But it will come at a price: The device, shown below (click on image to enlarge), will retail in December for $399. That’s $100 more than the current price of Amazon’s Kindle 2. And that price point is almost certain to drop in coming months.

Sony wouldn’t let reporters handle the Daily, and didn’t put it through its paces, either. So hard to get a sense of much here. But here’s a video I shot of Sony exec Steve Haber holding the machine while talking up its virtues — which include free access to books from your public library.

EXTRA, EXTRA: SONY’S DAILY EDITION ROUNDS OUT NEW LINE OF DIGITAL READERS

Wireless 3G Reader Extends Sony’s Commitment to Bring
Open Digital Reading to Mass Audience

NEW YORK, August 25, 2009 Delivering on its promise to give consumers a variety of choices, Sony today announced the third member of its new Reader family–the Reader Daily Edition™, a highly-anticipated wireless model with 3G connectivity. The Daily Edition caps its new line of Reader products, joining the Reader Pocket Edition™ and the Reader Touch Edition™ which were announced earlier this month.
The Reader Pocket Edition and the Reader Touch Edition are available immediately, and the Reader Daily Edition will be available this December in time for the holidays at SonyStyle stores and SonyStyle.com.
“We firmly believe consumers should have choice in every aspect of their digital reading experience,” said Steve Haber, president of Sony’s Digital Reading Business Division. “Today, we take another large stride to deliver on that promise. We now have the most affordable devices on the market, the greatest access to free and affordable eBooks through The eBook Store from Sony and our affiliated ecosystem, and now round out our Reader offering with a wireless device that lets consumer purchase and download content on the go.”
A Family of Three Readers
The Reader Pocket Edition sports a five-inch electronic paper display packaged in a stylish chassis and is available in a variety of colors, including navy blue, rose and silver. It is available for the ground-breaking price of $199, making it the most affordable dedicated reading device on the market.
The Reader Touch Edition features a responsive, menu-driven six-inch touch screen panel that enables quick, intuitive navigation, page turning, highlighting and note taking with the swipe of a finger or by using the included stylus pen. It comes in red, black or silver and retails for about $299.
The Reader Daily Edition gives consumers wireless access via AT&T’s 3G mobile broadband network to Sony’s eBook store from just about anywhere in the U.S. Book lovers will be able to browse, purchase and download books as well as select newspapers and magazines when and where they want. There are no monthly fees or transaction charges for the basic wireless connectivity and users still have the option to side load personal documents or content from other compatible sites via USB.
The seven-inch wide, touch screen display provides for intuitive navigation and comfortable layout of content, including newspapers and magazines, whether you’re reading in portrait or landscape orientation. In portrait mode, about 30-35 lines of text are visible, making the experience very similar to that of a printed paperback book. A high contrast ratio with 16 levels of grayscale ensures that text and images are crisp and easy to read. The Daily Edition also boasts an attractive aluminum body with an integrated cover for durability. It has enough internal memory to hold more than one thousand standard eBooks and expansion slots for memory cards to hold even more. It will sell for about $399.
All three models feature Sony’s award-winning industrial design and an E Ink® Vizplex™ electronic paper display that emulates the look of ink on paper. Sony’s eBook Library software 3.0, which now includes support for many Apple® Macintosh® computers as well as PCs, makes it easy to transfer and read any Adobe® PDF (with reflow capability), EPUB, Microsoft® Word®, BBeB® files, or other text file formats on the Reader.
Access to Even More Content at the eBook Store by Sony
In addition to announcing a new family of Readers, Sony has also made several changes and improvements to its eBook Store to provide better access to an even greater variety of ebooks. Earlier this summer Sony announced the availability of more than one million free public domain books from Google, and the company made new releases and New York Times bestseller titles available for $9.99.
Today also marks the launch of Sony’s Library Finder application. Sony, working with OverDrive (www.overdrive.com), the leading global digital distributor of eBooks and to libraries, will now offer visitors to the eBook Store by Sony easy access to their local library’s collection of eBooks. Thousands of libraries in the OverDrive network offer eBooks optimized for the Sony Reader, and visitors can now find these libraries by typing their zip code into the Library Finder. Through the selected library’s download website, visitors can check out eBooks with a valid library card, download them to a PC and transfer to their Reader. At the end of the library’s lending period, eBooks simply expire, so there are never any late fees.
The Reader Pocket and Touch Editions, as well as available accessories such as AC adaptors, cases and covers with reading lights, are available now at SonyStyle.com and SonyStyle stores. Book lovers interested in trying out a Reader in person will also be able to find them for sale at Best Buy, BJs, Borders, Sam’s Club, Staples, Target, Toys“R”Us, Wal-Mart and other authorized retailers nationwide.

