Thoughts on a Publishing Manifesto

Sara Lloyd of The Digitalist has a series on the future of publishing in the 21st century. The series sets some of publisher's challenges into context. She summarizes the first installment as follows:

The locked-in perception of the book as a unit or a product has also led to digital ‘strategies’ which largely consist of the digitisation of existing print texts in order to create eBooks. This in turn has led to an obsessive focus on the reading device and a perception that the emergence of a ‘killer device’ will be a key driver in unlocking a digital future for books in the way that the iPod was, say, for music. This is a flawed perspective in a number of ways, not least because it fails to recognise the enormous amount of online or digital ‘reading’ that already takes place on non-book-specific devices such as desktop PCs, laptops, PDAs and mobiles, but also because it fails to recognise that the very nature of books and reading is changing and will continue to change substantially. What is absolutely clear is that publishers need to become enablers for reading and its associated processes (discussion; research; note-taking; writing; reference following) to take place across a multitude of platforms and throughout all the varying modes of a readers’ activities and lifestyle.

Big BullyBoy Amazon

UK's Publishing News has a report on UK publishers increasing concern over Amazon's bullying tactics. From their report:

PUBLISHERS ARE REACTING angrily to what one senior executive described as a “crude” attempt by Amazon to increase its discount. “It is going from publisher to publisher with extortionate demands, and if it does manage to get a figure from one publisher it is then going back to the first house and saying x has agreed to such-and-such.”

Bloomsbury rec­ently had a terms dispute with the bookseller which resulted in Amazon removing the 'Buy Now' button from certain Bloomsbury titles on its site. But one CEO commented: “We are prepared to lose a year's sales with Amazon. They may try many things but we are not moving. We have been foolish enough to give in and grant generous terms in the past, but we're not giving any more.”

Book Launch 2.0

This is funny video about book promotion in the web 2.0 age. Sadly, the 1.0 world wasn't that great but it's only got worse.

Tip of the hat to Brantley

AAP Supports .ePub Standard

Last week (somewhat out of the blue) the AAP announced that on behalf of their members they were supporting the .ePub standard for electronic [book] texts. On the surface, this is a positive reflection of two industry groups working together in support of industry standards however, the commercial results of this letter of support will be minimal in the industry. Certainly, the largest US publishers who are the important members of AAP would need no encouragement to use the .ePub standard (and they are) if there were commercial advantage in doing so. The real background issue to this announcement is Amazon.com which typical of the company have spurned the standard approach and are not using the .ePub standard with the Kindle.

Adam Hodgkin at Exact Editions reports on the same announcement and captures the essence perfectly:

It is a mostly waffly and empty letter and will not carry weight in the tussle between Google (which should have minimal need for the EPUB format) and Amazon which is broadly on the books-are-a-file side of the fence and ought to be using EPUB for its Kindle, but is not. Whether digital books are citeable and searchable, page-fixed, digital resources; or electronic texts within a Kindle/Sony/Iliad reader will be clearer in a year or two. I doubt that it will be settled by October of this year.

Publishing In The Digital Age

A podcast is now available for a panel meeting I participated in. I posted the presentation that accompanies the panel discussion (here) and this new link is to the podcast. My session is in part four.

Informa In Play?

The Times is reporting that private equity groups including Carlyle and Apax are looking closely at Informa although no official bid has been made for the public company. From the article:

Carlyle and Apax are among those considering a bid for the group, which has a arket capitalisation of £1.64billion. No approaches are understood to have been made. Informa's shares have fallen almost 40 per cent since it announced the acquisition of Datamonitor for £502million in May last year amid widespread de-rating of Media stocks amid fears of an economic slowdown. Some analysts have raised concerns about Informa being hit by its high debt levels after the Datamonitor acquisition and partial dependence on the financial services sector.

Earlier this year, Informa has announced that David Gilbertson would resign as chief executive and from the board to take up the role of CEO at EMAP. EMAP has itself been purchased by a private equity group and the move by Gilbertson was a surprise. Together with now current CEO Peter Rigby they had built Informa into a the largest provider of Trade Shows in the world and a significant professional publishing company.

Tom Waits Press Conference

Say hi to your mother...

Is the World Watching Random House?

The FT speculates with the aggrandising title, All Eyes on Random that we are all on the edges of our seats wondering who will be the next CEO of Random House. The paper suggests that RH is set to be managed by someone outside the industry either from the services unit Arvato or the Direct Group. From the article:

People familiar with Random House’s parent Bertelsmann said that the German media group had decided against promoting Random House UK head Gail Rebuck or German chief Joerg Pfuhl in order to bring a fresh pair of eyes to the
business. In his first high-profile personnel decision, Bertelsmann chief executive Hartmut Ostrowski is expected to opt for a Germany-based executive from either media services division Arvato, the unit he once ran, or book-clubs unit Direct Group.

Bertelsmann is famous for placing relatively young executives in positions of high responsibility and the paper goes on to mention one Marcus Dohle a 39 year old executive at Arvato.

Noting how Arvato under Ostrowski was able to expand the size of their competitive marketplace by expanding their business offering, the paper suggests that is how Ostrowski would like Random House to think. Other publishers in the professional and information segments have been doing this successfully for a number of years, but the strategy has yet to be proven in trade. Publishers such as Elsevier and West now compete in markets that are an order of magnitude larger than what could be considered traditional publishing. I believe something of the same model can be developed for trade and all of the major trade publishers will be thinking the same thing. Time will tell which publisher gets there first.


