MediaWeek (Vo 14, No 3) Clarivate to buy Proquest in $5.3B deal, Remember Reading, RB Media Acquires, Controversial Book Deals

Clarivate (ex Thomson Reuters company) announced their intention to acquire Proquest.  From the press release:

Clarivate plc (NYSE: CLVT), a global leader in providing trusted information and insights to accelerate the pace of innovation, today announced a definitive agreement to acquire ProQuest,  a leading global software, data and analytics provider to academic, research and national institutions, from Cambridge Information Group, a family-owned investment firm, and other partners including Atairos, for $5.3 billion, including refinancing of ProQuest debt. The consideration for the acquisition is approximately $4.0 billion in cash and $1.3 billion of equity. The transaction, which is subject to customary closing conditions, including regulatory approvals, is expected to close during the third quarter of 2021.

With a mission to accelerate and improve education, research and innovation, ProQuest delivers content and technology solutions to over 25,000 academic, corporate and research organizations in more than 150 countries. The acquisition will establish Clarivate as a premier provider of end-to-end research intelligence solutions and significantly expand its content and data offerings as the addition of ProQuest will materially complement the Clarivate Research Intelligence Cloud™. 

Why We Remember More By Reading (The Conversation)

The benefits of print particularly shine through when experimenters move from posing simple tasks – like identifying the main idea in a reading passage – to ones that require mental abstraction – such as drawing inferences from a text. Print reading also improves the likelihood of recalling details – like “What was the color of the actor’s hair?” – and remembering where in a story events occurred – “Did the accident happen before or after the political coup?”

Studies show that both grade school students and college students assume they’ll get higher scores on a comprehension test if they have done the reading digitally. And yet, they actually score higher when they have read the material in print before being tested.

Educators need to be aware that the method used for standardized testing can affect results. Studies of Norwegian tenth graders and U.S. third through eighth graders report higher scores when standardized tests were administered using paper. In the U.S. study, the negative effects of digital testing were strongest among students with low reading achievement scores, English language learners and special education students.

 New Order: Audio First (WSJ - Paid)

“The Bomber Mafia” is part of an effort by Pushkin Industries Inc., an audio company that Mr. Gladwell co-founded, to become a major provider of highly produced “original” audiobooks. Such projects sound more like podcasts than traditional audiobooks, since they often feature original scores, as well as archival and interview tape.

Industry giants including Bertelsmann SE’s Penguin Random House and Amazon.com Inc.’s Audible also produce high-production original audiobooks with sound effects and a cast of multiple actors, representing significant competition for Pushkin.

RBmedia Acquires McGraw Hill Professional Audiobook Publishing Business

RBmedia, the largest audiobook producer in the world, today announced the acquisition of McGraw Hill Professional’s audiobook publishing business, which includes its catalog of previously published titles, as well as a multi-year agreement to become the exclusive audio publisher for all of McGraw Hill Professional’s new titles.

“We are excited to participate more fully in the rapidly expanding audiobook category by partnering with RBmedia,” said Scott Grillo, President of McGraw Hill Professional. “Leveraging RBmedia’s unique abilities in spoken audio will help us reach business and trade professionals and all those striving to advance their education or careers. RBmedia creates exceptional audio productions that serve our authors well and will help them monetize audio rights at a high level. Our publishing program will be stronger because of this unique collaboration.”

Note: Overdrive purchased RB Digital the company's library platform in 2020 (Press Release) 

Who Deserves a Book Deal - Just about Anyone? (Vox)

Is the industry’s purpose to make the widest array of viewpoints available to the largest audience possible? Is it to curate only the most truthful, accurate, and high-quality books to the public? Or is it to sell as many books as possible, and to try to stay out of the spotlight while doing so? Should a publisher ever care about any part of an author’s life besides their ability to write a book?

These questions are becoming more and more urgent within the private realms of publishing, amid debates over which authors deserve the enormous platform and resources that publishers can offer — and when it’s acceptable for publishers to decide to take those resources away.

Within the media watering hole of Twitter, it can look as though these concerns are being imposed from the outside: by progressive authors calling on their publishers to abstain from signing right-wing writers; by angry YA fans and Goodreads readers; by petitions and boycotts and special interest groups. But the conversation about who deserves a publishing deal is also happening within the glass-and-steel walls of the industry itself.

Employed but Pissed at Simon & Schuster (The New Republic)

Inside Merger Mania: (The Wrap - Register)

On the tail of massive acquisitions in the entertainment and media space, such as AT&T’s $85 billion purchase of Time Warner in 2018, thew 2019 re-merger of ViacomCBS and Disney’s $71 billion acquisition of 21st Century Fox in 2019, major book publishers are embarking on their own consolidations in an effort to cement their place in an increasingly competitive environment. But are any of these major acquisitions anti-competitive, as critics have argued?

*******

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

PND: Digital Transformation: A Seminar for Management

PND: Blockchain for Publishers

PND: Technology News

PND: The Price is Right for Cengage  

PND: The Opportunity in 200MM Students

PND: Mediaweek Reports 

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.

 

MediaWeek (Vol 6, No 52): Looking forward to 2014. Round-up of predictions.

On UK newspapers, the apocalypse has been averted (Guardian)

It's exactly four years since – at a heavyweight conference in eastern Europe – I heard an expert on the communications apocalypse predict that, only five years hence, printed newspapers would be dead and digitally buried. The trends, he said, were clear. Umm… not exactly. There's an awful lot of perishing left to cram into the next 12 months, and it shows no sign of happening any time soon. Indeed, rather the reverse. Bring on Ken Doctor, a great American guru, offering us five, 10 or more 15 years to choose from. Nemesis indefinitely delayed.
And the most fascinating thing about the ABC-sanctified print circulation results (for November) involve two politically polar opposites on the newsstand: the Telegraph and the Guardian. Both belong to the national quality market. Both, over the years, have cleared out bulk sales and other devices that prop up or confuse their sales figures. Both have solid and growing online statistics to boast about: the Telegraph with 13,855,000 unique visitors and the Guardian with 12,301,000 on the latest UKOM results. They leave everything but the inevitable Mail online far behind. But what does this mean for print, for copies pushed across the newsagent's counter or dropped through a letterbox?

In Hollywood everyone knows the same nothing (Economist)

Since everybody still knows that nobody knows, studios continue to show early cuts of films to focus groups, to determine how to tweak and market them. But even after a film’s release it remains unclear why it boomed or bombed. Why was “Gravity”, starring George Clooney and Sandra Bullock in a tale about stranded astronauts, one of this year’s hits despite the misgivings of its studio, Warner Bros, whereas “The Lone Ranger” was such a flop, despite Disney’s high hopes for a film starring Johnny Depp?
“Hollywood is always in crisis,” jokes an unusually publicity-shy talent agent. Indeed, his office is in Century City, a district full of high-rises in Los Angeles that was once the backlot of 20th Century-Fox until it had to sell up because of the crippling cost of its 1963 epic, “Cleopatra”. Faced with bankruptcy 50 years ago, Fox might have been better off keeping the property and junking the film-making. The industry’s return on capital has been chronically anaemic. The media conglomerates that own the major studios grouse about the lousy economics of the business, particularly since DVD sales peaked in 2004 and then waned, with consumers shifting to lower-cost rentals and subscription services like Netflix. Technology should have helped Hollywood, by lowering the cost of distributing films, but it has also cost the industry dearly, as film-makers doll up their movies with expensive special effects, and negative social-media buzz kills films before they even open.

Will 2014 be the year of the eBook subscription model (Publishing Technology):

It’s quite likely that we’ll look back at 2013 as the year when publishing stopped talking about the ‘Netflix’ or ‘Spotify for Books’ and actually did something about it. eBook subscription services went from being something talked about in op-ed articles and conference platforms to real-life services, some of which launched with tens of thousands of titles and support from major publishers.
Most debate has focused on the fortunes of Oyster, the NYC-based start-up that launched earlier this year and Scribd, a service that has pivoted away from document sharing and publishing towards eBook subscription. Yet these are far from the only eBook subscription services in town. Another US-based service eReatah also launched earlier this year. Amazon has entered the market on its own terms, using eBook lending rather than subscription as a way of boosting membership of the Amazon Prime program. Meanwhile Europe’s fragmented ereading market is at risk of further fragmentation as country-specific subscription services emerge. 24Symbols continued to do well in its Spanish speaking home market and two Dutch publishers WPG Uitgevers B.V. and Lannoo Meulenhoff B.V. have teamed up to create a Netherlands-specific equivalent Riddo. In Denmark Riidr One addresses the relatively small domestic market with its own subscription service and in Germany the recently launched Skoobe boasts a 23,500 strong catalogue.

Ad agency Millward Brown's media predictions for 2014.

Digital BookWorld's list of 10 things to look for in 2014:

It’s been another exciting year for the publishing industry – perhaps the most dynamic in the history of the business. In 2013, all ebooks by publishers became subject to retailer price controls and ebook prices plummeted. At the same time, ebook revenue growth has tapered off even as many of the largest publishers still reported digital gains. A handful of ebook subscription businesses were launched and libraries won some key victories in their fight to bring ebooks from all publishers to their patrons.