DIGITAL READING ECOSYSTEM EXPANDS FOR SONY’S READER

NEW YORK, August 25, 2009 Further evidence of the broad support for its open approach to digital reading, Sony today announced relationships with a variety of traditional and digital publishers who provide content in industry standard formats to create a universe of reading material compatible with the Reader.
All of these sites will offer content in the EPUB format, the International Digital Publishing Forum’s (IDPF) XML-based standard format for reflowable digital books and publications. EPUB has gained acceptance among major trade book publishers with dozens of publishers already producing the majority of their eBooks using the standard. Sony recently announced that the company is transitioning its entire content library to the EPUB format, giving consumers the freedom to purchase or download free eBooks from the eBook Store by Sony and read them on any EPUB-compatible device.
“From the beginning, we have said that an open format means more choice for consumers,” said Steve Haber, president of Sony’s Digital Reading Business Division. “Now, working with other industry leaders, we can provide a device that is compatible with the widest selection of content available. Readers can shop around for what interests them rather than be locked into one store.”
Sony’s eBook Store already provides access to more than one million public domain Google Books in EPUB format and, starting today, Sony’s Library Finder application will go live. Library Finder offers visitors to the eBook Store by Sony easy access to their local library’s collection of eBooks. Thousands of libraries offer eBooks optimized for the Sony Reader, and visitors can now find these libraries by typing their zip code into the Library Finder. Through the selected library’s download website, visitors can check out eBooks with a valid library card, download them to a PC and transfer to their Reader.
Other sites offering EPUB content include:
• Independent Bookstores–More than 200 participating members of the American Booksellers Association–including stores such as Tattered Cover (Denver, CO) and Vroman’s Bookstore (Pasadena, CA)–will have the ability to sell e-content to consumers beginning this fall. The stores using ABA’s IndieCommerce platform will offer content in the EPUB format and protected by Adobe’s Content Server 4 (ACS4) digital rights management, which is compatible with Sony e-Reader products. In addition, plans are underway to make Sony’s e-Reader devices available for purchase from independent bookstores in time for this holiday season. ABA is a not-for-profit trade organization devoted to meeting the needs of its core members–independently owned bookstores with storefront locations–through education, information dissemination, business products and services, and advocacy.
·        BooksOnBoard–BooksOnBoard, the largest independent eBook bookseller and member of both the ABA and IDPF, has been a staunch supporter of the EPUB standard through its founder Bob Livolsi. BooksOnBoard was the first eBook site to offer the EPUB standard to its burgeoning customer base and has sold more EPUB formatted books than any other online bookstore. BooksOnBoard believes that the EPUB standard significantly benefits the publisher, authors and most importantly the consumer.
·        NetGalley–NetGalley is an innovative and easy-to-use online service and connection point for book publishers, reviewers, media, librarians, booksellers, bloggers and educators. NetGalley delivers digital galleys and promotional materials to professional readers and helps promote new and upcoming titles. Starting today, NetGalley will support the Reader with the ability to download a protected PDF file and this fall the company will offer digital galleys in EPUB format.
• Powell’s Books and Powells.com–Powell’s Books is the largest independent bookseller in the world.  Innovative since its inception in 1971, it was one of the first booksellers online (beginning in 1994), and one of the first to sell eBooks for reading devices (the Rocket eBook) in 1999. Powell’s offers EPUB content for a wide range of compatible devices, including the Sony line.  Powell’s is an important player in the open access world of eBooks, where titles are provided by a wide range of publishers in a competitive retail environment, read on a range of devices, and downloaded and owned by millions of people around the world.

I ask this because while Amazon has said it won’t repeat what it did last week, it hasn’t actually sworn off remote book-removal–or  remote anything-removal, for that matter–altogether.

