Pub Fight with BookNet Canada

One of the more entertaining and interesting presentations at the Supply Chain Interests Meeting in Frankfurt this year was one by Michael Tamblyn of BookNet Canada. He spoke about several things but the one subject that was most interesting to me was a development project that his team devised that can help junior staff members learn how to make accurate sales and demand forecasts. The 'game' PubFight was initally tested with a small group of publishers but was so successful that it has been expanded to include students in publishing programs as well as some booksellers.

While the principles are core to under standing how planning works effectively the tool was constructed so that individuals or teams can 'play' each other and the team that maximizes sales while minimizing costs wins over a period of time. In the first version of this program the BookNet Canada group used real sales data for real titles over several months. In the version for publishing education programs, the tool can be loaded with historic data to compact the - say four months, of selling time into a week of elapsed time.

I hounded Michael until he finally answered my five questions on Pubfight.

1. You spoke at Frankfurt about two different initiatives but it was the PubFight which caught my interest. Can you explain the program?

BookNet Canada is an agency tasked with supply chain and technology innovation, so our primary focus is service delivery -- point-of-sales tracking, process improvement, EDI, standards and the like. During a series of meetings with heads of some of our larger publishing houses two years ago, I started to hear a recurring theme that went something like this: "Our tendency in publishing is to hire passionate, well-read arts graduates who can communicate well about books. But we need people who can combine their love of books with an understanding of the numbers behind those books, people who can forecast sales, assess opportunity or analyze sell-through and stock position in real time. How do we build those skills for the people we already have? How do we make sure that people joining the industry have those skills when they arrive?" That request -- to get people familiar with the numbers behind the industry -- was the genesis of PubFight. We whipped up a quick in-house version, tried it with staff and a few guest-stars from the publishing community last fall, and turned it loose this year.

PubFight is basically fantasy publishing. It's fun, competitive and only accidentally educational. At the beginning of the (real) selling season, leagues form up, usually co-workers or students in a publishing program, sometimes competitors and real-life rivals, about 8-12 per league. It all starts with the auction, "Fakefurt". Each person gets a fake budget to acquire the real titles that are going to hit the shelves that fall. Everyone has to fill a list of fiction, nonfiction and juvenile/YA titles. Once the list is built, each player has to forecast initial print runs and pay for them. Then, as the books hit the street, you accrue the (real) sales on your titles as long as you have enough (fake) stock to cover it. You can reprint if you need to, with real-life lead times and unit costs. The most profitable house at the end of the season wins.

On one hand, completely frivolous. But on the other, it is encouraging people to do some analysis, take risks, and make mistakes without putting their jobs or the firm's money at stake. Along the way, they build an understanding about how books sell that could take years if they were just learning by experience. Both publishers and some publishing educational programs are using PubFight.

2. How do they use it? What about retailers?

Every publisher is different. For some, it's pure team building. For one large house, they excluded their own titles from the auction in order to deepen their understanding of what the competition was doing. For some of our small press players, it's a chance to look at how the more commercial, mass market end of the industry behaves. In all cases, whether they intend it or not, it's helping them become more familiar with forecasting, sell-through analysis, competitive title analysis and the other techniques that publishers need throughout their organizations.

At the colleges and universities, it's often the students' first look at how books actually sell, which can be a real eye-opener. It takes them right from theory to practice: How much is a book worth? How can you tell? To what degree is the past a predictor of the future? And it puts them in some remarkably true-to-life scenarios, like when the book that you bought for nothing becomes a runaway bestseller that you can't keep on the shelves. With schools, we can also run lightning rounds, where we run a complete past season in a couple of weeks, with a new week of data dropping every couple of days. Much easier to fit into an existing curriculum.

We see retailers as the next stop for PubFight. One of the biggest challenges faced by store and chain managers is identifying new talent. Which of the people working on the floor has the aptitude to become a buyer? Who can look beyond their own interests to predict what book-buyers are going to be interested in? It's reasonably easy if you're a small independent, but much harder if you are spread out across multiple stores or in a chain. This might help junior booksellers start to get a sense of how the industry works at a larger scale, and pick up some tips about the demand for different kinds of books along the way. It would also help senior managers get a sense of who has a knack for picking winners.

3. How do you see this program expanding? Is there are more practical implementation of PubFight – can the tool be used in actual forecasting?

It's more about encouraging the practice of forecasting than becoming a tool for forecasting. At the same time, we're interested to see if the positions taken by publishers and retailers at auction and on print-runs can act as a lightweight, EasyBake prediction market for future sales. In a frivolous and non-serious way, of course.

4. Are you considering licensing this tool outside Canada? It would be great if you had a Flash version of your Frankfurt presentation to explain it in full to publishers and retailers. Is this under consideration?

It's a possibility, if we can find a licensing model that makes sense. It does require a direct connection to a continually updated source of point-of-sales information, which limits the pool of licensees somewhat. In the meantime, this might just be one of those things that makes it worth a trip north, right along with colourful money, free healthcare and baroque parliamentary politics. When we get some time, we'll try to get the Frankfurt presentation online and let you know when it's available.

5. Do you have any development plans for PubFight?

This is a sideline thing for us, an experiment that has escaped the lab. To the extent that we put more resources against it, the focus will probably be on things that help it scale on its own -- easier set up, self-administration -- and resources that help the educational/professional development focus: demos, sample analysis and training tools for students and junior staff. But the user community is quite vocal, so they are sure to have a few ideas of their own.

Michael - Many thanks. He can be reached at mtamblyn @ booknetcanada.ca

Five Questions with the Society of Young Publishers

At Frankfurt this year I had the opportunity to speak to Jon Slack current chair of the UK based Society of Young Publishers. He told me about a number of new programs that the SJP is working on to encourage the young people in our industry and also to draw in the old ones. One of the more interesting programs they recently developed was something called Canon Tales.

Here is a description of Canon Tales:

Twelve figures from the publishing industry spoke to a captive audience at the Cochrane Theatre, conveying their own personal take on creativity in publishing. Canon Tales was conceived two years ago, when Doug Wallace heard about a similar event for creative professionals in architecture that proved to be a huge success. Jon shares Doug’s belief that publishing is overlooked as a creative industry, and Canon Tales seeks to redress this.

