Copyright Clearance Center

The Digital Book World program this year covers the waterfront of the digital transition for book publishing


(This is a longer-than-usual Shatzkin Files post reviewing the topics and speakers for the 26 breakout sessions at DBW 2015. It serves as a checklist of “things to think about right now” for book publishers living through the experience of digital change. The entire program is here. We decided not to link to each and every speaker.)

The main stage speakers get most of the promotional attention leading up to Digital Book World. That’s just good marketing because there are many important names. Some have written big books (in addition to many other things they’ve done) like Ken Auletta, Seth Godin, and Walter Isaacson. We have a number of CEOs on the main stage as well, including Brian Murray of HarperCollins, who has just been named PW’s “Person of the Year”.

But half of Digital Book World is the six breakout session slots, at which attendees select from several choices. I take some pride in saying that we’re requiring some of the toughest decisions our attendees will have to make in 2015 very early in the year when they decide for each slot which session to attend and which ones they have to skip.

What we tried to do was to schedule things so that our “tracks” — two or more sessions on marketing, data, global, transformation, kids/education, technology, and new business models — are set up to allow people to attend all the sessions in that track. But there is overlap, of course.

“Marketing” is definitely the marquee subject for DBW 2015. We have seven sessions under that heading. On the first day we have a conversation about the skill sets required for marketing today, chaired by my Logical Marketing partner Pete McCarthy and featuring Jeff Dodes of Macmillan, Angela Tribelli of HarperCollins, Rick Joyce of Perseus, and Hannah Harlow of Houghton Mifflin Harcourt. Since two of the panelists are recent imports from outside publishing, presumably hired precisely because they had skill sets that publishing training wouldn’t have produced, this group is bound to help all publishing marketers identify what they need to bring on board.

That will be followed by a session on Smarter Video Marketing, which will be chaired by Intelligent Television founder Peter Kaufman, leading a discussion among video marketers Scott Mebus of Fast Company, Sue Fleming of Simon & Schuster,  Heidi Vincent of National Geographic Books, and John Clinton of Penguin Random House. In a world where authors are making their own videos and YouTube is the second leading search engine, this is a topic that suddenly needs to be on everybody’s radar.

The third marketing track session on Day One is on mobile marketing. Since tracking data is now showing that people now do more searching on mobile devices than on PCs, making sure books are optimized for mobile discovery has rapidly become essential. Thad McIlroy, a consultant with a long history in publishing, did a report on mobile for Digital Book World and will present some of his findings to kick off the session. Then he will lead a discussion including Nathan Maharaj of Kobo, Kristin Fassler of Penguin Random House, and CJ Alvarado of Snippet, a reading app that has been specializing in creating mobile reading experiences for branded authors/musicians /personalities, to detail how publishers and retailers are responding to this new reality.

Also related to marketing and also running on Monday, we’ve set up a break-out session for Joe Pulizzi, head of the Content Marketing Institute, who will have done a presentation on the main stage. Content marketing is something publishers need to learn from. Certainly all the techniques that are employed by non-publishers to market themselves with content created for a marketing purpose should be employed by publishers who have tons of content available for marketing. Pulizzi knows all the tricks and will have talked about many of them from the main stage. The breakout session will give attendees that want to learn more, and ask questions, an opportunity to do that.

The marketing track continues on DBW’s second day. One session, being moderated by my Idea Logical colleague, Jess Johns, will examine case studies of successful marketing campaigns. We’re featuring representatives from two of the platforms publishers can work with for marketing: Ashleigh Gardner of content platform Wattpad and Alex White from marketing data aggregator Next Big Book. They’ll each be joined by a publisher who has worked with them (about to be announced). Wattpad and Next Big Book, along with their publisher partner, will walk through what they’ve done in marketing that would have been impossible to imagine a couple of years ago.

Also on Day 2, we’ll be examining the new world of digital paid media. This has been a big challenge for publishers. Digital media is apparently cheap; you can do marketing that matters for hundreds of dollars in “media” cost, it doesn’t require thousands. But there’s also a lot of work and management involved to using digital media right. We were glad to get digital marketers from three leading publishers, Alyson Forbes from Hachette, Caitlin Friedman from Scholastic and Christine Hung from Penguin Random House as well as Tom Thompson from Verso Advertising. This session will be moderated by Heather Myers of Spark No. 9.

A marketing topic that has become top-of-mind for many publishing marketers is “price promotion”. A business has been built around it for the ebook business called BookBub, and its founder and CEO Josh Schanker will be on our panel discussing it. He’ll be joined by Matthew Cavnar of Vook, Rachel Chou of Open Road, and Nathan Maharaj of Kobo. We went for three retailers and service providers here because publisher experience with price promotion is still pretty limited, although the ebook pioneers at Open Road are an exception. Laura Hazard Owen of GigaOm will moderate this session.

Our data conversation begins on the main stage on the second morning of DBW with data scientist Hilary Mason, the CEO and Founder of Fast Forward labs. She started looking at Big Data at Bit.ly, the link-shortening and -tracking service. Mason is going to look at data across a content set that is the only one more granular than books: the content on the web. Her presentation will help us all understand how to interpret audiences for very small portions of the available content. Because we expect her presentation, like Pulizzi’s on Day One, to generate lots of questions, we also gave her a breakout session to facilitate questions and further explanations. DBW sponsor LibreDigital, which has a new offering to help their client publishers turn data into business intelligence, will help Hilary manage the Q&A.

Our panel on “Authors Facing the Industry” will be prefaced by two presentations.. Judith Curr, president and publisher of Simon & Schuster’s Atria Publishing Group, will have done a main stage presentation on the choice “self-publish or be published” that authors face. Then the breakout session will begin with a short presentation from Queens College Professor Dana Beth Weinberg of DBW’s annual “author survey”, giving a data-grounded underpinning to the panel discussion that will follow. Bianca D’Arc, an extremely successful writer of paranormal sci-fi and fantasy romance (and a former chemist), will be joined by two non-fiction writers for this conversation. Both David Vinjamuri, a marketing professor, and Rick Chapman, a computer programmer, have marketed their books themselves because they make more money doing it that way to their highly-targeted audiences. The panel will be moderated by Jane Friedman, one of the industry’s thought leaders about self-publishing.

The data we’ve never had before that is just beginning to be appreciated is the subject of our “How People Read” panel. It has become obvious that the platform owners know more about how consumers “behave in the wild” around reading than publishers do. Multiple device use, response to free samples, whether people read more than one book at a time, and how fast they read various books are all clear to those who serve up the ebooks, as well as differences in behavior that are geographically based, including uptake of English-language ebook reading. In a panel which will be moderated by Chris Kennealley of Copyright Clearance Center, Micah Bowers of Bluefire, Michael Tamblyn of Kobo, Jared Friedman of Scribd, and David Burleigh of Overdrive will share data insights their companies have gained by seeing many consumers of many genres in many contexts. Evan Schnittman, who had senior executive positions with Oxford and Bloomsbury and most recently with Hachette, will be moderating.

Of course, that last session is not just about “data”, it is also about “global”, which is another track at DBW 2015 with two sessions on Day Two.

The first of these, moderated by BISG Executive Director Len Vlahos, is on “Global Publishing Tactics”, designed to help publishers know what to do to sell outside their home territory. Speakers from three companies that provide global ebook distribution — Gareth Cuddy of ePub Direct, Marcus Woodburn of Ingram, and Amanda Edmonds of Google — will talk about what it takes to make your ebooks discoverable and get them purchased outside your home market. All of these entities distribute to just about every market in the world on behalf of a wide variety of publishers large and small. They see what works in metadata, pricing, and marketing, and they know what doesn’t. They are in a unique position to help publishers hoping to expand their global sales know what it will take to do that.

Our other dedicated global track session is the “Global Market Spotlight”, which will help our US- and English-centric audience understand the opportunities in four of the biggest emerging digital markets. It will feature local experts Carlo Carrenho from Brazil, Thomas Minkus of the Frankfurt Book Fair speaking about Germany, Marcello Vena from Italy, and Simon Dunlop of Bookmate, the ebook subscription service from Russia. Following a general introduction about how to look at new markets from Gareth Cuddy of ePub Direct, each of them will talk about how both online and ebooks are taking hold in their market, what local competitors are doing (and there is a very interesting ebook competitor coming from Germany), and what the prospects are for English-language sales in their market. This session will give very directed advice to publishers trying to get sales in four of the most promising new digital territories in the world.

Education is a subject on the agenda for trade publishers because how their books will get to students is undergoing dramatic change they’ll need to understand.

College textbook publishing has been remade in the past decade. In a panel moderated by veteran industry executive Joe Esposito, we will have the four giants of college textbook publishing talk about what that has meant in each of their shops. Simon Allen of Macmillan, Ken Brooks of McGraw-Hill, Clancy Marshall of Pearson, and Paul Labay of Wiley will discuss how their businesses have changed over the past few years, and why. Each of the biggest college publishers has changed their organizational structure, their workflows, and even their products themselves in the past decade, sometimes responding to and sometimes anticipating the changes taking place in the market. All of them have essentially switched from selling textbooks to selling learning platforms. Publishers that sell content into the college market will want to understand the new platforms these players have created and how outside content will now make its way to this market.

The school market is also undergoing extreme change. Partly spurred by the new Common Core standards but also by the fact that digital devices are increasingly integrated into the lives of today’s youth, the classroom experience is being changed dramatically. Neal Goff, who has had senior executive positions in several companies, most recently My Weekly Reader, and who is currently consulting with Highlights, will moderate the discussion about the changing K-12 environment. Three companies with very different perspectives on the market will participate. Chris Palma of Google will describe the operating system that works on the district, building, and classroom level that Google is making available free to school systems, achieving remarkable penetration very quickly. Of course, Google also provides hardware (Chromebooks) and content (through Google Play). Neil Jaffe is the CEO of Booksource, which has been providing print and digital content to schools for many years and sees a continuing need to provide both in the future. And Erica Lazzaro speaks for Overdrive, the company that has dominated the ebook library lending business and is making its way in the school market through its penetration of school libraries. They each have a unique view of how this market is changing. Publishers who sell books read by K-12 students will find this session invaluable.

It is becoming increasingly understood that “gamification” is a way to engage a lot of people who might choose non-reading content, particularly potential readers among the young. Our panel on this subject includes two publishers that are using gamifying to create more engaged “readers”. Keith Fretz will speak for Scholastic, which has made this work more than once already, most notably with “39 Clues”. He is being joined by Greg Ferguson of Full Fathom Five, a collaboration created by James Frey among HarperCollins, Fox, and Google’s Niantic Labs. Another way to employ gamification to engage younger readers is being employed by panelist Thomas Leliveld of Blloon, a subscription ebook service that uses “virtual money” both to reward its users and for them to use to pay for what they read. Also on the panel will be Sara Ittelson, Director of Business Development at Knewton, an adaptive learning company that has developed a platform to personalize educational content and which has lots of data showing how students engage with educational content across ages. This session is moderated by publishing attorney Dev Chatillon.

