Blackwell to Implement Espresso Book Machine

News from The Bookseller that Blackwell will be implementing the Espresso Book machine in their 60 store chain of retail stores. From the article,

"The deal makes Blackwell the first UK retailer to install the EBM. The academic chain will trial the machine from this autumn at a yet-to-be-determined launch site, and will then roll it out across its stores. It is also looking at possible international retail sites and library supply for the machine."Blackwell c.e.o. Vince Gunn described the technology, the brainchild of former Random House US editorial director Jason Epstein, as "trailblazing and pioneering". He added: "From a retailer's point of view, even allowing for the first--generation technology and publisher challenges, this is a fantastic opportunity—sell to demand with no risk to inventory and an opportunity to create incremental revenue streams for ourselves and publishers."

"The EBM is already installed in 11 sites worldwide. It can access around one million titles, of which more than 600,000 come through a partnership with Lightning Source; the rest are in the public domain. It is also in talks with publishers about adding their content, although On Demand c.e.o. Dane Neller stressed the model was not to own content but to act a facilitator."

Clearly the EBM is rapidly growing in acceptance and existing users of the machines appear to be the biggest supporters and proponents of the technology. Close readers of this blog may recall my brain wave of book vending machines that I thought could be useful in non-traditional book outlets. Well this technology goes a significant step forward and I predict we will begin to see EBM in outlets outside the traditional publishing supply chain.

(Hat tip Brantley).

Food, Style and Felony

Apparently Martha Stewart will be denied entry into the UK if she attempts to travel there for some business meetings in the next several weeks. The denial stems from her conviction for lying to investigators over stock purchases she made back in 2004. A spokesperson commented that Martha loves England and hopes the matter can be resolved.

This was just too funny to miss. BBC

Wiley Reports Blackwell Benefits

Wiley released their fourth quarter and full year results yesterday. From their press release:

Revenue for the fiscal year 2008 increased 36% over the previous year to $1.7 billion. Blackwell Publishing Ltd. (Blackwell), which was acquired in February 2007, contributed approximately $485 million of revenue to Wiley's fiscal year 2008 results. Excluding Blackwell, revenue for fiscal year 2008 increased 5%. Favorable foreign exchange contributed two percentage points to the year-on-year growth excluding Blackwell. On a U.S. GAAP basis, earnings per diluted share for fiscal year 2008 was $2.49, compared to $1.71 in fiscal year 2007. Excluding Blackwell and various tax benefits, adjusted earnings per diluted share improved 15% to $1.89. Blackwell’s performance was accretive to fiscal year 2008 earnings per dilutive share by approximately $0.29, excluding non-recurring tax benefits.
Revenue for the fourth quarter increased 11% to $433 million from $390 million in the same period of the previous year, or 8% excluding foreign exchange. Blackwell's performance was included in the fourth quarter of both years. Earnings per diluted share for the quarter was $0.49 compared to $0.25 in the prior year.

More details here.

Informa UBM Talks Collapse

After the close of the markets in the UK yesterday, UBM announced it had broken off talks about an all stock merger with Informa. Informa's shares have declined 7% this morning even though new potential buyers have emerged. Reuters cites a Times report suggesting Carlyle is behind a new bid but other parties Cinven, Apax, Candover are also potential entrants. At this point the most likely buyer would be Springer which is owned by Candover and Cinven. From Reuters:

A private equity consortium led by Providence is behind the latest bid approach to British media group Informa (INF.L: Quote, Profile, Research), media reports said on Wednesday. The Times newspaper, without citing sources, said that private equity firm Carlyle was part of the consortium and that talks were at an early stage.

Analysts must also be wondering what type of deal UBM would do if this one wasn't to its liking. The company has remained on the sidelines for much of the media buying frenzy of the past several years. It has no debt to speak off but it remains relatively small. Under what circumstances would they consider expanding the company?