From Book Business Magazine the future looks bright for 2014

MediaWeek (Vol 6, No 38): John D. MacDonald, Banned Books Reviews, Google & edX, Author Franchises + More

Random House if bringing back a load of John D. MacDonald books. (WSJ)

He had in fact a grand theme, which he nibbled at in book after book: the ruinous postwar overbuilding of the Florida Gulf Coast. (It even runs, much subdued, through the McGee series.) MacDonald knew the landscape well; it was where he lived for most of his adult life, and he was horrified by what he saw happening to it. He wasn't a passionate environmentalist, and he spared his readers any laments for drained swampland. He had no objection to sensible development as such. But he saw the mechanics of the Florida land boom from the inside; he was able to write knowledgeably about county boards and real-estate investment trusts, building codes and rezoning applications. He was fervently certain that the countless petty instances of greed and corruption and fecklessness and indifference and incompetence were sooner or later going to add up to a disaster, and he was right. When Hurricane Andrew destroyed a large swath of Florida in 1992, six years after MacDonald's death, the catastrophe was multiplied several times over by the astonishing shoddiness of the housing there, of whole communities constructed in open defiance of the building codes, almost exactly as MacDonald had described.

The New Republic is publishing reviews of banned books (New Repub):  Here is Slaughterhouse 5 reviewed by Michael Crichton

Only the commercial explanation, which is really no more than a simple observation of verifiable fact, holds water; the others are demonstrably wrong. For example, nearly all fictional forms have come from pulp, or its equivalent in previous generations. The majority of "classic" authors were very popular in their day. And when one surveys the great triad of pulp writing—science fiction, westerns, and detective fiction—from the early part of this century, the results are interesting. Westerns, being closest to the heart of American mythology, have been almost entirely absorbed by the ubiquitous tube. Detectives have done well in films, less well on television; in straight fiction their standards have been raised markedly, partly because "real" authors like Conrad and Graham Greene have dabbled in the form and partly because talented writers have been drawn to it—Raymond Chandler, David Cornwall, and Georges Simenon. But science fiction has remained impervious to such influences. It is still as pulpy, and as awful, as ever.

 Inside Higher Ed considers a A Google E-Learning Ecosystem (IHEd)

Up until the edX - Google deal it would have been difficult. Smarter people than me were able to get Course Builder (the platform that Google is putting into maintenance) to work, but for mere mortals (read non-programmers), Google never really had any platform that was workable for online course development and teaching.  Now the edX Open platform is going to evolve and improve, as Google is putting developer and infrastructure resources behind the project.  Nobody from edX is saying that edX open or MOOC.org is intended to be an LMS replacement. Why pick that fight? But it makes perfect sense.  Why wouldn't a school want to use the same platform for their campus (private) courses as their open courses?  Wouldn't it make sense to easily be able to designate some parts of a course that are open (such as the course content, formative assessment or public discussion boards), and wall-off other parts of the course (such as internal discussion boards or graded assignment areas) for only those matriculated (and tuition paying) students?

Is there a lesson for big name authors in the actions of the All Things D staff? (CJR)

These new franchise raise the important question of whether and by how much power is shifting in journalism from publishers to authors.  I’d argue that these franchises are to a large extent sui generis and not indicative of a generalized power shift in journalism. In fact their high visibility tends to distort our view of the author-publisher, that is to say, labor-management, power balance.  First, it’s important to note that these particular franchises were (for the most part) all nurtured within big, traditional news organizations, which provided salaries, health insurance, tech support, legal backup, etc. etc., plus and importantly the imprimatur of their brand names built up over decades. So these are not autonomous operations, but in fact highly dependent ones.  It’s significant, for instance, that when Nat Silver moved his Fivethirtyeight franchise in July (which prompted Jay’s post), it wasn’t to go off on his own but to join another big company, in this case, Disney. In that sense, his move wasn’t so different from past jumps by media stars such, as, say, in 1984 when Mike Royko left the Sun-Times after Murdoch bought it and joined the Tribune. True, Silver was already a success before he went to the Times in 2010—he was on one of Time’s most influential of 2009. But the Times’s perch certainly helped to propel him to new prominence, and his next destination, even if it’s not his last, turns out to be within the MSM.   People wonder if Andrew Ross Sorkin will ever make his DealBook independent. Not only is there no sign of that, in order to expand his influence, he took a second job at another MSM outlet.

From twitter this week
Conan Doyle estate seeks to preserve US copyright of Sherlock Holmes's 'complex personality' Guardian 
Netflix looks at pirate sites to decide which shows to buy Telegraph
Fairfax County libraries under fire after 250,000 books are tossed WAPO

MediaWeek (Vol 4, No 49) Revamping GED, HS Corporate Marketing, Book Blogging, Pretty Books + More

The GED test is being revamped (EdWeek):

Situating the GED as a pathway to higher education echoes its original intent. The first exams, in 1942, were envisioned as a way for returning World War II veterans to complete high school and use the GI Bill to attend college. In 1949, the first year statistics are available for nonmilitary test-takers, 39,000 people took one or more of the five sections of the test: reading, writing, mathematics, science, and social studies. By 2010, that number had risen to 750,000.

The GED is widely used as a high-school-completion tool by those in the military and in prisons, and by dropouts who are too old for the public school system. Although one-quarter of those who take the test are 16 to 18 years old, the typical GED candidate is 26, has completed 10th grade, and has been out of school nine years, according to ACE data.

But while the test has helped thousands move forward, it is dogged by criticism that it doesn’t reflect high-school-level achievement. Officials in New York City, for instance, said last December that the passing score reflects only middle-school-level content and skills. The city is helping pilot a new, accelerated GED curriculum and accompanying supports in a subdistrict of alternative schools.

Even as the GED is overhauled, scholars continue to debate its value.

Report looks at the connection between corporatism and educating children (NonProfit Quarterly)

If you haven’t been around schools and schoolchildren recently, get ready for some stomach-wrenching corporate curricula:

• Shell‘s “Energize your Future” curriculum, which reimagines the oil industry behemoth as a leader in alternative energy technologies.
• American Coal Foundation’s “The United States of Energy” fourth-grade curriculum, which is quite favorable, not surprisingly, to coal mining and use.
• Coal Education Development and Resource’s (CEDAR) curriculum, which encourages coal use and students’ participation in regional “coal fairs.”
• Kohl’s department stores’ “Kohl’s Cares for Schools” campaign promoted awarding $500,000 to the 20 schools that got the most votes on Facebook—and everyone who voted found themselves on Kohl’s mailing lists for promotions and advertisements.
• Education Funding Partners (EFP) is marketing to schools to sell the naming rights to school cafeterias and auditoriums to corporations such as Apple and Adidas.

Here’s the kicker for all of us in the nonprofit world. Some of the corporate marketing is cloaked in the garb of corporate charitable partnerships (for example, the Kohl’s competition). Some of the marketing is carried out by nonprofit affiliates of the corporate interests (for example, the American Coal Foundation and CEDAR, both 501(c)(3)s). And some of the corporate marketers are corporations whose partnerships for schools and other causes are often lauded as standout examples of corporate philanthropy—Microsoft, Disney, Nike, Google, etc.

Is book blogging dead is the question asked by Jacket Copy (LATimes) in response to a email blast from William Morrow:

"Message is essentially: if you don't review enough of the books we send you, in the timeframe we want you to, you're out," Rebecca Joines Schinsky tweeted Thursday. Schinsky, who writes and edits The Book Lady's Blog, is one of the leaders of the latest generation of committed book bloggers.

"Can you imagine them sending this to Horn Book or The NYTimes?" added Pam Coughlin, who blogs at MotherReader.

Many publishers enthusiastically send books to bloggers, and today's book blogger may rake in free books like leaves after a windy fall day. But it wasn't always that way.
When blogging about first began, publishers, like many other long-established businesses, looked at the form with justifiable skepticism. If just anyone could start a blog, what role could bloggers have?

Eventually, that skepticism faded. People who like to read books, it turns out, were reading things on the Internet. Those things included blogs. They included book blogs. As time passed, many early book bloggers, many of whom focused on literary titles, moved on to other things -- book reviewing, publishing short stories, writing novels, even writing for newspapers.

Two articles about beautiful books from the NYTimes:

Many new releases have design elements usually reserved for special occasions — deckle edges, colored endpapers, high-quality paper and exquisite jackets that push the creative boundaries of bookmaking. If e-books are about ease and expedience, the publishers reason, then print books need to be about physical beauty and the pleasures of owning, not just reading.

“When people do beautiful books, they’re noticed more,” said Robert S. Miller, the publisher of Workman Publishing. “It’s like sending a thank-you note written on nice paper when we’re in an era of e-mail correspondence.”

The eagerly anticipated 925-page novel by Haruki Murakami, “1Q84,” arrived in bookstores in October wrapped in a translucent jacket with the arresting gaze of a young woman peering through. A new novel by Stephen King about the Kennedy assassination, “11/22/63,” has an intricate book jacket and, unusual for fiction, photographs inside. The paperback edition of Jay-Z’s memoir “Decoded” features a shiny gold Rorschach on the cover, and in March the front of “The Song of Achilles” by Madeline Miller will bear an embossed helmet sculpted with punctures, cracks and texture, giving the image a 3-D effect.