Each speaker told their canon tale to the backdrop of visual images – 20 images, each lasting for 21 seconds, thus totalling a seven-minute presentation. Some were personal stories, some were focused on the speakers’ own output. First to take the stage was Rob Williams, Creative Director of Penguin. He chose to speak about the launch of the new James Bond book, Devil May Care by Sebastian Faulks. His slides showed us figures and pictures from the marketing campaign for this book, whilst Rob gave the audience some maxims that he has discovered during his publishing career, including ‘Make a story at every stage’, ‘Engage in creative collaboration’, ‘Limit access to the product and create theatre around its launch’, and ‘If nobody wants to talk about it, it doesn’t work.’

In addition to mentioning Canon Tales below, Jon also notes a program the group is arranging for Frankfurt 09 which will be designed to make Frankfurt less intimidating for a young first time visitor. Jon is reaching out to overseas groups and it would be interesting whether we could organize a similar group in the US.

I asked Jon Slack my five questions:

Tell me about your involvement in SYP?

I am the current Chair of our group; as with the rest of our 18-strong Committee, it is a voluntary position and lasts for a year. I've been involved with the group for a little over two years now; in 2007 I held the position of Social Secretary (basically someone who organises the parties!). This year we've run over a dozen and a half events from London alone, with some very prominent names in UK publishing. Our main aim has been to exchange information between 'young' and 'old' publishers that can benefit everyone, and facilitate the networking that goes with that.

How long has SYP been in existence, and is it only a UK based organization or does it go beyond?

The SYP has been around officially since 1949; next year is our 60th anniversary. It started out as a talking shop for young publishers (ie people under 35) and has largely remained that way since. At the moment we are based only in the UK, with another division set up in Oxford, and others being set up in Scotland, Ireland and Wales in 2009. The only country outside of the UK I've seen with a group like ours is Denmark, and to a smaller extent the Young Publishers Group, based in New York.

What are your plans for drawing in the young publishers in other countries – specifically the US and Australia?

I met some fantastic people at Frankfurt from the US who are already helping to get the operation off the ground during 2009. We're hoping to work with groups such as the AAP, the American Collective Stand and also BEA, and use word of mouth and the advantages of the internet to help attract anyone interested in taking part. In Australia, the APA is already setting up events for young publishers and, again, the level of enthusiasm I've seen to make something like this happen is very encouraging. We want to use international events, particularly the Book Fairs in London, New York and Frankfurt 2009, to bring everyone together, dicuss the possibilities, and really explore the potential of a truly global young publishing network.

In another conversation you told me about your upcoming program for Frankfurt; can you tell me a little more about that?

We're working with the Frankfurt organisers on a number of things, including the International Young Publisher's conference which I mentioned earlier, which ties in with our focus on how we can make the Fair work better for younger publishers. We'll be hosting a Canon Tales event (see attached flyer for info on the last one held this July) at a new venue away from the usual publishing hangouts. If possible we'd like to see it made more affordable for younger publishers to come to Frankfurt, and perhaps this network can help make that happen too.

What type of involvement do you look for from old publishers like me and how do we get involved?

Our name is responsible both for our appeal and also for regular confusion; our voluntary committee are publishers all under the age of 35, yet we've always been supported by 'older' publishers, who attend and speak at our events. One of the reasons behind the SYP's longevity is the remarkable good will within the industry to help our events succeed. There are countless publishers happy to volunteer their time and share their views on big issues facing all of us. In the US, or Australia for instance, the independent committees we're forming we'll be hoping for a similar level of support, and from what I've seen so far, there's precisely the level of willingness we need to make this happen. But please get in touch if you want to help!

Jon can be reached as follows: jslack @ thesyp.org.uk

Five Questions with Redroom.com

A few months ago, a website dedicated to authors named Redroom.com was launched and was noted by SF Chronicle.

Redroom.com, which premiered Dec. 21, is one of the more ambitious online communities for writers to date and perhaps the most timely, aiming to capitalize on the current potential for profitability of social-networking sites. It features 150 authors (with 400 more to come), ranging from Amy Tan and Salman Rushdie to Edinburgh Castle Pub owner Alan Black; Graham Leggatt, executive director of the San Francisco Film Society, who moonlights as a sci-fi writer; and local mystery writer Cara Black.

The site has been well funded and has a strong list of staff members all of whom are 29 yrs old. In addition to the brand name authors noted above, Redroom.com also received the endorsement of Barack Obama who, as an author, joined the community earlier this month.

Ivory Madison is the founder and CEO of the corporation and was kind enough to answer my five questions.


Question 1: There is a lot of background information about the genesis of your site but I am curious as to how you convince authors that they should belong to a social web site like RedRoom. How do you pitch this idea/concept to the big name authors like Salman Rushdie?

Big name authors are just like relatively unknown authors in that some of them are extremely friendly and helpful, and some are not. There’s a different story with every author. In the case of Salman Rushdie, one of the friendly and helpful ones, we made him aware of our interest in supporting public discussion of new books beyond just the best-sellers, which is a cause of his, too. Also, since he didn’t have a website, perhaps finally having an official home online was appealing—you know, some famous authors are frustrated by how much misinformation there is about them on the internet. Authors find it daunting to design and build a website, even if they can afford it, and they’d much rather be asked to join a community where all their friends are, and where the technology is so easy to use, now that there is one.

Question 2: What do you expect of the authors as they ‘socialize’ at Redroom. Thus far, has the interaction surprised you in any way with respect to the amount of participation or the (perhaps) different manner in which they use the site which you may not have anticipated?

I have been surprised and delighted at how positive and funny everyone is. I mean, everyone is so encouraging, and authors, not just readers, are posting fun comments on other authors’ pages. The culture has a life of its own. I’ve also been surprised how, every day, some authors take the time to write original, long, brilliant, fully edited essays for our homepage and as blog entries. Really amazing work on politics, on divorce, religion, media, philosophy…and it’s there for anyone to read, anywhere in the world, for free. So far, I’m in awe, because we’ve barely rolled out a small number of the features I envision us offering. The blogs are the hotspot. If you go to the central blog page at , http://www.redroom.com/blogs, you’ll see all the latest blogs, just posted. That’s everyone’s favorite page.

