Showing posts with label BISG. Show all posts
Showing posts with label BISG. Show all posts

Monday, June 07, 2021

Some Book Returns are Good: Managing Returns an Upcoming BISG Webinar

Book returns have long been the nemesis of warehouse and fulfillment managers and, sometimes conflict, when challenging the optimism of the sales team. Historically, it was the trade market where returns were (and remain) a significant component of the sales process to the exception of other publishing segments. However, this has changed significantly as the retail market – in education in particular – has become less structured. Whereas students used to purchase textbooks exclusively at the college store they are now as likely to buy their books ahead of time from Amazon for delivery to the dorm as they are to buy them at all.

As most publishing people know, managing returns and addressing the ‘returns problem’ is a perennial issue but it has been up to individual companies to act to improve their returns issues. In the US there has not been a direct industry led initiative to tackle returns but that is not the case in the UK. As far back as 1999, the industry began an initiative to understand the issue, identify the costs of returns and propose a set of progressive supply chain improvements in an industry led attempt to manage down the cost of returns. This initiative brought together all major players including publishers, retailers, wholesalers and other intermediaries, and gained traction approximately five years ago with the agreement on a set of resolutions or ‘rules of the road’ which govern interactions across the industry.

In the US, the UK initiative looks like an interesting model for us to study. The BISG has scheduled a webinar for July 20th to do just that and it is open to members and non-members.  In advance of the meeting, I have been asked to interview a group of supply chain participants (retailers, wholesalers, publishers) on behalf of BISG to determine how they have approached the returns issue(s) within their own businesses, their objectives in addressing returns and solicit their input on how BISG could support the industry to address returns.

At the webinar in July, we will tell the story of the UK experience and deliver the feedback I have gathered from our interviews. We will then solicit feedback from the attendees (and members) as to how BISG might support initiatives to improve the returns issue. So far, I can report that there are some interesting ideas and process improvement suggestions already being used by those addressing this issue and I expect we can discuss these at the meeting in July.  I hope you can join us.  If you would like to offer comments on this issue please do so below.

*******

Are you considering an investment in new technology?  Check out my report on software and services providers.  (PubTech Report)

Michael Cairns is a business strategy consultant and executive.  He can be reached at michael.cairns@infomediapartners.com or (908) 938 4889 for project work or executive roles.



Wednesday, July 18, 2012

BISG: Adult Fiction Now 30% of Sales

The BISG will release their updated annual survey of the publishing industry next week but their press release today offers some tidbits of information of interest to many who track the industry.

The overall US publishing market contracted 2.5% to $27.2Billion down from $27.9 in 2011 however the results suggest changes in the product mix or general deflationary pricing since volume was up 3.4% year on year.

Naturally a highlight of the study remains the growth of eBooks in trade and the study points to the general acceptance of buyers of Trade Adult Fiction to the eBook format.  According to the report fully 30% of revenues are now in eBook format and this is now the dominant format for buyers.  Overall the report compiles data from over 1900 publishers in for sectors:  Trade (fiction and non-fiction for adults and children), School/K-12, Higher Education and Professional/Scholarly Publishing.

More from the press release:
  • In the overall Trade sector (encompassing Fiction and Non-Fiction for Children, Young Adults and Adults), e-books’ net sales revenue more than doubled in 2011 vs. 2010. This significant growth was particularly fueled by e-books’ performance in the Adult Fiction segment where, for the first time, they ranked #1 in net revenue among all individual print and electronic formats. 
  • Among categories, both Religion and Children’s/Young Adults showed strong growth while Children’s/YA ranked as the fastest-growing category in publishing in 2011.
  • Despite the negative impact of Borders’ bankruptcy and closures, particularly on print book sales, through three quarters of 2011, the Trade market held up equal with 2010 revenue figures, even showing a slight increase. 
  • Brick-and-mortar retail remained the #1 sales distribution channel for publishers in 2011, as it did in 2010. Publishers’ revenue from direct-to-consumer sales nearly doubled, topping $1 billion for the first time.
The growth of E-Book
The e-book phenomenon continued through 2011, attributable to the ongoing popularity of e-readers, tablets, and other devices as well as publishers’ strategic production, distribution and marketing of content in all e-formats. 
In the overall Trade sector, publishers’ net sales revenue from e-books more than doubled: from $869 million, or 6% of Trade net revenues, in 2010 to $2.074 billion, or 15% of net revenues, in 2011. Units more than doubled as well: 125 million e-books sold in 2010, representing 5% of the Trade sector, grew to 388 million e-books, representing 15.5%, in 2011. While e-books showed increasing strength, the combined print formats (including Hardcover, Trade Paperback and Mass-Market Paperback) still represented the majority of publishers’ net revenue in the Trade sector at $11.1 billion for 2011. 
Within the Trade sector’s Adult Fiction category, records were broken as e-books became the dominant single format there in terms of net revenue for calendar year 2011 with 30% of total net publisher dollar sales. In 2010, e-books had ranked fourth among the individual print and electronic categories with 13% share. Adult Fiction e-book revenue for 2011 was $1.27 billion, growing by 117% from $585 million in 2010. This translated to 203 million units, up 238% from 85 million in 2010. Similar to the broader overall Trade sector, the combined print formats also represented the majority of publishers’ revenue in the Adult Fiction category, at $2.84 billion.