Found In Books

AbeBooks has an interesting article about items found in books. My family (well, me and my father anyway) tend to leave boarding cards in books. They turn up some times nosing themselves above the edge of the boards. You take the book off the shelf to peak at the document and it says something like HNL - SFO or BKK - SYD. These always tend to be Pan Am boarding cards although many of my recent books have lots of BA cards - which are virtually all EWR - LHR or return. The older ones tend not to have dates; you are left to contemplate when the travel occurred and who was travelling where. I can sometimes remember but generally the circumstances remain a mystery.

The AbeBooks article is far more interesting;

Adam Tobin, owner of Unnameable Books in Brooklyn, New York, has created a display inside his bookstore dedicated to objects discovered in books. “It’s a motley assortment,” he said. “We’ve been doing it for about two years since opening the store. The display quickly took over the back wall and now it’s spreading to other places, and there’s a backlog of stuff that we haven’t put up yet. There are postcards, shopping lists, and concert tickets but my favorites are the cryptic notes. They are often deeply personal and can be very moving.” Used booksellers often take ownership of books that have been in a family or a household for decades or even generations. “It’s easy to find things in books that are very dated,” explained Adam,” Such as a newspaper advert for elastic bands from the 19th century. My personal favorite is an ad from the 1950s that reads ‘Rinsing Dacron Curtains in Milk Makes Them Crisp, Stiff, Just Like New.’

Read the whole article. If you are like me and immediately on seeing an interesting book in a second hand bookstore you thumb through it in the hope of finding something significant you will be wondering when lady luck will present herself.

I have found and lost at this game myself. As a book buyer at the Museum of Fine Arts in Boston we routinely bought job lots of remainders. One day before the store opened, I picked up a photography book from the remainder pile. This book had clearly been in a store somewhere and not simply shipped out of a warehouse. As I thumbed through the pages, the book opened up and there was a like-new sheet of writing paper from The Southern Cross Hotel in Melbourne Australia. Remember I am in Boston and it is 1985. If you will have read this post you will remember that I lived in that hotel as a child between 1973-77. I bought the book and I still have the paper, but how that writing paper got there remains a mystery.

On the downside, I believe I left a Manchester United signed team photo of their 1968 European Cup winning team between the pages of a book consigned to a second hand store. Worth several thousand by now and I just hope the person who found it knew what it was.

Hat tip to QuillBlog

Politicans Royalties

Teleread takes a look at a number of high profile political leaders and wonder's whether they will be influenced on copyright legislation.

But what does it mean when, according to the Post, more than twenty of the 100 Senators are enjoying book-writing income? Oh, well, I suspect that other things count more—such as the Senate being home to dozens of millionaires, not to mention the number of lawyer-politicians.

Richard & Judy Sell Books

The UK has its own book selling machine similar to Oprah's Book Club. The Richard and Judy show's support of books has had an impressive impact on bookselling in the UK. The TimesOnline has a profile:

Franklin admits that, like many other “literary snobs”, he had regarded the start of a book club by daytime television’s supernormal couple with mild derision and not-so-mild scepticism. The audience didn’t read and, if they did, they restricted themselves to Jeffrey Archer and ghosted packs of lies by barely human celebrities. O’Connor’s, however, was a real book, as were others on that list - William Dalrymple, Alice Sebold - and R&J were shifting them like Tesco burgers. In fact, they were shifting them on a scale unprecedented in the long and undistinguished history of book-promotion scams. They were changing the entire market.
Four years and many real books later, the R&J Book Club accounts for 26% of the sales of the top 100 books in the UK, and Amanda Ross, the club’s creator and book selector, is the most powerful player in British publishing. Now, though, the club faces a crisis. Richard & Judy are ending their early-evening run on Channel 4 and moving to a new UKTV channel. Can the club survive the shift from a terrestrial to a cable channel?

Informa and UBM - Update

Informa and UBM are in discussions about a possible merger. It is anticipated that a financial player may enter the ring and compete and currently Apax is the likely contender (Independent).

