An interview from Digital Book World:
Jeremy Greenfield: You’re projecting big digital revenues for fiscal year 2012 and significant digital revenue growth all the way through 2015. Will overall revenues grow along with digital revenues?
Ellen Archer: Digital continues to take a bigger share of the pie.
We’re all going to be watching the first three months of 2012 very closely. We’ve seen huge disruptions in 2011 to the marketplace. With all the tablet devices that will be given as gifts for the holidays, there’s more unknown. What impact will we see on reading and on book acquisition based on people having these tablets?
As for overall revenues, let’s just say, as we move forward, we’re going to have to create new models. This business model, while it’s never been great, is broken; 2012 is going to be about finding new business models.
We’ve been able to provide advances to authors and unfortunately most of those [advances] don’t drive revenue.
What are the new ways of making these deals so that it’s fair to all of us?
JG: Are you suggesting advances will go away in the future?
EA: I’m suggesting that we need to create a “Chinese menu” for deals. There are lots of different ways of how a deal can be structured and we need to explore what those deals could look like.
The one pattern that I have seen is that while there is still big money being thrown around for certain books, there is an awareness that we can’t continue to overpay. Advances are already lowering.
Link to the rest at Digital Book World