And there is more from New York Magazine:

A stronger personality might have disciplined Random, but there’s a good case to be made that the conglomerate was a victim of its own strategy. Size gave it strength against bookstores, but big-box outlets and Amazon provide sales velocity now. Random, and the rest of the industry, has little or no leverage with them. Were they really going to keep Grisham out of Costco? What would they get in return?
Meanwhile, Random’s size became a liability. Even with megahits like Bill Clinton’s memoir and The Da Vinci Code, the company’s annual revenue has been stagnant. To maintain its 20 percent share, the company has to publish around 2,000 titles, while more-efficient rivals like Hachette do under 500 titles for about 10 percent of the market. It’s a quarter of the work for half as much market share.

Personally, I find the construct of this article a little silly. It ends with the suggestion that Olson saw himself as 'last of the publishing moguls' - did he? I'm not too sure that one holds up.

Champions Again

Manchester United retained their Premier League title this afternoon with a tense win away to Wigan. Away to Wigan meant that most of the ground was filled with United supporters some of whom were paying $1000 a ticket to get into the ground. We are now one win away from an impressive double. The Champions league final against Chelsea is a week on Wednesday. The season didn't start so hot and the team went from this one off the bottom:






to the top having pushed aside the hated Arse but almost letting in Chelsea by the back door. You may wonder why I have this screen shot from the start of the season but I had faith the team would win.

I hear red is still the prevailing color choice in Moscow.

Bridge Tagged With ISBN

When I first became involved with ISBN's I heard and received a lot of grief about ISBN's applied to non-book items like rulers and teddy bears and so involved did I become with the ISBN agency that I sometimes joked that I would apply for my own number and have it tatooed on the back of my neck. Happily, that never happened. Tagging a bridge with an ISBN is something that few of us would have anticipated. This is doubly concerning because this is a clear re-use of an existing number which is a big no-no in ISBN land. From the Torontoist:

It seems that some Toronto taggers are no longer content to scrawl their own names on blank concrete canvases around the city and are trying instead to make more of a cultural statement. Last year, references to composer Gustav Mahler popped up in several places around town. This year, a more cryptic stencil has appeared on the Humber Bay Arch Bridge, boldly proclaiming "ISBN 486-28495-6" for all to see and ponder. This International Standard Book Number turns out to be a paperback edition of Henry David Thoreau's Walden; Or, Life in the Woods.

Bertelsmann Reports Improved Results

Random House corporate parent Bertelsmann reported improved quarterly operating profit performance and remains optimistic about the remainder of the year. From their press release:

Bertelsmann, the international media company, today reported strong first quarter fiscal 2008 results. First-quarter operating profits (Operating EBIT) were up by 9.6 percent compared with the previous year. Operating EBIT for the period under review amounted to €217 million (Q1/2007: €198 million). These developments were driven by the continuing positive performance of the major core businesses. Group net income improved to €35 million (Q1/2007: €-70 million). Meanwhile, revenues declined by 3.9 percent year-over-year to €4.2 billion. Adjusted for portfolio changes and foreign-exchange effects, revenue decreased 1.7 percent year-over-year. The revenue performance reflected negative foreign-exchange effects due to the Euro’s strength relative to the U.S. dollar and British pound. Revenues were also impacted by declines in sales of physical recordings and revenues at Direct Group in North America. Adjusted for portfolio changes and foreign-exchange effects, Bertelsmann expects a moderate rise in revenues for 2008. The Company expects operating results for 2008 will be on par or slightly above the high levels seen in 2007. Group net income will be well above 2007 due to fewer special items and lower interest expenditure.

The company announced earlier this month that they have hired Morgan Stanley to sell the Direct Business.

Bertelsmann investor presentation reflecting the full year results from all divisions. Here. (RH revenue of $1.8bill and op income $172mm for 2007).

Harpercollins Reports Static Results. Releases Authonomy.com

Harpercollins produced revenues of $302mm in their 3rd quarter ended March 31st which compared favorably with the same period last year ($291mm). For the nine months, revenues continue to lag the performance in 2007. 2008 YTD revenues of $1,038mm are marginally lower by $14mm.

Operating income as described in NewsCorp's press release was as follows:

HarperCollins reported third quarter operating income of $29 million, in-line with the same period a year ago. The current quarter included strong sales of Naughty Neighbor by Janet Evanovich, Stop Whining, Start Living by Dr. Laura Schlessinger, Lady Killer by Lisa Scottoline, Fancy Nancy, Bonjour Butterfly by Jane O.Connor and The Chronicles of Narnia: Prince Caspian by C.S. Lewis. During the quarter, HarperCollins had 54 books on The New York Times bestseller list, including 4 titles that reached the #1 spot.

Again, no mention of the performance of Harpercollins on the earnings call.

On another note, Harpercollins UK announced last year that they were establishing a site for authors which they named authonomy. The site is now in private beta and is covered by fellow traveller James Bridle at Booktwo.org.

The real challenge, of course, is to persuade wannabe writers to post their work at all - in my own personal experience, unpublished writers are terrified of their work being ’stolen’, enough to be suspicious of publishers themselves, let alone your average web surfer. The Front List, a previous attempt at a “YouTube for books”/”crowdsourcing the slushfile”-type site, solved this by hiding everything from non-members; one approach certainly, but not one likely to bring in the crowds.

James is also an author.