Overall industry numbers
Despite the prolonged impact of the Borders bankruptcy (particularly on orders of print format books) but buoyed by continuing popularity of e-books, publishers net sales revenue for the Trade sector was $13.97 billion for 2011 as compared to $13.90 for 2010. This was an increase of 0.5%.
The overall total U.S. book market (representing all commercial, entertainment, educational, professional, and scholarly sectors) declined just 2.5%, from $27.9 billion in 2010 to $27.2 billion in 2011. While overall net revenue was down, overall units were up 3.4%, from 2.68 billion in 2010 to 2.77 billion in 2011.
The Children’s/Young Adult category saw the highest year-over-year, increasing 12% from $2.48 billion to $2.78 billion. One factor was the enormous popularity of several blockbuster releases from publishers, particularly in YA Fiction. Religious books rebounded in 2011 after a decline in 2009 with its growth reflecting the category’s digital transition as well as success of several major titles.

Sales distribution channels
Despite the Borders bankruptcy resulting in the closure of more than 500 stores in 2011, brick-and-mortar retail again ranked as the #1 sales channel for publishers in 2011: net revenue was $8.59 billion, representing 31.5% of total net dollar sales. This was, however, a decline of 12.6% from 2010
This year, it was followed by:
  • Institutional sales (including sales to libraries, businesses, government, schools, and other organizations): $5.39 billion or 20%.
  • Online retail: Reflecting broader national trends in consumer purchasing, revenue from sales through online retail grew 35% from 2010 ($3.72 billion) to $5.04 billion in 2011. This channel, which represented 13% of total publisher net dollars in 2010, grew to 18.5% of the total in 2011.
  • Wholesalers/jobbers: Publishers’ revenues were $5.04 billion (18% of total) from this channel, which serves independent booksellers and mass merchants among other retailers.
A notable highlight in BookStats 2012: direct-to-consumer sales by publishers nearly doubled in revenue and topped $1 billion for the first time. In 2011, publishers saw $1.11 billion in direct-to-consumer dollars, growing from $702 million in 2010 – an increase of 58%.

Monday, July 09, 2012

BISG Metadata Summit July 24th.


From their announcement
Product metadata is the connective tissue of the book industry, binding publishers and authors to data aggregators, retailers, and others. But information about the products we sell is only valuable when it's accurate, timely, complete, and updated – and too often, that's not the case.

BISG’s Metadata Summit presents a unique opportunity for executives representing all points in the book supply chain to discuss the benefits and challenges of maintaining quality metadata.

In this intimate, exclusive setting – limited to 25 attendees, director-level and above – Brian O'Leary (Magellan Media Consulting) will present the results of BISG’s new report on Development, Use, and Modification of Book Product Metadata. Publisher and retailer representatives will then engage in a conversation about how industry partners can work together to ensure quality product metadata. A room-wide discussion will follow.

Presenters:

· Brian O’Leary, Founder and Principal, Magellan Media Consulting

· Phil Madans, Director of Publishing Standards and Practices, Hachette Book Group

· Ashleigh Gardner, Director, Content Management, Kobo

· Matt Supko, Technology Director, American Booksellers Association

Tuesday, May 22, 2012

BISG's Student Attitudes to Content in Higher Ed

The BISG has released the second installment of their report on student attitudes
Now available to purchase (and at significant discounts for BISG members), Student Attitudes Toward Content in Higher Education, Volume Two, Final Survey Report explores trends and issues in the higher ed market during the 2011-2012 academic year.

This report also integrates some data from BISG’s recent study of Faculty Attitudes, offering a unique comparison between student and faculty perspectives.

Key findings include:
  • Nearly 48 percent of students feel Integrated Learning Systems help with their studying; compare that with 45 percent for the core print textbook and just 37 percent for the e-text.
  • Although relatively few students have tablet devices — just 16 percent compared with 76 percent who own laptops — many are planning to acquire them, and are looking for course content available on these devices.
  • Textbook rentals are on the rise, showing an increase from 8 percent last year to 11 percent this year. Meanwhile, acquisition from Amazon.com rose from 25 to 31 percent, while on-campus bookstores fell from 52 to 46 percent.
In addition to the PDF Survey Report, data from Student Attitudes is available as a dynamic online data set via Real-Time Reporting: a web-based tool which displays raw data – drillable, sortable, and accessible whenever you want it.