You could call it “education” or you could call it “tech” (another one of our tracks), but either way DBW attendees will learn about some important new propositions on our Publishers Launchpad session on ed-tech. Our Launchpad sessions are moderated by Robin Warner, a tech investor through her role as Managing Director of Dasilva & Phillips. Launchpad seeks to feature companies that many won’t yet have heard about, but we think they should. Johnjoe Farragher, CEO and Founder of Defined Learning has a new approach to mapping skills to curriculum for the K-12 market. Neal Shenoy, CEO of Speakaboos, will explain his subscription platform for digital picture books which is pedagogically designed to promote education. And Jason Singer, CEO of Curriculet, will explain how his company provides a rental model combined with enabling teachers to annotate and structure the student experience. All of these companies effectively become “gatekeepers” for trade content in schools, making their models very important for publishers who want their books delivered to K-12 students to understand.

The other Launchpad session, also moderated by Robin Warner, is more clearly “tech”-centric. Kevin Franco, the CEO of Enthrill, will talk about how his company “makes ebooks physical” by the use of cards with codes, which is now being trialed in Wal-mart in Canada. Peter Hudson of BitLit enables publishers to provide a free or discounted ebook to people who own a print copy and, along the way, has also developed a really nifty technology that will identify the books on anybody’s shelf from a picture (which they call a “shelfie”). Andrew Dorward of BookGenie451, will explain how his company uses semantic search to make books more discoverable. Beni Rachmanov of DBW sponsor iShook, which has a social ebook reading platform for readers, authors, and publishers, will also present at this session.

Following the Launchpad session, we have our techiest session, moderated by my personal “go-to” guy for understanding tech development in book publishing, Bill Kasdorf, Vice-President at Apex Content Solutions. Bill’s panel’s topic is what might be thought of publishing tech’s “magic bullet”: HTML 5, a format that enables the nirvana of “write-once, use-many-ways” content creation. With the need to manage both print and digital formats and with digital now being rendered on what seems like an infinite variety of screens, the need for publishers to make use of this technology has never been greater. The panelists will include Bill McCoy, head of the International Digital Publishing Forum, and publisher practitioners Phil Madans and Dave Cramer of Hachette Book Group USA, Paul Belfanti of Pearson, and Sanders Kleinfeld of O’Reilly.

Because DBW is relentlessly “practical”, we don’t program much that is far from the current commercial mainstream. An exception this year is our “Blue Sky in the eBook World” panel, which will feature three perspectives that are clearly pushing the envelope beyond where we are today. Chris Kubica and Ashley Gordon have been convening a lot of industry thinkers around the invention of a new kind of bookstore, the publishers’ “dream” to compete with Amazon. They’ll be describing what they and their co-brainstormers have come up with. Peter Meyers, until recently at Citia, is author of “Breaking the Page” and the industry’s leading thinker about how straight-text ebooks can be improved. He’ll put forth his thoughts on that. Paul Cameron is the CEO of Booktracks, a company which puts sound tracks to ebooks and has evidence that the music along with the text improves recall and comprehension. All of these propositions are not (yet) commercially employed, but for DBW attendees who might be looking for the big things AFTER the next big thing, this is the session that will talk about those possibilities. This session is moderated by Professor John B. Thompson, author of “Books in the Digital Age” and “Merchants of Culture”.

Although what the educational publishers are doing might also qualify, we have a track dedicated to “transformation” that has three distinct groups of panelists, each demonstrating how radical change can occur in different ways.

The session on “building the trade publisher of the future” focuses on companies that are remaking themselves from what they were before. Carolyn Pittis, now Managing Director of Welman Digital and formerly on the cutting edge of change management with HarperCollins for over two decades, will moderate. We are proud to be the first industry event to host Daniel Houghton, the new CEO of Lonely Planet, a several-decades old travel book publisher, founded as an upstart, and now rethinking its publishing role in a very challenging travel book market. Lucas Wittman is at ReganArts, Judith Regan’s start-up venture which has an entirely different literary character than the art book publisher she’s working within, Phaidon. Andrea Fleck-Nisbet of Workman is in a company that has just reorganized to be better positioned for change. And Sara Domville, President of F+W (owners of Digital Book World), will describe the experience of turning a “book and magazine publisher” into a “content and commerce company” with a diminishing footprint in print and a growing dependence on ecommerce.

We aren’t neglecting publishing start-ups that are really entirely new propositions as well. Lorraine Shanley of Market Partners will moderate a session bringing together a few of them. Liz Pelletier is the publisher of Entangled, a publisher with new economics that rewards the service providers that support authors as partners in the projects they work on. Georgia McBride is the proprietor of Georgia McBride Media Group, a lean publishing start-up that is developing its properties for multiple media, not just books, taking advantage of her background in music and Hollywood. Jason Pinter of Polis Books is a bestselling thriller writer and has worked for a number of publishers (St. Martin’s, RH, Grove Atlantic, Warner Books) before he founded this digital-first genre book publisher with high author royalties (beginning at 40% of net) against advances. And Atria executive Peter Borland heads up an in-house start-up, Keywords Press, which seeks to leverage YouTube fame into bestsellers with the nurturing of an experienced publishing team.

But it isn’t just book publishers and entrepreneurs who are capitalizing on the digital transition. Former DBW.com editor Jeremy Greenfield, now with The Street, will moderate a session of media companies using digital as an opportunity to change their business models. Sometimes ebooks are very important to this effort and sometimes not so much so. The speakers in this session are Mike Perlis, the President of Forbes, Lynda Hammes, the publisher of Foreign Affairs magazine, Jay Lauf, President and Publisher, Quartz (The Atlantic), and Kerry Dyer, Publisher and Chief Advertising Officer of U.S. News & World Report. The tactics being employed by these three media companies to take advantage of their content and their audiences are harbingers of what all non-book media will be thinking about and doing in the years to come. Publishers can find new collaborators in their ranks, or they’ll be facing these entities as new competitors.

The sessions in the track we call “transformation” are also really about “new business models”. But we have two sessions that are more strictly about publishers exploring new business models.

One of these is on “publishers selling direct”, something that made very little sense for any but the nichiest publishers before the digital era. Dominique Raccah, the founder and CEO of Sourcebooks, pointed out to me that I needed that session (she surely was right!) and will appear on it. She’ll be joined by Eve Bridge from F+W Media, Mary Cummings of Diversion, and Chantal Restivo-Alessi of HarperCollins, the biggest of the publishers to aggressively pursue the direct sales option. The panel will be moderated by industry consultant David Wilk.

Publishers are also exploring new business models with their attention to “verticals”, audience-centric marketing that sticks to a topic in ways that might ultimately allow selling things other than books. This is also a big subject for DBW’s owner, F+W Media, and Phil Sexton, who runs their Writer’s Digest community, will speak about it. Mary Ann Naples, SVP and Publisher at Rodale, Adrian Norman, VP Marketing and New Products at Simon & Schuster, and Eric Shanfelt, Senior VP, eMedia, of HarperCollins Christian Publishing, show us that both specialist and general trade publishers are investing in building these enduring audience connections. Ed Nowatka of Publishing Perspectives moderates this conversation.

There are two panels that will be among the best-attended of all, but which don’t fit comfortably under any of the track headings.

Probably the two most-discussed digital change issues in 2014 have been subscriptions for ebooks and Amazon. We’re pleased to have breakout sessions on each that should really shed some new light on topics that have already been the subject of much conversation.

The subscription conversation will be moderated by Ted Hill, who co-authored a White Paper on subscription for Book Industry Study Group early in 2014 which has looked increasingly prescient as the year has gone along. The session will begin with a brief presentation by Jonathan Stolper of Nielsen Bookscan, who will deliver data from Nielsen’s recent research into subscription sales. Hill will be joined by the two biggest players in ebook subscription, Matt Shatz of Oyster and Andrew Weinstein of Scribd, to describe how their companies have fared building this new model in 2014. He will also have two publishers with books in those services, Doug Stambaugh of Simon & Schuster and Steve Zacharius of Kensington, to talk about how it is going from the publishers’ point of view. As a bonus, Zacharius also has real sales experience with Amazon’s new subscription service, Kindle Unlimited. This will be most people’s first opportunity to get a wide-ranging view of how the subscription model is really working in the marketplace for the subscription services and the publishers themselves.

And, finally, we’ll have an Amazon conversation that is extremely timely against the backdrop of a year when contentious relationships between Amazon and their publisher-suppliers became a matter of public record. Our discussion is on the subject “Can Amazon Be Constrained? And Should They Be?” and it is moderated by Ken Auletta of The New Yorker, a journalist with several decades of experience tracking both media and tech. (Auletta will be appearing earlier that day on the main stage.) He will be talking with Barry Lynn, a scholar at the New America Foundation, who has recently proposed that Amazon be investigated for anti-trust; journalist Annie Lowrey of New York Magazine, who has expressed skepticism about whether the anti-trust rubric fits; and Amazon and indie author Barry Eisler, who has been a full-throated supporter of Amazon’s position against the major publishers. No conference has ever presented such a balanced and provocative conversation about Amazon before; we’re proud it is taking place on the DBW stage.

So there’s a lot to choose from at DBW 2015. We probably won’t settle all the questions around where book publishing is going in the future, but we’re certainly providing engaged conversation about the issues that matter most. And remember after you read this: the highest-profile speakers are mostly not mentioned. We’ll talk about them in a later post about what’s taking place on the main stage.

PS: The last Early Bird discount for Digital Book World expires on Monday, December 15. Save money by registering now!

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Export sales is one of the few areas of predictable growth for book publishers


For a client meeting last week, I was shown a chart that came from Bookstats of channel revenue for publishers. Bookstats is the recent (and now no longer) partnership between the AAP and BISG collecting book publisher shipment information. It has four years of data, which were arrayed in a neat bar chart.

Since the chart showed publisher shipments, it was an imprecise gauge of sales. The third largest channel was “jobbers/wholesalers”, and those books went somewhere else (if they got re-sold and not returned), but we don’t know where. Basically all the other channels got those books eventually.

But it is noteworthy that of the eight channels enumerated (one of which is “other”), only two showed increased sales from 2010 to 2013: online retail and export sales.

Indeed, export sales are one of the real growth opportunities for publishers, and particularly English-language publishers, in the future.

The reasons for this aren’t hard to understand. English is the most important second language in most countries that are not English-speaking. And, obviously, ebooks create no-inventory and little-friction distribution opportunities that make it easy for a publisher in New York or London (or Sydney or Toronto) to deliver to a customer separated by any distance or number of oceans.

In addition, the search engines are global so “discovery” can take place anywhere as well which can increase the demand for printed books as well as digital ones, even though the printed books present a more complex delivery challenge.

The opportunity brings along its challenges. One is that rights conventions need to change. Publishers often have their rights to distribute in some parts of the globe limited by contract. But even when rights aren’t an issue, marketing — including both customizing the metadata and the pricing to a very large number of local territories — can be.

