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Is the ebook and POD combo a viable publishing strategy yet?


There’s a new publishing model afoot, which is to lead with the ebook and just print what you need. That might be POD, and it might be press runs, if you can sell out whole press runs. If the ebook becomes a substantial chunk of sales and if ebooks maintain their prices, this looks like it could be a new way to do much lower-risk publishing.
Some very smart publishing people are moving in this direction. It had been the plan of the meteoric Quartet, which has already flamed out. It is part of the plan of Richard Nash, an experienced publisher (Four Walls Eight Windows) and a budding entrepeneur. It is the model for a young and aspiring Irish publisher named Eion Purcell. And last week, tor.com announced that it would be publishing books (this is distinct from its “parent”, St. Martin’s sci-fi imprint Tor) with an ebook first and POD methodology.
Can no pressrun publishing work? That’s a subject for discussion at Digital Book World in January, but, based on an interesting post by Kassia Kroszer, one of the four principals in Quartet, I have real doubts.
Kassia’s post makes it clear that direct sales at “full margin” (meaning no cut to anybody else in the supply chain) were an important part of Quartet’s budget and plan. They figured that by sticking to niches, and the first one was going to be romance, they’d be able to build up a direct audience and avoid sharing revenues with retailers and wholesalers. Kassia points out that savvy ebook readers (who hate DRM, high prices, lack of interoperability, etc.) are willing to support their “local” publisher, knowing that more money gets to the author that way.
This all makes me more skeptical about the model.
First of all, savvy ebook readers are a large part of the current readership, but they won’t stay that way. If ebooks are going to become a business, than casual and uninformed ebook readers will have to join the party. Although I’ve been reading ebooks for 10 years, I’m one of those. I don’t shop around for my ebooks; I buy from what I deem to be the most convenient sources. When I read on a Palm (in pre-Kindle days), there was no such animal, but Peanut Press followed by Palm Digital followed by ereader had to serve. Then Amazon and Kindle changed the game. And now B&N is providing me exactly what I need for my iPhone.
If a web site I was on anyway offered me an ebook I wanted that would work in my BN reader software, I’d not be reluctant to buy it. But I wouldn’t be “shopping” anyplace else.
The loyal and informed crowd of romance readers may have learned that they can find the books they want at Harlequin.com or Ellora’s Cave, but there has to be a limit to the number of individual romance publisher sites the community will support. And you’d expect some critical mass of available material — as well as other content and participation opportunities — would be necessary to attract any substantial number of customers.
Secondly, the idea of building a niche presence through publishing in it, rather than through building a real vortal or community site, seems futile. What the internet has taught us (so far; it could change) is that making your own content and selling what you make is not a viable model, except at the very highest price points. You have to figure out how to leverage other people’s content and community participation. That’s what Google does. That’s what PublishersMarketplace does. That’s what the future successful publishers I envision in the Shift speech will have done.
Cutting costs and cutting waste, which ebook-first publishing does, would certainly seem like a path to financial viability. But it takes revenue to pay the bills. If you don’t go out and reach customers where they are — at the bit Internet retailers — it is hard to see how the ebook sales can be substantial enough to run a business. And if you do use those retailers, they extract their share of revenue for delivering access to the customers.
It may be too soon for the ebook-first model to succeed, except in very particular niches (which, indeed, is Purcell’s initial approach) or when it is supported by another business (which is, if you think about it, tor.com’s approach.)

There’s a new publishing model afoot, which is to lead with the ebook and just print what you need. That might be POD, and it might be press runs, if you can sell out whole press runs. If the ebook becomes a substantial chunk of sales and if ebooks maintain their prices, this looks like it could be a new way to do much lower-risk publishing.

Some very smart publishing people are moving in this direction. It had been the plan of the meteoric Quartet, which has already flamed out. It is part of the plan of Richard Nash, an experienced publisher (Soft Skull Press) and a budding entrepeneur. It is the model for a young and aspiring Irish publisher named Eoin Purcell. And last week, tor.com announced that it would be publishing books (this is distinct from its “parent”, St. Martin’s sci-fi imprint Tor) with an ebook first and POD methodology.

Can no pressrun publishing work? That’s a subject for discussion at Digital Book World in January, but, based on an interesting post by Kassia Kroszer, one of the four principals in Quartet, I have real doubts.

Kassia’s post makes it clear that direct sales at “full margin” (meaning no cut to anybody else in the supply chain) were an important part of Quartet’s budget and plan. They figured that by sticking to niches, and the first one was going to be romance, they’d be able to build up a direct audience and avoid sharing revenues with retailers and wholesalers. Kassia points out that savvy ebook readers (who apparently also hate DRM, high prices, lack of interoperability, etc.) are willing to support their “local” publisher, knowing that more money gets to the author that way.