Monday, May 07, 2012

MediaWeek (Vol 5, No 19): HuffPo's Aggregation Model, Espresso Books, FT on the state of Publishing +More

From the Columbia Journalism Review a long review of how Huff Po came to define the news aggregation 'business' (CJR)
Before its purchase by AOL in February 2011, HuffPost was not a property that had produced much in the way of revenue; it had posted a profit only in the year before the sale—the amount has never been disclosed—on a modest $30 million in revenue. Aside from scoops from its estimable Washington bureau, it did little in the way of breaking stories, the industry’s traditional pathway to recognition.
Huffington Post, which had mastered search-engine optimization and was quick to understand and pounce on the rise of social media, had been at once widely followed but not nearly so widely cited. But that is likely to change now that it can boast of a Pulitzer Prize for national reporting—the rebuttal to every critic who dismissed HuffPost as an abasement to all that was journalistically sacred.
Arianna Huffington liked to boast that the site that bore her name had remained true to its origins. The homepage’s “splash” headline still reflected a left-of-center perspective; it had thousands of bloggers, famous and not, none of them paid; and while there was ever more original content, especially on the politics and business pages, the site was populated overwhelmingly with content that had originated elsewhere, much of it from the wires (in fairness, an approach long practiced by many of the nation’s newspapers). But Huffington Post had evolved into something more than the Web’s beast of traffic, blogging, and aggregation. These days, Arianna Huffington has a regular seat at the politics roundtable, which speaks not only to her own facility on TV but also to the prominence her organization enjoys.
Power can be felt, even if it defies measurement. By the winter of 2012, Huffington Post could lay claim to a widely shared perception of its growing influence—the word Huffington prefers to power, which, she says, sounds “too loaded.” For better or, in the eyes of its critics, worse, Huffington Post had assumed the position of a media institution of consequence.
Taking a look at the Espresso Book Machine at Powells (Mercury)
When I was at Powell's, before I went up to look at The Machine, I spent a few minutes talking myself down from buying a Poe Ballantine novel published by local house Hawthorne Books. I almost bought the book half because I want to read it, and half because it was pretty—Hawthorne puts out lovely books with distinctive covers and classy French flaps (when a soft-cover book folds in on the sides like a dust jacket). It's often suggested that with the increasing popularity of ebooks, publishers should/will move toward the McSweeney's model of publishing, which emphasizes "book-as-object." The Book Machine is a step in the opposite direction, back to book-as-collection-of-paper-that-has-words-on-it.
Mercury Film Editor Erik Henriksen—a regular Kindle user—expressed extreme bafflement at the existence of such a machine. I'd use it, though: Despite owning and liking a Kindle, I still have a stubborn preference for reading in print, and all other things being equal (price, convenience, availability) would always take a print book over a digital one. Plus, being able to create physical copies of hard-to-find/out-of-print titles is pretty amazing in its own right.
Warren Adler op ed in (you guessed it) the HufPo on The Coming Battle of eReaders (HuffPo):
There are thousands of categories that e-books support, running the gamut from instruction to politics and every thing in between and beyond. Works of the imagination, meaning fiction, cover numerous genres aimed to specific reader requirements. The so-called mainstream novel, the work I have labored to define, is the toughest category to monetize, especially in today's environment, which tempts creative writers to replicate and attracts the self-published.
The mainstream novel is also challenging to the author, who must be branded as a serious contributor in order to attain enough status to attract interest and sales where outlets for recognition and discoverability are shrinking.
While it was easy to make a prediction about the future of e-books it is no simple matter to predict the fate of the serious novelist in the ever-accelerating rough and tumble world of e-books. I suspect that most authors in this category will have to shoulder the task of relying on themselves to publicize, advertise, promote, and project his or her authorial name and titles, whether his or her books are published by a traditional publisher or via self-publishing. Authors of this material will either have to learn how to promote their own works or risk the ultimate curse of artistic endeavor... obscurity and dismissal.
I wasn't sure whether to pull this reference to the FT on the current landscape in publishing or not.  eBooks are big, Technology is a driver, publishers being sued, etc, etc.  You be the judge (FT):
As deep-pocketed tech companies tout ebooks to sell Windows 8 devices or Kindle Fires, iPads or gadgets running Google’s Android software, reading habits will change further, with profound consequences for retailers, publishers, authors and consumers.
The pace of change is already dramatic. According to PwC, the consultancy, US consumer ebook sales will grow 42 per cent to $2.5bn this year, or 11 per cent of the American consumer books market. But this may understate the growth. The Association of American Publishers said on Friday that ebooks accounted for 31 per cent of all adult trade sales in February, up from 27 per cent in the same period a year ago, with their share of the children’s and young adult market jumping from 10 per cent to 16 per cent in a year.
In Europe, ebook sales will grow 113 per cent, PwC estimates, but will end the year as less than 2 per cent of the market. In Asia, ebooks will be more than 6 per cent of the market by December, it predicts.
However, this comes at a heavy cost to print. Adult hardback sales fell 17.5 per cent last year, according to the Association of American Publishers. In the UK, The Publishers Association said this week that consumer ebook sales leapt 366 per cent in 2011 to 6 per cent of the total, but print declines left the total market down 2 per cent.