This opportunity has grown rather recently at the same time that many publishers have been preoccupied with overcoming obstacles in their home markets. Both the US and UK markets have been roiled by the relatively sudden emergence of a strong ebook market and the concurrent (and related) weakening of the brick-and-mortar infrastructure for print. Publishers have been scurrying to change many of their practices: licensing differently, learning to do SEO well and employing other digital marketing techniques, shifting their internal structures and workflows, and grappling with the opportunities presented by social media. Many have expended effort on apps and enhanced ebooks which were time and money traps in markets that briefly looked promising but then didn’t pan out.

But in a more settled marketplace, which we have now (perhaps temporarily), the opportunities for growing revenue through export sales is going to get increasing attention from all publishers, who will be happy to know that entrepreneurial companies — some new but some quite established and familiar — have been building out the capabilities to help them.

There are three panels at Digital Book World that will really inform publishers that want to work harder to exploit this opportunity.

The mostly obviously relevant one is called “Global Publishing Tactics: understanding distribution, metadata, pricing, and marketing to maximize sales in different markets”. Two of the panelists are Marcus Woodburn of Ingram and Gareth Cuddy of ePub Direct — we have other conversations pending — and moderated by Len Vlahos, the executive director of Book Industry Study Group. Marcus and Gareth and the panelist(s) who will join them have experience selling around the world on behalf of many publishers. Their insight and advice will be gold for publishers looking to expand their export sales.

We also have a panel discussion “Global Market Spotlights: reports from markets around the world”. The four markets we’ll discuss are Germany, Italy, Brazil, and Russia. The panel will be moderated by Thomas Minkus of Frankfurt Book Fair. Our panelists — all of whom are local players — will talk about the switch to digital reading and online sales in those markets, but will also give specific insight into the market for English-language books.

Another discussion which is a bit more tangential, but will still be informative for publishers trying to grow ebook exports, is one on “How People Read”. What we’re trying to get at here is to use the knowledge that ebook platform providers have about the granular detail of reading consumption: about devices, how far people go in various kinds of books, whether they read more than one book at a time, and how they respond to pricing changes. All of our panelists — Micah Bowers of Bluefire, Michael Tamblyn of Kobo, David Burleigh of Overdrive, and Andrew Weinstein of Scribd — are superintending global platforms. Another aspect of what they’ll reveal is how these consumption patterns vary across markets, including how much English is read in various export markets. Chris Kenneally of Copyright Clearance Center, which also has an increasing international focus, will moderate.

We could well also learn more about global opportunities from the keynote talk we’ll hear from Brian Murray, the CEO of HarperCollins, and Michael Cader and I will certainly be asking Russ Grandinetti of Amazon about how publishers can maximize their export sales through them.

So if export sales is on your current agenda, a visit to DBW on Jan 14-15 also should be. And, in that case, sign up before the end of the day on Monday and save yourself some dough. Early bird pricing ends on Monday night.

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Enter Curriculet, one of the new ventures signaling the opportunities for publishers in the Common Core


The new Common Core standards, which are essentially descriptions of things kids should have learned and know by various ages and grades, are now being adopted and adjusted to by elementary and secondary schools across the country. Common Core, besides providing the standards, encourages the practice of educating kids using content not created expressly for an educational purpose. In other words, teach kids with regular books, newspapers, magazines, videos; not just with books and educational materials prepared by textbook publishers.

So Common Core is a new reality that would tend to encourage greater use of books from trade publishers in school settings.

The other new reality producing change in the school market for publishers is ubiquity approaching universality of devices for digital reading. More and more kids of all ages and economic backgrounds have smartphones, tablets, and game devices that can be used to read ebooks.

Changing commercial environments create digital opportunities and they’re being seen in this arena. Our clients at Copyright Clearance Center are working diligently to get content made available to be found within the Smarter Balanced multi-state assessment (one of two multi-state, high-stakes assessments funded through Race to the Top grants from the US Department of Education), which enables the inclusion of that content in assessments that could lead to years of discovery by teachers and adoption by schools. (The assessment tool requires the student — for example — to read a poem or a passage. In order to use that assessment, the poem or passage would have to be licensed.) Another initiative we have become aware of is Biblionasium, which is a new community trying to bring together students, teachers, and parents around kids reading.

(Biblionasium helped us make a great discovery. They published recommended reading from each of their three constituencies. We noticed that only one title was in the top three recommendations for all three groups: students, teachers, and parents. The book is called “Wonder” and it is extraordinary. It seems to be written for pre-teens, but I couldn’t put it down. The world will be a better place if every kid reads this book whenever their skill level permits. It has a simple stated moral: “be kinder than necessary”. And it delivers it very persuasively.)

Amazon took a stab at a school marketplace play two years ago, trying to make it easy to enable teachers to load ebooks on Kindles across a class and then “taking them off” when the class was over.

That’s a nod toward a solution, but it falls far short. Teachers need tools and capabilities in and around the content and in and around its consumption that even go beyond what a parent needs to monitor a kid. And, regardless of what the platform can do, there’s still a pricing problem. Although publishers would like to get full ebook prices for every single copy placed on each new student’s device, that can’t work for schools. Buying books is cash-demanding enough, but at least the books can be reused by class after class, semester after semester, until each copy wears out.

Enter Curriculet, whose co-founder, Jason Singer, visited our office last week.

Singer has been a teacher and KIPP charter school administrator. He has designed the Curriculet platform for leading a class through reading a book (or anything else) that gives students additional information and help right in line with their reading. Curriculet also gives teachers both the ability to add direction (quizzes, videos) and to monitor what their kids are doing. The enhancements a teacher adds to text are the “curriculets”; there can be one or many for any book or piece of content.

Speaking as an educator, Singer told me something in our meeting that startled me. Apparently, among 5th grade kids, 75 percent do a chunk of pleasure reading at least twice a week. By 12th grade, that number has dropped to 20 percent. So we lose two-thirds of the kids who are pleasure readers over the course of their junior high and high school educations. This is not only a great failure of our educational system, it is a big loss to publishers. They have an enormous collective interest in collaborating with schools in every way they can to make their books available in an environment where kids will be encouraged to read and enjoy them.

But, again, we come back to the challenges of book prices and school budgets. Singer told us a story about a teacher who wanted to teach “Extremely Loud and Incredibly Close” on the 10th anniversary of September 11, 2001. But buying 150 copies of the printed book was a non-starter. Schools can’t afford to make that investment except in books that they are absolutely confident will be taught year after year. So the same books continue to be taught. Each year they replace some fraction of the copies of “Scarlet Letter” or “Huckleberry Finn” that have worn out, but they never have to replace them all. And they know each new teacher will be comfortable teaching those books. So they continue and, as Singer explained, that’s why today’s kids read many of the same books in school that their parents and grandparents read.

So far, the digital book business for schools has only really been penetrable by companies with enough content of their own to make a license make sense, namely Pearson and McGraw-Hill. Because Penguin Random House is about half the trade market, they could conceivably do the same as ebook use matures. But just about everybody else depends on aggregators to deliver a selection of books large enough to make it make sense for a school district (let alone a classroom) to purchase a license. Consensus around trading terms for ebooks in schools has been slow to develop because of the fear publishers have that the digital copies in such a community setting (loaded with smart kids who might be aspiring — or extremely capable — hackers) could be dangerous to the future sales of that title in digital form.

But at the same time that Curriculet is offering a big advantage to the teachers with the capabilities of its platform, it also offers great comfort to the publishers whose ebooks it wants to use. Part of publishers’ motivation in charging standard (or even higher) prices to schools than to individuals is the (misplaced or not) fear of rampant piracy. Aside from the danger of them being hacked and broadly distributed, they could end up on a kid’s device for lifetime use even if they aren’t spread around.

None of these problems arise with the Curriculet platform. The book lives there; it isn’t taken off it. The student can read it as long as Curriculet allows them to read it; beyond that, they can’t. So publishers can be a bit more adventurous about what they allow into the platform and about the pricing models they explore. The good news for them is that teachers will be convening on Curriculet to share data and teaching insights; there’s a good chance they’ll be telling each other about books and sharing the teaching materials they’ve developed around the books (so they can find things the way I found “Wonder”). That means publishers will find being on Curriculet provides marketing impetus for a book. The better news is that the resulting discovery will turn into sales, not pass-alongs, because access to the content is controlled through the platform.

It’s a long way from a reality because Curriculet, now in beta, will only really hit the market later this spring. But this is a helpful development for schools and for publishers and it, or something like it, is promising for the future of publishers’ revenues from the school market.

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Innovators and circumstances: the Frankfurt Publishers Launch show


In some ways, I think this year’s Publishers Launch Frankfurt show kicks off the next era of digital change in global publishing. The US and other English-speaking markets have established clearly that immersive reading — fiction and narrative non-fiction — is easily ported to screens for most people. In the past 18 months, changes in the UK book market have begun to resemble what we saw in the US, including Amazon’s dominance and bookstore shelf space shrinking.

While there are still many unanswered questions about how the English-speaking trade book world will look in a few years, I think the story of the next 12 months could well be more dramatic in non-English markets. The Frankfurt show is our most international; Americans are in the minority as attendees at this event.

We have packed 18 panels and presentations into our one-day Publishers Launch Frankfurt. (I like to keep things moving.) In keeping with the way digital change has taught us to think about the book business, we have two themes that are actually analogs for “content” and “context”.

Providing the “content” will be nine “Innovators”. The presenting innovators are publishing executives who are doing things inside their companies that are hard (or impossible) to find being done anywhere else. Yet.

Creating the “context” are a number of presentations on “Circumstances”. The context of the digital revolution differs by country, by language, and by time. What happened in the United States over the past five years offers clues, but not definitive answers, about what to expect in other countries over the next five years. We are exploring a wide range of circumstances that are defining the environment for publishing around the world in the future.

Both sets of presentations are extremely diverse.

We’re starting off the day with what I think will be one of the most impactful of the “circumstances” descriptions. Benedict Evans of Enders Analysis tracks the strategy of the five big tech companies whose activities are most likely to have an impact on publishing: Amazon, Apple, Facebook, Google, and Microsoft. He’ll describe the overarching objectives of each company and examine how book publishing fits into their thinking. The point will be to help publishers see how to take advantage of opportunities that will be created and avoid the pitfalls that will come along with the opportunities.

Jim Hilt, Theresa Horner, and new International Managing Director Patrick Rouvillois of Barnes & Noble will be talking about their company’s recent first move outside the US, launching the NOOK in the UK with local retailer partnerships. The UK will therefore become the first market outside the US to experience an initiative from the one company which, inside the US, has made a meaningful run at Amazon. If they can do it in Britain, then perhaps they can do it elsewhere as well. This is a “circumstance” everybody in the business will be watching.

Michael Tamblyn of Kobo will also speak. Kobo has opened in six major markets in the past year. They’re bringing an independent — but complete with devices, including new ones just announced — ebook retailing presence into many markets. The spread of the digital delivery infrastructure is definitely one of the changing circumstances that all publishers need to stay aware of and these two retailers are an important part of it.