This all makes me more skeptical about the model.

Savvy ebook readers are a large part of the current readership, but they won’t stay that way. If ebooks are going to become a business, than casual and uninformed ebook readers will have to join the party. Although I’ve been reading ebooks for 10 years, I’m one of those. I don’t shop around for my ebooks; I buy from what I deem to be the most convenient source. When I used to read on a Palm (in pre-Kindle days), there was no such animal, but Peanut Press followed by Palm Digital followed by ereader had to serve. Then Amazon and Kindle changed the game. And now B&N is providing me exactly what I need for my iPhone.

If a web site I was on anyway offered me an ebook I wanted that would work in my BN reader software, I wouldn’t be reluctant to buy it. But I will only be shopping at places that offer me a choice of things I want. It’s hard to imagine a single publisher doing that.

The web constantly reminds us of the value of monopoly. Amazon has a huge advantage in being the best place to shop for books because they’re the biggest. The size of the purchasing community adds value: more reviews, more data to make better suggestions or respond better to search queries, and it gives them the scale to add unique content through Kindle and BookSurge. In the same way, we’re likely to see a dominant horizontal ebook retailer emerge.

So no matter how good you are at selling your own stuff, if you want to sell to the public at large, you’ll almost always have to use intermediaries. And if you want to sell stuff to your own niche, you’re going to have to be an aggregator, not just a creator, to offer enough product to keep even a niche audience interested. And, if that’s true, then even within the niches, most of the small creators will have to share their revenue with an intermediary.

The loyal and informed crowd of romance readers may have learned that they can find the books they want at Harlequin.com or Ellora’s Cave, but there has to be a limit to the number of individual romance publisher sites the community will support. The right move for Harlequin would be to imitate tor.com and start selling their competitors’ books. (Tor hasn’t done this for ebooks, yet, but they have done it for print.)

The idea of building a niche presence for most subjects simply through publishing in it, rather than by building a real vortal or community site, seems futile. Another lesson from the web (so far; it could change) is that making your own content and selling what you make is not a viable model, except at the very highest price points. You have to figure out how to leverage other people’s content and community participation. That’s what Google does. That’s what PublishersMarketplace does. That’s what the future successful publishers I envision in the Shift speech will have done.

Cutting costs and cutting waste, which ebook-first publishing does, would certainly seem like a path to financial viability. But it takes revenue to pay the bills. If you don’t go out and reach customers where they are — at the big Internet retailers — you need to be selling ebooks to a very large community for sales to be substantial enough to run a business. And if you do use those retailers, they (quite reasonably) extract their share of revenue for delivering access to the customers.

It may be too soon for the ebook-first model to succeed, except in niches more tightly defined than “romance” (which, indeed, is a big part of Purcell’s initial approach) or when it is supported by another business (which is, if you think about it, tor.com’s approach.)


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A Little Ado About Something


The transition from print to digital is going to be a continual lesson in branding for publishers and in merchandising for retailers. I got a dose of that trying to make use of modern technology to deal with an old common problem last week.

I knew two or three weeks before that I was going to Boscobel to see Much Ado About Nothing on Friday night. If you’ve never been there to see Shakespeare, I recommend you put it on your calendar for next summer (this season being about over.) Boscobel is a beautiful site above the Hudson on the eastern shore opposite West Point, with beautifully manicured gardens leading to a stunning river overlook.

They put on Shakespeare under a big tent. The direction is uniformly excellent and imaginative; the performances often very good. (I am not an expert in theater, but I did have the good fortune to act in several Shakespeare plays in my youth, including a turn as Tybalt in a Romeo and Juliet that had subsequently famous actor Peter Strauss playing Benvolio. Our duel in the first scene is a story I’ll save for another time.)

I didn’t think I had ever read Much Ado, and it turned out I hadn’t. But I was both busy and dilatory. So it was only last Thursday, the day before the show, when I got back from London, that I finally went on BN.com to buy a copy of the play to put in my iPhone so I could get it read over the next 24 hours.

And that’s where I encountered some branding lessons.

What you get on the first screen from BN.com when you search ebooks for “Much Ado About Nothing”, in order, is the SparkNotes Guide for $4.95 (that’s a dormant Barnes & Noble-owned brand, and I’m sure the notes are good, but at that point I wanted the play); a “Digital” (that’s presumably a brand) eBook for $2.99 on which I could get a free sample; then 8 free versions each labeled “from Google Books.”

I should have loaded the “Digital” sample (but didn’t at the time; I am not familiar with the brand) and I would have seen it was well worth the $2.99 to buy it. I tried 3 from Google; they all turned out to be from Princeton’s “William Seymour Theater Collection” and they were, to put it gently, unsuitable. The typography, design, and editing were old and impractical.

