The Shatzkin Files


What will be the big digital issues in January 2011?


I have found a way to describe the difference between the Digital Book World conference we organize for F+W Media and the O’Reilly conference Tools of Change which I believe is accurate and is certainly not intended to be a pejorative description of  Tools of Change. I go to TOC and I find it very valuable, but different from what we’re trying to do.

Tools of Change explores developments in technology that have impact or can have impact on publishing (in general) and helps publishers (of all kinds) understand how to apply them. Digital Book World explores business challenges to trade publishing (defined as book publishers who work primarily through the retail network, or “the trade”) generated by digital change and helps publishers address them. So if I were organizing Tools of Change, I’d want to scan the horizon for technologies that could have an impact and ask “how?” Because I’m organizing Digital Book World, I’m looking at trade publishing’s commercial environment and operations for the impact of technology and asking “what should we do?”

The next Digital Book World Conference is set for January 25-26, 2011. That obliges us to ask: what will the hot digital change questions be eight months from now? What should we be planning to discuss then that will be immediate and relevant to the attendees we’re targeting: the editorial, marketing, sales, and digital strategy people in trade book publishing houses?

To help us figure that out, we’re in the process of recruiting the DBW 2011 Conference Council. That group of about 30 people — CEOs, digital strategists, and marketers from publishing houses large and small, agents, retailers, and independent industry thought leaders — will help us define the panels and choose the speakers that can enlighten and inspire. I’ll introduce you to that group in a future post; the team is in formation at the moment.

Today’s blog is to recruit the readers of The Shatzkin Files to help too. I hope you will.

Here are 15 topics, or speculations, we’ve identified to start building an agenda for discussion next January. Do you have any thoughts on any of these to refine our thinking? Some of these are ideas looking for examples: do you know particular people or companies doing things suggested here (or not suggested here) we should be highlighting? And, most important, what are we missing?

1. What’s going to be in an ebook? We’re definitely moving past the stage where the ebook is a “straight lift” from the print: half-titles, blank pages, and all. As ebook sales are rising, publishers are paying more attention to presentation and quality control. And there have been a few experiments with “enhanced ebooks” that contain added content and features, some of which are presenting books as “apps” to increase the functionality that can be offered. Where will we be drawing the line between “standard” new ebook features — dictionaries and linked notes, for example — and enhancements that might be worth extra money? And what enhancements will we see working in the sense that consumers see them to be worth paying for?

2. What will ebook sales channels look like eight months from now? In addition to the main ones we have today — Kindle, iBooks and the App Store, Nook and B&N, Sony, Ingram Digital and Content Reserve — will we be seeing substantial sales through Google and the Android marketplace, B&T’s Blio, and Copia as well? Will the mobile phone service providers be creating retail outlets that matter too? Will the retailers newly in the ereader game — Walmart and Costco and Best Buy — also be motivated to create a branded outlet of their own to sell ebooks?

3. To what extent will publishers view single-title marketing as a practical endeavor? We’ve maintained that title-by-title marketing is the Achilles heel of general trade publishing and that the steady erosion of book-format-oriented marketing opportunities (book review pages in newspapers, radio and TV talk shows) and verticalization call for different marketing strategies. Where will publishers’ thinking be next January on the challenge of launching each new title into the marketplace?

4. How much progress will publishers be making on establishing direct-to-customer contact? What has characterized trade publishing is its dependence on intermediaries to reach the market. And what has made trade publishing possible is the leverage provided by those intermediaries, allowing publishers to reach millions of readers through mere thousands of touch points. But all publishers today acknowledge that the intermediary structure is breaking down and direct contact with end users is necessary. How is that working out? We may need two panels to answer that question: one of niche publishers that will find it pretty natural to do and one of general trade publishers who will undoubtedly find it very hard and complicated.

5. How important is the mobile phone market? How fast is it growing? What kind of books work best on it? And what do publishers have to do differently to please that market than what they do for larger-screen PCs, tablets, and ereaders?

