Skip to content

Posts from the ‘Digital’ Category

Publishers Take Note | MediaPost – news and directories for media, marketing and online advertising professionals

Interesting stats these:

Falling prices and new business models will help U.S. e-book unit sales to grow from an estimated $313 million in 2009 to $2.7 billion in 2013, according to a new Yankee Group forecast. The research firm predicts that e-book downloads will outpace those of paid mobile apps during the period, growing at an annual rate of 83% compared to 72%.

via MediaPost – news and directories for media, marketing and online advertising professionals.

Interesting Link | Does Amazon Make Money on the Kindle? – Digits – WSJ

I have thoughts on this, but they are still filtering around with several half formed thoughts, I’ll post much, much more about Amazon & Kindle soon:

Some analysts quizzed the company about this on a conference call Thursday, but Amazon chief financial officer Tom Szkutak refused to give specifics about the device’s profitability.

Many analysts assume the Kindle operates on a razor-razorblade model, which is the tactic of selling one good (like razors) at a discount, and a second good that it dependent on it (like razorblades) at a higher price. For Amazon, this would mean selling the Kindle at a discount in order to make money on e-book sales.

via Does Amazon Make Money on the Kindle? – Digits – WSJ.

Digital Change | Book Buzz: ‘True Grit,’ Angelina Jolie, e-book sales – USATODAY.com

It’s an interesting one this, will it shift back, or stay as it is now?

E-express: The post-holiday surge in sales of e-books continues. For the third week in a row, more than a third of the top 50 books on USA TODAY’s Best-Selling Books list sold more e-book copies than print versions. Among the 19 books more popular in digital form was Kathryn Stockett’s novel, The Help, a sleeper hit from 2009. It has been so popular in hardcover (79 weeks in the top 50) that the paperback won’t be released until April. Putnam president Ivan Held won’t say if the publisher fears the e-book (at $12.99) is cutting into sales of the hardcover (listed at $24.95), but did say, “We are thrilled that new readers continue to discover The Help nearly two years after it was published.”

via Book Buzz: ‘True Grit,’ Angelina Jolie, e-book sales – USATODAY.com.

The Internet As Competition To New Non-Fiction Books


About This Series
Things Publishers Fear is an occasional series about the realities of publishing in the modern era. For the record, survival is not guaranteed, nor is it always deserved.


Berger said that the name of the game in this space is SEO: writing content “that search engines want to present their users.” Like the Demand Media CEO when I questioned him about their business model, Berger claimed that his company’s model is not competing with traditional journalism. Rather, Berger said that Suite101 and others compete with “non-fiction publishing.”

For example, he said, in the past if you were re-modeling your house you’d go buy a book on that subject. But now, people just Google it. He claimed that traditional publishers have “not woken up [to this] at all.”

I asked what traditional publishers could do to ‘wake up’? Berger replied that there has been “no response from publishing houses” to topic-based sites like Suite101. The best that traditional publishers have come up with, said Berger, is ebooks. However “the questions of the users are so much more specific” than what ebooks can address, he continued. “What rules in this space is topic expertise” – which he noted is what Suite101 is a platform for.

Content Farms 101: Why Suite101 Publishes 500 Articles a Day

Apologies for starting this post with one extensive quote and then following it, almost instantly, with another, but it will make sense very soon.

The potential of Google Books is that by supplying information from a vast accessible anywhere database you reduce the overall demand for new or fresh paid content. What’s even more frightening is that Google is a private company and access to that enormous database will be, for all intents and purposes, at their whim.

Things Publishers Fear: #2 ~ Google

I read the ReadWriteWeb post with interest today and it reminded me of why publisher fear Google. It reminded me too of a thought offered up by Tim Spalding in response to another very interest blog post (comment, post):

I haven’t made up my mind about the net effect of all the change. What bothers me about ebooks is that, so far, the positive effect is not very substantial. So far, ebooks feel mostly like a change in medium, with some minor gains for portability and instant access, not a true leap. Then again, computers at first looked like better slide rules, so I expect some leaping to take place.

All told, I worry in two directions:

First, the “treasures to come” may not be treasures at all. Was the TV a net gain for society? I’m not so sure. On average, it made us less social, less happy, murdered many richer forms of entertainment and made us fat and, until very recently, limited our options to a scary degree. I don’t see anything so bad coming for ebooks, but I am worried that ebooks will merely collapse into the internet. The internet is great, but there’s a lot to be gained from what will come to seem the boring limitations of a book. Maybe I’m wrong.

That idea of books collapsing into the net, that intrigues me. It intrigues me because Google is doing that right now, it’s Editions product will be cloud based blurring the difference between book and web.

Suite101 is also doing it too, but in a different way. Instead of relying on the old content from books that may or may not be useful, as Google is, it is following the Demand Studio model of creating cheap content in vast amounts designed to answer specific question.

Suite101 is creating the same kind of beast as Google is creating with its books database, a searchable and relevant database of content that answers questions and reduces the demand for new generic published material. Even if we imagine that the demand might increase it is clear that the value of new content where relevant content exists is certainly lower than before.