And from the Guardian:

Publishers have started building their marketing strategies around form rather than content. The Everyman Library, which is coming up to the 20th anniversary of its modern relaunch, makes much of its books' elegant two-colour case stamping, silk ribbon markers and "European-style" half-round spines. In 2009, to celebrate its 80th birthday, Faber republished a collection of its classic poetry hardbacks illustrated with exquisite wood and lino cuts by contemporary artists. Not to be outdone, Penguin will next year be reissuing 100 classic novels in its revamped English Library series in what its press release describes as "readers' editions". What other sort could there be, you might wonder? The press release elaborates that these will be "books you will want to collect and share, admire and hold; books that celebrate the pure pleasure of reading". Translated into the material realm, this means cover designs that pay their respects to the classic orange spine of the original Penguin English Library, but modify its iconic "grid" in order to luxuriate in whole-cover retro prints.

It is not just the big publishing conglomerates that are paying more attention to the way their products look. Several boutique outfits have recently been established dedicated explicitly to making beautiful books. Full Circle and Unbound are just two, founded by the veteran publishing stars Liz Calder and John Mitchinson respectively. In their new incarnations as producers of exquisitely crafted books, Calder and Mitchinson spend more time than they probably ever did when they were helping to run companies including Bloomsbury and Orion pondering such arcane matters as cloth-slip covers, numbered limited editions, artwork that really is art, and paper so creamy you long to lick it.

Some other articles of interest:

Dr. Justin Marquis talks about the difference between "custom" textbooks and custom textbooks.

Richard Byrne points to an open math supplement, which reminded us that one of the benefits of using a custom text is that you can choose your own supplements from anywhere on the internet (or even create your own).

Nelly DeSa, a student, writes about the Textbook Pinch.

And finally Ken Ronkowitz at Serendipity35 asks if your students are buying the textbook...

 From the twitter:

 Thomson Reuters chief Glocer makes his exit http://tgam.ca/DI0Z

Save the UK's libraries? It's beyond me, admits US guru - UK - Independent

Repost: Predictions 2010: Cloudy With A Chance of Alarm

As a prelude to thinking about 2011, here were my thoughts for 2010 posted on January 4, 2010.

As we greeted the New Year in 2009, we knew we were in for it economically and, as I suggested in my prediction post this time last year, one of the most obvious assumptions was that things would get worse before they got better. Contrary to expectations, publishing may have come out a winner in spite of the steady litany of bad news on the magazine, newspaper and television fronts that percolated all year. While recognizing the economic challenges in store for us back in 2009, I also suggested a resurrection of sorts could be had as businesses began to accommodate the fundamental changes that were taking place in the industry as they executed their business plans. Sadly, there have been few bright spots in media during 2009, and after having taken the pulse of views on the near-term future in publishing by speaking to a number of senior publishing executives, my belief is we will not see any appreciable improvements during 2010. While some of their collective views can be attributed to ‘hedging,’ external trends support the lack of optimism whether they be reductions in education funding and library budgets or the increasing reliance on “blockbuster” authors or pricing issues.

Many of the macro trends that I have noted in years past remain prevalent and in some cases have accelerated. For example,

• Educational publishers appear to be increasing – rather than decreasing – their investment in electronic media and more importantly, are beginning to think of their electronic products as distinctly different from their print precursors. In particular, educational publishers have started to talk meaningfully about “databases” and “subscriptions.”

• Newspapers – particularly NewsCorp – have been particularly active in attempting to build paid content models which support the separation of ad-based and subscription-based models. Newspapers aside, even trade publishers – notably Disney - are beginning to experiment in interesting ways with paid subscription models.

On the other hand, my expectations for further compacting of the publisher supply chain and increasing collaboration across publishing segments appear to have run aground. Interestingly, an executive I recently spoke to noted that the separation of publishing units that historically sat together – education with trade with information, for example – has negatively impacted publishing companies ability to learn and benefit from the experience and market testing of their sister companies. Possibly a decrease in access to ‘institutional knowledge’ has, in general, contributed to some media companies’ hesitancy to experiment.

Prognostication being the point of this post, there are some newer macro changes I see that will define the publishing and media space more and more over the next three to five years and it will be interesting to see how these develop.

• Firstly, 2009 was the ‘year of the eBook’ as new devices seemed to launch each week. But the eBook, as we understand it today, only has three more years to run. By the end of 2010, we will be focused on the ‘cloud’ as the implications of the Google Editions product become clearer. This accelerated migration away from a physical good – even with an eBook, the title was ‘physically’ downloaded – will challenge our notion of ‘ownership’, rewrite business rules and provide the first true ‘strata’ for communities (or social networks) to develop around content.
  
  The Apple iSlab (iSlate, iTablet, iEtc) will become a key driver in this development as the company becomes the first consumer electronics maker to apply their design expertise to multi-content delivery. (I don’t count SONY because they got it completely wrong).
  
• A closely related (but somewhat tangential) development will be the realization by publishers that the library market could become a threat to their business models as mobile and remote access is aggressively marketed by companies such as Serial Solutions and EBSCO. Currently, these products are not specifically related to trade and academic titles; however, the implications for all published product will become clearer as patrons’ ease of access to ‘free’ content grows and as the resolution services improve.
  
  Remote access to information products by library patrons is obviously not new, but applied to mobile computing it will change many things about the library model. This trend coupled with the ‘cloud’ concept above, will require an industry-wide re-think of the library business model.
  
• There are hints that the silo-ing of content that has been endemic to information and education for many years could become a trend in trade as well. Examples remain sparse, though Harlequin and Tor are routinely cited as exemplars of this trend.
  
  Subject-specific concentrations of content in trade will become a more broadly viable model; but simply concentrating content is not enough. Trade publishers will begin to license or commission ancillary content that adds a transactional element to their offering (not exclusively in a monetary sense). In effect, this additional content will provide a reason for consumers to return periodically to the site for free reference, news or dictionary content. Thus, this content will complement the subject-specific content that publishers generate themselves. As each segment develops, the ancillary content will also become core content to the publisher and may eventually be produced by them (although, initially, the content may be licensed). Over time other services will be built within each subject silo, and this maturity will replicate the product development seen in information publishing over the past ten years as those businesses established subject specific franchises around topics such as business news, tax and legal information.

Aside from these macro trends that will grow in importance over the next few years maintaining the status quo will still be the operative task during 2010. Here are following are some more specific predictions for 2010:

• Certain segments (financial, legal and tax information and education, for example) continue to be challenged and any business that relies on the library market will face a very difficult time. Funding will be worse in the coming year (fiscal 2011) making retention, renewals and price increases problematic. By the end of this year, we could see some consolidation in the information media space.
  
• We will see the return of an old model of collaboration between magazines and traditional publishers as magazines look for ready-made content. Witness the return of the serial and short story to the pages of periodicals as their publishers look for low-cost content for their plodding (but suddenly more aggressive) migration to electronic delivery. In turn, electronic magazines will offer publishers a more effective, targeted and supportive mode of marketing than publishers have seen in years.
  
• 2010 will be a year of warfare: Publishers against retailers, wholesalers against retailers, retailers against retailers, publishers against consumers. It may be nasty, brutish and short, but will any of them truly understand the stakes? (See macro trend number one).
  
• Finally, we will see consolidation of at least two major trade houses. This is likely to precipitate another combination by year end. An outsider company (not a current trade publisher) may make a major move into the trade market.
  
• Last year, I predicted that out-of-work journalists would become ‘content producers’ and we have seen that develop as companies like Demand Media and Associated Content build market share. I see this trend accelerating during 2010. As magazines migrate to platform models, they become 24/7 publishing operations with a significantly increased demand for content far beyond their capabilities. Where they will succeed is in curating content for their specific audiences; however, much of this content will be produced for them, rather than by them in the traditional manner. In effect, magazines will outsource editorial.
  
• And in sports, Manchester United will retain their Premier League title, winning on goal difference over Arsenal; Barcelona will win the Champions League; and England will win the deciding fourth Ashes test in Melbourne in December.

DOI To Become Backbone of New Entertainment Content Registry

I have long believed that entertainment media is begging for a uniform identifier system and collaborative database approach and a recently announced coalition may be bringing us closer to this eventuality. Led by MovieLabs, CableLabs(R), Comcast and Rovi Corporation a non-profit group has been formed that will provide a uniform approach to cataloging movies, television shows, and other commercial audio/video assets with unique identifiers (IDs).

The system is being developed as an open, standards-based effort built on the established Digital Object Identifier (DOI) system, created by the International DOI(R) Foundation and based on the widely used Handle System persistent identifier technology. In addition, it uses the open-source registry software from the Corporation for National Research Initiatives (CNRI). The DOI framework will not be unfamiliar to publishing professionals especially those in the journal business and the related (non-profit) entity CrossRef. It appears this coalition in the entertainment business will attempt to mimic the successful CrossRef application of DOI technology.

The press release was long (and I've summarized some above) but here is more:

Backed by a broad group of industry players, including Deluxe, Universal Pictures, Neustar, Paramount Pictures, Sonic Solutions, Sony Pictures Entertainment, Walt Disney Pictures, Warner Bros. Entertainment, Motion Picture Association of America, Inc., Civolution, Vobile, INA (L'institut national de l'audiovisuel), and others, the registry is set up as an industry resource to help streamline digital commerce and simplify consumer transactions. The consortium is actively looking to expand with new partners and participants internationally.

