Why the news about Google and the DOJ matters to you.

Two big news stories in publishing this week will alter the landscape for authors, publishers and book retailers. The first: Google’s announcement that by year’s end it will kill the platform that allows Independent book retailers to sell eBooks through the Google store.

Story two: the news that the Justice Department is taking on Apple for possible price collusion with publishers. Happening concurrently, the two events have a combined impact on the book world; one that will only make things harder for publishers and independent retailers .

Independent retailers, the “Indy” book stores, play an important but little-heralded retailing role. While Indys do not account for many eBook sales, less than 1% of total 2010 eBook revenues, they provide a critical service to authors, publishers, readers and book designers. The Indy book stores are in effect the display case for every author’s book…and a showcase for a publishers’ wares. For local authors, they further provide a venue for book talks. For Book TV, they provide locations for shooting TV interviews with local writers.

The coming loss of the Google sales platform will be bad enough for Indy stores. But the Justice Department’s action will untie the agency pricing model. That in turn will only make Amazon even more monopolistic and cutthroat. Brick and mortar retailers already can not compete on the slim margins that Amazon can live on. Even Amazon itself – with its world-wide distribution centers and warehouses “manned” by robots – is barely breaking even. Imagine how hard it is for the Indy book stores to make a buck.

So what? Why not let a more efficient company like Amazon get bigger and lower our book prices? Isn’t that good for book readers? Who cares if the Independent book stores go under?

What’s ignored is the important function the brick and mortar book stores provide.  What happens when the major publishers have fewer stores that readers can visit and discover new books? Can a reader’s experience at a virtual bookstore provide as much opportunity to discover new books as, say, even a Barnes & Noble? I’m not so sure.

Look, I’m a techie so I’m not waxing nostalgic about the good old book store days. I love the fast-paced changes in digital publishing. But it’s important that publishers and authors recognize the impact of what’s about to happen as a result of Google’s and the DOJ’s actions. Authors and publishers are losing the important opportunity to showcase product.

As a book consumer and an author, I love to shop Amazon. But at the same I love to browse the shelves at local bookstores and so I try to buy from them too. Without the local bookstore, authors lose an important outlet for getting discovered and for selling their books.

Is it enough to say we can depend on metadata and keywords for marketing – when our towns have too few book stores left?

Posted in eBooks and bookstores | 1 Comment

The Last Print Book

Yes, I too once loved the smell and feel of paper, although today I won’t read a book unless it’s an eBook. I’ll wait for the eBook to come out. Why?

I gave a talk recently in Newport Rhode Island and said that you can count me among the growing numbers who think reading an eBook is a superior experience to reading the same book in print. I listed about twenty reasons why eBooks make for a better experience. To mention just a few:

  • You can change the type size and font and even the page color and intensity
  • A Kindle can read your book to you. (Maybe it’s not like Mother, but it does read to you.)
  • eBooks are way greener
  • iPad eBooks can include music and video
  • You get the instant dictionary
  • Links find contents and footnotes faster and can even take you online for more information
  • You can sample books before you buy
  • You can order a new book from practically anywhere you are
  • eBooks don’t go out of print…

…and I went on to list about a dozen more reasons why eBooks are becoming the preferred way to read.

In a feigned effort to look even-handed, my talk also covered some advantages of print books. Like, when was the last time a flight attendant told you to put away a print book for takeoff or landing?


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A thoughtful person in my audience pointed to another virtue of the print book that I hadn’t focused on: that the software and the hardware needed to decipher an eBook could perhaps, over time, become out of date. It won’t happen to the books on your bookshelf, said the woman in my audience. She brought up what I call “the floppy disk issue.” Here today, unusable tomorrow.

The woman’s point underscores the responsibility of eBook hardware manufacturers to make each new eBook software version compatible with older versions and older e-readers. Accomplishing this may be no small trick as new, multi-media platforms come to eBooks and reading software. I’m sorry to say it, but the lady has a point.

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The gatekeepers. Seriously?

Recently a fellow writer glumly handed me his rejection letter received from a writer’s agent. I know the feeling. I too have had my share of thumbs down letters. They arrived in my own self-addressed, stamped envelope, often in the form of a  smudged, fourth generation xeroxed form letter that advised that my unopened manuscript was not right for the agent’s or the publisher’s “list,” but wishing me a happy, happy future.

But the rejection letter that this writer showed me was over the top. The agent he had queried advised that he wouldn’t be accepting any manuscripts that didn’t feature vampires. You see, explained the insightful literary gatekeeper, vampires are what publishers are buying these days and by golly that’s the only manuscripts he’d consider. I could imagine him penning the following:

“Dear Mr. Twain. Thanks for your query and sample chapters, but that Huck Finn character of yours has normal teeth, so buddy you are out of luck. But have a good life.”