Meanwhile the TimesOnline has a profile of Peter Rigby Informa's CEO:

No wonder colleagues say Rigby is different. “Peter’s an Alka-Seltzer dropped into water,” says Derek Mapp, Informa’s senior non-executive director. “You can’t imagine him ever sitting still.” You can’t imagine him ever sacking anyone, either. He’s too nice. The smile is handsome, the eyes twinkle, he cracks jokes with flat, near-Manchester vowels. “Born in Southport, now part of Merseyside, but proud to call myself a Lancastrian,” he laughs. Beneath, there must be a flintier core. The son of a painter and decorator, Rigby has built Informa into one of the biggest conference organisers in the world, and a leading technical publisher with titles including Lloyd’s List among its jewels.

Amazon's Tactics

The NY Times reports on the on-going feud between some UK publishers - specifically Hachette - and Amazon.com. Amazon is doing the physical store equivalent of taking the books off the shelves or out of the front window and putting them in the stock room for all those publishers that will not give them better terms. The tactics point to Amazon's willingness to go after the biggest publishers as well as the smaller ones that have fewer resources. From the article:

The struggle comes at a time that Amazon’s power as a bookseller is increasing, with sales growing online in an otherwise tepid global book market. Some publishers fear that with the introduction of Amazon’s Kindle electronic reader, the company will rise into a position to be able to demand more concessions.
“The buy button is their weapon of choice and that’s how they impose market discipline,” said Paul Aiken, executive director of the Authors Guild, an American trade group that also briefly lost the buy icon, for titles sold from BackinPrint.com, a print-on-demand service for infrequently purchased works. “This is such a clear indication that once they have the clout they are willing to use it to the full extent that they can. It’s ugly with Amazon and will probably get uglier.”

Youthful Folly, Jubilance and Hyjinx

I have been looking for a reason to post this clip of Russel Brand who is a UK comedian, writer and actor and now I have it. Brand's book My Booky Wook was a surprising hit for Hachette and he has now jumped to Harpercollins which will release the title in the US. In the UK, his title sold 600K units and topped charts for weeks. The deal also covers an expected sequel. Brand was in the movie Forgetting Sarah Marshal. released earlier this year.

Here is some video from Letterman.

Electronic Publisher Catalogs

Arsen Kashkashian is the Head Buyer at The Boulder Bookstore and has written a long piece on the way booksellers use publisher catalogs. First he explains how the current systems work and then proposes a better way to buy. The full post is definitely worth reading for publishers who strive to understand the bookstore process. He concludes thus,

HarperCollins held a meeting at the recent Book Expo America in Los Angeles with buyers from many of the top independent bookstores in the country to discuss their plans to implement an online catalog in the next nine months. It was a fascinating study in how people react to change. I was leading the charge into the online world with a handful of other booksellers. Many other buyers were much more hesitant to change a system that has worked for them, despite its inherent flaws. To them, the rush to change seemed reckless.My biggest concern is that bookstores are some of the most under-capitalized businesses you'll ever find. Most stores do not have state-of-the-art computers and speedy internet connections. If an online catalog features too many bells and whistles, (HarperCollins is planning on having video and audio components to many pages) it could take too long for bookstores to load the individual pages. Staring at a stuck screen for more than an instant is going to bring the whole appointment to a crashing halt. There has to be a quick-loading basic page, with the exciting, colorful features all offered as something booksellers can access only if they want to learn more.

On a related note, at Bowker we did a number of focus groups with Librarians to better understand their buying process in order for us to potentially build applications to improve efficiency. I was able to attend one of these all day meetings and was astounded by the obvious appreciation for the inefficiency, cost and lost productivity of the process exhibited by the participants (librarians), but at each suggestion of improvement (often made by the participants in the process) the glue of decades of institutionalized processes inexorably pulled us back to the status quo. It was torture.