Joking about textbook prices (Link)

From my Twitter feed this week

The Man Who Revitalized 'Doctor Who' And 'Sherlock'

BISG’s Making Information Pay Conference:Beyond “Business-as-Usual”;The Age of Big Data,by Lorraine Shanley /PubTrends

A universal digital library is within reach


Thursday, March 29, 2012

BISG Members Meeting on Identifiers for eBooks

There's an important meeting coming up to review comments on the draft recommendations for eBook identifiers.  Here are the details:


Members of BISG’s Identification Committee are invited to a special Committee meeting to be held on Tuesday, April 3, 2012, from 1 p.m. to 2:30 p.m. EDT, at the offices of Hachette Book Group and via WebEx. Meeting details are below; please register online if you’d like to attend.

 

This session will be devoted to a review of BISG’s Policy Statement on the Best Practices for the Identification of Digital Products, which was developed by the Committee’s Identification of E-books Working Group and published in December 2011. The goal will be to review the document to see whether revisions are needed after four months of public review and to ensure that the Policy Statement accommodates the rapidly changing conditions in our industry.

To review the Policy Statement, please click here.

Meeting Location:
Hachette Book Group
237 Park Avenue (between 45th & 46th Streets; enter on Lexington Avenue side)
Room 16-187 (16th Floor)
NYC 10017

Monday, March 05, 2012

MediaWeek (Vol 5, No 10): The Monkees, PayPal, Self-Publishing, Jeff Bezos + More

