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Digital World Book, known as the DBW is the key conference in the publication of books for publishers in the e-books. All the “big six” book publishers are present in quantities never before. Random House will have more than 40 participants, while fewer than 20 came from the publisher in 2010. The digital book world conference began quietly on Monday morning with three sessions focused for a long time, the official opening ceremony will begin at 17 hours, but despite the digital output cautiously DBW 2011 is just quiet – There are over 1,250 registered twice that last year 600.
Since book publishers are here at DBW, mainstream booksellers are also here. Who is here and what they are selling will be evident when the floor show begins 13:00
The session iPad / iPhone has provided an overview of applications and the Apple App Store. It was the kind of session that felt like it was presented to other audiences – do not publish specific, as the meeting of the e-book design and production. The meeting is followed very still ongoing as I write, shows an interest of people in book publishing companies. How they got out of it, maybe they acquired the interest in book publishing and literary agents and tell us later.
Sessions on the morning of Monday, three were in the design of e-books and production, online content strategy and the iPhone / IPAD strategies. It was the first, most of the screws and nuts, which was the subject key retailers were focused on. Speaking directly to the creators of books and production managers, the session included discussions on programming languages and workflow – which suggests that book publishers are now specifically and actively serious about integrating e-Books, e-book publishing, amazon kindle publishing etc into their business model.
For the book publishers and authors perspective, Borders was once a worthy rival to Barnes & Noble. Perhaps even bigger than B&N. The two brick-and-mortar chain bookstores were able to offer better prices than independent bookstores and drove many out of business. But that was before the success of Amazon and other online retailers brought the phrase “brick and mortar” into regular use — and once that happened, everything changed; indeed many UK book publishers watched in horror last year the UK divison of Borders hit the wall.
Barnes & Noble, if buffeted by Amazon’s success, has remained afloat; Borders has been taking on water.
On Dec. 30 Borders announced it would not make payments owed to some publishers, without specifying whom. Hachette confirmed that it was among those who would not be paid by Borders.
Borders has nearly 200 Waldenbooks and Borders Express outlets slated for closure before the month of January is out. Additional Borders stores are also set to close, including Westwood’s.
Borders is also cutting back on staff. On Wednesday, Borders announced that it would close a distribution center in Tennessee, eliminating more than 300 jobs; 15 management positions were eliminated Friday. And the resignation of two top executives — the chief information officer and general counsel — was announced at the beginning of 2011.
Meanwhile, Borders is seeking to restructure its debt like the frantic chess of a brutal endgame. On Thursday, Borders met with publishers and proposed that the payments owed by the bookseller be reclassified as a loan, as part of that refinancing. “But on Friday, publishers remained skeptical of the proposal put forth by Borders,” the New York Times reports. “One publisher said that the proposal was not enough to convince the group that Borders had found a way to revive its business, and that they were less optimistic than ever that publishers could return to doing business with Borders.”
Nevertheless, Borders — which lost money in the first three quarters of 2010 — remains the second-largest bookstore chain by revenue. Its loss would have a significant effect on book publishers across the United States.
Investors, however, seem cheered by the recent news swirling around Borders. Shares rose 12% on Thursday after reports that the bookseller was close to securing financing.
Google Inc., owner of the world’s most popular search engine, is starting an electronic book- selling service today with almost 4,000 publishers, in a challenge to Amazon.com Inc. and Apple Inc.
The service, called Google eBooks, features about 3 million titles for free and hundreds of thousands for purchase, the company said today in a post on its website. Book Publishers include Random House Group Ltd. and HarperCollins Publishers.
“They’re going to have access to many, many more books than anyone else,” said James McQuivey, an analyst with Forrester Research Inc. in Cambridge, Massachusetts. “This is the time to be doing it” because the market is growing so quickly, he said.
Google, looking to improve its search service while expanding beyond traditional online advertising, is adding a revenue source that’s built from its multiyear effort to scan the world’s books. The number of electronic-reading devices sold in the U.S. should jump to 29.4 million in 2015 from 3.7 million by the end of last year, according to Forrester.
