HP's E-Reader Concept "BOOK"

This looks like a really cool looking tool. Video presentation at the bottom of the page.

HP presented its ‘e-book reader’ during 2007 HP Mobility Summit in Shanghai, China, which is a concept of next generation e-book featuring intuitive interface. You can flip pages of book content in the reader as if you turn pages of real book and by utilizing HP’s online photo website ‘Snapfish’, you can enjoy photo book function as well. It is still a prototype, so it will take time to launch as a real product to research more, develop dedicated software, and receive feedbacks from customers, a company official mentioned.

Video presentation:

Is the New York Times in Play?

Courtesy of a link from media bistro, Michael Wolf and Jon Fine of Vanity Fair discuss whether the NY Times is in play or not. I don't believe Wolf makes the case - and he is forever looking to throw out the ancient regime - and agree with Fine that at the moment the comparison with the Bancrofts and Dow Jones does not compare to the NY Times circumstances. Interestingly, Wolf suggests a 2x market current cap ($7bill) as his deal or no deal offer which suggests even he thinks the circumstances would have to be extraordinary for this to happen.

On a topical note, the Times has also indicated (via Gawker) that it needs to release itself from the shackles of a print based orientation and become far more flexible both in the manner in which it develops content and who develops the content. According to Managing Editor Bill Keller,

He also spoke about the "gradual reallocation of resources from print towards digital" and copy editors being moved to the day side, so that there could be a "greater flow of fresh quality edit material."

So, journos won't be working all day on one story - or perhaps they will but the content/story will be updated more frequently and potentially by others if the story continues to develop past bed-time. Additionally, he went on to challenge the idea that The Times needs to focus on editorial control, standards and spelling and personnally that worries me. The Times has had its difficulties with some of that in recent years; nevertheless, surely one of the main attractions of the product is the measure of control (and readability) that the editors exert over journos. And while Keller (and lets face it he is more an expert than I) admits the web is different and has different standards, why can't The Times deliver a superior product leveraging the webs benefits while still maintaining The Times' credibility? In my reading of these comments it seems that Keller all too readily 'gives up' in the face of badly edited, unspell-checked, off point crap (that may contain a nugget of useful information).

"We can't let our reverence for quality become a straitjacket in new media," he warned. "The web environment is different... We can offer guidance but we cannot insist on the same control we exercise over print."

(It is more than possible that this blog is a case in point).

Over the past several years, The Times has monkeyed with its print format and Keller announced a material change in trim size. Other newspapers in Europe have gone from broad sheet to tabloid but this change appears to more in keeping with the recent WSJ change.

Echoing Fine rather than Wolf, Keller joked that "There have also been reports of a rat sighting," at the new building which if true would seem to indicate that the rats are still quite comfortable on the big grey ship.

BookExpo America Conferences

Ted Hill (fellow traveller and friend of the blog) let me know of a seminar he is hosting at BookExpo and here are the details:

Best Practices in Digital Marketing: The Publisher’s Perspective

Most trade publishers know that they can no longer rely on traditional marketing alone to connect with readers, but they are uncertain where they should invest scarce dollars in the many new opportunities presented by the net. Separate the buzzwords from the best working practices as you negotiate the shift from print to digital marketing. Topics include product marketing, working with online merchants, the company website, author-driven marketing, and how to build value over time.
Date: Thursday, May 31, 2007
Time: 12:30 PM to 1:30 PM
Place: Room 1E03

If you’re interested in the above, my frequent collaborators, Mike Shatzkin of the Idea Logical Company and Brian O’Leary of Magellan Media will also be speaking on topics on the same day that you may find valuable.

And as he mentions, Mike Shatzkin (fellow traveller and friend of the blog) also has a seminar and the details are as follows:

The End of General Trade Publishing Houses: Death or Rebirth in a Niche-by-Niche World describes how digital change is eliminating the ecosystem that sustains general trade publishing houses. But the good news is that the ecosystem we see replacing it is one general trade houses can actually migrate to, if they recognize the challenge, accept some painful realities, and start now. I know the speech will be provocative; I think it will also be entertaining and I hope it will put a lot of things most of us already know into a comprehensible framework.

Thursday, May 31, at 10 am, room 1E04

That same afternoon, May 31, at 2:30, in Room 1E11, I am moderating a session called Digital Search Intermediaries: New Roles and Channels for Publishers. This is about Digital Asset Distribution, a subject on which I am currently co-authoring a White Paper and co-hosting conferences dedicated to, in New York on June 21 and in London on July 12.