I was never that aware of The Monkees but the passing of Davy Jones generated a lot of reminiscing.  Mrs. PND recalls the time her Dad brought home the record - unprompted - becoming 'cool' in the process and in the last few days she has DVR'd what must be 24hrs worth of the show.  Here some thoughts from Neil McCormick at The Telegraph:
One of the most remarkable things about the Monkees is that the show, like the band itself, was sophisticated enough to be open to interpretation. Watching those endless repeats in my teens, I formed further ideas of the pop process. The myth of the Monkees is one of the great myths of pop culture: the manufactured band rebelling against svengali manipulators, briefly shining before burning up in the fires of ego. We see the same story played out again and again in the “real” pop world, from the Bay City Rollers to the Spice Girls, but with The Monkees, we can watch it happen in repeat, from the zany innocence of the TV series to the mad rush of their self-immolating movie, Head, in which the band attempted to break free of their constraints by exposing their own essential fiction, but only ended up destroying the illusion that sustained them.
All of this is really sustained, however, by genuinely fantastic music that has, remarkably, stood the test of time. The miracle of The Monkees is that this exploitative, manipulative, derivative children TV series was underpinned by brilliant pop songs, written to order by some of the great writers of the era (from Neil Diamond to Goffin and King), framed in colourful arrangements that captured the happy essence of the band’s spirit, performed with conviction and emotion. Last Train To Clarksville, I’m A Believer, Randy Scouse Git, Pleasant Valley Sunday … these are songs of such dynamic originality they put the imaginary band shoulder to shoulder with the heroes they were imitating.
PayPal the censorship enforcer?  Stranger than fiction as PayPal says it will strike off certain self-publishers (Independent):
From now on, the firm said, it will begin aggressively prohibiting erotic literature which contains scenes of bestiality, rape, incest and under-age sex. Ebook websites that sell such works will have their PayPal accounts deactivated. "It's underhanded, unfair and ludicrous, and it bodes badly for the future of free speech and expression," said Juillerat-Olvera, adding that Demon's Grace is now banned by self-publishing sites.
Mark Coker, the founder of Smashwords, one of the world's largest such sites, said the announcement has so far caused roughly 1,000 of the 100,000 novels that he stocks to be withdrawn from sale. "Regardless of whether you or I want to read these books, this is perfectly legal fiction and people have a right to publish it," he told The Independent on Sunday. "It surely isn't for some financial services company to control what is written by an author."
Mr Coker said that attempting to enforce PayPal's effective ban is likely to be impossible. "They say they won't have rape, bestiality or incest presented in a way that might titillate. But deciding what constitutes titillation is completely subjective," he said. "The Bible has incest in it, and rape. Nabokov's literature does. Should we ban the sale of those books?"
Articles about Self-publishing and the death of traditional publishing are as freckles on a haole.  Here's an interesting take from Atlantic author Alan Jacobs
But one of the illusions most common to writers -- an illusion that may make the long slow slog of writing possible, for many people -- is that an enormous audience is out there waiting for the wisdom and delight that I alone can provide, and that the Publishing System is a giant obstacle to my reaching those people. Thus the dream that digital publishing technologies will indeed "disintermediate" -- will eliminate that obstacle and connect me directly to what Bugs Bunny calls "me Public." (See "Bully for Bugs".) And we have heard just enough unexpected success stories to keep that dream alive.
Well, here's hoping. But a couple of months ago I decided to dip my toes into these waters: I wrote a longish essay called "Reverting to Type" about my own history as a reader -- a kind of personal epilogue to The Pleasures of Reading -- and decided to submit it as a Kindle Single. Amazon wasn't interested, so I decided to publish it myself using Kindle Direct Publishing. I announced its existence to the world: that is, I posted a link on my tumblelog and tweeted about it. A few people downloaded it; some pointed out typos that I had missed, but that a copy editor surely would have caught. I thought about ways to promote it better but haven't been able to come up with anything other than becoming a self-promoting jerk on Twitter. Last time I checked it had sold 98 copies.
And from the BBC, no more boring waffle (BBC):
Buy an e-book through, say, a Kindle, and one of the first things you will notice is that the length of the text itself is nowhere to be seen. Unlike a hardback, an e-book doesn’t have to have 250 pages any more than it has to cost a set amount, or sit handsomely on your shelf. There are some great losses wrapped up in these facts. As far as actually writing a book goes, though, the digital format has one significant advantage over the physical: it is much harder to get away with producing boring waffle.
...
Buy an e-book through, say, a Kindle, and one of the first things you will notice is that the length of the text itself is nowhere to be seen. Unlike a hardback, an e-book doesn’t have to have 250 pages any more than it has to cost a set amount, or sit handsomely on your shelf. There are some great losses wrapped up in these facts. As far as actually writing a book goes, though, the digital format has one significant advantage over the physical: it is much harder to get away with producing boring waffle.
From the Economist:
Taking the long view - Jeff Bezos, the founder and chief executive of Amazon, owes much of his success to his ability to look beyond the short-term view of things.
Mr Bezos’s willingness to take a long-term view also explains his fascination with space travel, and his decision to found a secretive company called Blue Origin, one of several start-ups now building spacecraft with private funding. It might seem like a risky bet, but the same was said of many of Amazon’s unusual moves in the past. Successful firms, he says, tend to be the ones that are willing to explore uncharted territories. “Me-too companies have not done that well over time,” he observes.
Eyebrows were raised, for example, when Amazon moved into the business of providing cloud-computing services to technology firms—which seemed an odd choice for an online retailer. But the company has since established itself as a leader in the field. “A big piece of the story we tell ourselves about who we are is that we are willing to invent,” Mr Bezos told shareholders at Amazon’s annual meeting last year. “And very importantly, we are willing to be misunderstood for long periods of time.”
Could they have made Jeff's eyes more freaky in that image?

From the Twitter this week:

Librarians Feel Sticker Shock as Prices for Random House Ebooks Rise 300 Percent -

College Publishing Comes of Age: Highlights of the BISG Higher Education Conference (BookBus)

Jackie Collins experiments with self-publishing The Bitch Hilarious headline. So is "Queen of bonkbuster"

Monday, February 27, 2012

MediaWeek (Vol 5, No9): Pearson Keeps Growing, Economist on Enhanced Books + More

Pearson announced their preliminary 2011 results and unless you were living under a rock you shouldn't be surprised that they continue to be the poster publisher for revenue growth, operating efficiency, investment and dividend growth.  I've been following Pearson for almost 10 yrs and it is uncanny how they underplay their performance all year and deliver consistent performance year after year.  Here there is nothing of the divestiture scuttle but that surrounds McGraw Hill and Reed Elsevier and the company seems to have put behind them the issues around the FT group. Didn't Murdoch say he was going to bury the FT?