Each year, millions of new entertainment assets from many sources and distribution channels are being added to the massive amount of content available in the marketplace. With the growth of digital and other alternative distribution channels, keeping track of all of these content products, especially videos, is becoming an increasingly complex task for many businesses in the entertainment supply chain. EIDR has been developed to address a critical need for a universal ID system for all types of audio/video assets in the entertainment industry, making it easier for businesses to search, track rights and report revenue based on an assets' unique ID. The expected results are increased accuracy of information flowing to consumers, and lower cost and more efficient back-office processes.

"Most companies today are either using proprietary or disparate organic systems to catalog their entertainment assets, making the process of tracking content across multiple systems very difficult," said Steve Weinstein, president and CEO, MovieLabs. "EIDR can provide the missing communication link between businesses. We look forward to expanding EIDR membership to companies throughout the global content ecosystem, which we think is critical to the success of the effort."

Members of EIDR will have open access to the registry and/ or be able to supply their content to the registry for identification. For content distributors, access to unique IDs will help eliminate confusion between assets with same name or different cuts of the same video, helping to ensure that the right products are being distributed to the consumer. For content producers, the ability to register all of their assets will help simplify their post-production process and potentially lead to greater distribution of their products. Other companies in the supply chain can benefit from a streamlined communication process between their suppliers and distributors.

Hat tip @MJHealy

MediaWeek (Vol 3, No 12): The Economist on Data, Children's Publishing, Marvel, Librarians, Holmes.

In their Feb 27th issue, The Economist takes a look at Data in an article titled Data, data everywhere and it is well worth a read. I won't paste in too much since it is an 18page insert however here are some nuggets (The Economist): In the article A Different Game: Information is Transforming Business

• Best buy a retailer, found that 7% of its customers accounted for 43% of its sales, so it reorganized its stores to concentrate on those customers needs
• Cablecom a Swiss telecoms operator. It has reduced customer defections from 1/5th of its subscribers a year to under 5%
• By examining more than 2m transaction records the RSA (Royal Shakespeare Company), discovered a lot more about its best customers: not just income, but things like occupation and family status, which allowed it to target its marketing more precisely.
• Nestle found improving the quality of its data to be as important as the analysis: For just one ingredient, vanilla, the company was able to reduce the number of specifications and use fewer suppliers saving $30mm per year.
• Most CIO's admit their data are of poor quality: In a study by IBM half the managers quizzed did not trust the information on which they had to base decisions
• Companies are increasingly moving to analyzing real time information flows
• Wal-Mart's RetailLink, enables suppliers to see the exact number of their products on every shelf of every store at that precise moment
• New tools make working with data sets easier: Visa, in a recent trial with Hadoop crunched two years of test records, or 73bil transactions amounting to 36 terabytes of data. The processing time fell from one month with traditional methods to 13mins

There are many other interesting points I noted as I read the section but I'll leave with this one for all you data geeks: In a short article titled Needle in a haystack,

• Metadata are a potentially lucrative business. "If you can control the pathways and means of finding information, you can extract rents from subsequent levels or producers."

That's why when I was at Bowker we moved the business in the direction of data analysis and there's still more to be done there. A future of Children's publishing (WaPo):

That may be good for the bottom line at children's publishing houses, but entertaining the kids with the printed page seems to grow more difficult by the year. Children's appetite for cell phones, computers, video games and television far exceeds that for books. In January, a Kaiser Family Foundation report found that the time spent on all entertainment by kids from 8 to 18 rose from 6.5 hours a day five years ago to 7.5 hours a day. But only 25 minutes were typically spent reading a book. The Department of Education found that in 1984 only 8 percent of 13-year-olds and 9 percent of 17-year-olds reported that they "never or hardly ever" read for fun on their own. By 2008, the percentage had jumped to 24 percent for both groups. "The budget of most video games rivals that of Hollywood blockbusters," said Kinney, who worked on the "Wimpy Kid" movie that opened over the weekend. "The kid gets to be the star of the story, and it's really tough to compete with that." Yet several publishers are making the attempt. Scholastic launched a 10-book international mystery series called "The 39 Clues" in the fall of 2008. Scholastic hopes it will appeal to 8-12 year olds, an age group they have successfully captured in the past with titles such as "Goosebumps," "The Babysitters Club" and, of course, "Harry Potter." Much of the action takes place online, however, where kids amass hundreds of collectible cards and compete for prizes. According to Scholastic, they have 760,000 registered users.

What of Hollywood Reporter and Variety? Insiders are baffled by their business strategy and wonder whether they will survive (LABusiness):

In a cost-cutting announcement that shocked insiders earlier this month, Variety said it had laid off its chief film critic and chief theater critic. “The decision to fire Todd McCarthy and David Rooney is a profoundly significant move for a paper like Variety, considering that reviews were such a core function of what they did,” said Sharon Waxman, a former New York Times reporter who runs TheWrap. “It’s almost bewildering in a way that they would do this.”“History may record the dismissals as a seminal moment,” said Hollywood publicist Michael Levine of Levine Communications. However, he believes Peter Bart’s decision to step aside as Variety’s editor in chief a year ago was more important. “Many people working at the Hollywood trade papers are as anxious as a hemophiliac in a razor blade factory,” Levine said ... At the same time, Hollywood Reporter has been plagued by rumors that it would kill its print edition and go Web only. In December, the paper, along with seven other sister publications, was sold by Nielsen Business Media to e5 Global Media LLC, a company chaired by New York media figure Jimmy Finkelstein, for an estimated $70 million.

A librarian speaks: In OP Ed in the LA Times a librarian laments that without people like her - now, pink-slipped - students won't know what they don't know (LA Times):

As a librarian in the Pasadena Unified School District, I teach students research skills. But I've just been pink-slipped, along with five other middle school and high school librarians, and only a parcel tax on the city's May ballot can save the district's libraries. Closing libraries is always a bad idea, but for the Google generation, it could be disastrous. In a time when information literacy is increasingly crucial to life and work, not teaching kids how to search for information is like sending them out into the world without knowing how to read. ... Instead of laying off librarians, we should be studying how children think about information and technology. We need professionals to advocate for teaching information literacy from an early age. We need librarians to love books -- to inspire kids to turn off the screen sometimes and get caught up in a story -- but we also need them to train students to manipulate search engines and databases, to think about them in a fresh way. Instead of closing library doors, we need to give librarians the time to teach what they know: basic research survival skills that are as important as reading, writing and math. If we don't teach our kids to take charge of information, they will get swept aside by it. Sara Scribner is a librarian at Blair International Baccalaureate School, a public middle and high school in Pasadena.

On the back of the Marvel comics acquisition by Disney, the comic book industry is bracing for a copyright battle with possible wider implications that focus's on whether work done by one of Marvels finer creative artists was 'work for hire' or not. (NYTimes):

The dispute is also emblematic of a much larger conflict between intellectual property lawyers and media companies that, in Mr. Toberoff’s view, have made themselves vulnerable by building franchises atop old creations. So-called branded entertainment — anything based on superheroes, comic strips, TV cartoons or classic toys — may be easier to sell to audiences, but the intellectual property may also ultimately belong in full or in part to others. “Any young lawyer starting out today could turn what he’s doing into a real profit center,” Paul Goldstein, who teaches intellectual-property law at Stanford’s law school, said of Mr. Toberoff’s specialty. Mr. Goldstein said cases like the one involving Marvel are only the tip of an iceberg. A new wave of copyright termination actions is expected to affect the film, music and book industries as more works reach the 56-year threshold for ending older copyrights, or a shorter period for those created under a law that took effect in 1978. Mr. Toberoff is tackling what could be one of the most significant rights cases in Hollywood history; it’s certainly the biggest involving a superhero franchise. Unlike his continuing fight with Warner Brothers over Superman, Mr. Toberoff’s rights-reclamation effort against Marvel involves dozens of stories and characters from about 240 comic books. Complicating matters are licensing agreements Marvel has made over the years with rival studios for characters Mr. Kirby helped to create. Sony holds long-term movie rights to Spider-Man; 20th Century Fox has the equivalent for the X-Men and Fantastic Four. Universal Studios holds theme park rights to Spider-Man and the Incredible Hulk. And more films stemming from Mr. Kirby’s work are coming: Marvel is spending hundreds of millions to bring Thor and the Avengers to theaters. If the Kirbys succeed in their reclamation effort — and that’s still an enormous if — they would be entitled to a share of profits from new works based on any of the copyrighted material.

Taking Sherlock Holmes and Watson into the 21st century (Observer):

A bored Holmes once complained to Watson that "life is commonplace; the papers are sterile; audacity and romance seem to have passed forever from the criminal world". Gatiss has set out to prove that this is not the case in 2010. A lifelong devotee of Conan Doyle's original stories, published in the Strand Magazine from 1891, Gatiss said they provided him with an escape from a dreary childhood in Newton Aycliffe, County Durham.

An interview with Sam Shepard (Observer):

Sam Shepard opens up With a new collection of short stories to his name and two of his plays currently showing in New York, the notoriously private Pulitzer prize-winner discusses masculinity, his battle with drink and his 'tumultuous' relationship with Jessica Lange

From the twitter (@personanondata) Sara Paretsky: Interview - Telegraph "Sara Paretsky tells Jake Kerridge about her headstrong heroine, VI Warshawski" Telegraph From the best travel show on tv (@noreservations) Anthony Bourdain is back with sequel to follow Kitchen Confidential The Bookseller Jacket Copy (LATimes) Publishing lessons from SXSW Interactive: A publisher refects on "SXSWi" LA Times Focusing on WorldCat, OCLC Sells NetLibrary to EBSCO, Thins FirstSearch - 3/17/2010 - Library Journal BBC News - JD Salinger letters shine light on a recluse. On display at the Morgan Library. Chelsea stutter and MU remain rightfully at the top and I ran a decent half marathon with reasonable room for improvement.