So I changed my search criteria to “Shakespeare’s Comedies” and bought a Modern Library volume by that name that came up on the first page of the search. It came equipped with a Table of Contents and it is quite readable. Only twenty bucks. I paid it. I needed it and in my disappointment over what I got from Google I had forgotten the much-cheaper “Digital” edition of the single play above all the Google-branded ones.

But then on Friday afternoon, I had hardly cracked the play and I was running out of time. I remembered that last year at Boscobel time I had bought a copy of Lamb’s Tales from Shakespeare for my Kindle. I found it stashed at Amazon online and downloaded it to my iPhone. When I looked at it, I remembered what was wrong with it: no Table of Contents. Last time I had to scroll through the entire book page by page to find the play I wanted to read. I remembered that what I had done was make the font on the Kindle the smallest possible size to make that laborious process go faster.

Then I remembered that I had figured out after the fact that I could search on the Kindle for the play title and find it! Great. But the Kindle for iPhone doesn’t have the search function! So I retrieved the Kindle from my wife (who got it as a hand-me-down when decided I could do all my reading on the iPhone), searched for “Much Ado About Nothing” and was taken to the opening page of that story. I noted the Kindle text chunk number, found that chunk on the iPhone and, bingo, I was in business.

That wasn’t easy. It uncovers a number of points worth noting as we enter the digital book age.

1. Google’s books will be acceptable if they are the only choice available for the title. They will almost certainly not be the version of choice if something really prepared as a digital version in a modern way is available. Their “brand” will rapidly be seen as “last choice” if you have a choice. This is not good.  And if they intend, as they suggest, to sell new books as well as giving away PD books, they better do something about it. Imprint branding may not be the most highly developed skill set at Google (but don’t get advice from a publisher!)

2. And the retailers shouldn’t interpret downloads as popularity when they present choices. It wasn’t good merchandising for BN.com to show me all those identical Google editions for Much Ado so near the top, which one might assumes might have happened because they are free.  B&N should note, if they’re keeping score, that I downloaded them because they were free. If they’re looking into my ereader for useful information (in ways that will give many people the creeps, of course), they will see that they’re already deleted.

1A and 2A. Both Google and any retailer selling their books would be very well-served if they tagged (”branded”) the books which are uniquely available in Google editions.

1B and 2B. Both Google and any retailer selling their books would be very well-served if they refrained from displaying multiple copies of what is effectively exactly the same thing, particularly since they do so without making that clear.

3. Random House’s Modern Library brand sold me a $20 book of Shakespeare’s comedies because I wanted to read this play and didn’t have time to fiddle around once I’d found that a presumably competent commercial publisher had an edition available. This undercuts my supposition that publisher brands are meaningless. I still think that’s true for most purposes, but in this case it wasn’t and the brand was worth a high-priced, high-margin sale to them.

4. Kindle for iPhone isn’t as functional as Kindle on the device. There’s no text search capability. There is such a capability in BN.com’s ereader, however. That’s a reason I’ll be buying and reading from BN, not from Amazon.

5. Non-functional (unlinked) Tables of Contents are a real no-no in an ebook.

Having found the right spot in Lamb’s, my wife and I were both reading the story of the play in our seats during the ten minutes before it began, she on the Kindle and I on my iPhone. This attracted a great deal of interest around us and no small amount of envy. I think it is highly likely that we inspired some of our neighbors to be doing this themselves next summer. By then there’s hope they will have a smoother shopping experience than I just did.

Two codas to this piece.

Right after I finished it, I got a note from Ami Greko of Macmillan to tell me that Tor is making its Wheel of Time series available on Kindle for the first time and, to do it, the full text of the books has been retypeset to better accommodate the ebook format and all original illustrations and maps will be retained in these new releases. Tor appears to be the industry leader in establishing a 21st century sci-fi brand and taking this kind of care with a flagship series is good for their readers and good for the brand.

On another front, a great discussion broke out on Brantley’s list about publishers trying to squeeze textbooks onto iPhones. A number of us made the point that books originally intended for 150 square inch presentation need to be rethought to be effective within 6 square inches. Andrew Savikas of O’Reilly was the most articulate and compelling on the point when he said:

The bigger issue I see is that thinking of the problem as “how do we get a textbook onto an iPhone” is framing it wrong. The challenge is “how do we use a medium that already shares 3 of our 5 senses — sight, speech, and hearing — along with geolocation, color video, and a nearly always on Web connection to accomplish the “job” of educating a student.” That’s a much more interesting problem to me than “how do we port 2-page book layouts to a small screen.”

Even when all a publisher is doing is presenting the same text in an ebook, the way Andrew suggests we be thinking is the right approach. And almost every publisher has a long way to go to cover even the basics on a consistent and competent basis. Defining what “competent” ebook-making consists of in 2010 will be a topic at Digital Book World.


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