The decline of print bookstores has been taking place for some time in the US, an effect not yet evident in much of the rest of the world. Peter Hildick-Smith of The Codex Group has been studying that, surveying book consumers about their purchasing decisions for a decade. He has data spelling out what the impact on sales and discovery is as bookstore shelf space contracts, which he’ll be reviewing for publishers to consider as they do their own forecasting about how fast bookstores will decline in their own markets. Hildick-Smith also has data about the reading habits of consumers on tablets as opposed to ebook readers which will be of great interest because so much more of ebook uptake outside the English-speaking world will take place on tablets.

We will have panels looking at two sets of emerging markets.

The BRIC countries — Brazil, Russia, India, and China — are watched by economists for emerging trends and we’re going to do the same. All of them are in the earliest stages of ebook uptake, but the beginnings are there in all four markets. We’ll have local representatives from each — publishers and retailers — to fill us in on the prospects and expectations in each of these countries.  The panelists will be Carlo Carrenho (PublishNews) from Brazil, Alexander Gavrilov (Book Institute) from Russia, Ananth Padmanabhan (Penguin) from India, and Lisa Liping Zhang (Cloudary Corporation from China.

We will also have a panel of leading Spanish-language publishing executives, chaired by Patricia Arancibia of Barnes & Noble, to discuss how digital change is playing out in the Spanish-language market. Spanish, like English, is the local language for many countries — more than 20 in the case of Spanish — and also has a very large market within the US. Digitization has been slow and there are unique issues having to do with the fact that control of copyrights is often housed in Spain, despite the fact that the biggest markets are in Latin America. Patricia and her panelists (including Arantza Larrauri of Libranda and Santos Palazzi of Planeta) will explore how fast that will change and when we should expect to see ebooks rising beyond the sliver of the market they have captured so far.

Michael Healy of Copyright Clearance Center is going to do a presentation on changes to copyright law and practice that may not be taking place where you live and publish but which could affect you where you do.

Noah Genner, their CEO, will report on the first fielding of a BookNet Canada survey of Canadian book consumers, the beginnings of a project that is planned to take place over the next couple of years. This may be the first intensive study of digital reading habits outside the United States so we thought it was worthy of a report to our global audience.

And a circumstance on every big company’s mind in publishing is how they will be regarded by the investment community as they navigate the digital transition. Brian Napack is now at Providence Equity Partners. Last year at this time he was President of Macmillan USA. Nobody is in a better position to discuss this topic than Brian and he’ll present on it at our event.

The innovative executives who will be navigating these shifting circumstances constitute the other half of our program. These speakers will be talking about initiatives that are often unique but are always pioneering. Our bet is that they are introducing a lot of practices that will be common in a couple of years.

Two of our innovators work from outside the English-speaking world but part of their story is that they’re not letting that cut them off from the biggest book-buying language.

Helmut Pesch leads the team that provides the internal ebook support for the German publisher Lubbe. But he’s using that position to pioneer. He’s teamed with a TV production entity to deliver a multi-media novel as a serial, launched an ebook first imprint, and is publishing original work in both English and Mandarin Chinese!

Marcello Vena oversees digital initiatives for the Italian holding company RCS Libri, which owns the book publishers Rizzoli, Bompiani and Fabbri Editori. Vena has started two ebook first genre imprints (thrillers for Rizzoli and romance for Fabbri) and is delivering those files DRM-free. He’s created a couple of very successful illustrated ebooks (this in a market where digital has barely cracked 2% of sales) and he also is trying out English-language publishing.

Stephen Page of Faber and Faber in the UK is building publisher- and author-services businesses while he innovates in his own publishing house. As an example of that, Faber has produced delivered two compelling apps for classic poetry: one on T S Eliot’s “The Waste Land” and one just released on Shakespeare’s Sonnets. And he’s building author communities that include live events and writing courses.

Rick Joyce, the Chief Marketing Officer for Perseus and their digital Constellation service, is exploring “social listening” tools, but with a twist. Joyce points out that working with these tools isn’t easy but he also is skeptical of the value which can be derived as they are often used: tracking the impact of social media efforts by a publisher. Joyce and his team are exploring whether the tools can be used to find the right marketing venues and approaches, down to the level of what blog comment streams to join and what nomenclature to use when they’re being worked. He will explain the tricky balance between being terribly specific in your search (like using the book title) which yields far too few opportunities and being so broad that the targeting is ineffective.

Anthony Forbes Watson is Managing Director of Pan Macmillan in the UK, part of the newly reorganized global trade division of Macmillan. Watson’s house is distinctly smaller than the four biggest UK trade houses (Random House, HarperCollins, Hachette, and Penguin) but much larger than any other player. Watson has reorganized his shop to get closer to both the authors and the markets. The evidence so far is that Pan Macmillan is proportionately outselling its competitors in digital; Watson will lay out the ways in which internal structural changes can lead to competitive advantage.

Rebecca Smart is the Chief Executive Officer of Osprey, a global publisher whose first vertical audience was military history. Since then, Osprey has executed acquisitions to put them into other verticals: science fiction, mind body spirit, food, and health. Her company is global and focused on audiences and she is building a multi-vertical publisher that will work with very diverse set of customers with a consistent approach and central services when possible.

Ken Michaels is the COO of Hachette Book Group USA. He’s also a big believer in SaaS: software as a service and he’s been rethinking and rebuilding Hachette’s internal technology structure in light of that belief. Hachette has also created some solutions themselves — among them, a capability to track metadata and ranks of books at ebook retailers and a tool for sharing content on Facebook — that they are making available as SaaS services themselves.

Charlie Redmayne is the CEO of Pottermore. He believes they’re building the digital publisher of the future and that a key element of that is to go where the audiences are: every device or channel that commands eyeballs is in his sights. Of course, Pottermore was built on the back of one writer’s amazing fictional brand and world. Redmayne believes what they’ve built might be applicable to other worlds from other authors. And that part of his presentation might get a lot of publishers and agents in the audience thinking what they have that might apply.

Dominique Raccah is the founder and CEO of Sourcebooks. Dominique is an indefatigable experimenter. She’s developed a poetry vertical. She’s experimented with “agile book creation” which invites the author’s audience to participate in creating the book. Dominique does more experiments before breakfast than most publishers do in a year. I put her on this program “on faith” because she told me she’s got 2-1/2 experiments to discuss that support her conviction that publishers have to completely rethink their businesses. (Today on a listserv she mentioned that she has “five startups” taking place internally!) Maybe I’ll find out exactly what she’s going to talk about at the conference before we get there, but I haven’t found out yet. But I’ve never been disappointed by Dominique and she says she’s more excited about what she’ll discuss at Publishers Launch Frankfurt than she has ever been about anything she’s done before. I am confident that we’ll be glad to hear what she has to say and all the other innovators will feel they are in very good company.

As we usually do at Publishers Launch events, Michael Cader and I will be opening the show with stage-setting remarks and doing a quick wrap-up at the end as well as popping up during the day whenever we think we can be helpful.

We got Peter Hildick-Smith, Rick Joyce, and Marcello Vena to do a webinar with us previewing what they’re doing at the event. Check it out! And our friends at the Frankfurt Book Fair did a little session with me talking about the conference as well. Take a look.

 

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A helpful questionnaire for any publisher to figure out if its permissions policies and practices make sense; many don’t


A year ago last March, the Book Industry Study Group hosted a conversation aimed at uncovering what were the key transitional issues publishers needed to deal with in the current decade. I was not part of that effort, but I chimed in with my two cents in a post in which I said that getting rights databases straight was the most critical concern that, by my observation, was not being adequately addressed by most publishers.

The underlying point of the piece was that publishers will find that revenue opportunities for licensing pieces and fragments are an expanding opportunity while they will see sales of books themselves increasingly challenged.

Over many years, trade publishers have evolved with “permissions” activity, which is where much of this fragment licensing falls, being managed separately from “subsidiary rights” sales. The latter, although declining with the great reduction in book club and paperback licensing revenue over the past three decades, is still seen as a revenue center.

The former is seen as a “cost”. Although it frequently involves granting permission to use a small amount of content for free, it has been a growing revenue opportunity because of digital change. In addition to wholly new uses like for apps and websites, textbook publishers, for example, now often need rights for a “family” of products, mostly electronic, that surround a textbook. But “permissions” in many — probably most — trade publishers is still seen primarily as a cost to be managed, not a revenue opportunity to be seized and nurtured.

This is leading to costly disconnects and increasingly widespread frustration. Our clients at Copyright Clearance Center, who provide tools to automate what has always been an overwhelmingly manual process, see this every day.

They see many publishers whose requirements when they license rights from others are not matched by the offers they’re willing to make when others want to license rights from them.

They see publishers incurring costs handling permissions requests manually that far too often exceed the revenue those permissions can generate, even though there are automated tools that can make those permissions profitable.

They see a growing clerical burden, both in managing an increasing number of permissions to be granted and in securing an increasing number of permissions now required (because trade publishers are needing a variety of digital licenses they didn’t need before either), with no strategic assessment of how that should be addressed.

In response to an increasing awareness at CCC that most publishers don’t have an articulated view of these changes, or any particular idea about how these things are working in their own shops, CCC created a questionnaire that allows any publisher to do a self-assessment of their licensing and permissioning activity. As we were offering some help developing it, I realized that the questions spell out things every publisher ought to be thinking about. So I got CCC’s permission to reproduce it here.

1. Do you know how much it costs you to process a single re-use request with your current procedures?

2. Does your average permission fee, including zero dollar licenses, cover the cost of each transaction?

3. Is your total number of permission requests and corresponding revenues growing year over year?

4. Are you sure that the requests you answer are the most important and lucrative ones and the ones that you don’t respond to are the less important ones?

5. Are the requests that don’t get processed quickly enough for licensees to be able to use your content growing in number?

6. Have you recently reviewed the processes you use when publishers request permissions from you?

7. Is your permissions granting managed entirely by internal staff?

8. Does your organization consider rights and licensing a strategic priority?

9. Do you have a process to summarize and share the information about permissions requested and granted more broadly in your organization (i.e. with sales, marketing, editorial, etc.)?

10. Have you analyzed your permissions and licensing revenue and usage data alongside of your direct sales revenue and usage data?

11. If yes, do you do this routinely?

12. Do you incentivize your rights and permissions managers to meet a revenue goal or efficiency goal?

13. Do you pre-price your permissions and revisit your pricing annually or semi-annually?

14. Do you require prepayment for republication rights?

15. Would a service providing consolidated tracking, reporting and payments for your permissions be worth exploring to reduce your costs and organizational strain?

16. Is there any permissions granting activity within your organization but outside the rights and permissions department (i.e. permissions granted directly by editors or the sales department?)

17. Have you compared your policy and process on granting rights to what you want when requesting rights?

18. If you answered Yes to Question 17, do these policies align?

I urge publishers to think through this list of questions for their own organizations. The entire activity of responding to permissions and secondary licensing requests has gotten far too little thought to date.

