Lubbe

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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Full-service publishers are rethinking what they can offer


At lunch a few months ago, Brian Murray, the CEO of HarperCollins, expressed dissatisfaction with the term “legacy” to describe the publishers who had been successful since before the digital revolution began. For one thing, he felt that sounded too much like “the past”. “We need to come up with a different term,” was his assessment and he suggested that perhaps “full-service” was more apt.

I find I keep coming back to “full service” as an accurate description of the publisher’s relationship to an author. That’s what the long-established publishers have evolved to be.

It would be disingenuous to suggest that publishing organizations were deliberately created as service organizations for authors. They weren’t. In fact, as we shall see, the service component of a publisher’s DNA was developed in service to other publishers.

My Dad, Leonard Shatzkin, pointed out to me 40 years ago that all trade book publishing companies were started with an “editorial inspiration”: an idea of what they would publish. Sometimes that was a highly personal selection dictated by an individual’s taste, such as by so many of the great company and imprint names: Scribners, Knopf, Farrar and Straus and Giroux, for examples. Random House was begun on the idea of the Modern Library series; Simon & Schuster was started to do crossword puzzle books.

That is: people had the idea that they knew what books would sell and built a company around finding them, developing them, and bringing them to market.

And the development and delivery to the market required building up a repertoire of capabilities that comprised a full-service offering.

The publisher would find a manuscript or the idea for one and then provide everything that was necessary — albeit largely by engaging and coordinating the activities of other contractors or companies — to make the manuscript or idea commercially productive for the author and themselves.

The list of these services describes the publishing value chain. It includes:

select the project (and assume a financial risk, sometimes relieving the author of any);

guide its editorial development (although the work is mostly done by the contracted author or packager);

execute the delivery of the content into transactable and consumable forms (which used to mean “printed books” but now also means as ebooks, apps, or web-viewable content);

put it into the world in a way that it will be found and bought (which used to mean “put it in a catalog widely distributed to opinion-makers or buyers” but now largely means “manage metadata”);

publicize and market it;

build awareness and demand among the people at libraries and bookstores and other distribution channels who can buy it;

process the orders;

manufacture and warehouse the actual books or files or other packaged product;

deliver;

collect;

and, along the way, sell rights to exploit the intellectual property in other forms and markets, including other languages.

It has long been customary for publishers to unbundle the components of their service offering. The most common form of unbundling is through “distribution deals” by which one publisher takes on some of the most scaleable activities on behalf of other smaller ones. It has reached the point where almost every publisher is either a distributor or a distributee. Many are depending on a third party, quite often a competing publisher, for warehousing, shipping, and billing and perhaps sales or even manufacturing. All the big ones and many others, along with a few companies dedicated to distribution, are providing that batch of services. It is not unheard of for one publisher to do both: offering distribution services to a smaller competitor while they are in turn actually being distributed by somebody larger than they.

An assumption which influenced the way things developed was that the key to competitive advantage for a publisher was in the selection and editorial development of books and in their marketing and publicity, which emerged organically from their editorial efforts. All the other functions were necessary, but were not where many editorially-conceived businesses wanted to put their attention or monopolize their own capabilities.

About 15 years ago, working on VISTA’s “Publishing in the 21st Century” program, I learned the concept of “parity functions” in an enterprise. They were defined as things which can’t give you much competitive advantage by doing them well but which can destroy your business if you screw them up. This led to the conclusion that these things were often best laid off on somebody else who specialized in them, leaving the publisher greater ability to focus on the things which truly and meaningfully differentiated them from competitors.

Another driving force here was the way that bigger and smaller publishers look at costs and scale. If you’re very big, it is attractive to handle parity functions as fixed costs: to own your own warehouse, have a salaried sales force, and to invest in having state-of-the-art systems that do exactly what you want them to do. If you’re smaller, you often can’t afford to own these things anyhow and, on a smaller base, fluctuations in sales could suddenly render those fixed costs much too high for commercial success.

It is therefore more attractive to smaller entities to have these costs become variable costs, a percentage of sales or activity, that go up when sales go up but, most importantly, that also go down if sales go down. And the larger entity, by pumping more volume through their fixed-cost capabilities, subsidizes its own overheads and improves the profitability and stability of its business.

One of the things that is challenging the big publishers — the full-service publishers — today is that the unbundling of their, ahem, legacy full-service offering has accelerated. You need scale to cover the buyers and bill and ship to thousands of independent accounts. If you’re mainly focused on the top accounts — which today means Amazon, Barnes & Noble, Ingram, and Baker & Taylor for most general trade publishers — you might feel you can do it as well or better yourself with one dedicated person of your own.

