Saturday, June 02, 2007

RFID Can Save Book Retail

BGN is a Dutch retailer that has launched their own RFID initiative to resounding success. (I used their experience as a basis for my re-think of the Borders business strategy). At this mornings panel discussion, the compelling business case seemed to escape the audience although BGN did say that all major publishers and B&N had visited to see the RFID implementation in action.

In the US it seems we are making our standards discussion more complicated than it needs to be and thusfar the primary players in the supply chain are engaged in an infinite loop-like discussion about who should take the lead on implementation.

As a result, we are in the words of one of the panelists engaged in a "rolling five year" implementation. Which means don't hold your breath - more later.

Friday, June 01, 2007

IPhone: The best IPOD we have ever made

Walt Mosberg interviews Steve Jobs about the Apple business - well worth watching.

"we are in three businesses and a hobby" Apple MAC and iTunes Music business generate $10billion each and the third business they are about to get into is the phone business (he calls it "handsets") and the hobby is Apple TV.

Where is the MAC business? Growth is about 3x the market growth rate and greater if US is stripped out.

Jobs: IPhone is the best IPod we have ever made. Available on the last day in June.

Reason 2 cingular did the deal: Existing Phones are not capabile of taking advantage of 3G phones particularly in how users access the interent. They get the 'baby internet'

Zillions of independents are looking to offer DRM free music: many more by end of year.

Mosberg asks about 'lock-in': Jobs notes that less than 25 songs on average IPOD were purchased via Itunes store. Given average user has hundreds of songs on their IPOD. Clearly not getting the majority of their music from Itunes and not even getting a medium sized minority. Suggestion "we have a lock in is ridiculous." "IPOD wins because it is the best music player".

Mosberg: is the IPhone a wireless Ipod? Jobs: It is three things, the best Ipod ever made, the best (and incredibly good) phone and "the internet in your pocket" If it were any one of the three it would be sucessful.

Itunes software versus number of IPODs: 300mm + copies of Itunes versus 100mm Ipods. Makes Apple one of the largest windows developers. Jobs: "we get cards and letters from people that say we are their favorite app on windows," and "Its like giving a glass of ice water to somebody in hell."








Link via Paid Content.

BookExpo Quotes: Friday

Amazon Digital:
4mm orders in one day - during Christmas season
42mm unique visitors each month
67mm active accounts

1 in 2 Books sold is in the Search Inside the Book Program: "Browsing pages sells more books"

Incremental sales up lift is 6.5%

Amazon allows consumers that "the know have a propensity to buy based on their account details to delve deeper into the content and gain more access to content"

Generally an very interesting presentation of the completeness of Amazon's digital marketing and promotions support for publishers.


Overheard in the isle: "this book is a combination of Catch 22 and Patrick O'Brien"

The Murdochs and the Bancrofts

Looks like there has been a change of heart in the Bancroft family and the sale of the company looks all but inevitable. Reuters

From the article:

The Bancroft family, which controls 64 percent of Dow Jones's voting power, said it would also look at offers from other bidders. Dow Jones in a separate statement said the board would consider News Corp.'s offer and other approaches.

The Bancroft decision is a change from its earlier rejection of Murdoch's $60-a-share bid, and brings the publisher of The Wall Street Journal closer to being sold after more than a century of being independent.

Obviously, assuming Murdoch gets this prize it would be unlikely that he will have a go at Pearson. Clearly the market sees this as a real event and the stock was up sharply on the news to slightly below the Murdoch offer level.

Thursday, May 31, 2007

Book Expo - Quotes

Shatzkin - End of General Trade: "Print will be the last media to be read on a device....and we shouldn't be proud of that." With respect to published content, "all obsessions no matter what it is will be indulged" and brands as a result "move to a very granular level"

Gomez (Print is Dead): "there will be no e-book revolution until we come up with another name for it" which reflects the interactive nature of the product. And there will be "integration not another IPod". We need to "thinkof the children" who are and will be consumers of our content.

Hyatt - Social Networking for Publishers - It is important "to be authentic" in communications because users will see through what you are doing. Resist the temptation to have someone "ghost write your blog" because you will be found out.

BookExpo Panel Meeting

Reminder to readers: The panel I am hosting at BEA is at 2:30 this afternoon in Room 1E04. On the panel are executives from Overlook Press, Harlequin, HarperCollins, Berkshire Publishing and Thomas Nelson. See you there.

Wednesday, May 30, 2007

Comedy Central's News Babes

I have a view on network news programs but I wish I were this funny.