Question 3: In your PR material you indicate that you will soon reach a community of around 500 authors. Is this a managed level of do you see the site growing significantly larger beyond that size. Assuming you want to grow larger do you see any issues with the mix of ‘celebrity’ authors and those possibly less blessed?

We already have hit the 500 author mark, in less than 60 days of the site being live, and we have another 500 in moderation waiting to be approved. Every day, our developers work on scalability issues, trying to find an interim solution while building the long-term solution, to make the site user-friendly as we grow. We intend to be the starting point for finding authors, so we’ll keep growing rapidly. As for the celebrity issue, we already have more non-celebrity authors than celebrity authors, and they interact. Some of the busiest pages are those of lesser-known authors who are real community-builders, and so most the “stars” on our site are people you may have never heard of (although one of our most prolific bloggers is one of our most famous—Amy Tan). The platform gives unknown authors a chance to promote themselves and be part of a larger conversation with a larger audience.

Question 4: The SF Chronicle notes you are the MySpace for Authors. Is this moniker something you are comfortable with or not? Do you see yourself doing the same for lesser known authors as My Space has done with musicians?

We like when we’re called the “MySpace for Authors” because it’s quicker and people say, “ahh, I get it,” and I don’t have to explain much further. We’re different in many ways, of course. Our authors must apply and not all are approved, much of our content is pretty great—educational and entertaining, you don’t need to know anything about programming to make your Author Page look good, and most of our users are well-read and good writers. I agree that we’ll provide the same important service for lesser-known writers than MySpace did for bands; that’s a great analogy—one that one of our founding authors, Po Bronson, suggested to me when I was still sketching out the site on cocktail napkins.

Question 5: What about this community has surprised you since you launched the site? What can we expect next from Red room?

It surprised me that authors are so honest and revealing, sharing experiences such as the death of a loved one, or a miscarriage. It surprised me that authors showed up at my office with champagne, cakes, signed books, in gratitude for finding them new readers or just making them feel they finally had a home online. What can you expect next from redroom.com? Great question to finish up with: In just a few weeks, we’re rolling out Member Pages, which will be very similar to Author Pages, so that aspiring writers and avid readers can participate. Since you work with publishing professionals, keep watching Red Room through the rest of the year as we roll out Publisher Pages. With the Author Pages, we asked all the authors we knew what they wanted, now we’re asking publishing professionals what they want and we’d love to hear from them about what we could do to make them feel at home, too.

Five Questions on Global Data Synchronization

That's a title likely to induce a narcoleptic attack in all but the most ardent followers of bibliographic matters but it is nevertheless an important topic for all managers of book information. Industries other than publishing also battle data reliability and timeliness and, over the years led by umbrella groups such as UCC and EAN (now combined into one organization named GS1), they have developed programs to embrace supply chain efficiency and its' co-relation data integrity. Data Synchronisation (GDSN) is such a program which I have noted a few times in the past (Post). The objective of the GDSN is to ensure that all trading partners are working with the same set of product details that are simultaneously synchronized at a network level and in transaction details such as purchase orders and shipping details. The benefits of synchronised data can extend from 'simple' efficiency improvements in the ordering and receipt process to higher effectiveness in marketing and promotions programs.

As I mentioned earlier on this topic, BookNet Canada is embarking on a test of data synchronization and I asked Michael Tamblyn, President of BookNet Canada my five questions.

1. Firstly tell us about how BookNet Canada got started and what you have achieved thus far. What are your current priorities?
   
   BookNet Canada came into being in 2003 when Canadian retailers, publishers and the federal government decided that there should be a central not-for-profit agency to coordinate technology and supply chain innovation for the Canadian book market. While that sounds about as thrilling as a three-day lecture on HVAC engineering, we have been able to move the industry very quickly in some very exciting directions. Canada benefits from relatively small size, a general tendency towards collaboration, being a cross-roads country with ties to the U.S., UK, and EU, and a community of quite forward-thinking retailers and system vendors. It lets us get things rolling quickly, gather feedback early and often, and push the envelope a bit more than larger markets.
   
   Some examples: from a somewhat stagnant state in '03, B2B e-commerce now accounts for 85-90% of all business documents; EDI invoices and ASNs are fully supported through the publishing community; even independent retailers do EDI-based receiving. BNC SalesData, our national sales tracking service, launched in 2005, tracks sales, stock position, orders outstanding on every title, without modeling or estimation, on 70% of the book market. In a nice mouse-eats-elephant story, our Canadian Bibliographic Standard was adopted more-or-less in its entirety as the BISG Metadata Best Practice Guideline for the U.S. market for both ONIX and Excel.
   
   Then there is the more forward-looking work: collaborative sales data mining for independents, backlist optimization and forecasting research, industry cost analysis on returns, digital publishing trends, our annual Technology Forum. And on it goes.
   
   
2. You announced a Data Synchronization initiative in mid-summer. Can you give us some back-ground on this project, the status and where you see the initiative going over the next six months? What is your time table and what is your hoped for end result?
   
   We approached GDSN with a set of assumptions that looked something like this:
   
   1. Publishers already have a data sharing standard -- ONIX -- that they have embraced and invested in. They shouldn't have to learn another one. Make it simple!
   2. GDSN currently serves a small part of the retail sector, but if it became ubiquitous at some point in the future, how can we protect publishers from a price perspective?
   3. Think global, start local. The G in GDSN is there for a reason, so let's not assume that we're just making a Canadian service for Canadian publishers and retailers.
   
   Those first principles have guided our efforts over the past few months. We have been working with Commport, our GDSN data pool partner, on the construction of an ONIX-to-GDSN bridge that is now in testing. Timelines are very dependent on the retailers and wholesalers involved, but we hope to be well into the pilot six months from now. From our perspective, the "pilot" itself doesn't begin until we are moving active title data from a real publisher to a real retailer who is actually going to use that data in purchasing and POS systems. That's an important point: the challenge isn't getting the data into, or out of, the pool; it's getting that data into retailer systems so that it supplants the current mix of spreadsheets and paper forms. Until then, the conversation hasn't changed. Data conversion is easy, adoption is hard.
   