The explosion in self-publishing means that our books can get distributed and put up for sale through all the major retailers. And we don’t have to bet the kid’s college fund in hopes of success. That’s especially true of eBooks which cost so little to create, but it’s also true for a paperback since print-on-demand has similarly cut production costs. Both options are a writer’s essential alternatives to the wily literary gatekeeper who only wants long-in-the-tooth characters. And they need to be young and beautiful. And, oh yes, and it helps if the author has a TV show.

That said, with some 700.000 self-published books hitting the market last year, the competition for eyeballs is huge. Candidly, the likelihood that the average self-published author will hit the best seller list is up there with winning the lottery, especially if your work is fiction like my latest book. Your book’s chance is probably comparable to that of your kid’s basement band topping American Idol or your daughter’s garage start-up becoming the next Apple. That’s the hard reality. But the good news is that now authors are the masters of their book’s fate, not some publisher or agent who only wants manuscripts he can sink his teeth into; as in vampire teeth.

Posted in Self-publishing | 3 Comments

Buy a ticket to a bookstore?

According to the New York Times, bookstores, including some of the most prominent around the country, have begun selling tickets or requiring a book purchase of customers who attend author readings and book signings, a practice once considered unthinkable. The new practice is the response of many “Indy” book stores who are squeezed by the competition from on line retailers.

Typical fees are $5 to $10 a person to attend book events for stores that adopt the new practice, though many wave the ticket price if attendees buy a book.

According to several book store owners, the new practice was instituted in response to consumers who think of a book store as a library, not a business, and who browse with the intent of buying later from on line competitors.

Brick and mortar book retailers also say that the explosion of eBook sales, purchased on-line, is another reason stores need to charge for events. Some Indy book stores are fighting back by charging for author events, arguing that book stores are a business, not a showroom for on-line competitors.

Ecommerce book retailers often enjoy the additional competitive benefit of not having to charge sales tax for book sales, although Amazon especially, is battling several states that want to change this and impose a tax on Amazon sales to residents of their state.

The New York Times article notes that some stores obtain as much as 10 percent of store revenue from book events, holding as many as 200 a year. According to the Times, both retailers and readers polled are divided on the new practice. The largest chain retailer, Barnes & Noble, has so far declined to charge for book events.

 

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Good news for the backpack generation: textbooks are so very digital

According to Adobe Corporation’s Terry White, eBook sales in 2010 reached just under $1 billion. For 2011, they are predicted to total $2.8 billion. Some explosive growth, and the newset growth niche within the eBook world is the e-book textbook. For example:

Factoid 1:
Research firm Simba Information reports that sales for e-textbooks in the U.S. higher education market grew 44.3% to $267.3 million in 2011.

Factoid 2:
According to Forrester Research, sales of electronic textbooks accounted for only 2.8 percent of the $8 billion domestic textbook market in 2010.

The e-textbook market will be driven by three factors:
First, today’s kids expect to find e-book textbooks when they get to college.
Two, the growth of  large format e-book readers are ideally suited for text books
Three, what parent doesn’t need to save money today and text books are less costly.

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Who’s the 500 lb. gorilla of the eBook world?

It’s not exactly earth rattling news to learn that 60% of the eBooks sold in 2010 went through Amazon’s Whispernet for reading on Kindles or through Kindle apps to iPads, Android phones and tablets. But from our point of view as hungry authors seeking sales, that only suggests the collective importance of retailers in addition to Amazon who account for the other 40%.

Here’s how the majors stack up:

ebook sales

2010 eBook sales by major retailers

 

Watch Barnes & Noble who, with strong sales of the Nook Tablet, cannot be ignored by authors or publishers.

 

 

 

 

 

Barnes & Noble revenues for Nook devices will be $1.8 Billion this year (2011) according to Mr. Lynch their president.

Sony sells eBooks too – but almost as an afterthought.  It’s heart is on great hardware. Having failed to focus adequately on content, look to Sony to be an ever decreasing influence among eBook retailers. Just as furnishings used to be important in a retail store environment, depth of content is key the new “furnishings” for e-tailer websites, and, sadly, Sony falls short here. Kobo and Google are also coming on strong as retailers.

Bottom line: authors need broad distribution to maximize sales. As a rule of your digital thumb, the small benefits one site or another may offer for exclusive rights to sell your eBook will generally be outweighed by sales generated from that fragmented but important other 40% of the on line sellers.

Oh yes and don’t forget about libraries. Add revenue from libraries who lend your eBooks is a fast growing revenue source for authors and publishers. More about that in a coming blog.

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