Brands to Publish - Repost

It's Friday which means another regurgitation from several years back. This one originally published on January 13, 2007:

Nancy Drew has always held a fascination for me, not because I clamor for a good girlie mystery but because of how The Nancy Drew series evolved. Established by Edward Stratemeyer, The Drew books were written by a number of ‘house’ writers (Mildred Benson) and the books were never dependent upon one author for their success. While the publisher of the titles was little recognized, the Drew series grew to become a strong branded product line and, as such, represents a model today's publishers may want to emulate. Corporate branding exercises little impact in the publishing world: We all know this and, while some publishers have tried to create brand strength (i.e., Paramount Publishing), success has been sparse and probably – in truth - not aggressively sought after.

There are exceptions. I used to start my Intro to Publishing courses at Price Waterhouse by asking the group to name a publisher. I stopped doing this when a partner once popped up and said HARLEQUIN! While some consumers might be able to identify Harlequin or Hungry Minds or Fodors, they would be hard-pressed to cite HarperCollins or Simon & Schuster with any relevance. Consumers have little emotive connection with publishing trademarks (a fundamental facet of brand awareness) and publishers are unlikely to ever achieve this connection with consumers. So, in an age in which the author transcends the publisher (Patterson, Grisham, Ludlum, Courtnay) what is a publisher to do? Investing in a branding campaign would be expensive and ultimately pointless, but embarking on a strategy similar to that which produced the Drew books might be more constructive.

My extrapolation of the Drew example led me to wonder why publishers don’t establish their own character-based brands. More publishers will do what Nelson has done and drop imprints, but will they also start to develop their own character-based franchises? Clearly, it is hard to ‘bottle’ what makes John Grisham a popular writer, but there are examples where existing characters have been extended in new ways. For example, there is a cottage industry of TV soap-opera lovers who create stories, novelizations and back-stories for the characters that appear in the TV soap operas. George Macdonald Frasier took a minor character out of Tom Brown’s School Days and created The Flashman series of satirical historical novels. The book packager Alloy Entertainment (which got caught up in a plagiarism charge last year) also operates a Nancy Drew model. There must be many others.

Publishers don’t have to look far to see how powerful character-based publishing could be. The comic book industry has been doing this for 50 years. In this industry the corporate brands (Marvel, DC Comics, etc.) have benefited from some of the reflected brand indentity that characters such as Superman, Spiderman, Aquaman and others have created in the minds and behavior of consumers. In book publishing, the opportunities to create character franchises are there for the asking. James Patterson has embarked on developing an author/character franchise and, if publishers were smart, they would be thinking about creating contracts that gave them the ability to broadly leverage the characters that authors create. This would include (with the author's permission) ghost-written books and stories of both the main characters and development of derivative story lines out of the books (as in the Flashman example). The opportunity to expand the content output and publish to a ‘template’ would generate higher revenues for publisher and author, stable consistent output and content consumers could enjoy.

The above scenario still accords some level of risk for publishers that the ‘powerful’ author may go off on his or her own. Given the examples in the music industry of late, some have suggested that major authors will do what Radiohead has done and walk away from the traditional publishing model. Some may, but it will hardly be an avalanche and this threat is no worse for a publisher than losing an established author to a rival house. The bigger question is how publishers can maintain a consistent funnel of marketable branded content. I believe publishers should be attempting to develop their own proprietary content franchises by building character properties in the same way the Nancy Drew series was created. There are several ways to develop this: Firstly, publishers can simply buy out an authors work so that they own it in total and can leverage it anyway they want. Secondly, they can license characters from other media: Who wouldn’t want to read a hard-boiled procedural featuring Law & Order’s Lennie Brisco, for example? As publishers begin to travel down this road, they could evolve into character based enterprises similar to Disney and Marvel. This, in turn, would make them less susceptible to the whims of authors and the corresponding limitations of their contracts.

Harpercollins is owned by NewsCorp which owns Fox. Assume that Fox owns the character "Dr. House"; why don’t you see a series of House mysteries written to a formula by ‘house’ (sorry) authors whose job it is to churn these out every two weeks? And there is no need to limit the books to Dr House; any of the characters in the show should be fair game. Publishers who focus on their publishing brands have things backwards: They should see things from the consumer's point of view and that view is more than likely focused on either an author or a character. Build the product pipeline up with a character based publishing approach and the publisher may grow in the ascendancy.

Obviously, authors are a critical component to a publishing house’s viability but as distribution flattens, barriers to entry drop and generally the industry changes. Publishers need to reassess their content-acquisition strategies to ensure they have access to revenue-producing assets that will remain with them for an extended period of time. Perhaps the Drew model will become more widespread.

MediaWeek (Vol 2, No 40): Curating, Larsson, BooksEtc, Disney, Magazines

Interesting article in Sunday's NYTimes about curating content in the retail sense. Some relevance to book retailing and publishing although not specifically noted in the article (NYTimes):

The word “curate,” lofty and once rarely spoken outside exhibition corridors or British parishes, has become a fashionable code word among the aesthetically minded, who seem to paste it onto any activity that involves culling and selecting. In more print-centric times, the term of art was “edit” — as in a boutique edits its dress collections carefully. But now, among designers, disc jockeys, club promoters, bloggers and thrift-store owners, curate is code for “I have a discerning eye and great taste.”
Or more to the point, “I belong.”
For many who adopt the term, or bestow it on others, “it’s an innocent form of self-inflation,” said John H. McWhorter, a linguist and senior fellow at the Manhattan Institute. “You’re implying that there is some similarity between what you do and what someone with an advanced degree who works at a museum does.”
Indeed, these days, serving as a guest curator of a design blog, craft fair or department store is an honor. Last month, Scott Schuman, creator of The Sartorialist, a photo blog about street fashion, was invited to curate a pop-up shop at Barneys New York.

The Girl Who kicked the Hornets' Nest by Stieg Larsson is the final book in Stieg Larsson's posthumously published Millennium trilogy and seals his status as a master storyteller, says Nick Cohen of the Observer. Of course not available in the US until next year. (Observer):

I cannot think of another modern writer who so successfully turns his politics away from a preachy manifesto and into a dynamic narrative device. Larsson's hatred of injustice will drive readers across the world through a three-volume novel and leave them regretting reaching the final page; and regretting, even more, the early death of a master storyteller just as he was entering his prime.

In the UK Borders has announced that it will retire the BooksEtc and Borders Express brands (Independent):

Borders UK has confirmed it plans to remove the Books Etc and Borders Express brands from the high street. The bookseller – which in July completed a management buyout backed by the retail restructuring specialist Hilco – is trying to sell its remaining seven Books Etc shops and two smaller format Borders Express stores.

Books Etc has been a financial millstone around the neck of Borders UK for a number of years. The retailer's spokesman said: "I can confirm that our future strategy is single-brand." Earlier this month, Borders UK said it would close its Books Etc outlet in Staines, Surrey. The company, which has 36 core Borders stores, came close to collapse in July under its previous owner Risk Capital Partners, the private equity vehicle of Luke Johnson, the Channel 4 chairman.

Was Frankenstein too good to have been written by a woman? (HuffPo):

The debate has continued right up until the present day, most recently through the publication of John Lauritsen's The Man Who Wrote Frankenstein (Pagan Press, 2007). The logic of the doubters has not shifted noticeably for 200 years: Frankenstein is too good to have been written by a young woman, therefore it must have been written by a man.
Percy Shelley was indisputably present at the birth of the creature, who was born in the Swiss countryside during the unseasonably rainy summer of 1816. Mary and Percy Shelley were part of a group that included Lord Byron, Claire Clairmont, and John Polidori, Byron's personal physician. To beguile the hours, the group took to reading German ghost stories and decided to try and write their own. Mary was stuck for inspiration for several days when finally one night her dreams yielded up the image of a depraved scientist bringing to life a ghastly simulacrum of a man.

Read more at: http://www.huffingtonpost.com/victoria-rosner/co-creating-a-monster_b_301089.html

Disney launch a subscription based web site for children (NYTimes):

DisneyDigitalBooks.com, which is aimed at children ages 3 to 12, is organized by reading level. In the “look and listen” section for beginning readers, the books will be read aloud by voice actors to accompanying music (with each word highlighted on the screen as it is spoken). Another area is dedicated to children who read on their own. Find an unfamiliar word? Click on it and a voice says it aloud. Chapter books for teenagers and trivia features round out the service.
“For parents, this isn’t going to replace snuggle time with a storybook,” said Yves Saada, vice president of digital media. “We think you can have different reading formats co-existing together.”
Publishers, of course, have been experimenting with e-books for the children’s market for years. About 1,000 children’s titles are now available digitally from HarperCollins. Scholastic has BookFlix, a subscription service for schools and libraries that pairs a video storybook with a nonfiction e-book on a related topic. “Curious George” is available on the iPhone.