   In parallel, we are preparing a draft submission to GS1 regarding additions to the GDSN Global Data Dictionary to make it more relevant to the book trade. That will certainly spend some time in the loving embrace of the BISG Metadata Committee before heading to GS1.
   
   From a pricing standpoint, I think we've come up with the best possible model for publishers. A free 1-year pilot, unlimited upload and publishing to the global network, with the clock starting when the data goes into production with retailers (i.e. not when testing starts, but when it ends). Then very low per-SKU fees that are capped at a shockingly low rate, just in case this breaks out of the mass market and into the trade.
   
   
3. What issues have you encountered that were unexpected? Given that the book industry is ‘fitting’ in to a set of standards that have been developed for other industries how much of an issue has it been trying to marry the existing data structures with our industry?
   
   Always lots to learn, which is part of the fun. Some highlights:
   * The extent to which GDSN stands to benefit independent wholesalers, many of whom have never really grasped ONIX in their relationship with publishers, and who have to serve a retail community who couldn't care less about book-industry-specific standards.
   * We've talked to several publishers who have, because of various retail relationships, been required to submit to GDSN data pools over the past five years. None of them have seen their data make it into production systems. It's safe to say that there are some data pools out there who have been less than candid about where GDSN data really gets used and by whom.
   * Current GDSN costs per SKU or ISBN have been absolutely egregious! $25 or more per SKU per year? That's great if you are in consumer packaged goods with 100 SKUs worth $50M each, not so great if you're a mid-sized publisher with a line of DIY books selling into general retail. Time to fix that, I think...
   
   In terms of fitting in, there are definitely some things that need to be improved in the Global Data Dictionary if books are going to find a happy home in GDSN. GPC Product Forms aren't perfect for books. You can't pass along an author, just a title. Things like that. It's workable for mass market applications, but I think the goal should be to get the Canadian/US standard fields well-represented and then build from there.
   
   
4. Is there an on-going relationship with GS1 here? Do you anticipate the publishing industry will be exposed to best practices and perhaps learn from the GS1 community?
   If so, where do you see the greatest potential benefit?
   
   We'll be working with GS1 on the standards and data dictionary issues, but we have avoided a relationship with 1Sync, their data pool service provider. When we started watching this space, we realized that one of the great things about GDSN is that it's an open, certified standard, which makes the data pool game an excellent market for aggressive fast-followers. We selected a vendor with a strong track record in high-volume data processing who has made a name for themselves enabling whole industries on GDSN but who was also willing to toss out the rulebook on GDSN pricing to meet the needs of the book industry.
   
   In terms of who learns from who, I think that GS1 has a lot to learn from the book industry. "Industry-With-Lots-of-Low-Price-Point-SKUs" is still reasonably new for GDSN, and nobody does massive numbers of discrete, non-variant SKUs like the book industry. They are working with Music and DVD now, which should help, but Music and DVD aren't nearly as sophisticated as the book industry regarding product data (much to the dismay of any retailer who has ever sold both!) I'd argue that we have spent more time and effort working out the issues related to standardization of rich product description metadata than any other industry, so I think the conversation is going to be "Here's ONIX, which we know and love. Let's figure out how much realistically needs to be in GDSN." With any luck, we can extend the data dictionary accordingly.
   
   
5. Will your Data Synchronization initiative influence similar initiatives in the US and UK.
   
   Will those markets make full use of your path finding or more to the point will they have to develop their own initiatives? Getting GDSN off the ground is going to require the concerted effort of several national markets. The GS1 data vetting process requires broad support to propose changes to the Global Data Dictionary. We are happy to lead the charge, but we want to make sure that this meets the needs of the larger book market as well, so plenty of collaboration is required.

Michael can be reached at BookNet Canada: mtamblyn(At)booknetcanada.com

Five Questions with Shatzkin on DADs

At the Frankfurt supply chain meeting, Mike Shatzkin presented his white paper on Digital Asset Distributors. I summarized the content of the presentation here but I also followed up and asked Mike to expand on several points in the presentation. Here are his responses.

1. You mentioned that the research that resulted in the white paper on Digital Asset Distributors was developed for Klopotek. What is there interest in this research and why were they interested in this subject?
   
   Believe it or not, Klopotek really had a community interest in the subject (although that also translates into a marketing device.) They are not a DAD -- which we define as an operation that does digital storage, conversion, and distribution in response to a publisher's needs -- and have no interest in becoming a DAD. But they do sell systems to publishers that will have to account for digital activity, tying sales and revenues back into legacy systems to pay royalties, among other things. But, mainly, I think Klopotek -- which has been growing out of their German origins for the past several years -- saw a "thought leadership" opportunity to establish themselves in the English-speaking markets. And I think the White Paper and conferences -- the outputs from the research -- were successful for them in that regard.
   
   
2. You have given this presentation and speech a number of times over the past six months or so. What has been the reaction of the publishing community – not necessarily from the larger publishers – but the medium to smaller publishers? Are you starting to see an appreciation for the issues that this next tier of publisher needs to understand and appreciate as they consider their digital distribution needs?
   
   I don't see much of the smaller publishers; I think it is the nature of my consulting practice. But the mid-size ones are definitely feeling the issues raised by the DAD study. Right now, this is being driven by a combination of driving online sales (getting the content displayed with Amazon, BN.com, Google, Microsoft) and driving online marketing (widgets for MySpace and Facebook) for the consumer publishers. Publishers are also increasingly aware that there is a real ROI in developing a digital workflow, which becomes part of the thought process when they think about DADs. The more complex are the books a publisher creates -- the more highly illustrated and design-intensive -- the more benefits come from the digital workflow improvement.
   
   
3. What role are standards bodies playing in this area? Are the business needs and requirements moving ahead of the standards discussions and recommendations?
   