Here is the summary of their results from their press release:

Pearson 2011 Preliminary results (unaudited)

Financial performance

  • Sales up 6% at CER in spite of tough trading conditions in many markets.
  • Adjusted operating profit up 12% to £942m with growth in all businesses.
  • Adjusted EPS up 12% to 86.5p (headline growth).
  • Cash conversion remains strong at 104%; operating cash flow of £983m (£1,057m in 2010, which benefited from an unusually high working capital contribution).
  • Return on invested capital of 9.1%, above Pearson’s cost of capital; ROIC lower than in 2010 largely due to significant acquisition spend and higher cash tax.

Growth markets

  • Digital revenues up 18% in headline terms to £2bn, now 33% of Pearson’s sales. Substantial digital growth in all parts of Pearson including:
    • Students using our digital learning programmes up 23% to 43m.
    • Penguin eBook revenues up 106%; now 12% of total Penguin revenues.
    • FT digital subscriptions up 29% to 267,000; approximately 44% of total paid circulation.
  • Developing markets revenues up 24% in headline terms to $1bn ($834m in 2010), now 11% of Pearson’s sales.

Efficiency

  • Operating margins reach 16.1% (up 1.0% points)
  • Average working capital: sales ratio improved to 16.9% (20.1% in 2010).

Investment

  • Sustained organic investment of approximately £500m in new products and technologies.
  • £896m invested in acquisitions including Schoolnet and Connections Education in North America and Global Education in China.
  • Strong balance sheet (net debt of £499m) and approximately £1bn of headroom available for bolt-on acquisitions.
Outlook:

In Education, we expect to achieve continued growth in 2012. In North America, we anticipate modest growth in higher education as rapid take-up of our technology and services is partially offset by lower college enrolments and challenging conditions in the market for printed textbooks. We expect our Assessment and Information business to remain resilient as it prepares for the transition to next-generation Common Core assessments. We expect good growth in digital school programmes and services but another tough year for the School textbook publishing industry, which will continue to be affected by pressure on state budgets and delays in purchasing decisions during the transition to the new Common Core standards.

We expect our International education business to show good growth. Austerity measures will continue to affect education spending in much of the developed world, but we see significant opportunity in emerging markets in China, south-east Asia, Latin America, the Middle East and Sub-Saharan Africa – which together accounted for more than 40% of our International education revenues in 2011. Across our education company, we will be integrating acquisitions made in 2011 (and expensing the costs) and making a series of organic investments in fast-growing segments including digital learning, English language teaching and institutional services. We expect our Professional education business to grow again, benefiting from the continued strength of our worldwide professional testing business. In the UK, government funding pressures and policy change relating to apprenticeships are creating a tough trading environment in professional training.

The FT Group’s profits will be lower in 2012 than in 2011, reflecting the sale of our 50% stake in FTSE International and further actions weighted towards the first half of the year to accelerate the shift from print to digital. The Financial Times and The Economist Group (in which Pearson owns a 50% stake) are predicting weak advertising markets but strong growth in digital subscription revenues. Mergermarket will benefit from its high subscription renewal rates, although the outlook for M&A activity remains uncertain.

Penguin has performed strongly in recent years in the context of rapid structural change in the consumer publishing industry. We expect it to perform in line with the overall industry this year, facing tough conditions in the physical bookstore channel but helped by its strong position in digital. eBook revenues accounted for 12% of Penguin revenues worldwide in 2011, up from 6% in 2010, and we expect this percentage to increase significantly again in 2012. 

Of course it's not all rosy since the FT journalists have voted to strike (Guardian)

The Economist on Enhanced Books:
Print purists needn’t retreat with horror to their laden shelves. Multimedia enhancement will still affect only a tiny proportion of new titles. Children’s books were first to get this bells-and-whistles treatment, but adult fiction has proven a harder sell. Few readers have been willing to pay more for extras at the back. While ordinary e-books continue to eat into print sales, a British experiment with adding author videos and other material to best-selling novels, called Enhanced Editions, was quietly abandoned last year.

Yet for certain kinds of book, such as biographies, cookbooks, literary classics and newer forms of interactive fiction, enhancement can add rich and startling new layers. Penguin’s forthcoming biography of Malcolm X, for instance, features rare archival footage and an interactive map of Harlem. The life of “Muhammad Ali” now comes with audio clips of him rapping about his prowess. Richard Dawkins’s “The Magic of Reality” (voted best app at the 2012 Digital Book World) and E.O. Wilson’s “Life on Earth”, are cunning fusions of documentary and textbook, with molecules and stories spinning at a finger’s touch.

