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The Value Web

I’ve a new post over on my Personal Blog:

The tidy chain discussed at the start begins to look, and will be in real life, a whole lot more complicated.  Instead of a publishing value CHAIN, we have something more akin to a value WEB. Different actors can work together on different projects depending on their needs at a given time. And that means title-by-title projects, agents taking on roles more akin to producers (or publishers or retailers or maybe all of them doing so but not on every title).

It’s about the publishing value chain, see what you think,
Eoin

Bricks & Mortar Blues | The High Street Is Crumbling – 04/04/2011

Decent and quick overview of the retail situation on the high street by Motley Fool:

Overall, however, I think there is a fundamental, longer term negative trend taking place here.I remember considering HMV as a value stock late last year. At the time it was at 45p. If I recall correctly it was on a price/earnings ratio of about 4 and had a dividend yield in double figures: surely it was just too cheap?But this value play has failed the test of time — as it happened, earnings since then have fallen, the dividend has been slashed, and the share price is now 15p. In short, HMV is a classic value trap. Every time investors think the company looks cheap, it gets cheaper.

via The High Street Is Crumbling – 04/04/2011.

Stop Making It Bigger

Most small and medium-sized publishers who haven’t  YET decided to act on digital publishing wonder where to start. They are especially cautious if they have been in business for some time and have a backlist they are worried about converting. That’s a significant up-front cost for small publishers if they only have PDF copies of their titles.

In their minds backlists look like a cost sink rather than a potential digital profit centre. That’s because depending on who you talk to a backlist conversion from PDF to epub or .mobi will cost about €150-€250 and what’s more, it’ll be even more for a high-design title.

If you’ve been publishing say a modest 10 titles a year for ten years, then you’ve a back list of 100 titles and even at the most reasonable quote that might cost you €15,000 to convert. For a small company that’s a chunk of change equivalent to publishing a few new titles a year in cost terms.

Well to my mind, the first thing ANY publisher needs to do, even if they don’t have immediate plans for digital publishing, is stop making that backlist issue bigger and I’ve a pretty sensible strategy for how they can do that AND start preparing for digital publishing.

1) Stop only holding PDF files
Simple enough really, but if you are using in-house design programmes like Indesign or Quark, make sure you hold onto the Quark or Indesign files of your titles AS WELL as holding on to the PDF. If you are using out of company contractors, make it a condition that designers supply original files to you when they deliver the final files. Doing this means that you have files that are easier to convert then PDFs and will thus cost considerably less money when you decide to explore digital publishing and ebooks.
Cost to you: Nothing

2) Convert all new titles yourself
Many of the best in-house design systems offer conversion tools that publishers  can use to create epub and .mobi files themselves. There are other programs that allow you to create them from word files too, so this isn’t as difficult as it might sound. What’s more it future proofs your business going forward against the conversion fees I highlighted above. If you use an external contractor, make them convert the files at source and deliver the resulting files, this should not take them TOO long and for a modest cost at the time of origination you will be ready to sell ebooks.
Cost to you: Nothing to very modest

3) Audit your backlist
So you’ve stopped making the problem bigger and you’ve created files that can easily be converted to ebook formats of your choice. It is time to see just how big the problem is on the backlist. Go through your titles and find out what files you actually have for them. PDF, Indesign, Quark or Word. From an ebook creation perspective Word files and original design files are actually fairly easy to convert (with a little knowledge) so if you have those file types AS WELL as PDF files for your title, you are in a good place. Sort titles into two groups, those with ONLY PDF files and those with Word or Indesign/Quark files.
Cost to you: Time and frustration

4) Convert the easy titles
As I mentioned in 2 (above) in-house design suites will generally have plug-ins that enable you to convert your Indesign/Quark files and there are cheap commercial products that will convert word files. You can make headway in creating a digitzed backlist by converting the files in those formats before worrying about the PDF files. Likewise, external designers will charge MUCH less for converting those files then a PDF, if they don’t, they are probably over-charging you.
Cost to you: Nothing to modest

5) Start selling them
Of course this section requires some thought and strategic planning* before you forge ahead, but once you’ve done that and chosen the right path for your company, you actually have files in formats that can be uploaded to major ebook retail sites. Create accounts, add metadata and start selling them, or sign up with an ebook distributor who will do that work for you. Once the converted titles start to pay back some cash, use that to convert the tricky or PDF-bound titles.
Cost to you: Nothing to modest depending on the sales channel you chose

And there, in five easy steps, is a simple strategy for small and medium-sized publisher looking for somewhere to start on the digital publishing market but worried about their backlist problem.


*Which Green Lamp Media will be happy to help you with. We can provide strategic advice and planning, operations support or we can provide digital publishing services, depending on your needs.

Image Credits
Attribution Some rights reserved by RachelH_

Bricks & Mortar Blues | Return to sender could put HMV in heartbreak hotel

A reminder that often in retail the most obvious problems are not ALWAYS the ones that kill you. Because digital issues are getting so much attention, we tend to forget that the impact supermarkets are having on media sales is dramatic and unpredictable:

I ask because of the news that Europe’s largest retailer is now asking record companies to deliver their albums to it on a sale-or-return basis. This is a radical shift in an industry which had been able to bank on getting the lion’s share of its physical sales revenues up front from wholesalers.

Now the might of Tesco is pushing music companies to accept only an initial 50p per CD, rather than the £7 or £8 which up until now retailers expected to pay for them.

Return to sender could put HMV in heartbreak hotel

 

Bricks & Mortar Blues | As Borders Closes Bookshops, Rival Barnes & Noble Survives – TIME

I wonder when most people will realise that B&N is literally killing itself to boost the ebook business. It’s a sensible decision and I’m sure the physical division will persist in a much reduced form for some time to come, but for all of that, B&N is killing itself to survive.

“Barnes & Noble is just a better-run bookstore. They have better locations, their stores are brighter and it’s better stocked,” says Bill Kavaler, a senior analyst at brokerage firm Oscar Gruss & Son. “And while there’s some discomfort with Barnes & Noble’s management, you can’t say they’re not trying to run a good book chain.”

But the question is how long Barnes & Noble can stay ahead of the gradual shift from print to digital. Barnes & Noble still has 705 bookstores in the U.S., and those locations are less profitable than they used to be, though that drop seems to be slowing. Worse, its online operation continues to lose money. Overall, Barnes & Noble’s profits in its most recent quarter, which ended in January, fell 25% from a year earlier to $60.6 million. In order to stem the losses, Barnes & Noble’s executives decided recently to stop paying stockholders a dividend and invest the money in its online and e-books division to boost growth.

via As Borders Closes Bookshops, Rival Barnes & Noble Survives – TIME.