   Interesting that you raise this. Digital guru David Worlock said to me at Frankfurt that he wondered whether we should be worried so much about "standards" when we don't have a MARKET. Shouldn't we build the market first, he wondered? But Mark Bide, my partner in many ventures including the DADs research, would say that, without standards, you'll never build a market! I am not sure the business needs are yet moving ahead of the standards, but they probably will. I agree with something you have previously pointed out on your blog, which is that the identification of salable "chunks" can't really be done before the fact by publisher assignment of DOIs; it is the consumer who will identify what they want and how they want it put together and we don't really have a process to enable that.
   
   
4. You mentioned at Frankfurt that long term there may only be a few DAD’s but in the short term most publishers should/will contract with one of the existing players. Why do you think this is the case: Both the short term observation and the long term evolution.
   
   Technology drives scale is the answer in both cases. As it stands, all the DADs are struggling to build out their offerings to cover everything they have to do. They will all be challenged to provide real digital workflows -- real DAM capabilities -- or they will suffer competitively. They all need widgets. They all need nimble content conversion capabilities. And in the future they will need the capability to add value in sales of aggregated content. In the short term, obviously the players will choose from the choices on the table. In the US, that really means three major players (four if you are an academic publisher.) The biggest companies aren't quite all spoken for, but it will be increasingly difficult for new entrants to gain the scale that is necessary to play.
   
   
5. What will the evolution in services be for these DADs? Where/how do you think they will begin to differentiate themselves or will their services evolve into a commodity?
   
   One aspect of differentiation will be price and service. Pricing is a bit vague now and service is very hard to measure. But as new use cases arise -- Amazon Kindle, a Google device, new Web services like netGalley develop and need their database populated -- some DADs will handle these things more quickly and smoothly than others. That's why we urge strong service level requirements in publishers' agreements with DADs. In the longer run, I can see DADs "making sales." They can't really do that until they aggregate content and know they have it. But let's say a DAD has 500,000 recipes from 14 publishers and can convince Kroger to make use of them in marketing? If you're a publisher with that DAD, you make a sale. If you're not, you don't. In the physical distribution world, publishers look at "what else is in the bag?" when they pick a distributor or a sales rep group? It is too early for that kind of thinking in digital distribution, but it will come.
   
   
   Mike Shatzkin, mike@idealog.com

Five Questions with Rosetta Solutions

netGalley is attempting to solve an intractable issue for publishers: How to ensure that your review copies get into the hands of the right reviewers, at the right time and at the lowest possible cost. In addition, tracking these reviews becomes an increasing problem as reviews publishing rapidly expands beyond traditional newspaper and trade magazines. netGalley is an innovative technology services company located in Seattle and staffed with people committed to improving the way publishing operates. For publishers, netGalley helps publicity and editorial and marketing staff reach a wider range of review publications and media and provides up-to-date status of reviews. For reviewers, netGalley helps to manage the inflow of titles and internally manage the review process. There is no cost for individual reviewers to register for the service.

I asked Michael Forney, President of Rosetta Solutions which is the corporate owner of netGalley my five questions.

1. Who is Rosetta Solutions and where does netGalley fit in the organization?
   
   Rosetta Solutions, Inc. (Rosetta) is a publishing technology company full of people who love books. All of Rosetta's products and services have been designed and built with extensive collaboration from publishers and media organizations. Our goal is to streamline and automate publishing workflows to help grow the industry. We do that by providing tools and services for both print and digital editions, including production, conversion and distribution.
   
   Rosetta’s netGalley™ is an online service that helps publishers better connect with their book reviewer and media communities through electronic distribution and tracking of ARCs, galleys and press materials. Through netGalley, publishers can simplify existing processes with premier review and media contacts and broaden their reach to online reviewers, bloggers and specialty publications, all while significantly diminishing the cost of printed review copies and press materials.
   
   
2. How did the netGalley product evolve?
   
   At netGalley, we are fascinated by how the internet continues to help connect smaller and more specialized groups of people who benefit from shared information. Books have long been sold through word-of-mouth, with traditional reviews being the most influential recommendation tool. What we wanted to accomplish with netGalley was to bring to bear the networking power and digitization of the internet on the book review process. We keep asking, “How can we make the existing process more efficient and less expensive? How can we mine the process for more information that will enable better decision-making? And last, how can we help connect the exponential number of new media outlets with new galleys at THE lowest possible cost?” We are grateful to have had the input and counsel of the some of the biggest and most successful publishers and media groups to help us shape the functionality of netGalley. Good listeners make good leaders.
   
   
3. You describe yourselves as a services company in this context what are the solutions that netGalley can provide? Is netGalley a discrete product or tool or do you see it as part of a platform or suite of products?
   
   When we first began with netGalley we saw the immediate benefits of better connecting review organizations with publishers to streamline the back-and-forth communication that characterizes this process. What we then began to see by talking to publishers is how netGalley can equally be applied to the larger publicity process by providing media with a central location to access a broad range of ancillary material about a title. We began to see how netGalley can benefit a range of constituents, directly (in the publishing house or media organizations) or indirectly (for example providing better information and services to authors). So, absolutely, we see netGalley as a platform providing a continuum of services.
   
   
4. You are currently working with a number of publishers on the netGalley launch. What have been some of the issues you have faced as you have designed and built this product?
   
   Probably the biggest challenge for us has been straddling the current reliance on printed materials with the gradual evolution toward digital media. We recognize that publishers and media will continue to rely primarily on printed galleys for some time. At the same time we can be evangelists for digital content, particularly by making it easy and secure to distribute within a given professional community. To be clear, netGalley does not require the distribution of digital galleys and facilitates the distribution of physical galleys. Yet many publishers have indicated that they can use digital galleys to supplement their physical galleys, especially to the online media and blogger communities.
   
   Have you faced particular issues in convincing publishers of the ROI involved in implementing at productivity tool like netGalley?
   
   The publishers and media organizations we have talked with all agree that there is a great deal of opaqueness in the current communication media and review processes. There is equally a sense that it is difficult to understand the true costs of reviews or media coverage. When you pair that difficulty with the explosiveness of new sites covering and reviewing books…it seems reasonable to want to automate and capture more information in this area.
   