Timeless classics have also proved to be good candidates for a bit of extra gloss. Breaking a losing streak of enhanced apps that failed to turn a profit, a multimedia edition of T.S. Eliot’s “The Waste Land” swiftly earned back its cost for Faber & Faber, says Henry Volans, the publisher's digital director. The “book” serves up Eliot’s original manuscript with footnotes and scholarly addenda, as well as video and audio recordings of the poem in performance. And this spring Faber will reach for the brightest star in the literary firmament and publish Shakespeare’s sonnets. Penguin, meanwhile, chose as its inaugural “amplified edition” the modern classic “On the Road”, featuring archival photos of Jack Kerouac’s original manuscript typed on a scroll, along with snapshots of his fellow Beats, some video interviews and maps of the cross-country journey.
From the Twitter:

Hawking Radiation: Figuring Out How Many Books Are Sold to Libraries (Kitchen)

It's a big day at BISG: Student Attitudes Toward Content Vol 2, Report 1 published today!(BISG)

Thursday, February 23, 2012

BISG: Higher Ed Student Attitudes to Content Research Report

The BISG has released a second volume of its research into student attitudes toward content.  Here is a summary from their press release:
The first installment in Volume Two of the Book Industry Study Group (BISG)'s ongoing Student Attitudes Toward Content in Higher Education survey shows that students are rebelling against the rising costs of textbooks in a variety of ways. Some students are settling for older editions of assigned textbooks. In fact, less than 60% of surveyed students purchased current print editions -- new or used. The frequency of illicit behavior such as photocopying (measured for the first time in this survey) is less than expected. Still, it remains an issue with 4.1% of students saying they engage in these practices frequently and almost 25% saying they do this occasionally. Among the legal, low-cost alternatives students are exploring are textbook rentals, which 11% of respondents report using, a significant increase over the past year.

Student Attitudes Toward Content in Higher Education focuses on college student perceptions related to educational content and presentation media in the higher education marketplace. Volume Two is powered by Bowker Market Research and sponsored by Baker & Taylor, Cengage Learning, Chegg, CourseSmart, Follett Higher Education Group, Half.com, Kno, the National Association of College Stores (NACS), and Pearson.

"College students are reacting to high textbook prices by changing how they think about what's acceptable and what isn't," said Angela Bole, BISG's Deputy Executive Director. "When you pair this with the impact of rapid changes in technology, you have all the elements needed to create a confusing landscape. The motivation behind BISG's ongoing student attitudes survey is to eliminate this confusion. The report harnesses hard data that accurately plots trends, identifying both threats to business as well as the inevitable opportunities that emerge in dynamic marketplaces."
You can buy the report here.

Wednesday, December 07, 2011

BISG Policy Statement on ISBN Usage

The Book Industry Study Group after long deliberation and incredibly astute consulting has announced its policy recommendation for the use of ISBNs for digital products (Press Release):
This BISG Policy Statement on recommendations for identifying digital products is applicable to content intended for distribution to the general public in North America but could be applied elsewhere as well. The objective of this Policy Statement is to clarify best practices and outline responsibilities in the assignment of ISBNs to digital products in order to reduce both confusion in the market place, and the possibility of errors.

Some of the organizations which have indicated support of POL-1101 include:

  • BookNet Canada
  • National Information Standards Organization (NISO)
  • IBPA, the Independent Book Publishers Association
CLICK HERE to download
 Close readers of this blog will recall the work done by the identification committee of BISG:
In the spring of 2010, BISG's Identification Committee created a Working Group to research and gather data around the practice of assigning identifiers to digital content throughout the US supply chain. "The specific mandate of the Working Group was to gather a true picture of how the US book supply chain was handling ISBN assignments, and then formulate best practice recommendations based on this pragmatic understanding," said Angela Bole, BISG's Deputy Executive Director. "Around 60 unique individuals and 40 unique companies participated in the effort. It was a truly collaborative learning process."

Noted Phil Madans, Director of Publishing Standards and Practices for Hachette Book Group and Chair of the Committee in charge of developing the Policy Statement, "It was quite a challenge to bring some measure of consistency and clarity to what our research revealed to be so chaotic and confused that some even reported thinking ISBN assignment should be optional--a 'nice to have'. This, clearly, would not work."
The initial consulting report was discussed publicly about 12mths ago and I summarized that presentation in this post from January 17, 2011.

These were the summary conclusions from that presentation:
There is wide interpretation and varying implementations of the ISBN eBook standard; however, all participants agree a normalized approach supported by all key participants would create significant benefits and should be a goal of all parties.

Achieving that goal will require closer and more active communication among all concerned parties and potential changes in ISBN policies and procedures. Enforcement of any eventual agreed policy will require commitment from all parties; otherwise, no solution will be effective and, to that end, it would be practical to gain this commitment in advance of defining solutions.