There may be a new service provider in the magazine space that would aggregate magazine content for readers using electronic devices such as the Kindle, Blackberry, and iTouch. (ATD):

The idea: The new company, which will operate independently from the publishers that invest in it, will create a digital storefront where consumers can purchase and manage their subscriptions, which can be delivered to any device. The pitch: Control a direct relationship with consumers while gaining leverage with heavyweights like Apple (AAPL) and Amazon (AMZN).
Industry executives briefed on Squires’s plan say it has been well received by Time Inc.’s peers and that several major publishers, including Hearst and Condé Nast, are expected to sign on for the JV, which isn’t scheduled to debut until 2010. No comment from Hearst, Condé Nast or Time Inc., a unit of Time Warner (TWX).

Newsweek looks at the 'controversy' over holding back big books from the eBook store and gets to the nub of the issue (NewsW):

Why isn't Amazon.com livid about this? After all, this technology firm is providing the beleaguered publishing industry a more efficient way to reach readers, and it's being stiffed on some big sellers. It may be that Amazon is losing money on many sales it makes of Kindle-ready books. With the Kindle, Amazon has inverted the old business model of giving away the shaver and selling the blades. Amazon is using the blades (cheap books, in this case) as a loss leader to induce people to pay up for the shaver (the $299 Kindle). As I understand it, Amazon pays the same wholesale price for Kindle books as it does for real books—generally 50 percent of the list price. For a typical hardback that retails for $26—say, E.L. Doctorow's Homer & Langley—Amazon pays $13 and then sells it for $9.99 on the Kindle, taking a $3 loss on each sale. (The longer-term strategy, publishers fear, is that once the Kindle gains significant market share, Amazon will negotiate lower wholesale prices for digital versions.) In the short term, though, this means that Amazon is likely to lose more money on more expensive books sold on the Kindle. It would have to pay $17.50 per "copy" of the digital version of True Compass, and $14.50 per copy for Going Rogue, but would sell them for significantly less. It may seem perverse, but once Amazon has sold a Kindle to a customer, it doesn't have all that much incentive to sell expensive books to the Kindle owner—unless it's willing to boost the prices of electronic books significantly.

The Kindle goes to Princeton to mixed reviews. However, in the comments students unload on the whiners (DailyP):

But though they acknowledged some benefits of the new technology, many students and faculty in the three courses said they found the Kindles disappointing and difficult to use.
“I hate to sound like a Luddite, but this technology is a poor excuse of an academic tool,” said Aaron Horvath ’10, a student in Civil Society and Public Policy. “It’s clunky, slow and a real pain to operate.”
Horvath said that using the Kindle has required completely changing the way he completes his coursework.
“Much of my learning comes from a physical interaction with the text: bookmarks, highlights, page-tearing, sticky notes and other marks representing the importance of certain passages — not to mention margin notes, where most of my paper ideas come from and interaction with the material occurs,” he explained. “All these things have been lost, and if not lost they’re too slow to keep up with my thinking, and the ‘features’ have been rendered useless.”

I’m With Him

In an Associated Press article posted in early June, “Publishers Testing e-books for Young People” (MSNBC), Jon Yaged, U.S. publisher of the Disney Book Group, expressed his reluctance to use the term e-book, instead preferring “digital books.” His quote: “There hasn't been enough success with the e-book. We believe it's better to call it something different."I’ve had it with the term e-book too (or is it eBook? ebook? What if it starts a sentence? Is it EBook?). It’s messy, it’s inconsistently spelled, and it conveys the entirely wrong message. I have a hope that changing the terminology around the e-book might help to spark some new thinking on the subject. There has to be a better argument for digital books than “you can read in bed with the light on” (frequently cited, see this NY Times article from August 9 ).

If the goal of the e-book isn’t to replicate the reading experience online but change it fundamentally, what new business models could ensue? This is not to criticize the worthy efforts and significant technology and standards hurdles overcome by those working in this area—just a shout out to the sales and marketing strategists who might capitalize on what is indeed a growing market by changing things up a bit.

Susan Ruszala who is a freelance marketing consultant to publishing technology companies and was formerly responsible for international marketing activities for VISTA (now Publishing Technology Plc). She is an avid reader. You can contact Susan at sruszala@gmail.com.

Dugan Appointed Head of Entertainment Rights North America

Deborah Dugan, who was head of Disney Publishing Worldwide (not Hyperion), has been named CEO/President of Entertainment Rights North America. From AWN :

At Entertainment Rights, Dugan will have overall responsibility for the day-to-day running of the U.S. operations (including Canada), which encompasses Entertainment Rights U.S., Classic Media and Big Idea. Dugan's main role will focus on further building and maximizing the revenue streams for the group's entire brand portfolio across TV, licensing & merchandising, DVD/video and digital & music. Dugan will also work closely with the group's executive management team based in London to formulate the strategic direction of the business as well as exploiting new business development opportunities ensuring the company maintains its leading position.

In a related story, the Disney unit Dugan ran announced today it is moving to Westchester.

The News:

Attorney General: Jail the Reporters!
Our Attorney General believes the courts have the right to prosecute reporters for publishing secret material and information. Speaking on This Week he indicated that it was a possibility but further stated that it was up to Congress - which is a bit of a cop-out since he's the one doing the indicting. This story is covered extensively.
http://www.sfgate.com/cgi-bin/article.cgi?file=/c/a/2006/05/22/MNGHDIVTMH1.DTL

VNU: Under new Ownership.
It is no doubt a relief to the management and employees of VNU that the venture capital backed acquisition of the company has been completed. As the dust settles, it will become clearer how much of a distraction this has been to management over the past 12 months reflected in potential asset sales, management changes and potentially more acqusitions down the line. Having completed this very large buyout, it also raises a question whether other venture capital deals will be struck with some of the other large information and content business.
http://msnbc.msn.com/id/12901694/

Bertelsmann in Public Offering:
The date by which Bertelsmann will have to decide whether to proceed with the offering forced on them by their Belgium partner is approaching. My money is on it not happening. http://business.guardian.co.uk/story/0,,1780128,00.html

China and Electronic Content
An interesting although short story in the Shanghai Daily speaks of a rapid rise in the comfort level with online books and articles. Perhaps this is no real story; however, like the generation jumping that took place with mobile phones versus land line phones in developing nations like China could we be witness to a similar trend for publishing. Admittedly there has been a lot of traditional publishing in China for hundreds of years but it is the US and European content the population craves and this material may be available only in digital form thereby forgoing the print format. Link: http://www.shanghaidaily.com/art/2006/05/22/278690/More_bookworms_turn_to_Internet.htm

Duggan moving on From Disney:
Disney has appointed R. Russell Hampton as President of Disney Publishing. This is the licensing arm of Disney Publishing and doesn't impact Hyperion. http://today.reuters.com/news/newsArticle.aspx?type=industryNews&storyID=2006-05-19T171913Z_01_N19429088_RTRIDST_0_INDUSTRY-MEDIA-DISNEY-DC.XML


BISG Annual Sales:
There are too many reports attempting to document the size of the US publishing marketplace. Last year, under the guidance of Jeff Abraham, BISG set out to take a new look at the manner in which data was compiled and the constituency represented in the sales data reported. The BISG reports had remained static for many years and it was about time that this revision was done. The results were extraordinary in that the surveys BISG compiled resulted in the addition of $8.0 billion to the generally accepted market value of the US publishing industry. The methodology stands up although there is some debate as to whether there is any double counting if the 'under the radar' numbers are added to the traditional sales numbers. This year BISG has combined what were essentially two reports last year into one. I believe BISG will continue to make progess in the next few subsequent reports that will address the remaining veracity issues and that we will end up with vastly more accurate data versus what has been available over the past several years.
http://www.bisg.org/publications/trends2006.html

Starling Laurence
Interesting article about the editor in chief of W W Norton. http://www.iht.com/articles/2006/05/18/features/novel.php

AMS hires Gary Rautenstrauch.
I recall a personal call from Philip Blackwell to tell me he had hired Gary to run their US operation based in Oregon - that was in November and things change fast. Gary is now the 'safe pair' of hands to get AMS back on the right track.
http://phx.corporate-ir.net/phoenix.zhtml?c=69436&p=irol-newsArticle&ID=856454&highlight=

Starbucks and Books:
Author tours and promotions, in store sales and events and of course coffee. What could be better? Will thier own publishing program be far behind? http://www.nytimes.com/2006/05/16/books/16read.html?_r=1&oref=slogin

3/24/99: ReedElsevier, Bertelsmann, Barnes Noble,

Publishing News: March 24th, 1999
Mercer Study on Single Copy Sales
Reed Elsevier Profit Forecast Disappoints
Martin Maleska, Rejoins Veronis, Suhler
Bertelsmann Havas Deal is Off.
AAP: 1998 Book Sales Exceed $23Bill
US Book Store Sales: $13Bill
Amazon on Drugs
Golden Reprieve
Barnes & Noble Sales: $3Bill

Mercer Study on Single Copy Sales
Mercer Consulting recently announced preliminary findings from a study commissioned by the Magazine Publishers Association (www.magazine.org) . The study was a review of the single copy magazine channel and the potential role of scan-based trading in the retail market. The objective of the study was to determine the best way for the industry to take positive, concerted action to improve the efficiency and effectiveness of the single copy channel for all trading partners, and address the future role of scan-based trading. During the first phase, Mercer worked with retailers, wholesalers, national distributors, publishers and other industry players to identify opportunities for performance improvement in the retail sales of magazines. Mercer identified potential rewards equivalent to as much as $420 million per year or ten percent of retail sales based on their input, as well as lessons from other industries, and economic modeling of the supply chain. In support of the above, the MPA has adopted a set of cooperative standards and practices named COSMAR which will require changes and new approaches on the part of all trading partners: publishers, distributors and retailers. Mercer and the MPA will look to prototype their recommendations over the next few months.