The speech I gave on DADs at BISG's Making Information Pay is now posted on our web site. You'll find it at http://www.idealog.com/speeches/mipdads.htm

The second seminar above conflicts with the session I am hosting unfortunately....

See you all there.

Is Pearson Next For Murdoch?

In a recent article about Rupert Murdoch and his bid to acquire Dow Jones, The Economist newspaper reported as an aside that while at the Davos World Economic Forum Murdoch was trying to interest as many PE groups as he could in a combined News Corp/PE bid for Pearson. Dow Jones has always been his preferred business publication and he sees the Dow Jones property as key to the development of his global business channel; however, if the Dow Jones shareholders appear intractable then he is likely to launch an attack on Pearson in order to get his hands on The Financial Times and The Economist Group.

For their part, the Pearson board and top executives have said that they are unwilling to sell or to split up the company. In spite of this consistent message, with the sale of the Thomson Learning business for almost $1.5billion more than Thomson and analysts expected one must wonder when the views of the board begin to diverge from the interests of the shareholders if valuations like this are on offer via PE money.

According to a number of sources, the hold out Bancroft family is set to meet today to discuss the News Corp offer. Murdoch has proven to be fairly patient in his effort to acquire Dow Jones but he has promised a financial network to compete with CNBC and needs content and branding to support that effort. The synergy that will exist between the US based Dow Jones and News Corp and the brand recognition and reach of The Wall Street Journal will trump the larger international presence and brand of The Financial Times. I suspect Murdoch will continue with his full court press on the Bancrofts for the short term - he is unlikely to up his offer - and he is probably willing to gamble on an auction should the Bancroft shareholders decide to seek other offers. While there is a lot of PE money going around, the Murdoch price is a fair one given the trading level prior to the bid. Some have also suggested that the share price will tumble below this original level if Murdoch is rebuffed.

With respect to Pearson there exists a possibility that they could be 'blackmailed' into parting with The Financial Times if someone started to buy up shares of the company; however, this seems unlikely since the moment any group launches any type of offer there will be several additional offers presented almost immediately. I suppose Pearson could defend itself by making a big acquisition and loading up on debt but who would they buy....Dow Jones?

New Rules on Out of Print

Fast on the heels of their epistle on the business of publishing, The New York Times tells us about how new fangled on-demand printing is complicating the publishers' definitiion of 'out of print'. Here we hear of Simon & Schuster who are changing their contracts to accomodate this radically new technology. You be the judge;

But with the advent of technologies like print-on-demand, publishers have been able to reduce the number of back copies that they keep in warehouses. Simon & Schuster, which until now has required that a book sell a minimum number of copies through print-on-demand technology to be deemed in print, has removed that lower limit in its new contract. In effect, that means that as long as a consumer can order a book through a print-on-demand vendor, that book is still deemed in print, no matter how few copies it sells.

The unfortunate thing may be that the authors that sell less than an initial 1000 units may still be tied to a publisher for a very long time dispite the changes made to author contracts. Some of these authors would be better served by self-publishing their titles - perhaps a story for another day. As far as 'established' authors that regain their rights, companies such as iUniverse.com have offered 'back in print' programs with the Authors Guild for over 8 years now.

Customer Focused Publishing And Thomas Nelson

Some of you will recall that Thomas Nelson announced last year that they were doing away with the general publishing convention of creating all kinds of imprints for all kinds of reasons. Nelson has reverted to subject classifications as an inherently simple and commpn sense approach to selling their titles. Here he offers a status report on the situation and I love the following quote:

I don’t think any of us realized how much energy and money we were spending to maintain an organizational and branding infrastructure that added zero value to our customers. It’s one of those chronic situations that develop in organizations where you stop feeling the pain and just learn to cope. Then, when it’s gone, you suddenly notice how much better you feel. In my opinion, imprints add very little value and lots of complexity.

Mike has been kind enough to join me in a panel discussion at Bookexpo and while our subject will not be on this topic he has his own presentation where he is planning to review this activity.

The two seminars are:

Thursday May 31, 1:00 - 2:00
Customer Focused Publishing: How TN moved Away from Imprints - Room 1E02

Thursday May 31, 2:30 - 3:30
Corporate Social Media Platforms: A Case for Publisher Participation - Room 1E04

See you there.