Reframe this debate
There is lots of talk about how curation is a key tool for publishers in the modern era and I agree, but we underestimate the ways in which curation can happen. Suite101 is curating the Cognative Surplus that Clay Shirky talks about and harnessing it to its own advantage and it’s reader’s demands.

Publishers could be doing that for niche subjects as easily as Suite101. Publishers, with experts in certain fields already on their books on niche subjects, SHOULD already be doing it.

The challenge for most publishers is first to realize there IS a challenge and that responding to it is less about social media, ebooks and fancy apps (though they all have a role) and more about rethinking the way you conceive content and how and where you deploy that content to engage and build an audience.

It would be a shame if the companies who have cultivated quality content for so long don’t grab the opportunity that exists and instead allow newcomers to usurp their role, but if that is what they choose …

Things Publishers Fear: #4 ~ Price

no hassle price
Creative Commons License photo credit: TheTruthAbout…

About This Series
Things Publishers Fear is an occasional series about the realities of publishing in the modern era. For the record, survival is not guaranteed, nor is it always deserved.


Price

  • Information Wants To Be Free!
  • Freemium Model!
  • $9.99
  • Agency Model
  • Right now it seems the whole publishing industry is obsessed with price. The FT carried a piece on Tuesday about how Random House “Fear An iPad Price War“. Macmillan CEO John Sargent has been blogging about it, there is even a FREEMIUM SUMMIT in San Francisco on Friday (Contrary to what you’d expect tickets cost $449.00 rather than $0.00).

    And who can blame them. Price is already creating enormous problems for publishers. And it’s not just things like Kindle users punishing authors with non-existent, delayed or expensive Kindle editions by giving them one star reviews (here and here for good discussion).

    Price is a problem in the real world as well as the digital one. You only need to look to last winter’s price war in the US to see that. Amazon and Walmart kicked each other (and publishers) in the head to prove they had the best price for some key hardcover titles. The price point flavour of the day was $9.99. Then Target joined the fray.

    The problem of course is that these price wars and ebook protests are driving a value perception home in consumers minds. On the one hand it reinforces the idea of ebooks being “worth” less than physical books and on the other, the price of physical books is too high, why else would retailers be selling them at such large discounts.

    Bizarrely enough, until the enforced change to an agency model (which is by the by not across the board and is unlikely to become the standard if Amazon has its way), Amazon was selling ebooks at a loss, at least on new releases. And all three companies (Amazon, Target and Walmart) were selling their hardcovers at loss prices.

    Free Will Increase Sales
    And then there is the giving away stuff will help you sell more stuff argument. There are studies which seem to suggest that there are benefits. But the key point about those studies, is that they are by their nature, short-termist. This is not a criticism, just a reality.

    As the aforementioned John Sargent noted about the longer term of “Free” (HT to Mike Cane for pulling this quote):

    We had a car guide, Edmund’s Car Guide. That was a distributed line we had at one point.

    Edmund’s decided to put a little content up on the web. We said, “Great, it’ll drive the sales.”

    He said, “I’m gonna put it all up.” We said, “Don’t do it. You won’t sell books.” He said, “I’m gonna prove you wrong.” He put one-hundred per cent of his content up for free.

    First year, sales of the book went up.

    Second year, they went up again.

    Third year, they dropped by fifty per cent.

    Fourth year, we didn’t sell another book. You don’t find them on a bookstore shelf anymore.

    So there is that danger of the experimental stage of, “I give it away free and look! — my sales go up.”

    There’s gonna come a point in time where I give it away for free and my sales don’t go up and then there’s gonna be a point in time when I give it away for free and I ain’t selling shit anymore.

    Pushing For More
    From the perspective of a book publisher, price is about the only lever one has to drive revenue. Getting more for the books you sell is going to increase your top and bottom lines results. That is if you can control costs. So it seems like great territory for a fight, it seems like a great place to drag a bigger percentage from the other guys side of the maths to your side.

    Apple provided the opportunity to beat Amazon with a stick and to actually enable that clawback. Publishers, by some thinking, would have been fools not to take it.

    Besieged
    There are many potential retorts to this post, so many “but what about x, or y, or z” but the logic of fighting on price, of resisting free, of pushing for a higher value on content seems inescapable to most publishers who have for so long been on the losing edge of the price war.

    As some of the posts in this series have explored (Apple, Google, Amazon) as an industry the ground on which Publishing is built is being undermined.

    The smartest heads in the building are seeing that the future is not necessarily rosy, that survival is not guaranteed. That places an awesome responsibility on the heads of managers and executives. No one wants to be the man or the woman who brought X Company down. That leads to defensive thinking.

    That is why Publishers Fear Price and when you look at it from their perspective, they are right to.


    In an interesting aside, OR Books Co-Publisher Colin Robinson has an interesting post over at HuffPo. I expect to see similar decisions over the next few years. Disintermediation works both ways.