6. How are publishers tackling the shrinking marketplace for printed books? Are they shedding warehouse space or considering consolidation with other players? Are they renegotiating printing contracts, reconsidering what constitutes a “minimum run” or acceptable print book margins? Are they developing new short-run and POD models to complement their prior pressrun models? Are they launching any new books with a no-pressrun strategy?

7. How much progress are publishers making toward changing their workflow, so that we have “ebook first” editorial processes? Since the beginning of ebooks over a decade ago, the standard technique has been to make them after the print book has been completed, and for the editor and author to focus their efforts on making the best possible print product. There is an increasingly widespread belief that this is backwards, and more complex ebooks help make a compelling argument for reversing the order of things. How far will we have moved in that direction by next January?

8. Does the growth of ebook sales change the thinking of publishers and agents about the efficacy of dividing up the territories for single languages? Do publishers start to see a growth in offshore sales facilitated by ebooks? Anecdotal reporting by O’Reilly, which owns global rights in all its titles, suggests that they’re seeing big sales growth in digital from markets that are hard-to-reach with print.

9. Do non-US publishers start to establish more of a sales presence in the US exclusively through virtual means? We’ve been suggesting on this blog that the growth of online sales — print books and digital books — will soon enable reaching a majority of the US sales potential without inventory, which means without the need for a warehouse or a distributor. That should lead to greater penetration of our market by offshore publishers, in all languages. Will we see enough signs of this by January 2011 to build a discussion around it?

10. How does the future look for the brick-and-mortar bookstore marketplace? On this blog (and elsewhere), concerns have been expressed about the impact on bookstores of the increasing shift to online purchasing for both print and ebooks. Christmas 2010 is being viewed in the consumer electronics industry as the “ebook Christmas”. When we’ve had a chance to digest the sales numbers of new devices and we combine that with what we know about the impact devices have on a consumer’s print book purchases, how do we see the future of bookstores when next January rolls around?

11. Is “profitable self-publishing” an idea gaining credibility or is it a pipedream? In 2009, author J.A. Konrath made a bit of a splash when he blogged about the substantial revenues he was earning putting his short stories and out-of-print backlist on Kindle without a publisher. Will there be more stories like this by January? Will this look like a viable option for established authors?

12. What’s the best approach to ebook distribution for small and mid-sized publishers? Will the original DADs (digital asset distributors) like Ingram Digital and LibreDigital provide the full service suite and sales effort that smaller publishers need? Or will the publishers-as-distributors model — notably including O’Reilly, who went into the business last February, as well as trade publishers and trade distributors like Perseus and NBN and Ingram Publisher Services, be the better option? How much is effective ebook distribution dependent on technical competence and how much of it requires sales competence?

13. After many years of discussion, are we yet beginning to see some new revenue models with any impact, like subscriptions (Disney has tried it now, in addition to O’Reilly’s Safari), selling books by the slice, or new models to compensate for library lending? We know that publishers need metadata-labeled fragments of their books for marketing purposes, but, for trade publishers, is there yet any indication that there’s a real payoff for that kind of tagging in sales revenue?

14. How much of the print backlist is still locked up by rights issues and what impact can different royalty offers have in clearing it up?Jane Friedman’s Open Road has had some success signing up established backlist for higher ebook royalties than the majors want to pay. Is the reservoir of candidates for this treatment substantial? How are agents and big publishers going to resolve these issues?

15. Is the notion of publishers building vertical presences on the web, so often expressed and promoted on this blog, gaining any significant traction in the real world? How are Poetry Speaks and Oxford Bibliographies Online and the forthcoming Pixiq from Sterling doing at establishing a new publishing model? What other examples are emerging or will emerge of publishers using delivering vertical solutions to create new business models?

At the Digital Book World conference, we want to be strategic and we want to be practical. And we want to be focused on the real-world problems digital change is forcing trade publishers to face. Have we left out any of yours?