One of the biggest negative impacts of this inefficient buying process is that it doesn't encourage deviation from a fairly static list of publisher products. (Or over reliance on pre-packaged buys from a wholesaler). Buyers simply don't have time to look at a wider range of material. Of course, having every publisher set up their own on-line catalog is in the long term not going to make buyers happy either because visiting several thousand imprints on the web will try anybody's patience. (And, I am assuming all kinds of order forms and added bells and whistles are included in these sites). Now, if I were a publisher of an industry wide books data base or transaction site wouldn't I be marketing and promoting this 'one-stop shop' solution really, really, really heavily? Probably, but with a lot of changes.

(Hat tip to Nora Rawlinson).

Speaking of Desperation

Border Stores investor William Ackerman is providing some color commentary on the Borders sale process. As a major investor in Borders (over 30%) he is trying to gin up some interest in the bizarre idea that Amazon.com should buy Borders. Is there really so little interest that this idea is posited?

Handicapping the buyers:

Private Equity buy: Pershing to take it private 1:2 Odds on Favorite

Some other PE firm: 3:1 (Pacific Equity Partners, Others)

Follett Stores: 5:1 (Borders would be a good match with Follett College and a concern for B&N/ B&N College)

BAM: 7:1 (Interesting match with BAM store locations. Combo would would be impressive)

Indigo Books & Music: 7:1 (No where to go in Canada what better opportunity will there be to become a bigger more significant player - could be the dark horse).

B&N: 33:1 (Similar odds to the winner of the Belmont so anything's possible. Probably not a real contender unless Borders goes Chapter 11 then they can renegotiate the leases).

Ingram 100:1 (Would they try this again? The environment is significantly different than 1999 but this is a long shot).

WH Smiths: 200:1. They just got out of this market so unlikely they would get back in.

Target: 200:1

Walmart: 500:1

Amazon: 1000:1 (Maybe worth a flutter).

Well that was fun...

Virtual

This video takes video conferencing to a whole new dimension. Quite astounding.

The ‘Cisco On-Stage TelePresence Experience’ was an ambitious collaboration between Cisco and Musion Systems, which took place during the opening of Cisco’s Globalization Centre East in Bangalore, India. Musion seamlessly integrated their 3D holographic display technology with Cisco’s TelePresence’s system to create the world’s first real time virtual presentation. Cisco CEO John Chambers, who was live on the Bangalore stage, ‘beamed up’ Martin De Beer, the Senior Vice President of emerging Technologies, and Chuck Stucki the General Manager of TelePresence, live from San Jose, California. Chambers was then able to have a ‘face to face’ discussion with De Beer and Stucki on the future of Cisco TelePresence, demonstrating first hand the potential capabilities of the system in front of the watching audience.

Hat tip to Brantley.

Jane F - The Blow by Blow

The NY Observer prints their version of events leading to the resignation of Jane Friedman at HarperCollins.

That same morning Ms. Friedman received a phone call from someone at News Corp. asking her to please come see Mr. Murdoch at 4:30 in his office six blocks away. According to one of Ms. Friedman colleagues, who spoke to her recently, the caller did not explain what Mr. Murdoch wanted to talk to her about. And so Ms. Friedman, fresh off a triumphant turn at Book Expo America the weekend prior, and with strong fourth-quarter results expected at the end of the month, went to the News Corp. building and took the elevator to Mr. Murdoch’s office. When she arrived, he told her that he had given her job to her deputy, a talented young businessman named Brian Murray who had been with HarperCollins since 1997. By midnight that night, the entire publishing world knew that Ms. Friedman was out, and her spokeswoman issued a statement announcing that she had decided to retire and would do so immediately.

Some of this rings true from my own experience; maybe I'll elaborate one day although it is no where near as interesting.