One tool offered by CCC is its RightsLink service, by which a click-thru opportunity “at the point of content”  enables automated licensing for many reuse cases. As Alfredo Santana, the Associate Director for Global Rights Operations at John Wiley will explain at our “Book Publishing in the Cloud” conference on July 26, the up-front work of putting in RightsLinks pays for itself very quickly when it is implemented. Are you going to join us at the event?

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It has nothing to do with the subject of this post, but I wanted to acknowledge with thanks and without delay the letter published yesterday in the Wall Street Journal by Senator Chuck Schumer (D-NY) entitled “Memo to DoJ: Drop the Apple eBook Suit”. It is probably a lot to expect that any of this can reverse the course of the coming Court decision (due in early August) but it is a further sign, as I think the letters from the public will prove also to be when they’re published at the end of the week, that the arguments of the industry against the “price-fixing” hysteria are starting to be heard. I took my own crack at that in a speech last week.

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Publishing in the Cloud is the next big important subject


Much of the change we are living through in publishing is plain as day to see. The shift from print to digital, like the shift from stores to online purchasing, is evident to all of us, inside the industry and out.

But there’s another aspect of the change that is not nearly as visible and that’s around systems and workflows. Publishing, even in the pre-digital age, was a systems-driven business. The big companies are producing 3,000 to 5,000 titles a year: each one with its own unique contract, metadata, editing requirements, and (in most cases) market. I like to observe that “each book published presents the opportunity to make an unlimited number of decisions, which must be resisted.” Most of the time the systems don’t help so much in making the decisions, but it takes a lot of support just to keep track of them all and report them to each person who needs to know!

Over the years, the companies with stronger systems have tended to acquire the companies with weaker ones. It doesn’t always work out that way, but it has most of the time. And over the years there have been stories about when publishers almost lost their business because systems broke down. The original Macmillan (now a division of Simon & Schuster) almost died in the 1960s when they fell so far behind on returns processing that they couldn’t properly dun bookstores to pay their bills. In the late 1980s or early 90s, Penguin had a warehouse crisis that was a similar existential threat. A friend of mine with a process-oriented consulting practice really made his year working on that problem.

In the digital age, systems are once again front and center. Every publisher is facing new requirements and seeing the parameters change for the old ones. Most of a trade publisher’s revenue, for at least a while longer, comes from print but the digital side is where the growth is. Systems have to support both.

Until recently, publishers ran on systems that were, primarily, housed on their own computers, either created or heavily customized by their own IT departments, and the operators in the publishing house (editors, production people, marketers, salespeople) were at the mercy of their IT department queues. If they wanted something done, they had to get on line for tech support.

And smaller publishers doing 50 titles or 100 titles or 200 titles a year had to make do with less robust, less customized, and often less capable systems even though their outputs also required thousands of decisions to be tracked and they are no less affected by the shift from print to digital.

But this is changing. Or maybe we should say it has changed. The new systems in publishing are Cloud-based. They are frequently referred to as SaaS: software as a service. They don’t live on a company’s own computers but are hosted by the service provider. They often don’t require an IT department to customize them and they certainly don’t require an IT department to keep them up to date. And the best news of all is that they are cheaper to acquire and faster to install in a company’s workflow than the systems of the past.

Within this change, there is enormous opportunity. Big publishers can sidestep the tricky question of scaling down their print-based systems and scaling up their digital ones. Small publishers can now use systems and workflows that give them capabilities equivalent to their much larger competitors.

But nothing comes pain- or hassle-free and neither do Cloud systems. Executives in big companies find their IT-led systems configuration challenged. When an operator in the production department decides they need a Cloud service like Dropbox to move files around, they don’t need to get IT support to put it in. But IT departments are still responsible for providing support and integrating all of a house’s technology. So “unsanctioned technology” starts to abound and IT departments don’t like that.

They might also not like the fact that Cloud systems could result in cuts to their budget and headcount. Can non-technical executives feel comfortable that their IT departments will look at cost-reducing Cloud systems the same way the CEO or CFO would?

In smaller companies, Cloud systems are a much less ambiguous benefit providing, as they often do, capabilities a smaller house would never be able to afford as a stand-alone system. But without an IT department, how do you know which Cloud offering is best? And how does a company without much in the way of inside tech knowledge and almost no surplus labor cope with implementation?

It was these questions that moved us to stage our first technology-centric Publishers Launch Conference. It is called “Publishing in the Cloud” and it will take place at Baruch College on 25th Street and Lexington Avenue on July 26.

Our conference really has three groups of resources for attendees: big publishers, smaller publishers, and suppliers of Cloud services. For the most part, the publishers will speak from the stage and the suppliers will be available at breaks and during a 2-hour “conversations with the experts” session when both the suppliers and the speakers will be available to talk in small enough groups so that all the conference attendees can get their own specific questions answered.

Some context and stage-setting will come from my Publishers Launch Conferences partner Michael Cader, whose Publishers Lunch and Publishers Marketplace enterprise has been a heavy user of Cloud services, which he will explain. Ted Hill of THA Consulting, who was the one who first clued me to this topic, will sketch out the landscape, segmenting the service offerings, spelling out the suppliers in the various niches, and providing a “checklist” for publishers looking into these services. And our Platinum sponsor TCS, Tata Consulting Services, did a survey of hundreds of companies using Cloud services from which they will deliver useful insights.

Looking at this from the perspective of big publishers, we have Ken Michaels of Hachette and Yuvi Kochar of The Washington Post. Michaels will kick off the day with his take on why Cloud services are critical to publishers at this time. Michaels is the Chair of Book Industry Study Group, so he speaks from an industry-wide perspective. In fact, he was instrumental in persuading us that the overall topic of Cloud services for publishing was worthy of an all-day conference, which it never had before.

Michaels will also talk about tools that Hachette developed because they needed them and they didn’t exist which they are now able to offer to other publishers on a Cloud model.

Kochar is the CTO of The Washington Post companies. He uses a Cloud model to distribute both internally-developed and outside services to his constituent companies, which include the newspaper and Kaplan Publishing. Kochar will talk about his company’s service model and the organizational structure it takes to make sure things will all work a level removed from the solution provider.

Another presentation from a large company discussing an implementation will be from Alfredo Santana of John Wiley. They have just put in the RightsLink capability offered by our global sponsor, Copyright Clearance Center, to automate the licensing of permission requests directly from the publisher’s website. RightsLink, which is used by many top publishers, can be a big labor-saver and revenue-producer, but it takes planning and work to do a proper implementation, particularly at a company like Wiley that has such a range of markets to serve.

And we’ll have a panel of big publishers, including Ralph Munsen of Hachette, Rick Schwartz of HarperCollins, Bruce Marcus of McGraw-Hill, and Chris Hart of Random House discussing “The Changing Role of the IT Department”, addressing the many issues I referred to earlier in this piece.

We have two speakers who have a broad view of the challenges smaller publishers face. Rick Joyce of our global sponsor Constellation serves the needs of more than 300 publishers who use their services and, among other things, rely on them to vet Cloud offerings for them.

Michael Covington will call on his previous role with the Evangelical Christian Publishers Association where he was responsible for vetting and inking partnerships with various cloud-based service companies such as Firebrand Technologies, Metacomet, and Bowker.  Now serving as the Director of Digital Content for David C Cook, an international non-profit which publishes trade books, music and curriculum for the Christian church worldwide, Covington will also discuss the opportunities and challenges publishers face in moving from legacy systems and “tribal knowledge” to a “Service Oriented Architecture”.

Andrea Fleck-Nesbit of Workman has an interesting case history to talk about. Workman is taking the Title Management capabilities developed as an in-house system by its Canadian distributor and helping turn it into a hosted offering so they can use it too.

Covington and Fleck-Nesbit will be joined by Patricia Gallagher of Liberty Fund and Bonnie Russell of Wayne State University Press, both of which have just completed their own switchover to a Cloud service for core functions. As a panel they will extend the discussion about smaller publishers finding and implementing Cloud services.

For two hours in the afternoon, our attendees will be able to meet with our expert speakers and our sponsors in small groups to facilitate more focused discussions, In addition to CCC, Constellation, and TCS, event sponsors for “Publishing in the Cloud” include Firebrand Technologies, IBM, Klopotek, and Virtusales.

Cloud computing for publishing is a big subject and an important one that has gotten no focused attention before now. We think our conference will give our attendees, and the industry, a quick start getting a handle on the opportunities and how to take advantage of them.

On this coming Wednesday, July 11, we will have a FREE 1-hour webinar on this subject. Michael Cader and I will be joined by conference speakers Ken Michaels of Hachette, Rick Joyce of Perseus, and Ted Hill of THA Consulting as well as by John Wicker of TCS. The webinar will touch the high spots of this very important topic. And, as I said, the webinar is free!

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Publishers Launch conference at BEA will cover a wide range of digital change issues


What are the important topics to discuss today concerning publishing and digital change? I think we’ve got most of them covered at Publishers Launch BEA, the one-day conference we’ll stage at the Javits Center next Monday, June 4.

Our all-day event has sixteen distinct presentations and panels. There may be a topic of interest to somebody somewhere that we won’t cover, but we’re definitely not missing much.

The day will begin with a review of recent industry developments from Publishers Launch co-founder Michael Cader. As I write this, the news of the moment is “Waterstones will sell Kindles”. That event, and others that may follow between now and then, will be put into context by the man who prepares our daily Publishers Lunch. Michael likes to point out the topics we spend more time discussing than they’re worth. Those observations are always amusing and insightful.

We’ve noticed that cloud solutions — commonly called SaaS, “software as a service” — are becoming increasingly important in the operations at publishing houses. We think the topic is so important, in fact, that we’ve scheduled an all day conference called “Book Publishing in the Cloud” for July 26 in New York. Ken Michaels, the COO of Hachette Book Group USA, is a big proponent of SaaS and believes it could change the way we work, together and separately, as an industry. He’ll kick off our conference describing what he sees as the opportunity for publishers represented by cloud solutions.

Then a panel of four publishers will talk about a very much related subject: how publishing houses are remaking their processes and workflows to respond to the demands of the digital age. Publishing veteran David Wilk will chair that panel, which will include Chris Bauerle of Sourcebooks, Sara Domville of F+W Media, Joe Mangan of Perseus, and Carolyn Pittis of HarperCollins. All of these companies are doing some very basic things quite differently than they did only a couple of years ago and these executives will discuss how things have changed, how hard it was to change, and what benefits have come to them because they did change.

We like to feature short conversations with industry players who have a unique view. One of these is Molly Barton, who is the global digital director for Penguin. Molly is the only digital head I know today who started out inside the publishing house as an acquiring editor. Now she has a view of digital change around the world from the top of one of the world’s biggest book publishing empires and within an even larger publishing company that has many digital irons in the fire. I’ll have an onstage conversation with Molly, and we’ll cover a wide range of topics from DRM to enhancement to whatever might have arisen earlier that morning.

