Adobe Eases Privacy Concerns

Tests on the latest version of Adobe System’s e-reader software reveals the company is now collecting less data following a privacy-related row last month, according to the Electronic Frontier Foundation.

Digital Editions version 4.0.1 appears to only collect data on e-books that have DRM (Digital Rights Management), wrote Cooper Quintin, a staff technologist with the EFF. DRM places restrictions on how content can be used with the intent of thwarting piracy.

Adobe was criticized in early October after it was discovered Digital Editions collected metadata about e-books on a device, even if the e-books did not have DRM. Those logs were also sent to Adobe in plain text.

Since that data was not encrypted, critics including the EFF contended it posed major privacy risks for users. For example, plain text content could be intercepted by an interloper from a user who is on the same public Wi-Fi network.

Adobe said on Oct. 23 it fixed the issues in 4.0.1, saying it would not collect data on e-books without DRM and encrypt data that is transmitted back to the company.

Quintin wrote the EFF’s latest test showed the “only time we saw data going back to an Adobe server was when an e-book with DRM was opened for the first time. This data is most likely being sent back for DRM verification purposes, and it is being sent over HTTPS.”

If an e-book has DRM, Adobe may record how long a person reads it or the percentage of the content that is read, which is used for “metered” pricing models.

Other technical metrics are also collected, such as the IP address of the device downloading a book, a unique ID assigned to the specific applications being used at the time and a unique ID for the device, according to Adobe.

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Amazon Tops Apple

A mere five months after Apple snatched J.D. Power’s tablet satisfaction award away from Samsung, it has lost it to up-and-coming Amazon.

Apple’s iPad finished in second place in the latest satisfaction survey conducted by J.D. Power and Associates, with a score of 824 out of a possible 1,000. For the first time, Amazon took first place, scoring 827.

Samsung came in at 821 for third, while Asus and Acer filled out the first five, but those stragglers’ scores were under the category average.

J.D. Power’s satisfaction score included five separate measurements for performance, ease of operation, features, styling and design, and cost, with each accounting for different percentages of the final number. Performance, for example, counted as 28% of the total; cost for 11%.

Apple received high scores in performance and styling and design, while Amazon performed best in ease of operation and cost, said Kirk Parsons, senior director of telecommunications services at J.D. Power.

“Within the tablet segment, there’s a balance of cost and value, and for this period, Amazon was at the equilibrium,” said Parsons. “For the money, [Amazon tablets] do what buyers need them to do. And the Mayday feature really helped them in ease of operation.”

Mayday is a feature on Amazon’s higher-end tablets that lets customers video chat with support representatives using the device.

Parsons called out Amazon’s Fire HDX, which launched in October 2013 in a 7-in. size and a month later in an 8.9-in. format, for driving the brand’s scores. Amazon now sells the 7-in. Fire HDX for $179; the 8.9-in. model starts at $379. “The new Fire HDX did really, really well” in the survey, Parsons noted.

J.D. Power polled nearly 2,700 U.S. tablet owners who had had their current devices for less than a year. The survey period ran from March to August.

The last time J.D. Power published tablet customer satisfaction scores, Amazon placed fourth. Its jump to first was a small surprise, said Parsons. “I figured [Amazon’s] scores would improve, but I didn’t think they’d take the top spot,” he admitted.

Price is increasingly important to satisfaction, said Parson, as costs fall and capabilities climb across the board, making it more difficult for premium-priced tablets like Apple’s iPad, to retain their polled positions. On average, tablet customers now spend $345 on their tablets, $48 less than in April 2013, a decline of 12%.

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Does B&N Have A Buyer?

Investment firm G Asset Management said on Friday that it had offered to acquire a 51 percent stake in either Barnes & Noble Inc or in the bookseller’s Nook digital business.

The little known firm said the proposal for Barnes & Noble as a whole would be for $22 per share, which would value the top U.S. bookstore chain at $1.32 billion. It comes after earlier proposal in November for $20 per share, its second.

G Asset, which not did detail how it would finance a deal, also made an alternative offer to buy Nook for $5 per share, saying spinning off the digital books and device business would create “substantial shareholder value.”

The latest offer for the whole company would value Barnes & Noble at $1.32 billion, while the proposal for Nook would value that unit at about $300 million.

The firm has previously pressed the company to spin off its Nook unit from Barnes & Noble’s bookstore and college units.

Michael Glickstein, G Asset’s Chief Investment Officer, and the only person listed on the firm’s website, did not immediately return a request for comment.

Barnes & Noble shares were up 5.8 percent at $17.75 in afternoon trading after going as high as $19.12 after the news was released, suggesting Wall Street analysts were doubtful a deal would get done.

A Barnes & Noble spokeswoman declined to comment beyond confirming that the company had received G Asset’s offer.

The original Nook device was launched in 2009 to help Barnes & Noble fend off Amazon.com Inc and allowed the retailer to win as much as 27 percent of the U.S. e-books market.

But the company lost hundreds of millions of dollars trying to keep pace with deep-pocketed rivals such as Amazon, Apple Inc and Google Inc. It has scaled back its Nook business and focusing more on content and software.

Two years ago, Microsoft Corp invested $300 million in the Nook unit for a 17.6 percent stake, valuing the division at $1.7 billion. In late 2012, Pearson PLC took a 5 percent stake in Nook for $89.5 million.

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