And if you’re willing to confine your selling universe to sales that can be made online — print or digital — you can eliminate the need for a huge swath of the full-service offering. Obviously, you give up a lot of potential sales with that strategy. But the percentage of the market that can be reached that way, combined with the redivision of revenue enabled by cutting the publisher out of the chain, has made this a commercially viable option for some authors and a path to discovery for others.

So the consolidation of business in a smaller number of critical accounts as well as the shifting of business increasingly to online sales channels has been a challenge for some time that larger publishers and distributors like Perseus and Ingram have been dealing with.

But now the need for services and the potential for unbundling is moving further up the value chain. The first instances of this have been seen through the stream of publishing efforts coming directly from authors and content-driven businesses like newspapers, magazines, and websites.

To the extent that the new service requirements are for editorial development help and marketing, it gets complicated for the full-service publishers to deal with. The objective of organization design for large publishers for years has been to consolidate the functions that were amenable to scale and to “keep small” the more creative functions. So it is a point of pride that editorial decisions and the publicity and marketing efforts that follow directly from the content be housed in smaller editorial units — imprints — within the larger publishing house.

That means they are not designed to be scaleable and they’re not amenable to getting work from the outside. It’s much less of an imposition for somebody in a corporate business development role to ask a sales rep to pitch a book that had origins outside the house than it is to assign one to an editor in an imprint. The former is routine and the latter is extremely complicated.

But what does this mean? Should publishers have editorial services for rent? Should they try to scale and use technology to handle editiorial functions — certainly proofreading and copy-editing but ultimately, perhaps, developmental editing — as a commodity to assure themselves a competitive advantage on cost base the way they do now for distribution? Should publishers try to scale digital marketing? Should they have teams that can map out and execute publishing programs for major brands?

The way Murray sees it, a major publisher applies a synthesis of market intelligence and skills that can only be delivered by publishing at scale. He believes that monitoring across markets and marketing channels along with sophisticated and integrated analysis of how they interact provide an unmatchable set of services.

The scale challenge for trade publishers to collaborate with what I’m envisioning will be an exploding number of potential partners is to find ways to deliver the value of the synthesized pool of knowledge and experience efficiently to smaller units of creativity and marketing.

There is plenty of evidence that publishers are thinking along these lines. The most obvious recent event suggesting it is Penguin’s acquisition of Author Solutions. Penguin had shown prior interest in the author services market by creating Book Country, a community and commercial assistance site for genre fiction authors. Penguin suddenly has real scale in the self-publishing market. They have tools nobody else has now to explore where services for the masses provide efficiencies for the professional and how the expertise of the professionals can add value to the long tail.

There are initiatives that stretch the previous constraints of the publisher’s value chain that I know about in other big companies, and undoubtedly a good deal more that I don’t know about. Random House has a bookstore curation capability that they’ve coupled with editorial development in a deal with Politico that could be a prototype. Hachette has developed some software tools for sales and marketing that they’re making available as SaaS to the industry. Macmillan has a division that is developing educational platforms that might become global paths to locked-in student readers. Scholastic has a new platform for kids reading called Storia that involves teachers and parents that they’d hope to make an industry standard. Penguin has a full-time operative in Hollywood forging connections with projects that can spawn licensing deals. Random House has both film and television production initiatives.

These developments are very encouraging. One of the reasons that Amazon has been so successful in our business is that our business is not the only thing they do. One of the elements of genius they have applied ubiquitously is that every capability they build for themselves has additional value if it can be delivered unbundled as well. Publishers were comfortable with that idea for the relatively low-value things that they do long before they ever heard of Amazon. It is a good time to think along the same lines for functions which formerly seemed closer to the core.

Speaking of which, many of publishing’s most creative executives will be speaking as “Publishing Innovators” at our Publishers Launch Frankfurt conference on Monday, October 8, 10:30-6:30, on the grounds of the Book Fair. 

We did a free webinar with a taste of the Frankfurt conference last week and it’s archived and available and worth a listen. Michael Cader and I were joined by Peter Hildick-Smith of The Codex Group, Rick Joyce of Perseus, and Marcello Vena of RCS Libri.