I have finished this but not posted it yet and am already thinking of things I left out. A substantial publisher I spoke to last week learned from having his trip to the London Book Fair cancelled that he doesn’t need to go there anymore. This company has already given up its BEA floor space in favor of a meeting room. And this CEO himself is no longer going to go to Frankfurt and can see the day not far off when his company will no longer take space there either. Are trade shows  an anachronism in the age of digital communication? I have a feeling you readers and the Conference Council will think of a lot more.

  Back to blog

  • Brian

    One thing that irritates me is the number books available for the Kindle that are not available for the Nook. There are several new books that I would love to read on my Nook, but Barnes & Noble does not carry them. I just wonder if that is a publishing call not to make it available or if that is a reseller call to not carry it. Very frustrating.

    • /blog Mike Shatzkin

      Believe me, Barnes & Noble wants to have every title available for the Nook
      that is available for the Kindle. You can be sure that *they* are not
      blocking them. I suspect that details of negotiation on terms are
      responsible for the omissions. Are you seeing them clustered by publisher,
      or can't you tell about that?

      Mike

  • Pingback: Daily Links 17/05/2010 | Irish Publishing News

  • http://www.zinio.com Andrew Malkin

    I have two that I would like to add that could certainly be incorporated into the list you comprised–

    1) Dealing with image rights for backlist and going forward how you obtain them, clear them or develop them yourself? I'd like to see a publisher, an attorney (who works with IP), someone from Getty (or equivalent) and a production person all on a panel to dive into this topic that is problematic and relevant with the arrival of color screens (and move from vanilla EPUB files to illustrated content for frontlist or backlist)

    2) How one can efficiently and inexpensively scale with enhanced eBooks so that you don't spend months with a partner (or in-house) developing a costly interactive title. Clearly we will hear more about toolkits and templatized approaches imminently I suspect from my employer among others.

    Thanks.

    Best,

    Andrew

    • /blog Mike Shatzkin

      Two excellent suggestions, Andrew. We'll put them in the hopper!

      Mike

  • stevenaxelrodtheaxelrodagency

    I would suggest a session on how authors are taking advantage of their new-found ability to connect directly with their readers (per Shiv Singh's 2010 keynote). One client of mine just hit 20,000 Facebook fans, another has over 145,000 names on her mailing list and 38,000 fan profiles on her web site. Going forward, what impact will all this have on the author/publisher relationship, the author/agent relationship and the job of the author?

    • /blog Mike Shatzkin

      That suggestion is a great one, Steven. We have many agents involved in
      planning Digital Book World so we should have a hard time finding panelists
      for this one!

      Mike

  • http://www.cathycamper.com Cathy Camper

    As a librarian, I'd say you should include a library perspective. I know your view is mainly publishing, but libraries make up a BIG market for publishers. Like the publishing industry, we don't know if electronic books means our jobs will change, go away, or expand. There's also the flip side of this; should libraries digitize their print collections, and if so, who gets rights/access? (the whole Google situation) There are immense riches on the shelves of libraries – and not just print–images too– but where these end up and who has access are big issues.
    I urge you to include librarians in the mix for another reason; they'll offer non-commercial viewpoints on issues like privacy, access, freedom of information, public trust and public domain.
    And bottom line, I'd like to work towards a literary world where future generations can expect to have livable-wage jobs, with healthcare ; ) working with books in whatever format — writing, editing, designing, publishing and sharing — because duh! Kids growing up today with book sensibilities deserve jobs that are wonderful, creative, passionate and engaging – work that fulfills them.
    Thank you -

    • /blog Mike Shatzkin

      Cathy,

      We are shamelessly commercial in our thinking for DBW and we basically take
      a publisher's POV. But the point you make about the importance of library
      sales to publishers is correct so somehow we need to take stock of that
      channel. My own concern is that the pure “lending” model will be a
      commercial problem in a mostly ebook world. Already some publishers prefer
      not to make digital editions available for libraries to lend. But if the
      sales are shifting from print to electronic and the sales by publishers to
      libraries of print are important, then just walking away from the library
      sales isn't a viable answer. We should think about what is. Envisioning the
      future of publishers' relationships with libraries in the digital age is a
      valid topic. Thanks for the suggestion.