   The distribution of marketing materials and the breadth of potential reviewers are growing rapidly. None too recently, a publisher had a fairly static list of people they needed to send ARC’s to have you heard from publishers that this is becoming an unmanageable task unless fundamental changes are made?
   
   We haven’t met a publisher yet who has noted the diminishing importance of The New York Times in selling books. We haven’t met one who says that their list of daily tasks is shrinking. The traditional media outlets will continue to have enormous impact on the books purchased by the reading public. The publicists’ day will get fuller and fuller.
   I think the challenge for publishers is partially in verifying the influence of potential new media sources. We see a lot of heads nod when we talk about automating and consolidating communications online, about bringing together potential reviewers/media who might find you as much as you find them, about cutting down the number of manual tasks particularly around formats and files.
   
   What kinds of improvements would you anticipate in a typical installation of the netGalley product?
   
   First I would ask, improvements for whom? Review organizations for example are going to see enormous benefits in terms of improving their internal workflow and minimizing redistribution costs to off site reviewers. Media organizations will see improvements in time efficiencies and task management. Publishers can anticipate lower direct costs of producing and distributing physical galleys, replacement of manual processes, and a broadening of the publicity universe at lower cost.
   
   
5. What is next for netGalley. Do you have a sense what your next development phase will be?
   
   On the netGalley side, we have a development plan that extends through the next two years and includes new functionality in the existing application as well as services to new segments such as the library and educator markets. Our research indicates that many of the benefits of netGalley to review and media communities can be transferred to other book communities.
   
   From the Rosetta perspective, we have a number of new products and services in development all surrounding the automation of publishing workflows and the consolidation of information derived from these processes. Watch this space for more!

Five Questions with Harlequin (I ♥ Presents)

At Harlequin there is good news on multiple fronts as Harlequin’s financial performance improves and their e-publishing initiatives are showing real signs of resiliency and development. Harlequin began their e-book program in October 2005 when they launched 9 titles and the company announced last week that all front list titles will have e-book versions. To spur growth and motivate buyers the titles are priced below the list price of print titles. As many know, the Harlequin community is incredibly loyal and by accounts read more than 2x as many books as a typical reader. The e-book customer is little different in their (her) dedication: She is willing to overcome the invariable technology issues of e-books to enjoy the benefits of e-books and loves the immediacy and portability that the e-book format enables.

In addition to e-books being available at all known e-retailers and in all formats, the company is also experimenting with content on mobile phones. This distribution method has been insanely popular in Japan and Harlequin has launched a monthly subscription offer that includes chapters, games, polls and reading lists. Priced at $2.49 it is competitive.

The Harlequin community has always been cohesive and eharlequin.com their web community site is now 10 years old. The site traffic is significant with ¾ million page views per month: What other publisher has traffic that large? Currently they receive over 20,000 posts per month discussing and reviewing books, interacting with editors and even pitching their own titles: Fifteen members sold books to Harlequin in 2006.

Yet another more recent initiative is Harlequin Presents (I ♥ Presents) which was launched in February 2007. Among the features, editors and writers post blogs and interact with readers who comment on average 13 comments per blog post. Harlequin has a built in advantage in developing social networking but they could have fumbled it. What is increasingly clear is that they are the dark horse in publisher’s race to engage their customers. Harlequin is proving that social networking will improve reader engagement, has the potential to turn customers into product ambassadors and facilitates two way communication between publisher and customer. Harlequin’s branding is well known in print but they are increasingly making it known online.

And with that intro, I asked Malle Vallik, Harlequin's director of digital content my five questions:

1. Harlequin has always been about community and somewhat 'cultish' in the level of obsessiveness of its readers. Is that an accurate description?

The majority of our readers are avid readers and incredibly knowledgeable about both our authors and our various series. A Harlequin Presents reader loves her Harlequin Presents stories, has favorite themes (like Mediterranean heroes) and knows when the books are available for sale. She shows up on the date the book goes on sale in a bookstore or mass merchandiser and at online retailers on the first of the month when the new titles are released.

Moreoever, our readers do like to share their thoughts about the books; that is what community and all the other new social media platforms offer – a means to connect readers from around the world and authors to readers.

2. Harlequin is doing a lot in online community building and social networking, is the ability to leverage these new technology tools a dream come true for Harlequin in that you are able to build immediate and direct relationships with highly responsive customers? Has this been all good? Tell us how it has it fostered changes in the organization.

Overall, it’s fantastic! You have basically hit the nail on the head. We can build immediate and direct relationships on a global scale. We can connect readers from Texas to Switzerland and connect readers to authors no matter where they are in the world.

We can also connect aspiring authors to our editorial team. Our community hosts writing events from authors along with editor meetings and pitches.

3. What new markets have opened up for Harlequin due to your web initiatives? Any surprises - like men as readers for example. Are these markets segments - narrower elements of existing markets - or are they completely new to Harlequin?

We have been able to create new products specifically for the digital market, whether it is bundles combining several titles together like the NYT bestselling author Jennifer Crusie 4 novel bundle. Or a bundle that makes shopping easier – what we call a one-click bundle. You can get all 8 Presents novels published in one month, with just one click and one download!

We launched the Harlequin Mini, a short story, available only as an eBook in August 2006, and launched Spice Briefs, short erotica, a spin off from our Spice imprint, again available only in eBooks in August 2007. We are publishing 2 – 3 Spice Briefs every month and are publishing both new and existing authors.

Perhaps our biggest surprise is how willingly women are approaching eBooks. It is still a very small part of our business but clearly a big growth area for the future.

4. Do authors bring you new ideas for using networking and the internet in new ways? Does what you do on the web result in new content? How much user content is solicited and used?

Yes, authors bring us new ideas. We work very closely together as a partnership with our authors: we have a website exclusive available to our authors where we offer suggestions on how to use digital more effectively and authors also contribute their case studies and ideas here. This is a collaborative learning experience for us both as we figure out how to maximize time commitment to return.

5. What is next for Harlequin on-line and social networking?

We just launched 100% frontlist in eBooks

We have launched the Harlequin Author Spotlight podcasts and will be soon launching a series of podcasts on how to write romance novels.

We are strengthening and expanding the back end power of our community by building a new platform that will be much more richly integrated into our website and let community members create meaningful profiles that include links to other social media.