Apax Appoints Shaffer Exec Chairman and Dunn CEO of Thomson Learning

I could have titled this Groundhog day since there was a rumour going around yesterday about Dave Shaffer returning to Thomson and today it was confirmed. More interesting was the appointment of Ron Dunn as CEO to replace the incumbent Ron Schlosser. On completion of the deal last week, Schlosser's internal memo to staff wasn’t particularly inspiring – more stay the course – than anything, and I guess he knew what was coming. Dunn’s departure from Thomson Learning at the end of 2006 was always a mystery to me since he had been a tireless worker for the business and had been a major factor in the growth of the education business particularly internationally. It will not be the first time Shaffer and Dunn have teamed up and they know each other very well having worked together at Thomson, Macmillan and McGraw Hill. From the press release:

Jackie Reses, Partner at Apax Partners, said: "The Thomson Learning properties
are unique, global media franchises that hold strong positions in their respective markets and have delivered stable and predictable growth. We look forward to working in close partnership with Ron Dunn and Dave Shaffer, two proven media executives who are intimately familiar with the Thomson Learning businesses. Ron and Dave are extremely well suited to lead the newly independent Thomson Learning organization as it builds on its positions within its individual market segments, continues to expand internationally, and captures the enormous potential we believe exists in the evolution to digital content distribution in
post-secondary education."

Both executives will have their work cut out for them, since as I have commented before the Thomson Learning company while possessing significant assets has been left in the dust by Pearson. Pearson has led in growth rate, operating performance and strategic acquisitions over the past three years. Coupled with the importance in migrating content to the web which Pearson has also started to do well with and there will be challenges a plenty. Each of these executives know this business and industry well so they should not be short of ideas or action plans to make the necessary changes.

It should be said also that this will be somewhat a vindication for Ron Dunn in returning to Thomson. I understand that Shaffer was none too pleased with Harringtons decision to part ways with Dunn in 2006.

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.

Amazon To Launch DRM Free Music Store

The days of DRM protected music are definitely numbered. Amazon.com is announcing that they will launch a DRM free music store later this year which will include thousands of songs in MP3 format. As such these files will be playable on virtually any music player.

“Our MP3-only strategy means all the music that customers buy on Amazon is always DRM-free and plays on any device,” said Jeff Bezos, Amazon.com founder and CEO. “We’re excited to have EMI joining us in this effort and look forward to offering our customers MP3s from amazing artists like Coldplay, Norah Jones and Joss Stone.”

Some pundits have started to suggest this is an Apple I-Tunes killer but what is more likely is for Apple to renegotiate their music deals (where applicable) and come out with a similar service before Amazon.com launches their site. Since Apple are very much the incumbent music download and hardware vendor they have a distinct advantage. (Not to mention the potential impact of the Apple I-Phone). It should be pointed out that sales at the Apple store have never been huge but a change in the DRM rules could be the catalyst that Apple and Steve Jobs have been looking for.

No word on pricing or specific launch dates from Amazon.com

Press Release

Thomson - Reuters Deal Done

CEO Harrington has piloted the company from reliance on newspapers and print based businesses to one dependent on electronically delivered information products. He will retire having completed a remarkable transformation in the Thomson businesses and will present Tom Glocer with the opportunity to chart the next chapter in Thomson's corporate history.

Reports:
BBC
Reuters
Global & Mail
NYTimes
The Times

Reflections on the IDPF & BISG Conferences

Reflecting on last week’s conferences it was interesting to recall that Michael Healy was a little concerned that scheduling the IDEP annual meeting the day before the BISG sponsored Making Information Pay would limit the participation at the latter. As it turned out, anyone who attended both meetings benefited from the combination of themes and the opportunities to network. At IDEP the attention (glamour) was on handheld e-readers as it was last year. In fact there was some redundancy versus last year; however, it was a European presentation of a combo device that seems to offer the best answer to my big gripe, why a dedicated device?

Later in the day we heard from content providers, content distributors and content users all of which supported the BISG meeting the following day. Perhaps the most troubling news came at days end when the Associated Press reported that no one under 50 saw print newspapers as their primary source of news and that the average user spent less that one minute per day with online newspapers (including nytimes.com). It was noted that CNN did a far better job than other news sources because their content was more open, included more video and limited dead end pages which further encouraged interaction with content.