Dominique Raccah of Sourcebooks, Helmut Pesch of Lubbe,  Rebecca Smart of Osprey, Anthony Forbes Watson of Pan Macmillan, Ken Michaels of Hachette, Stephen Page of Faber, and Charlie Redmayne of Pottermore (as well as Joyce and Vena) will all be talking about initiatives in their shops that you won’t find (yet) going on much elsewhere. And that’s just part of the program. There is a ton of other useful information — about developments in the Spanish language, the BRIC countries, the strategies of tech giants and how they affect publishing, and much more — that will make this the most useful single jam-packed day of digital change information you’ll have ever experienced. We hope to see you there.

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Things to think about as the digital book revolution gains global steam


The switchover from reading print to reading on screens, with the companion effect that increasingly the purchase of books is done online rather than in stores, is far advanced in the English-speaking world and especially so in the United States. In the past 12 months, the UK has begun to resemble the US market in this way.

With all due respect to everbody else, the primary driver of this change has been the efforts of Amazon.com. They made the online selling of print books work in the US and then provided the critical catalyst — the Kindle — to make ebooks happen. Other players — Barnes & Noble and Kobo with their devices and the publishers with their sales policies — have crafted their strategies primarily in response to Amazon. They are participants building out a market that Amazon first proved existed.

The impact of digital change in the US and UK markets has been both profound and severe. Bookstore shelf space has been lost at a rapid pace. (This has long struck me as the key metric to watch to predict industry change.) I have seen no estimates to quantify this, but with Borders gone and Barnes & Noble devoting much less space to books than it once did and the disappearance of many independents, it seems apparent that half of the bookstore shelves that were available in the US in 2007 are gone by now. The book trade in Britain is moving in a similar direction.

The publishers are well aware that their ecosystem has changed and that they have to change too. Many have changed their workflows so that ebooks and print books can be outputs from the same development process. They are all seeking new ways to interact directly with readers, which no general trade publisher would have considered doing ten years ago. They are learning about how to deliver their digital products with better metadata. They are learning to optimize that metadata for search. They’re trying to build vertical communities — or at least develop vertical audience reach — and developing new services and products to sell to the customers that they attract with their books. They’re recognizing that digital distribution newly empowers authors and responding by trying to make the experience of working with them more author-friendly.

And they’re recognizing that the world is getting smaller: that their outputs can reach readers outside their home market much more readily than ever before. That recognition is particularly useful to American and British publishers because English is the world’s leading second language, with potential customers for English language books in every country in the world.

Change has come much more slowly in non-English markets. There are many reasons for that. One is that the US and Britain have exceptional — if not unique — marketplace rules that encourage retailers to compete for book sales using pricing as a tool (or, if you prefer, as a weapon). Amazon used deep discounting to solidify its position in the late 1990s when it was building its print-selling hegemony and then again to create locked-in ebook customers for the Kindle when it launched in 2007.

The combination of price controls on books and VAT rates that have been uniformly higher for ebooks than they are for print have prevented Amazon from replicating these tactics in some other markets. There are cultural differences as well; American (and British) consumers seem more relaxed about online credit card purchases than are the citizens of many other countries in the world.

And because there was a market for ebooks in English before anyplace else, the investments have been made to assure a large reservoir of titles in English faster than for any other language.

But four major companies — Amazon, Apple, Kobo, and Google — (as well as a number of smaller ones) have been methodically building out a global infrastructure to deliver digital downloads (of books or anything else.) Barnes & Noble, which has been the most successful Amazon competitor (albeit only in the US so far), has just gotten a large investment from Microsoft to help finance a global expansion and has announced its first non-US online store will open in the UK shortly.

So the roads to deliver ebooks to the global consumer have been getting paved, even if there is very little traffic on most of them so far. It seems unlikely (at least to me) that there will ultimately be much variation in the ratio of digital to print reading by country or language. (One exception: I’d expect the poorest parts of the world to get to near-zero print faster than the developed world because, ultimately, distributing books electronically will be so much cheaper that printed books will become a relative luxury.)

The US and the UK transitions are in some ways instructive to the book businesses in other markets as they prepare for a similar period of change. But, cultural differences and local commercial rules aside, the next five or ten years outside the English world will only share some of the characteristics of what the English world has seen. Because times have changed.

There are some real differences in circumstances between how things stood when the transition began in earnest in the US and UK five years ago and what we’ll see in the rest of the world over the next five years.