“This is a rapidly growing market, and there’s obviously plenty of room in this market for a number of competitors,” Scott Dougall, director of product management for Google Books, said in an interview. “We’re taking this seriously.”
The eBooks service can be accessed on computers with modern browsers, smartphones and tablets from multiple operating systems including Google’s Android and Apple’s iOS.
The service will work on some e-readers as well, including Barnes & Noble Inc.’s Nook. It isn’t accessible on Amazon’s Kindle, Google spokeswoman Jeannie Hornung said.
Google also will let independent booksellers set up digital stores, helping them compete with Amazon and Barnes & Noble. Members of the American Booksellers Association are able to participate in the program.
While revenue sharing varies, the book publisher receives the majority of the sale through a purchase on Google. With independent booksellers, publishers will typically get the largest portion of the sale, though not necessarily the majority, Hornung said in an interview.
Google’s rivals already are benefitting from growing interest in digital books. The Kindle, which has more than 757,000 books titles, should generate $5.32 billion in revenue in 2012, up from an estimated $2.81 billion for 2010, according to Sandeep Aggarwal, an analyst at Caris & Co.
Apple, which launched its electronic book service earlier this year, had 35 million books downloaded through Sept. 1, the company said.
The bill, which is expected to pass the National Assembly later this month, would let book publishers set e-book prices. The idea is to prevent publishers from being undercut by the likes of Amazon or Apple.
The French Senate has passed the first reading of a bill that would allow book publishers to set a fixed price on e-books, in a bid to try to protect publishers and smaller retailers as the e-book market takes off.
But since the first reading on October 26, several objections have been raised – not least of which are whether the law is even legal.
An extension of a 30-year-old law
The law proposed by centre-right senators Catherine Dumas and Jacques Legendre aims to replicate the 1981 Lang Law, which prohibits the sale of physical books for less than five per cent below a cover price set by the publisher.
This law has proved popular in France, helping to maintain one of Europe’s best networks independent bookstores by protecting them from competition from large chains.Dumas and Legendre’s bill was the result of a year of consultations with writers, publishers and retailers, who are concerned that their revenues will be hit by the expanding online market. But for now, industry figures show that e-books make up less than one per cent of France’s book market, but that is expected to double in the next year.
“In 2011, we will see the beginning of a really strong market,” said Clément Hering, an analyst with Gfk, in an interview with Deutsche Welle.
“Till now, it’s been quite a tiny market because of the price of products, which is quite high in France, and the number of platforms that are selling e-books which is quite tiny too, but that is changing.”
According to Hering, the e-book market so far has been a way of generating extra revenue for publishers rather than something that erodes profits, but that could change. In the US, digital literature accounts for more than eight per cent of the book market.
Enforcability remains an issue
But as the Internet is international, it is difficult to see how this law will work in practice. There seems little to stop a French consumer buying a book from a website based in another country, unless the government decides to geo-block e-book retailer websites. Otherwise, a French consumer could just as easily buy the same title at a lower price from Belgium or Luxembourg.
Another more serious obstacle is the European Court of Justice - this protectionist measure might turn out to run contrary to the idea of a single European market.
The Court has dealt with similar cases, including ones resulting from the Lang law, by determining whether the rule would be discriminatory against imports.”If they would be discriminatory then, prima facie, they would be unlawful unless the state imposing the restriction would be able justify it in some way.” said Angus Johnston, an EU law specialist at Oxford University.
The protection of national culture can be adduced as a justification, but Johnston says it is difficult to argue that a country’s literary heritage is protected by allowing the country itself rather than the importer to set the price of a book.
“On the face of it seems it would be challengeable successfully under EU free trade law,” he added.
Slowing innovation
The French parliament will take up the debate again in the next few weeks, when an amended version of the bill will be brought before both houses a final time before it can be signed into law.
Another problem with the proposed law, industry watchers said, is that it may inhibit innovation in this relatively new marketplace. The bill doesn’t make a distinction between books that are distribut
The parents of Madeleine McCann are writing a book about their daughter’s disappearance and their so-far unsuccessful efforts to trace her.
A deal has been signed with book publishers Transworld which is an imprint of Random House UK. Few details have been revealed but Kate and Gerry McCann are receiving a “substantial” advance and “enhanced royalties” which gives the couple a bigger than normal share of the profits from sales.
