is still through its offline chains across the nation. The book store plans to attract 130,000 Sam members with its new e-book service this year.

Other booksellers, meanwhile, remain concerned. For instance, the Korea Publishers Society called on Kyobo to immediately halt its e-book service as it is feared to hurt the publishing industry.

Kyobo argued that there won’t be any serious threat or disruption linked to the Sam service.

“Our service targets customers who do not read books because they think it is too costly. The reasonable price of our e-book service will increase the reading population,” said Jin from Kyobo.

Kyobo’s new e-book service went online on Wednesday and people can also test out the Sam device at special pop-up zones at Kyobo Book Centers.

(jiyeon.kim23@heraldcorp.com)