Reed Elsevier Most Obvious Buy-Out Candidate?

The Times is reporting that Deutsche Bank called Reed Elsevier the publishing sector’s “most obvious buyout target”. The bank has raised its recommendation on the stock to buy. This is how they see it:
The broker argued that Reed shares could be worth up to 780p to a financial buyer. Sums involved in the Thomson Learning deal also suggested that Reed’s sale of its education business could raise £2.2 billion, up from its previous forecast of £1.8 billion, it said. Reed finished up 16p at 675½p.

Certainly the rules have changed somewhat but applying the multiple paid for Thomson Learning to all of Reed is not quite appropriate. Other analysts have suggested that Reed will escape their education foray successfully and the share price for the balance of Reed will escalate because it is currently weighted down by the educational unit. Reed will certainly benefit from the Thomson Learning sale but if you look at the multiple paid for Reuters (an information business) by Thomson the picture is not as glaringly bright if you are concerned with relative price multiples. Either that or Thomson got a real bargain.

DB may have a vested interest here because Pearson has been consistently touted as the most likely PE target. No doubt there is more action to come in this arena.

Publishing News - An Explanation

When I was at PriceWaterhouse (1995-99), I thought of using this new fangled Internet thing to seek news and information about the publishing industry that I could then summarize in an email and distribute it to my colleagues and the Partners at PW. (No Google then). Our business unit was established to build consulting relationships with major publishing and information companies and I believed that my email news letter (Publishing News) would be useful to the team in understanding the publishing landscape and the key people in the industry.

I kept all of these emails and decided to add them to this blog as supplementary information for some of my readers who from time to time may need background information on certain publishing companies. Regrettably, when I joined Bowker I didn't have the time to keep this up and there is a rather large gap between the end of Publishing News and the start of this blog. It is what it is.

Publishing News 1997-8
Publishing News 1999

Tuesday, May 29, 2007

Borders Reports First Quarter

Borders reported their first quarter results with little change to show for the new strategy that they are in the process of executing. Overall revenue up versus the same period last year however, same store sales were lower with books revenues slightly worse than last year, DVDs flat and music lower. PaperChase - the stationary misfit - continued to perform better than forecast. The company opened four new superstores during the period which contributed to the overall revenue increase.

There was little news on the new strategy other than to say the company is proceeding with the sale of the international stores where revenues were slightly better than the same period last year.

Readers may recall the aborted debt refinancing the company attempted earlier this year and in the press release the company noted that they expect to seek between $150 - $200million in term loan financing sometime during the second quarter. Perhaps the second time they will explain how this refinancing will benefit shareholders.

Monday, May 28, 2007

Publishers Must Blog!

As publishers we are in the content creation and information business. As owners of the means of production we have always been the gatekeepers between creation of intellectual works and the consumers of this material. It should be no surprise to any of us that the expansion of new media application erodes the foundation of these gates as individuals gain direct access to an audience and leverage facilities to comment and opinionate about the very output that we in the publishing industry labor hard to select for them. At the same time, search undercuts and demythologizes the power of branded content, and provides the average Joe with information and content that is good enough for their immediate requirements.

If you can’t beat them join them: Developing a social media strategy that encompasses blogging should be a foundation of all publishing house marketing and promotion plans. I have mentioned before (in relationship to book reviews) that I am less convinced of the value of typical marketing programs supporting book promotion. My macro view above can only be mitigated by joining the new media fray and developing networks of interested parties that can nurture, support and perhaps develop content that you produce as a publishing house. As market segments evolve, I think they will become narrower and more defined and publishers that support communities (via social) must be able to participate in these communities in a meaningful way in order to be successful. This is already the case on computer book publishing.

When I started this blog, like everyone else I sought links to place on my blog. I found many but few from established publishers. Over the past year, I have seen more publishers enter the blog world but the numbers still seem small for an industry dependent on words and information. Authors and publishers should develop a blog strategy and blogging should be a natural extension of any publishing house. This idea was the genesis for the panel presentation I am hosting at BookExpo this week.


  • As I thought about the theme of the panel meeting, my thought process mirrored the approach I took and the benefits I saw in establishing a blog.