      Mike

  • KassiaKrozser

    As I look in my crystal ball, I see a few key issues on the horizons. There are two I think are essential (and they are fairly large). Consumer experience — buying, portability, ease-of-use, price, etc. There are a few publishers who put this at the forefront, and I think they're doing it very well.

    The second — and I'm sure this is already on the agenda — is rights. There are legacy digital rights (a la William Styron), territorial rights (creating massive tension for, but not necessarily between, publishers and readers), digital rights (JK Rowling's refusal to offer her books in digital is leading to piracy), and even consumers rights (what does it mean to “buy” a digital version of the book?). And, of course, transmedia/enhanced rights — there are rumblings of discord between agents and publishers on this point.

    • /blog Mike Shatzkin

      Kassia: name the publishers who are good at consumer experience, in your
      opinion. That would give us a start at pinning down the right conversation.

      Yes, rights will be covered. There's a bit of this anticipated in my list
      but agents are all over this effort. We have several on the Conference
      Council and we'll have an agent on every panel where one could possibly make
      sense.

      Mike

  • http://librosenlanube.blogspot.com Julieta Lionetti

    Hi, Mike. I've reviewed this post in my blog librosenlanube.
    Of course, I reviewed it in Spanish. Any translation rights? ;-)

    • /blog Mike Shatzkin

      Thank you, Julieta. I can't really understand Spanish (or anything other
      than English) without the help of a dictionary, but I remember enough of
      what I was taught about 50 years ago to see you covered two posts of mine in
      yours. I'm flattered, and the translation rights fees are waived.

      Mike

  • http://www.dmpibooks.com Jesse Finkelstein

    Hi Mike,
    How about practical applications for social DRM? Some publishers would like to sell ebooks directly off our own sites. Can we find some innovative ways to do this using social DRM instead of locking up the files? Also, when we're selling through major retailers: how can we put pressure on them to employ reasonable DRM approaches (as opposed to total lockdown) that would enable reader-focussed features such as book sharing?

    • /blog Mike Shatzkin

      Jesse, DRM is a very tough subject because there are so many stakeholders
      with different interests. The retailers want you to have “interoperability”
      between devices, but they'd rather you have it only on *their* platform.
      Authors and publishers want to “stop piracy”, but they don't really know
      whether piracy is costing them sales or not. (It could be *helping* sales by
      creating more word-of-mouth.) I think most people use Adobe now because it's
      the “standard”; nobody can much blame a publisher for doing what everybody
      else is perceived as doing.

      I've been a fan of the idea of “social DRM” for a long time, although people
      have different ideas about what this means. I don't think trying to advocate
      any particular position would be what we'd want to do, but it might be that
      we should have a debate on the pros and cons and nuances of DRM. I imagine
      more than a few people would be educated by such a discussion. We'll put it
      on the list for conference planning discussions.

      Mike

  • http://blog.ceciliatan.com ceciliatan

    Mike, are you taking nominations for the DBW council of 30? (And/or for presenters for DBW 2011?) I have someone I'd like to recommend to you.

    • /blog Mike Shatzkin

      No nominations for the Conference Council. That's a group I'll admit to
      hand-picking because their primary function is to advise my office as we set
      up the Conference.

      But absolutely we want suggestions for speakers (or topics.) The best way to
      deliver ideas like that is offline.

      Mike

  • Pingback: Link-Tipps der letzten Woche | Leander Wattig

  • Pingback: A brilliant Conference Council helps make a great Digital Book World – The Shatzkin Files

  • Pingback: What Will Be the Big Digital Issues in January 2011? | Digital Book World

  • Pingback: Digital Book World 2011 | Building a new-fangled conference program the old-fashioned way

  • Pingback: Building a new-fangled conference program the old-fashioned way – The Shatzkin Files

  • Pingback: The Big Digital Issues in January 2012 by Mike Shatzkin | Digital Book World