We held our first author reading in Second Life yesterday, September 25 with author M.J. Rose, THE REINCARNATIONIST.

We have plans to acquire more eBook only content and other interesting new content for eBooks, create a new kind of eBook (more details to come!) and to continue to work with authors to launch more blogs.

Five Questions with Bondi Digital and the Playboy Archive

The first DVD archive of all the 1950's issues of Playboy magazine will be released at bookstores and retail outlets by Bondi Digital Publishing on November 2nd. (It is now available for presale at www.covertocover.com). Long considered an icon of 20th century publishing the eventual full set of DVDs will cover every Playboy issue since the title launched in 1953. Bondi Digital Publishing has undertaken the task of truthfully representing each page of the magazine so that buyers of the set will be able to see the magazine as it was originally published.

The first set of Bondi Digital Publishing's Cover to Cover Series covers the launch of the magazine in 1953 with the now unforgettable Marilyn Monroe featured as Playboy's first centerfold, up through the beginning of 1960.

Included with the box set is a 200 page 'behind the scenes' companion book covering the highlights of Playboy's humble launch by 27-year-old Hugh Hefner and the rise of the magazine during the conservative 50s. The box set also includes a complete reprint of the famous first issue featuring Marilyn Monroe.

David Anthony is co-founder of Bondi Digital Publishing and I recently sat down with him and asked him my five questions.

1. You also did a similar project for The New Yorker. Tell us how these three projects came about.
   
   There was a fellow who worked at the New Yorker named Andy Pillsbury, who I had known for years, long before he was with The New Yorker. I had shown him some interactive magazine viewing technology that I was working on in the late 90s. So fast forward 5 or 6 years, and he is now at the New Yorker and he and Ed Klaris, their general counsel, are talking about doing a complete digital archive of all 80 years of the New Yorker. He looks me up and contacts me, and in the meantime I had started a DVD design and production company with Murat Aktar – which was actually great background for what the New Yorker had in mind. At the DVD company, we had been thinking about and designing all these DVD interfaces, including things like the Rolling Stones Four Flicks box set, so when it came to thinking through how people might like to experience half a million pages of a magazine, I think we brought a very unique perspective to the project. It was, of course, on one hand a huge technical challenge, but in a very real sense I believe the greatest challenge of these kinds of projects is trying to help people make sense of the vastness of the media, while at the same time making sure that the digital experience is fast, intuitive and hopefully fun and useful, all at the same time.
   
   Coming off of the New Yorker project, we thought, hey this is kind of cool. I wonder what other magazines might like to have complete digital archives? Right off the bat we were thinking about Rolling Stone and Playboy. They are both very innovative magazines, and both had a rich and long history – and they had these visionary founders who were still at the helm. Besides, we are both long time readers of the publications. So it made a lot of sense to talk with them – and low and behold both loved the idea and we were able to work out deals with them.
   
   
2. Were the projects similar? What have you learned from one project to another?
   
   From a publishing perspective, the big difference with the Rolling Stone, Playboy and The New Yorker, is that beginning with Rolling Stone Cover To Cover: The First Forty Years and Playboy Cover To Cover: The 50s, we launched Bondi’s publishing arm and are bringing these out under ourselves. While Bondi developed the software platform for the Complete New Yorker, it was published and distributed by The New Yorker and Random House.
   
   All three magazines are very different, so a big challenge that we have in any of these projects is to first analyze each magazine’s format and create a schema for its database that makes sense of all the idiosyncrasies of each magazine’s particular formatting characteristics.
   
   As far as the software platform goes, the Bondi Reader, which is what we are calling it now, has continued to evolve quite a bit. We now support full text search, using a very powerful indexing engine. This is a great step forward and has sped up our searches to the point where the local experience compares favorably to online searches. Also we are adding the ability to import and exchange reading lists, which will allow two people who own the same archive to share what they find very easily.
   
   
3. There is a lot of interest in the Playboy products because the magazine is such an icon for our times. Tell us about the conception for the product – breaking the titles into decades – and the thinking behind the design.
   
   Each decade of Playboy has a unique tone and feel, and by publishing the magazine’s archives decade by decade, Bondi is able to offer distinctive features for each digital archive collection. Playboy Cover-to-Cover: The 50s will not only include all of the magazine’s issues on DVD, but it will also include Playboy 50s – Under the Covers, a 1950s-focused companion book that is absolutely chock full of never-before-published photos and letters from Hef’s personal library and archive. As well we have created a page-for-page reissue of the very first Playboy from 1953 with its iconic Marilyn Monroe cover.
   
   
4. What most excites you about the products? (Rolling Stone, NYer, Playboy)?
   
   I guess it is seeing all these amazing stories, photos and ads come back to life – in their original context. I for instance did not know that Annie Leibovitz had taken that great cover shot of John Lennon curled up with Yoko but a few hours before he was taken from us. That is a hugely important fact in helping to understand the impact and importance of that cover. But that was 1980 and I was only 13 years old – so I never experienced the magazine itself. I, like I imagine a lot of people, have only ever experienced that shot as a stand-alone photo. We have seen that cover reprinted over the years, but without seeing it in the context that it was originally published you might never understand its true significance. And that is extremely exciting to me – that we might be playing a part in not only preserving these magazines legacies, but also allowing for people to understand these very real cultural events in a full and clear way.
   
   Not having been alive in the 1950s it was also a real eye-opener to see the Playboy issues from the 50s. From the first issue, the voice and outlook are clear. But at the same time you begin to see the role that Playboy played in both women’s rights and also civil rights. In the 50s women didn’t work out of the house, let alone have a sense that they should be allowed to own their sexuality. And as I found from working on the project, the publishing of Playboy was a bit of a watershed moment in the turning of society’s views on women’s rights, and then also civil rights. So all of that is exciting to us. And then to see that Hefner from the beginning courted writers like Hemingway, Ray Bradbury, Jack Kerouac and Steinbeck – well you get the point. Turns out there is a reason for all the jokes about the articles.
   