Where the Web Is Taking Us: The Inevitable Future and the Publisher's Role In It

Mike Shatzkin has uploaded a transcript of a speech he gave to small and independent publishers at this years BookExpo conference. Here is the first paragraph (and you can find the rest of it here):

The basic premise under which we're operating here, I'll summarize for those of you have never heard or read my work before, is that horizontal, format-specific media entities are oh, so 20th century, and won't work very deep into the 21st. The reason for that is the web, which almost forces vertical organization. Horizontal presentations across subject matter -- like CBS, Random House, or The New York Times -- were the products of a capital-intensive, limited-distribution universe. CBS came out of an era when there were three national TV networks: they all tried to appeal to the broadest possible audience. Daily newspapers, to support their printing and distribution infrastructure, also had to appeal to just about everybody; the Times could get away without a comic strip page, but that was its only concession to verticality -- a more intellectual audience. And book publishers were relying primarily on promotional media -- newspapers, radio, and TV -- and distribution outlets -- bookstores -- that were also appealing to people across the board. It didn't matter what subjects Random House or Harper or Simon & Schuster published; what mattered is that each book have a large enough audience to be worth employing the powerful machine they controlled.

Borders Close Sale

Five days after announcing an agreement to sell their Australian and NZ stores, Borders has annouced the deal has closed. All regulatory hurdles were overcome in the first go-around earlier this year and substantial due dilligence must also have been completed before the original deal fell apart. Press release

Time to Re-Think BookExpo

Imagine the lone guy on the periphery minding his stand with only a solitary apparently lost attendee to keep him company once an hour. By some accounts that was the state of affairs sometime over the weekend at BookExpo America in Los Angeles. In advance of the fair Thomas Nelson, one of the largest publishers in the US decided to pass on attending the show. This action was different than the publisher boycott of several years ago; in this case, Nelson recognised that exhibiting at BookExpo is increasingly irrelevant in addressing the dynamics of the market place. In an age when the traditional publishing schedule is looking decidedly frayed, how BookExpo measures these dynamics will determine how many publishers continue to value their attendence.

In much the same way that Publisher's Weekly has seen their traditional advertising model change fundamentally as the bulk of bookstore book purchases are made centrally and six - nine months in advance of publication, BookExpo is in danger of suffering a similar dislocation. In PW's world there is no need to advertise and in BookExpo's world attendance becomes an expensive way to reach independents. More publishers will drop out - perhaps not next year as the show is in New York but it will happen, because the current show format is an old and increasingly ineffective tool. The decline will accelerate as more publishers take advantage of electronic marketing and promotions tools such as NetGalley (functionality will rapidly expand across the MarCom value chain) and more publishers will experiment with virtual trade shows , webinars and virtual worlds like Second Life.

There are two segments to BookExpo - the education program and the exhibits - and both need revamping. On the education side, BookExpo is losing ground to new upstarts like TOC and SIIA conferences. In both these cases, the conference organizers are successfully exploring the intersection of publishing and technology which many of us in the traditional publishing world continue to battle. Attending SIIA conferences with its breadth of content and technology companies all addressing new and old problems in unique ways can be a stunning business experience. At BookExpo we may see this in isolated cases but not comprehensively. In the traditional publishing market an education program similar to TOC or SIIA is still a market opportunity given the concentration of publishers attending BookExpo. On the other hand O'Reilly (TOC) may have already established the beach head. Consumers are decidedly lacking at BookExpo and in some other trade education programs panel discussions include consumers - in one memorable case they were all thirteen year old girls. Our business is in complete flux and that's the kind of education we should be looking for.

On the exhibits side, BookExpo must lead in the expansion of marketing and promotion programs that go beyond the physical limits of a three day event in a location not everyone can attend. The BookExpo America site should be a 365 day exhibit space. Many publishers and some websites are hosting e-versions of their catalogs. Coupled with more product details, ordering facilities, merchandising tools, etc. the traditional conference attendee should be able to visit and interact with all publisher products on the BookExpo site. (I do mean all publishers). The experience can and should be better than visiting the physical show. The traditional publishing calendar is disappearing - it serves no purpose (just as television has eroded their producer driven schedules) other than as a reminder of the formulaic approach to publishing. The physical exhibit can continue but it must change unless it is to devolve into a middling trade show for small and medium sized publishers.