** The companies that built the digital distribution infrastructure for English were “local”, English-speaking, companies. Amazon, Apple, Google, and Barnes & Noble are American; Kobo began as Canadian (which feels local enough to an American). Michael Tamblyn of Kobo has spoken very articulately about what it takes to open up business in a new market and building a team of locals is high on the list of requirements. I think we can expect local language players to be critical partners in most markets as ebooks roll out. That will be less true over time as proprietary device sales by the retailers decline in importance. Which I say because…

** The key for all the players in the first five years of the ebook revolution (which I’m dating from November 2007, when Amazon introduced the Kindle) has been a total offering: device and store. Many who were disappointed by the relatively minor impact of Google in the US, despite its attempt to build an alliance with independent bookstores, blamed the fact that Google had no device to compete with Amazon, Apple, Barnes & Noble, and Kobo. Of course, Google recently introduced a phone and the Nexus 7 tablet.

It seems likely that the proprietary ereader will have much less impact going forward. (The Nexus 7 isn’t an ereader; it’s a tablet. And Apple doesn’t sell an ereader; the iPad is also a tablet.) When Amazon entered the market, there was no widespread distribution of devices people could read an ebook on, so Amazon had to get them out there. This created an obvious challenge that came with a robust opportunity, which was device lock-in of the customer base for future content purchases.

This is no longer true. Tablet computers are ubiquitous and the question is already being posed whether eink readers dedicated to displaying straight text have any future.

So while device distribution was an important part of building the ebook markets in the US and UK, ebook sellers in non-English markets will be peddling into an environment already heavily seeded with devices.

This cuts both ways. On the one hand, there is an installed base of capable devices, which could speed up ebook uptake. On the other hand, those devices will play movies and songs and do email, so, unlike the original Kindle or Nook, they don’t represent a screen walled off from temptation that tempt you away from a book.

** The selection of ebooks in English is in the millions of titles. Many people around the world can read in English. As they develop ereading capability, they could be tempted by the wider selection of titles in English than they’ve ever seen in any language in local stores, particularly in places where digitization in the local language lags. This is, in the aggregate, a big opportunity for English-language content but, in most individual cases, only a minor sales erosion challenge for local language publishers. All things being equal, people prefer to read in their native language. But the ratio of title availability between English and most other languages makes things far from equal.

** Digital makes everybody global. We’ve observed that ends up engendering competition from English. But it also enables smaller language publishers to find their global diaspora much more effectively than they could in print. I’d expect marketing to pockets of same-language readers distributed around the world will be a worthwhile skill worth to develop to stimulate ebook sales. Digital brings the sale closer and makes the promotion cheaper. It really changes the equation.

** There is another way it will prove important that publishers in a digital world are no longer restricted to publishing for their local market. We learned from some Slovenes last year about small-language publishers who translated their original fiction into English to give them a chance to sell rights in all languages. Now they’re in a position to publish those English translations digitally at very little additional cost. This is an opportunity we are seeing non-English publishers recognize and at least one US entity, Open Road, has seen the opportunity from the other end. They’re courting those publishers for distribution and marketing in the US market.

In fact, the German publisher Lubbe is doing original ebooks in both English and Chinese.

One thing that will be different but similar in the rest of the world will be the decline of bookstores. Retail price maintenance and the fact that in many markets publishers own the bookstores will definitely slow the process down compared to what we’ve seen in the US and the UK, but if the sales move from stores to online (and ebooks will compel that, despite some elaborate schemes and fantasies to preserve a place for stores to sell digital), the stores can’t stay open.

At least the non-English markets will get the benefit of seeing how the English language copes with the challenges of discovery and marketing in a digital reading environment.

Maybe they can even solve the problem of making illustrated books succeed in a digital format, which the English world has not done yet. The Italian publisher RCS (owners of Rizzoli, among others) have done this for a handful of titles so far in a market that has hardly moved the digital needle overall but the successes have been too few in number to call the problem “solved” yet. Perhaps the English-language publishers will find something to learn from them.

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I keep wanting to make an observation that isn’t worth a whole post, so I’ll stick it here. The “Fifty Shades of Gray” phenomenon, which hit our collective consciousness in March, was foretold by our Romance study at Digital Book World last January. (A hat tip and thanks to AllRomanceebooks for having done that survey for us.) What at first glance appeared to be the romance community “voting” with their purchases for less DRM turned out, on closer examination, to be votes for more sex. I made the point in this piece that mainstream publishers might be letting fledglings steal the market for raunch. Those days are over.

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This piece raises a lot of issues we’ll be covering at our Publishers Launch Frankfurt conference on October 8. Many of the players mentioned here will be speaking there. Check out the entire program and I think you’ll agree that if you can get to Frankfurt on the Monday before the Book Fair, you’ll want to be there. We have shifted the time of the conference slightly, starting at 10:30 instead of 9, to make it easier to travel in that morning and make it.

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