   
5. What is next for Bondi? Are you looking at any other implementations you can tell us about?
   
   At the moment we are concentrating on finishing up the software production for both the Playboy Cover to Cover and Rolling Stone Cover to Cover products. Then we focus on deals with several other magazines. As excited as we are about the success of the Complete New Yorker and the release of our Cover to Cover series, I don’t think that the general public really understands what a searchable digital archive of a magazine is yet. And so it is important that this not be a category of one or two products. Our focus for the time being is working with other magazine publishers to develop similar Cover To Cover products. We are just about ready to announce Playboy Cover To Cover, The 60s, which will bring our Cover to Cover series to three. By the holiday 2008 season, we hope to have six - eight Cover To Cover titles in the line.

Bondi PR is being handled by Catherine Lewis at The Rosen Group: http://www.rosengrouppr.com/

Five Questions with Lonely Planet

Recently I mentioned the effort by DK (Penguin) that allows consumers to build their own travel guides using the DK content. Lonely Planet recently launched a program that allows consumers to download (in PDF) only the parts of travel guides they are most interested in. The option to download the entire guide exists, but in many cases a consumer only visits a part of a country and much of a country wide guide is irrelevant. This program solves this issue.

Currently under trial, the content covers guides for Latin and South America and represents 350 chapters from 35 individual guides. The site is impressively easy to use and the prices for the chapter content are reasonably priced. Most chapters cost between $2 and $4 and users gain a discount from the purchase of multiple chapters. Lonely Planet says that the feedback from this trial will be incorporated into the next release that should also include more guide book content. As an additional feature, consumers can also view new guides before they are available in stores.

Commenting on this initiative Product Manager Tom Hall said "Over the years we've received countless letters and emails from travelers telling us they'd like to take just the parts of our book that match their travel. Pick & Mix enables this and is perfect for people traveling to multiple destinations not covered by one or two individual guidebooks, or those looking for very specific information. It’s also handy when plans change or you can’t get to a book store.”
Lonely Planet has long been a leader in the independent travel guide market after their first title Across Asia on the Cheap was written 30 years ago. The guides immediately appealed to travelers who wanted to get off the beaten track and gain the real essence of a location.

The guides and the company - perhaps as a direct result of the characteristics of the target consumers - engender significant loyalty. There are over 400,000 registered members of their travel community (Thorn Tree) who share inside knowledge, read and contribute to blogs and read about reports from authors in the field. Undoubtedly, Lonely Planet will be looking to expand the community and social networking aspects of their interactions with consumers and it will be interesting to see how their feature set develops.

I recently asked Tom Hall five questions about the Lonely Planet strategy and future plans.

1. Tell us about the thinking behind the build your own model.
   
   For years travellers have been asking to take just the parts of our books they need. I was one of them. In 2001 (before I worked for Lonely Planet), I took a round-the-world trip to 7 countries across three continents. I couldn’t carry guidebooks for all of them, and ended up scouring Kathmandu trying and failing to find a book on Tanzania. So I arrived in Africa with no information whatsoever, and was incredibly frustrated – the information I really needed was out there, but no one would sell it to me when and where I needed it. Many travellers tell us they tear entire sections from guidebooks, or photocopy pages from other travellers or from the library. The thinking is really just that there seems to be a clear need, and Pick & Mix is a way to meet it.That’s the key point, but here are a couple more. One of our first purchasers was someone in Norway who bought a chapter on Martinique. I like to imagine the person in a snug little cabin with icicles hanging off the roof, downloading a chapter about a balmy tropical island. The point is that Pick & Mix makes us truly global – our content is accessible anywhere with an internet connection, so it’s available to more travellers. It makes possible sales we’d never get otherwise. Another point is sustainability – quite a few people have written to say they appreciate being able to save paper, ink, the energy from shipping, or to go entirely paperless by storing our content on an iPod, memory stick, phone or laptop.
   
   


2. Has demand developed as expected and has there been any impact on sales of the full titles? How do your retailers view the effort?
   
   We believe Pick & Mix is complementary to our guidebooks, rather than a substitute. So far, results have confirmed that view. We just launched two months ago, though, and obviously it’s something we’re monitoring carefully. Demand to this point has been higher than projected, and even better, the feedback from travellers has been fantastic.
   
   Retailers face similar challenges to publishers when it comes to digital content, and we're committed to finding ways forward together. We see Pick & Mix as an opportunity to reach out to retail partners with digital content and meet the needs of both new and existing customers in new formats. In the future, this may include retailers offering digital products to customers either in-store or online.
   
   


3. There are similar efforts by other publishers – this is not a new and unique effort. How does your project differ? How are you measuring success?
   
   Pick & Mix is a simple concept - it offers chapters pulled straight from our guidebooks. It’s easy to use - you go online and find the parts our books you need, download them, and print them if you want – a five-minute process. Also, Pick & Mix covers an entire region, rather than a grab-bag of destinations. This complete coverage makes it useful for many types of trips: a long-term trip to multiple destinations, business trips or short city breaks, even when you’re on the road and plans change.
   We’re measuring success in terms of sales, whether we’re growing our market overall, and direct feedback from travelers.
   
   


4. You have used the PDF format for this initiative. Was there any discussion about allowing a non-proprietary download? Do you envision a situation where a consumer could choose not to use the PDF and receive it in text format? Do you see for example, the ability for users to integrate content into their own self-produced content
   
   We launched with the PDF format because travellers told us it’s the most useful right now. Our intention is to make Pick & Mix format-agnostic - in the long-term travellers should be able to get whatever content they want (including information from other travellers, like ThornTree or Bluelist), where they want it, in whatever format they want it. Pick & Mix is the first step towards that goal, and we’ll take our lead from travellers on the subsequent steps.
   
   


5. What’s next for Lonely Planet? You appear to have a loyal fan base and cadre of users/consumer who interact with some frequency with LP. Can you tell us a little about your social networking plans?
   
   Simon Westcott, LP Global Publisher responds: “We have great loyalty and interaction from users of our Thorn Tree community. Every month we break new records for membership and participation. But there's so much more for us to do: group functionality, tagging, more types of user content generation, opening our infrastructure to 3rd-party development, allowing people to create their own trip pages. Watch this space....”