The book is already part-written. Kate McCann said it had been a difficult decision but the money it raised would go directly to the McCanns’ official fund to look for Madeleine.
“My reason for writing is simple – to give an account of the truth,” she said. “With the depletion of Madeleine’s Fund, it is a decision that has virtually been taken out of our hands.”
Hopeful
Gerry McCann said he was hopeful the publication would help the ongoing efforts to find out what had happened to their daughter, who went missing from their holiday apartment in the Portugese resort of Praia da Luz on 3 May 2007, as her parents dined with friends nearby.
“Our hope is that it may prompt those who have relevant information – knowingly or not – to come forward and share it with our team. Somebody holds that key piece of the jigsaw.”
The book publisher, Bill Scott-Kerr of Transworld, is more than happy with the deal and sees the book – expected to retail at £20 – as a big seller.
“It is an enormous privilege to be publishing this book” he said. “We are so pleased to be joining Kate and Gerry McCann in the Find Madeleine campaign.”
There are also expected to be newspaper serialisations around the publication date, believed to be 28 April 2011 which would coincide with the fourth anniversary of Madeleine’s disappearance.
The official Portuguese inquiry was formally shelved in July 2008, although private detectives employed by the McCanns have continued the search.
As exemplified by the Sports Illustrated debacle, even relatively well-funded, national publications can’t justify the cost to make their content really shine a platform like the iPad and take advantage of all the device can do. Apple needs to deliver a publishing framework that will let magazines and newspapers easily self publish their content on this new distribution model.
There’s one thing that Apple’s (Nasdaq: AAPL) iPad needs more than a camera for FaceTime video calling, and that’s a real solution for old-school magazine and newspaper publishers. The iPad is a do-it-all device — Web, email, e-books, games, video, music — but it still has a few problems.
For instance, for active book readers, it’s hard to argue that the iPad is the best solution. The iPad is heavy, and its screen isn’t so great in broad daylight. At US$139, the new Amazon (Nasdaq: AMZN) Kindle is more flexible. It’s lighter, which means it’s easier to hold for hours on end, and as Amazon gleefully pointed out in a recent television ad, you can read a Kindle outside (1.6 million views on YouTube, btw). And did I say $139?
The iPad is just too expensive to risk getting sand from a beach into its innards or scratching up the pretty screen. And if you’re at a pool, the iPad is a big target to steal when you leave it under your towel and dive into the water for a dip. (For the record, I’m a big fan of reading e-books on my tiny iPhone 4 screen, but that has more to do with mobility everywhere than the screen being perfect for books.)
But iPads for the outside world is not a big deal, really. Most people read indoors most of the time. If the light from the iPad screen actually delivered a nice dose of Vitamin D, now that would be innovation. The beach and poolside are nice ways to promote the Kindle, not spank the iPad. I mean, who is using Amazon’s ads as a decision factor for buying one over the other? Hardly anybody. It’s not a slap, nor is it competitive. It’s just good solid product differentiation. Nothing to see here people. Move on.
What is a big deal is making sure the magical iPad can live up to its promise as being the best device for reading more than just the Web — for reading the publications that we really care about in a format that marries the best of App Store apps with the best of the Web. In my mind, this requires two things: an easy-to-understand and use subscription model, and perhaps even more importantly, an easy-to-use content christian book publishers platform for iOS. If Apple can figure this out, I’ll be far more likely to buy an iPad.
Enter Sports Illustrated
As it’s been widely reported, the latest iPad issue of Sports Illustrated can only be viewed in landscape mode. Why? Apparently Sports Illustrated looked at the business economics of producing both horizontal and vertical layouts for any given issue and realized that doing so isn’t cost-effective. It takes too many designers to do the work. It doesn’t hurt that producing only one option — horizontal in this case — gives the designers a more predictable landscape to create on. And offering only one option reduces the file size, too, letting customers download it more quickly.
This speaks to the publishing platform itself — basically, it doesn’t matter if book publishers can use current Apple tools to build magical magazines if it costs the publishers too much money to produce their wares. So Apple needs to deliver a