Reed Elsevier Profit Forecast Disappoints
They don’t have a CEO, their merger with Wolters Kluwer failed and now profits announced for 1998 were 6% below last year and projected earnings for 1999 will be flat. Pre-tax profits fell to $1.26 billion in 1998 and these results were in line with the six percent drop the company forecast in December. Sterling's strength and Reed's heavy investment in adapting its core hard-copy publications for the Internet age were given as reasons for the poor results. Sales were $5.5Billion for 1998. This lack of strong growth, combined with a lack of news on Reed's search for a new chief executive, delivered a double blow to its shares, which fell sharply in London and Amsterdam, despite strong overall gains by both stock markets. The company did say that discussions with a candidate were in an advanced state however it is now two weeks after this announcement and they still have not made an announcement. Out going CEO, Nigel Stapleton declined to comment on how soon Reed will announce the results of its search, which was unveiled seven months ago. Other items of note; Reed spent an additional 15 million pounds on major initiatives in electronic publishing last year, taking the total to 80 million. The company posted ``pure'' Internet revenues of 10 million pounds, a 50 percent increase year on year.

Martin Maleska, Rejoins Veronis, Suhler
Veronis, Suhler & Associates announced that Martin E. Maleska, a senior publishing executive and investment banker who most recently served as President of Simon & Schuster's International and Business & Professional Group, has rejoined the firm as Advisor Managing Director. Mr. Maleska will be involved in all aspects of the firm's merchant banking activities which include investment banking and its private equity funds. The return to Veronis, Suhler is a homecoming for Mr. Maleska, who was a managing director at the firm from 1991-1995, concentrating on magazine, newspaper and book publishing transactions.

Bertelsmann Havas Deal is Off.
The proposed merger between Bertelsmann and Havas’s professional publishing operations is off. Apparently, neither side would concede to the other in terms of who’s operation was bigger. The companies continue to maintain close relations in French book clubs and online book retailing.

AAP: 1998 Book Sales Exceed $23Bill
The American Association of Publishers recently released their preliminary sales numbers for 1998. According the AAP numbers, retail book sales reached $23Bill. Give the last five years of declines or mediocre sales gains this was a remarkable sales increase of 6% over 1997. The biggest sales gains occurred in Adult paperback (+10%), Juvenile paperback (14%), and ElHi Texts (10%). In contrast to prior years, there were no categories which showed declining year on year sales.

US Book Store Sales: $13Bill
Bookstores sales reported in Publishers Weekly rose 2.6% to over $13Bill. Store sales measured against retail sales generally were only half the experienced gain for the sector.

Amazon on Drugs
Amazon.com purchased a 40% interest in the online drugstore, drugstore.com. Amazon made the investment a number of months ago and it recently came to light due to drugstore’s launch. Jeff Bezos, Amazon CEO declined to comment on other internet related investments Amazon may have made. Amazon appears to be actively proving the ‘mall’ internet business model.

Golden Reprieve
Golden Books, the beleaguered Children’s Book publisher where Richard Synder went to re-create Simon & Schuster, reached an accord with it’s Bankers on restructuring plan. Essentially, the deal recapitalizes the company with a loan from CIT group. Current management, which has been in turmoil over the past 12 months, will remain in place. Rumors at the end of last year had Disney purchasing Golden Books however nothing came of this. Golden holds long term licenses on a number of Disney characters.

Barnes & Noble Sales: $3Bill
Barnes & Noble sales hit $3Bill in fiscal 1999. Sales increased 8% over last year and sales from superstores accounted for 84% of total sales. Internet sales at barnesandnoble.com increased to $70.2MM. B&N reports that they will add up to 50 new superstores during 1999 however the company’s fiscal 2000 earnings forecast was low which helped reduce the stock price by $5 last week. Let’s not forget that Amazon is on a yearly run rate of $1Bill – what’s with the bricks and mortar?

12/10/97: Reader's Digest, Reed Elsevier, Kluwer, Thomson

Summary
Shareholder Unrest Brewing At Reader's Digest
Dow Jones Teams Up With NBC: Companies Hope to Stem Losses Abroad With TV-Internet Partnership
Wolters Plans Acquisition Of Thomson Publications
Penguin Putnam Inc. Announces Publishing Partnership With DreamWorks SKG
Thomson Financial Publishing to Expand Electronic Commerce Initiatives
Harcourt General Announces Results For Fourth Quarter And Full Year
Reed Elsevier: Update on Trading and on Progress on Proposed Merger with Wolters Kluwer:
National Geographic Chief Quits: John Fahey Moves Up in Society as Reg Murphy Suddenly Moves Out
Wolters Kluwer Reed Elsevier
New York Times Says It Plans Acquisition In 1999

RECENT NEWS

Shareholder Unrest Brewing At Reader's Digest
(Book Publishing Report) A minority shareholder is going forward with its bid to place two candidates on the Reader's Digest board of directors, despite the fact that the company has politely refused its request. Making matters worse for Reader's Digest-which will hold what could be a fractious annual meeting this Friday (12th)-is the fact that shareholder Corporate Value Partners has chosen to conduct its efforts publicly. The shareholder discord is just the latest problem to beset Reader's Digest, which has been struggling to reverse an alarming drop in its financial performance caused by a steadily eroding customer base (BPR, Aug. 18). BPR has learned that Barbara Morgan, senior vice president and editor in chief of the company's Books and Home Entertainment Products division, is leaving the company. The division's operating income sank 37.5% to $201.1 million on revenues that fell 11.9% to $1.85 billion in fiscal 1997, ended June 30. Morgan is the latest in a series of executive departures that began with chief executive officer James Schadt's forced resignation in August. Since then, CFO Stephen Wilson, senior VP of strategic planning Glenda Burkhart, senior VP and general counsel Paul Soden and RD Europe president Martin Pearson have also left.

Dow Jones Teams Up With NBC: Companies Hope to Stem Losses Abroad With TV-Internet Partnership
After a year of talks, media giants Dow Jones & Co. and General Electric Co.'s NBC division announced today that they will form a global television and Internet partnership cementing the brands internationally and tempering losses both companies are experiencing in their overseas operations. The merger will consolidate the two companies' business-news channels in Europe and Asia -- cutting costs and expanding each side's distribution -- while also adding Dow Jones news, and perhaps interviews with its Wall Street Journal reporters, to CNBC's programming in the United States. Dow Jones lost $48 million in its television ventures last year, while NBC 's subsidiary CNBC lost $15 million in Asia. NBC will pay a licensing fee to Dow Jones but did not disclose how much. CNBC will now be known both domestically and internationally as "a service of NBC and Dow Jones. For Dow Jones, the alliance comes at a time when Kann is under intense pressure from the company's board to curtail money-losing operations. Revenue from this deal, as well as the cash from several recent deals to license the well-known market barometer Dow Jones industrial average as a vehicle for the trading of futures and options contracts, will enhance the company's bottom line. But Kann's larger problem, analysts said, is Dow Jones Markets, the real-time news and data service formerly known as Telerate, which is losing market share to competing services run by Reuters Holdings PLC and Bloomberg Financial Markets. Kann announced a controversial plan in January to spend $650 million to revive the ailing unit, which drew the ire of shareholders and certain members of the Bancroft family, which controls 70 percent of the voting shares of Dow Jones stock and has four of the 15 seats on the company's board of directors. After pressure from outsiders and a fresh look at the plan by Dow Jones's board, the company changed course and announced it was "exploring options" regarding Dow Jones Markets, including the sale of the unit. "It has got to be sold," said Michael Price, the influential money manager who holds 4.1 million shares of Dow Jones stock and has been pushing the company since January to sell the flagging unit. Still, one of the things Kann has been criticized for is not doing enough to leverage the Dow Jones franchise as a premiere provider of financial news. Today's deal will help give the company a worldwide television platform to showcase its stories. CNBC will have worldwide television rights to Dow Jones stories and plans to set up studios at the Wall Street Journal's headquarters in the World Financial Center in downtown Manhattan. For NBC , the move strengthens its CNBC subsidiary, which is accessible in 65 million households and is projecting a $100 million profit this year. On the Internet, the Web site run by MSNBC -- an existing NBC -Microsoft Corp. joint venture -- will provide highlights from the Wall Street Journal, flagged under the CNBC/Dow Jones logo. As part of today's deal, Dow Jones acquired a third of MSNBC Business Video, which delivers video clips from corporate speeches and conferences to clients' computers. Both NBC and Dow Jones acknowledged that fourth-quarter earnings may be pinched by restructuring costs related to today's announcement. December 10, 1997 Copyright (c) 1997 The Washington Post Received via NewsEDGE

Wolters Plans Acquisition Of Thomson Publications
AMSTERDAM -- Dutch publisher Wolters Kluwer NV said it agreed to acquire scientific and medical publisher Thomson Science from Thomson Corp. of Canada. Wolters Kluwer didn't provide financial details of the planned transaction. However, the company said it expects the deal to be completed around the end of the year. Wolters said a significant number of Thomson Science's medical publications fit well with those of Wolters' U.S. medical publisher Lippincott-Raven, while its general scientific publications complement those of Wolters Kluwer Academic Publishing. Wolters said the acquisition won't include the German medical and scientific publications of Thomson Science. Wolters Kluwer's core activities include the legal, medical, educational, and other scientific and professional fields. Its principal operations are in the U.S. and eight European countries including Spain, Italy, Germany and France. Copyright (c) 1997 Dow Jones and Company, Inc.