After Molly, we’ll move to a new feature of Publishers Launch Conferences: the Publishers Launchpad sessions. Launchpad is our slot for introducing new products and services. When we debuted it at Digital Book World last January, we were pleased to recruit a consulting client of my Idea Logical Company, Linda Holliday of Semi-Linear, to moderate the sessions. On June 4, Linda’s own new product will be the kickoff Launchpad subject.

And Linda’s new product, Citia, has as its objective nothing less than reinventing the presentation of high-concept non-fiction in the digital age. It is a shamelessly ambitious undertaking, literally deconstructing and then reconstructing the ideas in a book. The debut Citia title will be “What Technology Wants” by Kevin Kelly, from Penguin, the house of the previous speaker, Molly Barton. Barton is one of the biggest fans of the new Citia presentation of material. Michael Cader will interview Linda and they’ll show you how the complex ideas we previously could only access through narrative text and illustrations can be rethought and made clearer with what I call, for simplicity, “Cliff’s Notes for the Digital Age” but which is really much more than that.

Then Linda will bring on two other new propositions as part of the Launchpad session. Both of them are new SaaS services to make ebooks.

The simpler proposition is from Hugh McGuire and is called Pressbooks. It is a free XML ebook-making tool built on WordPress that enables users to produce epub and PDF files on the web.

The other tool is called Aerbook Maker, created by Ron Martinez of Invention Arts. Aerbook makes enhanced ebooks and both HTLM5 and native apps. It is a tool that allows mixing in audio and video and interactive elements without advanced programming skills.

Then, before lunch (aren’t you hungry already?), we’ll have our agents panel. Laura Hazard Owen of paidContent will moderate a great agent group that includes Laura Dail of Laura Daily Literary Agency, Tim Knowlton of Curtis Brown, Simon Lipskar of Writers House, and Jennifer Weltz of The Jean V. Naggar Agency. They’ll be discussing both the changes in the business of agenting and the dynamic negotiating climate with the publishers. We’ll learn what they’re thinking about managing their digital backlist and what new skill sets they think their authors will be demanding of them.

Kelly Gallagher of Bowker will kick things off after lunch with with the latest report from their new Global eBook Monitor (GeM), a global look at ebook uptake around the world. Gallagher will feature “country level data” to a degree that hasn’t previously been revealed. We’re looking forward to it.

One key premise about digital change is that the world is getting smaller and publishers will find it easier to sell books, particularly ebooks, in territories other than their own. Our panel called “Sales Across the Borders — Import” will look at the increased penetration of ebooks from abroad, particularly in languages other than English. I’ll moderate a group of three panelists: Patricia Arancibia, Editorial Director, International Digital Content, for Barnes & Noble, consultant Javier Celaya from Spain, and Spanish publisher Blanca Rosa Roca of Roca Editorial. Blanca Rosa is doing some very innovative things to get her books into the US market in both Spanish and English. (She’s just created an English language ebook publisher called Barcelona eBooks and forged a partnership with Open Road for marketing and distribution.) Javier consults to companies throughout Europe and will report on how publishers, particularly in Spain, Italy, and France, are viewing this opportunity. And Patricia wrangles content for B&N to sell from all over the world. There are very few people, if indeed there is anybody, who knows more about this subject than she does. One wrinkle on this topic is that other-language publishers are now translating their own books into English to hit the English-speaking ebook market. One thing we’ll want to learn from our panelists is how commonplace they expect to see that practice become.

The complementary panel, which will be moderated by longtime sales executive Jack Perry, is “Sales Across the Borders — Export”. For this one we’ve gathered three experienced export sales executives: Chris Dufault of Random House, David Wolfson of HarperCollins, and Dan Vidra, who has just this month left Simon & Schuster to work for the new German-based (but global and multi-language) ebook platform, textr. They’ll be joined by David Cully, the President Retail Markets/EVP Merchandising for Baker & Taylor, the US wholesaler that has long been a global leader helping US publishers sell their books abroad. This panel will tell us what markets are showing the most promise for US publishers, how the sales growth of ebooks is affecting the sales of print, and how the growth of export might be impacting the related business of selling foreign translation rights. (We’ll be able to cross-check what they say with what the agents will have told us a couple of hours before.)

Michael Tamblyn of Kobo is always a popular speaker at publishing events because he shares interesting data. This time we’ve asked Michael to focus on what Kobo has learned from its recent experience in new markets, particularly the UK and France where Kobo tied up with major retailers. What we’ll want to know for non-English markets particularly is how powerful the draw of wide title selection in English is. Will ebookstores in other countries really expand the sale of our books in English around the world? Tamblyn will certainly get us started on answering that question.

Our final chunk of programming in the afternoon is all about change.

Fritz Foy is Macmillan’s EVP for digital. Macmillan made news a couple of weeks ago when they announced that they would be going DRM-free with their Tom Doherty Associates imprints including Tor, Forge and other related sci fi and fantasy imprints. We immediately called him and got him to agree to talk about that on the program. Foy is going to do a presentation that recaps Macmillan’s thinking about this question, which he says goes back several years. Thanks to Cory Doctorow, the anti-DRM crusader who is one of Tor’s key authors, Macmillan had already experimented with it. Foy promises us there will be surprises and at least one news announcement coming from his presentation. We’ll be surprised right along with you when we find out what it is.

Phil Ollila of Ingram Content Group accepted our challenge to comb their sales data for clues about how bookstores and other retailers have been changing their stocking decisions in recent years. The short summary of Ollila’s findings, which are summarized in an article he did for our conference book (all Publishers Launch Conferences have a printed conference book!), suggest that fiction is down, some surprising categories are up, and that what publishers can expect is more titles in more different stores with fewer sales per store per title.

We’ll have a bit of a change of pace with a presentation by David Steinberger, the one who is Founder and CEO of the Comixology platform. (There is another David Steinberger, of course, who is the CEO of Perseus.) Comics constitute a very big global business that operates in silos by language and by country. Will it stay that way? Will the rights and cultural issues that have kept the market from globalizing continue to do so in the digital age? As the creator of the most successful comics-selling platform in the US and a man with an eye for the world stage, Steinberger is in a unique position to speculate on the answers. And perhaps we’ll get some insight about how other highly-illustrated genres with strong localized content — travel and food come to mind — might change because of the digital transition.

There is a growing consensus in the industry around two points that would have been controversial only two or three years ago. One is that bookstores are declining rapidly and will, unfortunately and in the not-too-distant future, atrophy to the point that they are a subsidiary channel for book sales, not the primary one. The other point is that the marketing exposure that books get in retail stores is a critical component of their early exposure, leading to the “discovery” by consumers that is the key to getting commercial traction. Our last two sessions of the day will focus on that challenge.

Peter Hildick-Smith of Codex has been conducting studies of book purchasers for a decade, including careful tracking of how they learned about the books they bought and read. Peter is one of the greatest champions of the bookstore’s role in discovery, and perhaps the leading skeptic that search engine optimization and social network marketing can be an adequate substitute. In this presentation, Peter will make his case thoroughly backed with data from the years of research his company has done.

Then Peter will join our final panel of the day, one focused on “The Future of Book Discovery.” Two publishers that are doing a lot of work in this area, Amanda Close of Random House and Rick Joyce of Perseus, and Scott Stein, who heads up the book coverage for USA Today, will be part of that discussion, which will be moderated by Michael Healy of Copyright Clearance Center. One of Hildick-Smith’s key points is that there is a Catch-22: if you don’t know something about a book, you’re not likely to search for it. And unless somebody gets the ball rolling for a book, there’s nobody to comment on Facebook or Twitter to get you started that way. The publishers on the panel and the overseer of one of America’s most widely read book pages will talk about their efforts to build something new that will tell us about books the way window displays and stacks and face-out displays have for years.

After that, Cader and I will wrap up the day. Very briefly. We’ll all be very happily exhausted!

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We’re getting SaaS-y, going Hollywood, and starting to plan Digital Book World 2013


It is hard to believe that we’re starting to plan the fourth annual Digital Book World conference, which will be held January 16-17, 2013 at the Hilton in New York City. But we are.

The first DBW was held in 2010. Planning for it began the June before when David Nussbaum and Sara Domville of F+W Media called me to say “we think there can be a better conference than any we’ve been to about digital change in publishing.” They challenged me to come up with an approach and to take on programming the event.

What I hit upon then as a differentiating proposition was to make Digital Book World focus on the business issues created by digital change in trade book publishing. We wouldn’t focus on tech, per se. We wouldn’t focus on how digital change would affect publishers who didn’t rely primarily on bookstores to reach their customers. It has long been my belief that general trade publishers would be the most challenged by the digital transition because their core proposition, their key value-add, was putting books into bookstores.

That’s worked for us very well. Not only have we had three very successful DBWs, I believe we have really helped focus the conversation about the digital transition. When we booked agents to speak at DBW 2010, it was the first time they had been featured at an industry event on digital change. Of course, the agents’ role — and the nature of their organizations — has changed as much as publishers and booksellers have in recent years. We’ve looked at the globalizing impact of the digital transition, how bookstores are coping with it, how publishers’ relationships with libraries are changing, and, repeatedly, how digital change is affecting trade publishers’ organizations, staffing, and workflows.

Then in 2012, Michael Cader and I formed Publishers Launch Conferences because, as big and sprawling and complete as DBW is (and with 30 different breakout sessions plus a ton of plenary programming, 150 or more speakers, and about 2000 attendees, it is definitely the biggest conversation about digital change for trade publishers held anywhere on the planet), we can’t cover everything there and we need interim conversations throughout the year.

As it happens, PLC is letting us focus on subsets of the broader conversation — one might call them “verticals” — that require a deeper dive. Last year we used that capability to deliver “eBooks for Everyone Else”, the primer for ebook publishing without an IT department, in New York and San Francisco and a half-day show dedicated to children’s book publishing in Frankfurt. Both of these ultimately enriched DBW itself; we made “eBEE” a breakout track and did our own full day Pub Launch standalone on children’s book publishing as a co-located event at DBW 2012.

We have two exciting vertical shows lined up for Pub Launch 2013 that will definitely spawn programming for DBW tracks.

“Publishing in the Cloud”, which we’ll stage on July 26 at Baruch on 25th and Lexington in Manhattan, is about SaaS (“Software as a Service”) for publishing. We think SaaS is starting to change publishing practices, workflows, and the IT departments themselves. SaaS will mean a totally different deployment of technology resources for big publishers and enable capabilities that were previously out of reach for smaller publishers.

Although almost all the from-stage presentations at “Cloud” will be by publishers who are using SaaS services, the suppliers will be there too. They’ll meet the delegates at their sponsor tables during breaks and will also participate in “speed-dating” sessions, where the attendees meet sponsors and the speakers in small groups that enable exchanges about the very specific challenges attendees come to the conference to have addressed.