BookExpo also needs to think strategically about exhibitors and to seek new categories of attendees. There should be more technology companies, service companies and others. Since the market is retail what is more logical than encouraging more vendors who market store systems and products? On the technology side there are many vendors who want to expand into the publishing business but do not attend BookExpo. They do attend SIIA, TOC and Book Business conferences. Expansion along these lines is a double-edged sword since a target audience needs to be in attendance. For that, a stronger education program and specific outreach programs need to support exhibitors and attendees. First time exhibitors should get two years for one paid year for example. (As an aside, I also believe the central exhibit floor 'neighborhood' where the largest publishers congregate should be broken apart to encourage more interaction).

Anyone who has stayed over the weekend at the Frankfurt bookfair (as I did on my first visit - and never again) will hiss and blubber over the idea that BookExpo be open to consumers. This issue has previously been debated by BookExpo managers, and indeed at Frankfurt, the issue of consumers attending the fair has long been controversial with the UK and US publishers. My suggestion is based on simple logic. Book reading is declining so what better way to introduce consumers to what publishers have to offer than showing them. Look at the success of the various city wide book fairs including the one in DC.

I have always enjoyed attending BookExpo but seeing the lack of traffic in many areas this year I doubt I would be the only one considering rethinking my exhibition participation for next year. The fact that BookExpo is in NYC next year will cover over the troubling issues because of the influx of many publishing staffers. In reality the addition of 10,000 publishing staff attendees from NYC is not really what will help return BookExpo to the preeminence it deserves.

Ian Fleming

There is an exhibit opening at the Imperial War Museum this weekend on Ian Fleming and James Bond. There have been several news reports about Fleming and Bond (aside from the new book by Sebastian Faulks). Here are some links to those items:

Telegraph: Joseph Connolly got hooked on 007 when he was 12 and has been busy collecting the novels - from paperbacks to first editions - ever since. Here he provides a bookworm's guide. (I did something of the same thing last year: "Noting the release of the latest James Bond movie Casino Royale, the December issue of Rare Book Review included a spread on first editions of all the James Bond books. Collecting true first editions of the set is likely to set you back $150,000. (Sniff...time for that raise). What is useful about the article is that each edition is described so that should you come across one of these at a local thrift store you will know what to look out for").

TimesOnline has an interactive exploration of the exhibit.

International Herald Trib: Ian Fleming, had he lived, would have celebrated his 100th birthday on May 28. James Bond, his greatest invention, is probably a bit younger, strictly speaking (the evidence in the books is a little contradictory) - except that Bond, of course, is ageless and immortal. Never mind those three packs a day; he has wind to spare. His liver, astoundingly, is still holding up. He has survived not only Fleming but Kingsley Amis and John Gardner, who, among others, kept on publishing Bond novels in Fleming's stead.

Times Online: Bond never goes out of fashion.

For the insatiable: CommanderBond.net

New Links

In the last few months or so I have started reading a couple of new blog sites.

Tools of Change: Is published by the O'Reilly TOC conference organisers. They have been nice enough to mention me once or twice. Here is there article on Treating E-Books like Software.

Alison Pendergast is an executive at Pearson and has many interesting insights into Educational publishing. Here she speaks about digital music - slightly off topic but minic my own experience and I thought interesting.

Abbeville has launched a blog to support their publishing activities. I liked this post on The Art of Rocking Podcasts. In this post is also a link to a series of podcasts entitled "so you want to work in publishing". Listeners are advised to ignore the sound of tinking glasses, laughter and smoking.

WSJ Interviews Bezos

This interview may not be avialable for long: (some of this has been reported already)

Jeffrey P. Bezos, as chairman, president and chief executive of Amazon.com Inc., made e-commerce mainstream when Amazon started selling books over the Internet in 1994.
Since then, he has turned the site into a virtual shopping mall, where the company and thousands of independent merchants sell just about anything from abacuses to zithers.
He spoke with The Wall Street Journal's Walt Mossberg about cloud computing, streaming movies and why books are like horses. Here are edited excerpts of that conversation.