Any activity will ultimately prove irrelevant if the larger question regarding the identification of electronic (book) content in an online-dominated supply chain (where traditional processes and procedures mutate, fracture and are replaced) is not addressed. In short, the current inconsistency in applying standards policy to the use of ISBNs will ultimately be subsumed as books lose structure, vendors proliferate and content is atomized.

Wednesday, November 09, 2011

BISG E-Book Consumer Study & Student eBook Usage

BISG released the next edition of their consumer study yesterday and among the findings they reported:
  • Power Buyers are spending more. More than 46% of those who say they acquire e-books at least weekly (considered “Power Buyers” in this survey) report that they have increased their dollars spent for books in all formats, compared with 30.4% of all survey respondents. This statistic is important because Power Buyers have proven to be a bellwether of overall consumer behavior by three to six months. 
  • Amazon momentum continues. Amazon.com continues to be the preferred source for e-book acquisition (holding steady at 70%) and e-book information (44%). Barnes & Noble comes in second at 26%, with Apple in third. One to watch: libraries, which are on the upswing as a preferred source for e-book acquisition. 
  • Satisfaction with e-reading devices is high. Seventy-five percent (75%) of respondents reported they are satisfied with their e-reading device, including more than 38% of respondents who reported being “very satisfied.” Less than 5% said they felt their e-reading device was not a good value for the money. 
  • Many barriers to e-book reading are falling. Survey results indicate that concerns about e-book availability are diminishing. And although the cost of e-reading devices remains a reported concern, the single most popular answer to the question of what hinders respondents from reading more e-books was “nothing” at 33% (up from 17.6% a year ago).
The full press release is located HERE

Interestingly, eBrary (which has the same corporate owner as Bowker the BISG partner) also released some findings from their global student eBook survey last week in advance of the Charleston conference: There findings we summarized in a press release:
Key findings of the survey of more than 6,500 students include the following: 
  • E-book usage and awareness have not increased significantly in 2011 over 2008 
  • Preference for printed books over electronic books has not changed: Both are still equally 
  • important 
  • The vast majority of students would choose electronic over print if it were available and if better tools along with fewer restrictions were offered
  • There is a need for reliable social media tools geared toward research 
“These survey results suggest digital content and services providers need to re-think our approach: Until more electronic content is available simultaneously with print, we cannot lose sight of the value of printed books to end-users, who expect to find the most authoritative information at the point of need. To accomplish this we need better integration and tools to increase the availability and discoverability of all types of information, both electronic and print,” said Kevin Sayar, President and General Manager of ebrary. “We do not take data points from this survey lightly, and we thank the library community for working with us to gather important knowledge that will help shape the future of the information industry.”

Wednesday, August 24, 2011

From BISG: Consumer Attitudes Toward E-Book Reading - Now Shipping

A comprehensive study of U.S. e-book consumer behavior and preferences:

Since November 2009, BISG’s ongoing Consumer Attitudes Toward E-Book Reading survey has been tracking the habits and preferences of print book buyers who say they have acquired an e-book or dedicated e-reading device within the past 18 months. Companies can use the information gathered in Volume Two, Report 3 of 4 to understand:
  • How did e-books and e-readers fare after the 2010 holiday season?
  • Are e-book sales driving increases or decreases in overall book revenues?
  • What do Power Buyers (those who acquire e-books at least as often as weekly) prefer to use for reading e-books?
  • What devices are they planning to buy in the near future?
  • Where are consumers buying their e-books?
  • How are customers using e-readers versus tablets?
  • Which digital devices are most popular with readers, and why?
  • What features are consumers seeking in the next generation of e-books and digital reading devices?
  • What factors will shape the evolution of this market for the next few years?
Visit BISG to get more information.

Tuesday, August 23, 2011

BISG BookStats - Live Webcast

BISG has announced two webinars to discuss the recent release of BookStats:
During each Webcast, representatives from the BookStats data team will provide a comprehensive look into how BookStats was developed and what trends were discovered. The presentation will include analysis of several top line data points as well as a tour through the interactive BookStats Online Data Dashboard.


Wed, August 31, 2011
1:00 p.m. to 2:00 p.m.
Wed, September 7, 2011
1:00 p.m. to 2:00 p.m. Eastern

Spanning 2008-2010, BookStats offers data and analysis of the total industry and the individual Trade, K-12 School, Higher Education, Professional and Scholarly markets. Produced jointly by the Association of American Publishers (AAP) and the Book Industry Study Group (BISG), its highlights include:
  • Overall U.S. publishing revenues are growing
  • Overall U.S. publishing unit sales are up as well
  • Americans, young and old, are reading actively in all print and digital formats
  • Education publishing holds steady and, in some segments, shows solid growth Professional and Scholarly publishing shows gains