In 2002, Steven Spielberg introduced moviegoers to electronic ink in his sci-fi thriller, “Minority Report,” where a man on the subway reads a “live” plastic electronic issue of USA Today as stories change on the fly while the news changes. This caused quite a stir among gadget seekers and bloggers who are always looking for that next big thing - the next cool technology that will change the world.

(Editor’s note: Newspapers & Technology first reported on this technology in October, 2000 when The (Phoenix) Arizona Republic conducted a three-month test using E Ink’s product.)

Four years later, where are all of those cool e-readers for books and newspapers? Some progress has been made. Sony, for example, just introduced its $350 Reader e-book it hopes will become the next iPod for books. And newspapers such as the International Herald Tribune and De Tijd, a Belgian financial publication, have begun testing Philips’ electronic ink technology developed in concert with E Ink Corp.

The hype is significant, but the question remains: Is there a place for mass adoption of e-ink technology among newspaper readers as it stands today? And if so, who wants it - traditional print edition readers or online news junkies?

Distinct groups

We know that millions of people today go to newspapers’ Web sites and read them in their online format as opposed to their printed layout. In fact, statistics indicate that the ratio of online readers to print readers is about tenfold. In other words, if there are 1 million print subscribers for a newspaper, then it is quite common that 10 million readers will visit that newspaper’s Web site on a regular basis. One might assume that print readers would make up about 10 percent of the online readership, but such is not the case. We now know that online and print readers are two distinct audiences with different needs, habits and behaviors.

In August 2006, Scarborough Research News# released a study that indicated that newspaper Web sites are contributing significant numbers of readers who do not read the printed publications. Although the results for each of the publications analyzed were slightly different, the study showed that only 5 percent to 7 percent of print subscribers also read newspapers online. This supports the premise that the majority of online readers have different characteristics from print readers.

According to Scarborough, newspaper Web site patrons tend to be young - in the 18-to-34 age range, dispelling the myth that younger adults are not engaged by newspaper content. Print readers, on the other hand, are older and still prefer the more traditional feel and layout of a physical newspaper.

Bridging the gap?

Print subscribers enjoy the routine of reading their daily paper and browsing through its pages over their morning coffee or as they commute to work. The younger generation, by contrast, would much rather browse through multiple sources on aggregated news sites.

Being limited to one news source is unacceptable to them in their borderless, virtual world. More and more of them are becoming comfortable using RSS, or really simple syndication, feeders/readers to get their daily fix of the news that interests them. Many are active bloggers who rely on RSS software to deliver articles of interest on which they can provide their commentary. There is also supporting evidence that a higher percentage of these online readers are more affluent than their print counterparts.

So it would seem that there is little in common with these two groups of a newspaper’s customers, except for the fact that they both spend time reading content - news and advertising.

How do e-papers bridge the gap between these two audiences?

I’m not sure they can.

I’ll admit a bias toward aggregated news sites, where someone can gather information from several different sources. And I’ll concede our PressDisplay.com, which specifically focuses on anywhere/anytime news, would benefit from an e-ink technology.

But unfortunately e-ink has, I believe, missed the window of opportunity. 

Although e-ink manufacturers are making a valiant attempt to provide a medium that appeals both to online readers and print readers, it is too little, too late. The problem is that mobile devices are becoming more and more universal, while the Internet becomes more pervasive. It won’t be long before we will be connected to the Web no matter where we are, with one pocket device that will do everything we need.

iPod a dinosaur?

In our fast track to convergence, fewer and fewer specialized devices are needed. The iPod, for example, will soon be going the way of the dinosaur as mobile phones incorporate better MP3 technology.

Certainly the capacity on an iPod today (30 gigabytes to 80 gigabytes) far exceeds that of cell phones (1 gigabyte to 2 gigabytes), but there is no question that in a couple of years, mobile devices will have significantly more memory and be integrated with high-quality MP3 technology. Separate MP3 players will therefore no longer be in demand. Apple did a wonderful job finding a window of opportunity and exploiting it well, but in my opinion that window is about to be closed. The same goes for digital cameras.

Consider that Motorola and Nokia are now the largest camera producers in the world. And their technology is getting more sophisticated as they prepare to introduce cell phones with 5 megapixel cameras. This will most likely be read as an announcement pointing to the end of the era of consumer digital cameras, limiting the entire industry to large-capacity professional digital cameras.

Once Nokia introduces its N95 multimedia phone next year, a device with a 5 megapixel camera and a built-in GPS, you can expect its rivals to offer their own versions.

Consolidated device

A few years ago there was an argument about whether it was better to have a universal device, or many separate specialized devices, in order to enable consumers to communicate and gather information. For the average consumer today, it has become obvious - they want one universal device that can do everything, and do it in a quality way: phone calls, text messaging, chat, e-mail, video, TV and Internet access. 

With one device, consumers should be able to read a newspaper or a book, get the latest weather, buy and sell stock, browse and search the Internet, locate places, things and people, watch a video, or record and listen to music. It might even be able to replace credit and bank cards for making purchases.

The question comes down to what kind of device will be able to perform all those functions? It must be small, lightweight, secure and convenient with a long battery life, and it must be always connected.

So far, the device that seems to be most suitable to providing these services is the mobile phone. The world certainly is comfortable carrying cell phones, so it makes sense to put as much functionality into the device as possible. The major manufacturers certainly are seeing it this way.

And the plastic e-paper reader?

Unless it becomes the universal device (which appears to be unlikely since it’s not in color, there’s no video and you can’t fold it and put it in your pocket), it’s doubtful it will be adopted by the masses. We’re just too close to the “communications Swiss Army Knife” we’ve been waiting for. Perhaps e-ink will find a home in billboard advertising, but for reading the news, the technology has missed the boat.

Alexander Gruntsev is vice president of business development at NewspaperDirect. He can be reached at grampo@newspaperdirect.com.