Penguin Putnam Inc. Announces Publishing Partnership With DreamWorks SKG
NEW YORK, Dec. 9 Penguin Putnam Inc. has signed a multi- year strategic license agreement with DreamWorks Consumer Products, it was announced today by Douglas Whiteman, Executive Vice President of Penguin Putnam. The deal grants Penguin Putnam publishing rights for at least the first five animated feature films for DreamWorks Pictures, as well as the option to propose publishing programs for other DreamWorks properties, including live action motion pictures, animated and live action TV programs and direct-to-video films. Penguin Putnam's rights encompass most book formats with a suggested retail price of $4.00 and above. Penguin Putnam is currently working on more than two dozen titles in support of the 1997-1998 motion pictures set for release from DreamWorks Pictures. The first four books shipped in early November and are based on the film Amistad, directed by Steven Spielberg. Penguin Putnam is also developing a range of titles and formats for Small Soldiers (Summer 1998). Directed by Joe Dante (Gremlins, Innerspace) and with special effects from Stan Winston Studio and Industrial Light & Magic (The Lost World: Jurassic Park), the film tells the story of a small town that is overtaken by artificially intelligent toys. Grosset & Dunlap plans six titles, including a movie storybook and a top secret dossier, all capturing the innovative look of the film. In support of DreamWorks' first animated film The Prince of Egypt (Holiday 1998), Penguin Putnam is developing titles in at least a dozen formats, with age-appropriate content for both adults and children, and honoring the ground-breaking animation style of the film. SOURCE Penguin Putnam Inc via Businesswire

Thomson Financial Publishing to Expand Electronic Commerce Initiatives
Thomson Financial Services announced today the acquisition of The EDI Group, Ltd. by its Thomson Financial Publishing unit. Terms of the agreement were not disclosed. The EDI Group is a professional services organization specializing in providing the highest quality research, publication and education services to companies participating in the EDI and Electronic Commerce marketplace. The EDI Group also offers public and private courses in EDI, EC and financial EDI/EFT. In addition, The EDI Group publishes quarterly a professional journal; EDI FORUM: The Journal of Electronic Commerce. Source Businesswire

Harcourt General Announces Results For Fourth Quarter And Full Year
Harcourt General, Inc. (NYSE:H) today reported that its Harcourt Brace publishing businesses achieved strong year-over-year gains in the fourth quarter of fiscal 1997, resulting in a record full-year performance by the Company before non-recurring charges and amortization associated with the acquisition of National Education Corporation (NEC). For the full year, Harcourt General reported that revenues rose 12.2 percent to $3.69 billion from $3.29 billion in 1996. Before NEC-related amortization of goodwill and acquired intangibles and non-recurring charges, operating earnings for the year were $375.7 million, a 9.0 percent increase from $344.7 million in 1996. After $104.1 million in NEC-related amortization of goodwill and acquired intangible assets and $277.2 million in non-recurring charges, the Company had an operating loss in 1997 of $5.7 million. The Company reported a net loss of $115.1 million, or $1.64 per share, for the full year, compared to net income of $190.9 million, or $2.62 per share in 1996. Revenues in the Harcourt Brace publishing operations increased 12.8 percent in the fourth quarter to $398.0 million, while operating earnings were up 22.3 percent to $97.0 million. For the full year, Harcourt Brace publishing revenues increased 14.5 percent to $1.25 billion, with operating earnings before non-recurring charges rising 13.3 percent to $223.1 million.

Reed Elsevier: Update on Trading and on Progress on Proposed Merger with Wolters Kluwer: Reed Elsevier today issues a brief status report on the progress of the proposed merger of Reed Elsevier with Wolters Kluwer and, in line with the practice introduced last year, an update on recent trading and some other material issues. Proposed Merger with Wolters Kluwer: "On 13 October 1997, the Boards of Reed International P.L.C., Elsevier NV and Wolters Kluwer NV announced that they had agreed in principle to propose to their respective shareholders a merger of their businesses. Progress continues to be made in developing the detailed merger proposals. The major steps implemented so far have included relevant employee consultation processes in the Netherlands, as well as the filing of necessary information with the competition authorities in various jurisdictions. "It is expected that, subject to receiving certain regulatory clearances, a circular to the shareholders of Reed, Elsevier and Wolters Kluwer, setting out details of the proposed merger will be issued on 27 March 1998 together with the respective 1997 annual reports. IPC Magazines: "On 27 October 1997, Reed Elsevier announced the possible divestment of IPC Magazines, its UK consumer magazines business. Review of the available options is continuing and if it is decided to pursue such a divestment, it is intended that any transaction would be concluded early in 1998. Update on Reed Elsevier’s Trading: "In September we completed the $447 million acquisition of the Chilton Business Group, a major US business to business publisher. Also, in October, we agreed a merger between Utell, our hotel reservation and representation business, and the US company, Anasazi Inc., which is the leading supplier of technology solutions to the hotel and hospitality market. "Reed Elsevier’s 1997 preliminary results will contain a number of exceptional items, the most significant of which will be substantial provisions in respect of the Reed Travel Group. Since the announcement, on 26 September 1997, of irregularities in circulation claims made by the Reed Travel Group, considerable progress has been made in determining the extent of the misstatements and in developing recompense plans for advertisers in the affected publications. Revised sales and marketing practices have already been introduced and circulation claims are now being rigorously controlled. "It is not possible at this stage in the process to quantify either the full financial effect of the recompense plans or the impact on the future profitability of the Reed Travel Group and the related value of its intangible assets. The exceptional charges will be in relation to the recompense plans, together with a non-cash write-down of intangible asset values. Source: Reed Elsevier

National Geographic Chief Quits: John Fahey Moves Up in Society as Reg Murphy Suddenly Moves Out
The National Geographic Society's chief executive resigned yesterday, only 18 months after taking the top job at the venerable Washington educational and publishing organization. Reg Murphy said he had been planning the move all along and dismissed any suggestions of dissension in his departure. He had been the society's No. 2 executive since 1993. During his tenure, Murphy, 63, a former newspaper publisher, aggressively cut costs and steered the nonprofit society toward profit-making ventures, such as producing dramatic TV movies and starting a chain of National Geographic stores. He also launched new foreign-language editions of the society's famed yellow-bordered magazine in one of the biggest expansion pushes in the publication's 109-year history. The strategic changes made Murphy a controversial figure within the society, a genteel, tradition-bound outfit that has long projected a semi-academic air. Murphy's successor, appointed by the society's board yesterday, is John Fahey, who joined National Geographic just 20 months ago from Time-Life, the direct-marketing arm of Time Warner . Fahey, 45, was recruited by Murphy from Time-Life in Alexandria to run National Geographic Ventures, the for-profit subsidiary Murphy started in 1995. The management changes represent a swift transition at an institution not known for moving quickly. They underscore the ascendancy of executives who've come from outside the organization and have a keener eye on the bottom line. Fahey takes over at a time when the society is in relatively strong shape. Circulation of its flagship magazine, which lost readers throughout much of the 1980s, has stabilized at about 9 million subscribers, who receive the magazine by becoming dues-paying "members" of the society. Its major growth area is its television operations. National Geographic Television produces documentaries and nature programs appearing on NBC and the TBS and Disney Channel cable networks. It has also moved into making dramatic movies for theatrical and broadcast distribution. Its first dramatic offering, "Forbidden Territory: Stanley's Search for Livingstone," was broadcast on ABC Sunday. Copyright (c) 1997 The Washington Post Received via NewsEDGE

Wolters Kluwer Reed Elsevier
The European Union Commission Friday opened a detailed four-month inquiry into the planned merger of Anglo-Dutch publisher Reed Elsevier (N.ELS, U.REE) and Dutch publisher Wolters Kluwer NV (N.WOK), an E.U. source said. Via Newsedge

New York Times Says It Plans Acquisition In 1999
The New York Times Co. said Thursday that it was ``counting on an acquisition to provide considerable future growth'' sometime in 1999. The company also predicted increases in revenues and operating profits, and its stock rose to a 52-week high. ``The next step in our external development plan is to bring an investment banker on board'' to examine potential properties, the company's president and chief executive, Russell T. Lewis, said at a New York conference of investors, sponsored by Paine Webber. But Lewis added that he did not ``anticipate any significant developments in this area until 1999.'' The Times also disclosed that it planned a new section of technology news called Circuits in February and that it would publish seven to nine special one-time sections in 1998. In addition, the company made its earnings predictions, reporting that operating profit for the newspaper group, its largest division, was expected to rise 35 percent from last year to between $430 million and $440 million. The Times also said that earnings before interest, taxes, depreciation and amortization were expected to rise 30 percent, to between $590 million and $600 million. The Times Co., which had revenues of $2.6 billion in 1996, publishes The Boston Globe and 21 regional newspapers in addition to The New York Times, as well as three magazines. The company also operates television and radio stations
Copyright (c) 1997 The New York Times Co. Received via NewsEDGE from Desktop Data, Inc.