  • Blogging gave me an opportunity to experiment with new technology

  • I became a publisher/content producer and, as traffic increases, one with responsibility to an audience

  • Develop a personality beyond a ‘resume’ or existing professional reputation

  • As popularity increases, the blog becomes a center of a growing network of interest

  • Expands a professional network: who knew there were as many people with shared views and perspectives?
As I mentioned, there are a number of very popular publishers who are actively blogging but in my view every publisher should have numerous blog sites: some official but the company should also support individual blogs by its employees. Developing a code of conduct is relatively simple and in some cases the employees themselves can be instrumental in formulating this code. (Obviously, the company cannot police every corporate blogger; however, every employee has some fiduciary responsibility to act responsibly towards the company they work for). While affiliation with a publishing house is powerful, as an editor, marketing director, or publisher, I would recommend developing your own blog – so that you can build an online personality that is somewhat separate from the corporation. That is not to say that you can’t blog for the house, but developing your own blog enables flexibility and individualism that can and will be important to you professionally. While you support your current publisher you are also developing your own brand.

As a publisher, or one who works in a publishing organization, it seems redundant to explain the mechanics of getting started as a blogger: You really should know this stuff because it is what your audience (and some competitors) has been doing for a few years now.


  • Choose from any number of hosted tools: Blogger, WordPress, Icerocket, Moveable Type and many, many others. I use Blogger but if I were to do it over, I would pick one of the other popular tools. Blogger has only recently added basic functionality that others have offered for a considerable time.

  • Pick a name: Perhaps not as easy as it would seem and I would err on the side of professionalism rather than something like ‘monkeyboy’. (Unless you are a publisher at National Geographic in which case it may be appropriate). Using your name is perfectly acceptable - as many do. I would not recommend tying the blog name to the name of your publishing house (they may not allow it anyway) because the blog wouldn’t be portable.

  • Plan out your first few weeks of blog posts and use your experience as material. If you are an editor your titles and authors should be the focus of your interests and don’t expect that you will ‘hit your comfort zone’ in terms of content immediately. It took me several months before I started to deliver content in a thematic way.

  • Learn from what the other publisher bloggers are doing and link to as many sites as possible. The more links you establish the more you will be noticed. Establish a del.icio.us account and ‘clip’ the articles and blog posts you find interesting. Not only is this a valuable resource for your own research but you can use these links as material for your blog posts. Once a week, I capture my ‘clips’ in a blog post.

  • The marketing and promotional aspects of blogging are still evolving but establishing a social network that links consumers, authors, publishing executives, agents, etc. will be a powerful tool to support the house’s publishing product. The social community can be useful in developing markets, expanding reach and gauging interests and/or trends. All important aspects of marketing and content acquisition functions.

A few months ago, I heard Joe Wikert (of Wiley) speak about publisher’s blogging activities and why they can’t afford not to. I asked him about the branding issue: Was he the brand or is it John Wiley. He pointed out that while he promotes Wiley incessantly there are no Wiley logos on his site. The site is supported by Wiley in the sense that they do not edit or ask him to manipulate any content. Wikert suggested that the company did take a considered look at employee blogging activity and decided on a ‘common-sense’ approach which meant self governance by the bloggers. Wikert said his blog is really not a Wiley product but he believes his blog is valuable to Wiley because it proves to an important community (the IT world and technical book authors) that Wiley understands the community and environment. The separation from Wiley does allow Wikert to express his own opinions which as a purely corporate blogger he might find difficult.


Establishing a personality as a blogger should be a professional requirement of all of us in the publishing community. Don’t forget to let your employer know and understand what you are doing and what you want to achieve since full disclosure may eliminate problems later on. Don’t be afraid to use your contacts and network of professional relationships to get the word out and if you are really lucky the company may link to your blog from their web home page which should drive more traffic to you. Lastly, use web analytics tools available from Feedburner or Google Analytics (and others) to track your traffic and let you understand what works and what doesn’t.


Get started.

Sunday, May 27, 2007

Weekly Update: May 27

Deal News:
David Levin: UBM CEO, On Deal Money Chasing Smaller Deals: Reuters
Gilbane (Paxhia) on Thomson Learning: Gilbane
EMAP on the Block? Guardian

Publishing:
LA Times on Book Reviews: LA Times
Paid Content or Ad Supported Content That is the Question: Reuters
Google Book Search Becomes More: Blog
Let's hear it for copyright reform: IF:BOOK

Other News:
Alibris Extends Book Selling Platform to all Casual Sellers: PRNews
Public Library Tries LibraryThing.com as Network Appl: LJ
B&N Financial Conference Call Transcript: Seeking Alpha
BIBME Auto populate a Bibliography: PR
Bilking the Elderly via InfoUSA: NYTimes
Death by Powerpoint: Open
Bad data - OUP in Trouble over Place names: The Times of India
Google Fights Plagarism: Guardian


Sport:
Does Steinbrenner know about this? O'Reilly