Which means the e-commerce giant can do it again.

On Friday, Amazon told me that it yanked the George Orwell novels from customers’ e-book readers because they were “illegal”–bootlegged copies it never should have sold in the first place. “We are changing our systems so that in the future we will not remove books from customers’ devices in these circumstances,” the company said in a statement.

See the problem? It’s the, big, gaping “in these circumstances” loophole.

I’m still holding out a tiny bit of hope that Amazon (AMZN) is never going to delete a book, or anything it sells its customers, ever again. And that its oddly worded nonpromise is just an oddly worded nonpromise.

But I’ve repeatedly asked Amazon PR folks to mollify me, or at least spell out the circumstances in which they would delete a book again, and I haven’t gotten any response. So I’m fearing the worst: Amazon reserves the right to yank books out of your Kindle, but won’t tell you why or when until it happens.

If you want to play devil’s advocate, you can note that other e-commerce companies have similar abilities. Apple (AAPL) has disclosed that it has a “kill switch” that allows it to remotely wipe out apps from iPhones, ostensibly for security reasons.

And theoretically, the ability to wipe out a rogue iFart app should be as disconcerting as the ability to make a book disappear–intellectual property is intellectual property. But it just doesn’t rankle in the same way.

What to do? Slate columnist Farhad Manjoo wants new legislation to tackle the problem. But even if you like that approach, it’s not going to happen anytime soon–our lawmakers have full plates these days. My suggestion: Demand that Amazon, Apple or whoever else has remote access to your gadgets spell out exactly when, if ever, they will forcibly take back what they sold you. Or don’t buy from them at all.

The buzzy microblogging service has just grabbed its highest-profile Google (GOOG) exec to date: Alexander Macgillivray, a deputy general counsel at the search firm, is coming aboard as Twitter’s top lawyer.

Macgillivray is best known as the lead Google attorney on high-profile intellectual property cases like its fights with book publishers, the Associated Press and Viacom (VIA). Twitter has yet to find itself mired in that sort of thing, but give it time.

Macgillivray is just the latest Googler to land at Twitter. Earlier this year, the start-up nabbed Doug Bowman, the search giant’s lead designer, to join the ranks of several other Googleplex veterans, including, of course, co-founders Ev Williams and Biz Stone.

There are lots of reasons to leave a big company for a scrappy start-up, but just to spell out one obvious one: If you’re into risk, there is a whole lot more upside at Twitter these days.

The company’s last funding round pegged its value at $240 million, and if it ends up being acquired in the next few years, that number could be much higher. But Google shares stalled long before last fall’s stock market collapse (click chart to enlarge):

[Image credit: Doc Searls]

We all know tomorrow’s newspapers won’t be printed on paper, but delivered via the Internet. The question for today’s publishers is whether consumers are going read them on smart phones like Apple’s iPhone or the Kindle from Amazon (AMZN).

But that shouldn’t be a question at all, argues Martin Langveld at Nieman Lab: Smart phones are winning this one running away.

And, I agree.

Langveld’s piece is worth reading, but I can sum it up here: If you’re a hardcore book or magazine person,  perhaps you’ll carry a Kindle or similar device around. But everyone has a phone on them already, and they’re already using them to read stuff online. The New York Times (NYT) says it’s generating 60 million mobile page views a month, up 100 percent in the last year.

And while Langveld’s post doesn’t get into this, I’ve yet to figure out the appeal of reading newspapers on a Kindle, or any of the other e-readers I’ve fondled to date. Yes, the screen is bigger, but it to me the experience is an unhappy compromise between print and the Web.

(I do understand why publishers are so eager to get consumers to read their papers on e-readers–they think that if they can reproduce a newspaper-like experience, they can reproduce newspaper economics, where they get money for both subscriptions and advertising. But future technology won’t revive extinct business models.)

Kindle-like readers will get better over over time. Screens will get lighter and more flexible, and add color and video capabilities, and navigation will get less clumsy.

But that could be many years from now–while more and more people become used to reading anything and everything from their handsets–$99 iPhone from Apple (AAPL), anyone? If you’re still in the newspaper business, and think you will be in a year or two, you’d better figure out to get your stuff on my phone, right now.