“Publishers Launch Hollywood”, which will take place on October 22 at the Hollywood Renaisssance, will be the first conference event specifically designed to introduce the movie and TV communities to the new opportunities created by digital publishing. Networks, studios, producers, screenwriters, and agents in LA all control properties that would make books that can sell and can now be delivered at a nominal cost. We know of one major studio about to announce a program to sell 300 “classic” scripts as ebooks. NBC, the one major network not already affiliated with a publisher (CBS has S&S, ABC has Hyperion, and Fox has HarperCollins) has started its own ebook publishing operation. These initiatives are the tip of an opportunity iceberg and we plan to bring that message to Hollywood and deliver the information about all the new ways that exist for film and TV properties to generate more fame and more revenue that are now readily available.

Both SaaS and publishing’s Hollywood connection will find their way to the DBW program for next January. They join a list of topics we think are moving up on the agenda for publishers and that we’ll want to cover pretty thoroughly at DBW 2013..

Digital is making the world smaller. That creates opportunity for US publishers to sell more abroad and opportunity for foreign publishers to sell more here. We will feature more on export, more on import, and more conversation with international publishers in general next January. (There’s quite a bit of this on our PLC BEA show, which will take place on June 4.)

Pretty clearly, DRM (digital rights management) is an element in transition in our dymanic ebook world. We’d say that conversation began in earnest at DBW 2012 when Matteo Berlucchi, the CEO of ebookseller Anobii, made his plea to eliminate DRM as a way to combat Kindle lock-in. Now Pottermore is selling DRM-free ebooks, getting heretofore inconceivable concessions from Amazon and other ebook retailers as a result, and Macmillan has just announced that their Tor.com division will make the same switch in the next two months. The future of DRM, and, more to the point for us, the impact on piracy and on the overall marketplace, will be front and center at DBW 2013.

Discovery is a topic that has been on our minds for some time, but it is getting increasingly crucial as bookstores decline. Discovery is about metadata, of course, and that’s a subject we’ve covered at DBW before (and will again.) Many social reading and sharing options are being developed. Whether these give publishers and authors the tools they need to propel a book to the level of awareness necessary to get sales and word-of-mouth rolling is something we’ll definitely be trying to learn more about at DBW 2013.

The importance of brand and community is increasingly obvious. I’ve been thinking about a whole conference on verticals (which we’ll probably do as a Publishers Launch event in 2013), but we’ll start that process at DBW 2013. The best example we know of a multi-niche publisher is F+W Media, the owners of DBW. I think 2013 may be their time for a more featured role in the programming. Under the same heading, we take note of name-gathering efforts at several major houses. How names get gathered, how they get segmented and used, and what difference it is making to increase sales and reduce marketing costs will be a prime topic at DBW 2013, particularly now that Pottermore has shown us a whole new way name-gathering efforts might work.

As the traditional paths to market (bookstores) atrophy and sales of books prove more difficult to get, alternate revenue opportunities are going to grow in importance. We know of some. For one thing, international markets are more accessible. There are also new business propositions like Semi-Linear “citia” apps for high-concept non-fiction and Yummly for recipes and food content that offer publishers licensing revenues. And publishers may learn that some of their future dollars will come to them in pennies. Micro-transactions enabled by Copyright Clearance Center (a Publishers Launch global sponsor, but also the purveyors of Rightslink, a capability we think publishers will increasingly find indispensable as a rights marketing tool) and AcademicPub, among others, will likely deserve a real airing by DBW 2013.

We’re also seeing new models developing inside and outside of publishing houses and we’ll be putting examinations of them on the program too. Late last year, Penguin launched Book Country (a portal to help fledgling writers improve their work and get to market) and Sourcebooks is pioneering an “agile” publishing model with futurist David Houle (a hit with our DBW 2012 audience whom we’ll probably bring back in 2013.) Sourcebooks and F+W are also trying subscriptions, a model pioneered by O’Reilly with Safari a decade ago. To the extent that DRM fades, experimentation is further enabled. New models will be an important topic by next January.

We’ll also be gathering data from any source we can and as we have at all DBWs past. Self-publishing is a subject that is bound to get coverage beyond Book Country; I’d love to assemble a panel of self-publishing authors that have turned down major deals (and have really done it themselves instead, not signed with Amazon as their publishers!) And, of course, ebook pricing will be a topic we’ll figure out a way to cover even though most of the retailer and publisher players feel highly constrained talking about it.

The digital transition won’t last forever. Transitions don’t. At some point, the transition is over and we’re into a new world. But if one prediction for eight months from now is safe, I think it would be that we’ll still be in a state of flux next January, with a year away as hard to predict then as it was last January. Digital Book World every January and Publishers Launch Conferences throughout the year still have a lot more value to deliver.

What I want from writing this piece are suggestions for what we should cover at DBW. What do you think the burning issues will be in publishing’s digital transition by next January? We’ll be convening the DBW Conference Council at the end of June to discuss this question, but we’d love to be further informed by your thoughts by then. Comments are fine; sending us emails (to [email protected]) is fine; making suggestions to us when you see us at other shows is also fine. But please tell us what you think.

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Things learned and thoughts provoked by London Book Fair 2012


This post contains a batch of observations from this year’s London Book Fair. Some of it recalled an experience from about 20 years ago. We’ll begin there.

In the early 1990s, Microsoft was on a mission to get computer hardware manufacturers to install CD-Rom drives in new machines. Microsoft had a very simple motivation. Software then was sold as hard goods. One CD-Rom could hold the data that required many, many diskettes. So if the storage and transfer medium were changed, the cost of goods for Microsoft would drop sharply. Since the value customers were buying was the code, not the package, Microsoft figured (correctly) that they’d be able to keep the price of software the same and simply make more profit if their customers could handle the CD-Roms. (Please note this logic applies very nicely to any discussion of what ebooks should cost in relation to print.)

But, of course, most people don’t load that much software, so the CD-Rom argument would be strengthened if content were also available on them. That inspired Microsoft to stage a half-day conference to “educate” the trade publishing community about the “opportunity.” (Of course, areas of technical and professional publishing, which had opportunities in delivering very large amounts of data, had already started to move in that direction; the value of CD-Roms was real and obvious to them. They also had vertical audiences of professionals that were perfectly able to hook up a CD-Rom drive to their existing machines, and did.)

At the conference, Microsoft basically showed all the “cool” things the computer could do: delivering sound and images (not video so much in those days) and hyperlinks. They basically said, “we don’t know how you’re going to make money on this; you’re the content experts. But we’re giving you this great new canvas to create on. Create!!!”

The excitement Microsoft and others were able to generate led to a burst of activity by publishers to create CD-Roms. Very few people found this new packaging of content particularly appealing at any price, and they actually were listed at very high prices. In other words, the techies had no clue about the content business and their advice to it was self-serving.
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Last Monday in London, Susan Danziger of Publishing Point hosted The Great Debate. The proposition being debated was that the new tech companies would ultimately deliver a “knockout blow” to the conventional publishing establishment. Michael Healy of Copyright Clearance Center moderated.

Speaking for the new tech companies were two stunningly successful new technology entrepreneurs: Bob Young of Lulu and Allen Lau of Wattpad, both of which take anybody’s content and put it into circulation. Lulu’s core mission is seamlessly turning content into printed books and Wattpad’s is about organizing it for crowd-sourced consumption and discussion.

Opposing them were two publishing veterans (and, I’m happy to reveal, good friends): Evan Schnittman and Fionnuala Duggan. Schnittman is about to move from a global sales and marketing position at Bloomsbury to become Hachette Book Group USA’s head of sales, marketing, and digital. Duggan came from the music business, spent several years heading up digital at Random House UK, and is now Managing Director for International Course Smart, the digital platform created by a consortium of college textbook companies.

There is no ambiguity about what happened in this “debate”. The format required each of the approximately 250 attendees to register their opinions as to which side they favored on the way in and then again after the speakers had presented. The “establishment” side — the Schittman and Duggan side — picked up about 100 votes with their arguments from where the audience was when it came in. The incoming audience favored the proposition that the knockout blow was coming by a wide margin. After the debate, the margin was as wide in the opposite direction. (Some were undecided; so don’t drive yourself nuts trying to work out the math.) It is hard to imagine a more decisive outcome.

Of course, Duggan and Schnittman know quite a bit about technology. But neither Young nor Lau seemed to know anything about the content business. That shouldn’t be a surprise. Both of them have gotten rich in businesses that are ostensibly content businesses, but they aren’t. Their financial success is not dependent on the quality of content, the skill in developing or marketing it, or its inherent appeal. In fact, Lau kept touting the volume of what he hosted and claiming that technology would handle the curation perfectly adequately in the future. This was “proof by assertion.” It was the ultimate declaration of faith. The audience didn’t buy it.
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On the day before, Schnittman had hosted the Digital Minds conference. One of the keynote speakers was an old friend of his, Andrew Steele, who is the creative director of the very successful web site, Funny or Die. Steele told us the story of that business, which is instructive.

The original concept of Funny or Die was to crowd-source user-generated content, like YouTube. They’d build up traffic and monetize it. But there was a problem. Most of the amateur stuff they got just wasn’t funny. As Steele points out, we go to YouTube when somebody sends us a link for something good. We don’t go to YouTube and browse all the amateur content. There’s a reason for that. Most of it is crap. And most of what Funny or Die was getting from the crowd was crap. They weren’t getting page views. They weren’t going to succeed.

So they tried something new. (That’s called pivoting, for those of you who don’t spend enough time talking to the tech-and-finance community.) They got professionals to create content. Things changed quickly. By allowing their professionally-produced content to go off the site while it maintained the “Funny or Die” branding, they soon built a large audience. It now keeps growing and growing. Success is assured. But the lesson Steele emphasized was that professionally-created and -curated content succeeds where amateurs fail. He sees no reason why it should be any different in our world.
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I got a chance to visit with Charlie Redmayne of Pottermore. He was a bit bleary-eyed at the Digital Minds event on Sunday because the site had opened to the public that weekend. When I saw him on the show floor during the week he had just benefited from a full seven hours of zzzs, and he was enjoying his status as a game-changer.

The key to Charlie’s disruption was his willingness to substitute watermarking for DRM. He said it definitely made him nervous to do it, but he couldn’t see any other way to achieve what he wanted for Pottermore. He had to be able to sell to any device; he wanted to be able to allow any purchaser complete interoperability. There was no way to do that and maintain DRM.

His technical infrastructure is awesome. It stood up even though the average length of engagement by each user was three or four times what they had projected and the traffic exceeded expectations as well. But the most startling early news was what he reported about piracy.

Apparently, Potter ebook files started showing up on file-sharing sites pretty much right away after they opened. But before they could serve any takedown notices, Charlie says the community of sharers reacted. They said “C’mon now. Here we have a publisher doing what we’ve been asking for: delivering content DRM-free, across devices, at a reasonable price. And, by the way, don’t you know your file up there on the sharing site is watermarked? They know who you are!” And then the pirated content started being taken down by the community, before Pottermore could react. And very quickly, there were fewer pirated copies out there than before.
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I heard a rumor from a very reliable source that two of the Big Six are considering going to DRM-free very soon. The rumor is from the UK side, but it is hard to see a global company doing this in a market silo. Another industry listener I know was hearing similar rumors from different sources.

Could we see another crack in this wall sometime soon, maybe this year?