Sitting in the bleachers it is easy to toss stones at what we heard publishers are doing in an online world. The most troubling thing seems to be that we still don't really know what we should, could or will offer our customers in the online world. One e-content presenter proudly noted 'price' as the key driver of purchase behavior by their customers. Customers driven by price are flirtatious and flighty and will always be on the look out for a better deal. This statistic seems to indicate no engagement in the content at all by the customer, which is troubling given all the opportunity for interaction that e-content and e-delivery can afford.

The early morning presentation from Hachette on the state of e-publishing and the reasons for getting stuck in was devoid of relevancy. The same presentation could have been delivered three years ago when it would have been viewed with interest. Universally missing is the vision of what published content will look like (and represent) in 5 or 10 years time. We are all guilty of using the e-book term and I have to believe we are in an evolutionary phase that will lead to some new species that we can't quite as yet see. Not 'e' nor 'book' perhaps? Aside from Google, the best e-publishing initiatives underway are promotion and marketing driven. This is not a criticsm because what Random House and Harpercollins are doing to use the internet, their data warehouses of content, widgets and other things are important steps towards closer interaction between the content producer and the customers. At the moment these are not so much content plays as marketing and promotion activities.

In retrospect, the panel discussions could have benefited from some of the work that the Future of the Book has done to show publishers their experimentation with content creation and display/interaction. This work is hugely interesting but possibly unknown to the majority of publishers. Admittedly the BISG focus was on Making Information Pay but the speakers tended to exceed the bounds of this title. Some extrapolation regarding where they thought publishing may go and some of the experiments underway would have been interesting.

In a way it was almost predictable that industry badboy O'Reilly Media made an indelible mark as the capstone on the meeting. Tim O'Reilly is hosting a Tools of Change conference on the future of publishing in San Jose next month and has stated that while most publishers are in New York all the e-publishing action is in California so that's why the conference is out there.

Granted, he may be less politic but in a basically canned presentation, Allan Noren from O'Reilly was able to forcefully emphasize the distance O'Reilly have traveled down the e-publishing road. Even a simple statistic drew instant reaction from the audience regarding the increase in international sales as a result of placing a pdf download button on the purchase page. The other presentations drew interest but not an immediate reaction like this one. O'Reilly has also led in the atomization of their content and seems to take pride in how they continue to push the envelope. The company recently added pdf downloads, read on-line, chapters and a permissions link. All represent evolutionary changes, but Noren coached the audience to digitize, make content ubiquitous and reduce the barriers to purchase.

Noren's parting comment was to approach e-content and e-retailing like a beginner because as such we have no preconceived notions of how things should be. We can innovate, adapt, change and innovate again without jealousy. This thought seems to support the notion that we must eradicate the conjunctive 'e-book' - but with what? - and create some new species of 'book'.

As I mulled over the content of the conferences last week, the thought that Ulysses (Joyce) was in many ways the first multimedia book. Sure it is printed on paper, but think about how the mind of Bloom represents an integration of audio, video, and text making Dublin come alive for the reader. What a fascinating project it would be to lend real life to the Newspaper headlines, the trolley cars and even the sounds of Dedalus peeing on the beach. Joyce approached authorship like a beginner; hopefully the next person to do so won't get banned.

BISG Conference Presentations
IDPF Presentations

Reed Looks to Profit From Thomson Learning Multiple

The multiple paid for Thomson Learning was astounding given the general view the business unit would sell for almost $2.0Billion less. Not surprising, Reed Elsevier are as gobsmacked as all of us but think that they can generate something of the same multiple for their learning unit. The comparisons are not exact between the two units however one thing is similar; that both represent unique moments to buy leading players in their segment and it is unlikely that a similar combination of assets will come up for sale within the next five years or so. Here is The Independent:

The analyst Simon Wallis believes valuing Reed's total discounted cash flow
on a multiple of 6 times pre-tax earnings, a typical private equity buyout
valuation, gives the shares a potential value of 930p. The Swiss bank UBS also
believes there is more upside in Reed, giving the stock a more modest 740p price
target. Shares in Reed firmed 3p at 666p while the rivalPearson rallied 17.5p to
908p on news that it has acquired the online learning group eCollege for
$477m.

Reed has already sold some of the Harcourt assets to Pearson but the rump educational business remains and likely will exceed earlier expectations on price.