[Image credit: Paolo Camera]

The opportunity: The Interactive Advertising Bureau’s numbers for the fourth quarter of 2008–remember all the way back then? If you do, then you won’t be shocked to see that Web advertising slowed way, way down during the last three months of the year. And it did much worse than that at some shops, like Time Warner’s (TWX) AOL.

If you’re a professional optimist, like the IAB’s Randall Rothenberg*, you’ll note that ad dollars are still moving from offline venues to the Web, which makes sense, because that’s where people’s eyeballs have moved. For the year, Web ads grew 10.6 percent, while the overall ad market contracted by 2.6 percent.

But the sourpusses among us will note that Web ads ground to a halt at the end of the year. The IAB says U.S. Web ads grew a mere 2.6 percent during Q4, to $6.1 billion. The year before, they had grown at a 24 percent clip.

Here’s a sector-by-sector breakdown of last year’s market. No surprise: The lion’s share of the business goes to Google (GOOG), as it does every year. (Click to enlarge).

Side note: The video ad market, which was supposed to be a geyser, still has yet to be unleashed, despite the best efforts of YouTube, Hulu, et al. Advertisers spent just $734 million on digital video–about three percent of the market. Positive spin: That’s more than twice the amount they spent in 2007.

* Prior to his career as a professional optimist, Randall used to do excellent work reporting on the ad business. Highly recommended: “Where Suckers Moon,” his 1994 book that went behind the scenes during the creation of a Subaru campaign. Great stuff.

Earlier this year, the Harvard Business Review tried to refute Anderson in a well-argued piece. Now comes a set of British researchers trying to do the same thing. From the U.K. Times:

The idea that niche markets were the key to the future for internet sellers was described as one of the most important economic models of the 21st century when it was spelt out by Chris Anderson in his book, ‘The Long Tail,’ in 2006. He used data from an American online music retailer to predict that the internet economy would shift from a relatively small number of ‘hits’–mainstream products–at the head of the demand curve toward a ‘huge number of niches in the tail’.

A new study by Will Page, chief economist of the MCPS-PRS Alliance, the not-for-profit royalty collection society, suggests that the niche market is not an untapped goldmine and that online sales success still relies on big hits. They found that, for the online singles market, 80 per cent of all revenue came from around 52,000 tracks. For albums, the figures were even more stark. Of the 1.23 million available, only 173,000 were ever bought, meaning 85 per cent did not sell a single copy all year.”

Anderson, who has been a good sport about jousting with his critics on his blog, tells the Times that he needs to see more data before weighing in on this newest salvo. But I don’t have that compunction. My two cents–or at least, my two sort-of related points:

• The Long Tail is a useful way to think about back catalogs. The Web means you can extend the reach of a product once it has had an initial run, and it allows aggregators like Amazon (AMZN) to make money by assembling lots of niche products at one storefront. It’s less useful for people who are creating albums, books, movies, etc., and need to get compensated for their work in the present tense.
• One area where the Long Tail holds up just fine: Web publishing. The awesome power of Google (GOOG) means that stuff you publish once on the Internet will continue to find new audiences in the future, more or less without any additional effort on your part. Any Web publisher invariably finds that a large chunk of its audience tends to come to its site to consume stuff they produced weeks, months or years ago. Of course, consumers don’t want to pay anything in order to consume that stuff, which means it’s only useful if you can sell Web advertising against it. But that’s a different post.

Latest example: Borders Group (BGP), the struggling book chain, has cut its music inventory by 30 percent in the last year, the company said. Music now occupies about seven percent of its floorspace, and the space it used to take up has been given over to higher-margin products like children’s books.

Borders makes up a relatively small portion of U.S. music sales, but most big retailers have been doing the same thing for more than a year. If you don’t believe me, try to find the CD section next time you visit a Target (TGT) or Best Buy (BBY) this month.

The big stores will embrace individual albums–if they have an exclusive, like Best Buy’s deal with Guns N’ Roses, or Wal-Mart’s (WMT) recent AC/DC promotion. (That’s Best Buy’s GNR promotion, pictured above. Lonely, isn’t it?) But beyond that, they are basically telling music shoppers, who bought some $7 billion worth of discs last year, to take their business elsewhere.

[Image Credit: Idolator]