This is one lecture the techies have been delivering to the content folks that might have been on the money. I’ve always been skeptical that DRM prevents piracy, but I’ll admit that I was more concerned in the past than I am now that it would cost sales.
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At the Digital Minds conference, there was a panel on children’s content publishing. Sara Lloyd, head of digital for Pan Macmillan, moderated a group that included Belinda Rasmussen from her own company, Eric Huang from Penguin, Jeff Gomez of Starlight Runner Entertainment, and Kate Wilson of Nosy Crow, which is a new children’s “book publisher” that seems much more focused on apps.

I have trouble seeing a future for book publishers in the kids’ content world. Everybody seemed to agree about what the apps of the future required (interactivity, game elements, animation) and that the parents of five years from now will be much more likely to hand their kids in the back seat an iPad than a book. So I asked them, as books diminish, what will publishers have to offer here? Wouldn’t this business belong to people who know gaming and animation, not books?

Kate seized the question from the stage and answered in a way that seemed to confirm my conjecture. “We don’t hire people with book experience,” she said. When I checked in with her later, she agreed that books were a revenue-generating convenience to get her company started. She sees the day when they won’t be part of her business anymore. What excited her (and well it should) was that they’d just made their fifth app and had created all the software tools they needed to build it while making the first four. The cost of creating their apps is plummeting because they’ve built the toolkit.

———————-

The news about the DoJ’s charges against five publishers and Apple and their settlement with three publishers broke just before LBF. It was a topic of much discussion, of course. Most people in the industry are horrified by the lawsuit and the settlement and there is really widespread fear about the consequences of ending the agency model. (The settlement doesn’t do that, but having three big publishers pushed to allow discounting for the next two years at least certainly cripples it.)

On Publishers Lunch, Michael Cader rounded up an impressive set of links to media around the country who are just as horrified as publishers, retailers, and agents at LBF were. Here are the stories from the New York Times, the Wall Street Journal (behind a pay wall, unfortunately), Slate, and the Los Angeles Times.

We understand that an amendment to the Tunney Act obliges the DoJ to take note and report to the court any opinions expressed in writing by the citizenry about a settlement that takes place in a case still being litigated. Cader notes that the law has usually been used to expand a judge’s ability to exercise oversight when the court believes DoJ hasn’t been tough enough. In this case, we’ll be asking them to pare back a settlement, which is apparently a less common use of the law. But the law allows us 60 days from the settlement to get those letters in and it is what we in the community can do to help fight this battle.

As I wrote in my summary of the impact of this settlement, it is one where Amazon and the cost-conscious ebook consumer win, but everybody else (and that means authors, publishers, retailers, and the public that wants good books, as I explained on NPR) lose. The low-price side of this is easy to understand. The publishing business side isn’t. (If this were a GOP DoJ, I’ll admit that I would have inserted a snide remark here about what this shows about their IQ.)

One point to note here, which didn’t occur to me at first, is that the three settling publishers are about to game the two fighting publishers (and, perhaps, Random House) the same way Random House gamed them when they stayed out of agency at first. Whether or not they stick with agency, they are now enabling discounting, so they might get the same benefit of the retailer discounting their goods while they retain their revenue that Random House got for the first year of agency.

In other words, more weight on the shoulders of the two companies, Macmillan and Penguin, who are carrying the fight for the whole industry. And that means more reason for the rest of us to try to help.

I am working on my letter to DoJ now, and I’ll publish it in a future post. I hope all my readers who understand what’s at stake here will also write to Justice. Address your letters to

John Read
Chief Litigation III Section
Antitrust Division
U.S. Department of Justice
450 5th Street, NW, Suite 4000
Washington, DC 20530

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What smaller publishers, agents, and authors need to know about ebook publishing


As the shift from a print-centric book world to a digital one accelerates, more and more digital publishers are creating themselves.

The biggest publishers, with the resources of sophisticated IT departments to guide them, have been in the game for years now and paying serious attention since the Kindle was launched by Amazon late in 2007. But as the market has grown, so has the ecosystem. And while three years ago it was possible to reach the lion’s share of the ebook market through one retailer, Amazon, on a device that really could only handle books of straight narrative text, we now have a dizzying array of options to reach the consumer on a variety of devices and with product packages that are as complicated as you want to make them.

Free or very inexpensive service offerings through web interfaces suggest to every publisher of any size, every literary agent, and every aspiring author “you can do this” and, the implication is, “effectively and without too much help”. Indeed, services like Amazon’s KDP (Kindle Direct Publishing) service, Barnes & Noble’s PubIt!, and service providers Smashwords and BookBaby, offer the possibility of creating an ebook from your document and distributing it through most ebook retailers, enabled for almost all devices, for almost no cash commitment.

Is it really that simple? One suspects not, since literary agencies are creating ebook publishers (for example: The Scott Waxman Agency’s Diversion) and baskets of services (for example: The Knight Agency in Atlanta) and consulting to help their authors. And a bit further upstream, ebook distribution companies (for example: MintRight) and ebook-first publishers (for examples: Open RoadRosetta, and the granddaddy of them all, Richard Curtis’s e-Reads) are creating more alternatives, sometimes propositions explicitly addressed to the agents. If publishing ebooks to all channels were really a simple matter of uploading a file, it would hardly seem necessary to build all this infrastructure.

We know that small publishers, literary agents, and authors are becoming publishers at an astounding rate. Two years ago when I was trying to organize a panel of literary agents to talk about working with authors on a charge-for-services basis instead of a share-the-royalties basis, it was hard to get volunteers to discuss new models. Two weeks ago, a major agent outside New York said to me, “we all have to think about it now; we have no choice.”

In short, it isn’t just the big publishers who are compelled to develop a digital strategy to adjust their businesses to changing times. Their smaller competitors, the agents they depend on to deliver their content, and even the authors that have always just depended on the publishers to handle the business of getting a book from a manuscript to a purchase, are all assessing the new landscape. They are considering what new approaches might reduce or eliminate their need for a publisher, or at least reduce the publisher’s share of the take.

Although the correct strategy for any entity would depend on the factors that prevail in each case, there are things it would seem that everybody entering this arena needs to know and understand.

First of all, what are all the things publishers do to get from manuscript to sale, are all the steps necessary, and what do they cost? Developmental editing, copy-editing, mark-up for design, creating metadata: these are all things publishers do routinely. Are they critical for every book? Would a purchaser-reader notice if a publishing newbie left any of them out? Will the services that promise to make and distribute an ebook without a cash investment do these things well?

The ebooks themselves have gotten increasingly complicated. The ebook standard epub (used for just about every ebook not intended for the Kindle ecosystem) has risen to the challenge posed by apps to be able to accommodate color and video and audio and software elements. Everybody who knows that “you get what you pay for” expects complicated ebooks to take more effort and money to create than ebooks of straight narrative text. But what constitutes “complex”? And how much more money does that additional effort cost the publisher that wants to deliver an ebook more complicated than just simple text?

Marketing ebooks also requires a whole new set of knowledge and skills. The key to all ebook marketing is the accompanying metadata: coding that travels along with the file specifying its core bibliographic information and price, but which can also tell a retailer or a search engine much more than that. Search engine optimization (SEO) is the art of delivering metadata that makes the book more likely to be found in response to various searches and queries; that’s yet another set of understandings new ebook publishers have to acquire.

That is just the beginning of what is possible (and therefore necessary) in ebook marketing. Sample chapters can be given away. Web sites can be invoked as partners.

And authors and publishers can, and therefore must, engage in “social network marketing”: using Twitter and Facebook and commenting in high-profile streams to catch attention and gain credibility with core audiences for the books. This is more knowledge to acquire.

Any new publisher will need to understand the paths to market. Yes, Amazon gets more than half of the US ebook sales and Barnes & Noble gets half of the rest. But it isn’t that way on every book, ignoring the others leaves a big chunk of the market unexploited, and things are changing quickly. Amazon’s market share has dropped by a huge percentage in the past two years.) OverDrive is the primary path to libraries. Ingram aggregates many independent stores. Baker & Taylor is opening up markets among mass merchants. Kobo is as important in Canada as B&N is in the US and works in markets all over the world. Google has the ebook ecosystem making the most serious penetration of independent book retailers. Sony is about to introduce new devices that could increase their importance. And Apple is doing its best to dominate sales to its own device holders, who constitute a large wedge of the ebook customer pie.

One can go to all of these channels directly but there are also a slew of services to handle what is the increasingly complex job of delivering to and administering the multiple channels. Perseus Constellation, Ingram Digital, INscribe DigitalLibreDigital (just bought by Donnelley), and Bookmasters as well as the automated services like Smashwords, BookBaby, and MintRight we mentioned above, and others offer service packages to do that and to help with the creation and marketing needs as well.

As we said at the top, nowhere is the change in publishing greater than in the agent community. What has been a stable business model for generations is now, suddenly, changing. There seem to be as many new models and approaches as there are literary agencies. That adds another thing that all of the fledging epublishers — some of which are agents, others being small publishers and authors — need to know about and understand. The relationships among authors, agents, and publishers are getting much more complicated and everybody needs to spend some time thinking that through and discussing what it means.

If all this strikes you as a set of topics worthy of a day’s discussion, we’re in agreement. We think it is too. And that’s why our new Publishers Launch Conferences partnership with Michael Cader is delivering a day-long event called “eBooks for Everyone Else” in New York (in conjunction with The Center for Publishing at New York University’s School of Continuing and Professional Studies) on Monday, September 26 and in San Francisco (co-located with F+W Media’s new StoryWorld conference) on Wednesday, November 2.

Not only do we have an expert-packed lineup to deliver the information, we’ve carved out time for our attendees to get their own specific questions answered by the experts and by the providers of many of the services that are part of the new ecosystem. If the business of ebook publishing is part of your future strategy, you’re bound to get the knowledge and make the connections you need at eBooks for Everyone Else.

Among the leading service providers who will participate in eBooks for Everyone Else in New York and be available for “speed-dating” conversations with attendees are our global sponsors Copyright Clearance Center, Constellation, and Bowker, as well as supporting sponsors Ingram Content Group, INscribe Digital, B&N’s PubIt!, Kobo, and BookBaby. (Kobo and PubIt! will be speaking from the main stage as well.)

Our New York show features an all-star lineup of literary agents including Jane Dystel, Robert Gottlieb, Sloan Harris, and Scott Waxman. We have a distinguished group of publishing veterans — including Jack Perry and David Wilk, Smashwords founder Mark Coker, Renee Register, Iris Blasi, Rich Fahle, Ron Martinez, and Joshua Tallent — who will present advice and insight to help you develop a comprehensive ebook strategy. Most of them will be available at the breaks and alongside the speed-dating sessions to lead small group discussions and answer your questions about creating, marketing, and distributing your ebooks. (The San Francisco roster is slightly different, but just as powerful.)

Michael Cader and I will be moderating all the day’s activities, asking questions, and helping to put an enormous volume of facts into a strategic context for an audience with a staggering array of choices as to how to proceed with ebook publishing.

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