Big Publishing

Bookstores and Libraries (Planning for 2019 Part 3)

10 January 2019

From Kristine Kathryn Rusch:

If you’re a writer and, more specifically, if you’re an indie writer, there’s a lot of opportunity in the bookstore and library markets. Yes, indeedy, I’m talking brick-and-mortar stuff.

First, a reminder: I’m doing a short series reviewing 2018 with an eye toward 2019. If you have not read the first post in this series, please do so. I will be referring to it throughout the series.  In fact, I’d recommend that you read the entire series in order, simply because I’ll be referring to things in one post that I mentioned in a previous post. Otherwise, I’d be repeating myself ad infinitum.

. . . .

If you only saw my post on Barnes & Noble back in October, you’d think that all bookstores were in deep trouble. Barnes & Noble is in trouble. Despite the happy sunny much-too-upbeat headlines about B&N in December, the trouble remains.

The headlines are great, like this one from goodereader.com which says “Barnes & Noble Plans to Open 15 New Stores in 2019.”Doesn’t that sound wonderful? Thriving businesses expand, right?

But you need to actually read past the headline. Barnes & Noble is actually cutting back retail space, and probably cutting back on expensive leases. They’re going from stores that are at least 17,000 square feet to stores that are 14,000 square feet or less. And they’re moving those smaller stores to “entertainment districts or cultural centers.”

Um, you know, like independent bookstores. Only Barnes & Noble will have a self-serve kiosk and a “book theater” (whatever the hell that is) and “plenty of comfortable community seating areas.”

So, less space for books and less interaction with employees, but also lower rents (most likely) and less money invested in inventory.

In my opinion as a long-time retailer, this is about ten years too late for B&N, and I doubt it will fool their investors.

My analysis from October remains the same. If you’re a writer who wants to be traditionally published so that you have high visibility, you are making a bad choice. With B&N reducing shelf space and putting the final nail in the coffin of what once made their brand unique (having so many books on the shelves that readers could find almost anything), most traditionally published books will not be on the shelves in a brick-and-mortar B&N.

. . . .

The other cloud hovering over the horizon, at least for traditionally published writers, is the possible merger between the two remaining large distributors in the United States. On December 4, Shelf Awareness reported  that the Federal Trade Commission is doing a “preliminary nonpublic investigation” of a merger between Ingram and Baker & Taylor, the two big distributors to see if such a merger would violate antitrust law.

If this merger goes through, the United States would be down to one major book distributor for the entire country. Shelf Awareness opined in its article that the single distributor would have a role that would “be all the more significant because of the closure of most regional book wholesalers over the past quarter century.”

Shelf Awareness also wonders if the changes at Barnes & Noble, and the possible sale of Baker & Taylor by its parent company Follett are related. Shelf Awareness believes that Follett is one of the possible buyers of Barnes & Noble, saying:

Follett may want to sell B&T if it aspires to buy B&N, an approach that would lessen FTC concerns and avoid B&T’s non-B&N retail customers objecting and possibly taking their business elsewhere.

For traditionally published writers, the merger could be a serious problem. If, for example, a writer’s traditional publisher gets into a pissing contest with the merged distributor (Ingram Baker Taylor?) the way that the Big 5 got into a pissing contest with Amazon a few years back (a contest that continues on a small level even today), then many books won’t get into the major print distribution channel, and the very reason the writer went to a traditional publisher disappears.

. . . .

More likely, however, for traditionally published writers in this scenario is that their book is the fourth or fifth on the list published that month by an imprint. Publishers invest a lot of money in the top of the list, but rarely invest in the books farther down. Some of those books don’t even make it into the current distribution system, and might be shut out entirely of a single distributor who might mandate that they only take three books per imprint from a publisher. (These things happen all the time.)

If a writer is going to lose control of her copyright for the life of that copyright by going to a traditional publisher, then the writer needs guarantees that the book will visit all the possible store shelves, and get enough visibility to make such a loss worthwhile. But that kind of guarantee is getting harder and harder, and the physical store shelves have gotten smaller and smaller.

. . . .

The consolidation of the distributors will harm the sales of the blockbusters more than it will harm the smaller titles, further causing problems for the big traditional publishers. And you can already see some cracks in that blockbuster façade. For example, when Simon & Schuster released its year-end letter to stockholders, there was no discussion at all of increased sales of the front list (new) titles. Instead, CEO Carolyn Reidy’s claim that 2018 was S&S’s most successful year appears to be based on the growing audiobook division and a new attention to backlist sales. (And the audiobook division news will be part of the copyright discussions we will have later in this series.)

S&S is developing its own distribution line, which, in turn, will have a benefit for smaller publishers and indie writers. The more the big guns run their own distribution systems, the more they train booksellers to order direct from the publisher, cutting out the middleman.

Which means that small publishers and indie writer/publishers will benefit from the willingness of booksellers to order direct.

. . . .

Retailing is changing. The experience is becoming king. Besides, readers have discovered (remembered?) that it’s fun to go into a bookstore to find a book they didn’t even know existed. It’s easier to browse a brick and mortar store. And it’s not just about buying the book.

According to Washington D.C. economic development planner Ryan Hand (quoted in MarketWatch):

Shopping for a book is an emotional experience. The future of bookstores are small and mixed concept stores. [They will be] social spaces where you develop that emotional connection by books that are curated by literature nerds.

I had just such an emotional experience as I was researching this post. I stumbled upon an article in The Wisconsin State Journal about A Room Of One’s Own Bookstore in Madison, Wisconsin. Even though I culled my book collection way down on our move, I still have several books I purchased at A Room Of One’s Own decades ago, and I have very fond memories of the store.

. . . .

In many ways, these trends in bookselling mean that each bookstore will have its own unique inventory. A Room Of One’s Own in Madison won’t have the same books on its shelf as Writer’s Block here in Las Vegas. Some small booksellers will be amenable to carrying print titles from local authors; other small booksellers will not. Some, like a rabid anti-Amazon bookseller that I know in Oregon, refuse to take a book from any writer who publishes through Amazon. As one of those writers, I stopped recommending that bookstore.

The bookstores will develop personalities again, so that when readers travel, they’ll want to stop in the local bookstore—not to pick up the latest bestseller, but to see what kinds of offers that they might have missed in their own hometowns.

. . . .

As ebooks disrupted traditional publishing, traditional publishers have not figured out how to deal with libraries. When a traditional publisher sells a hardcover book to a library, that book gets only so many check-outs before it literally disintegrates and the library has to replace the book. Traditional publishers, faced with unlimited downloads of an ebook sold to a library, had no clue how to price the damn things.

And so began a quiet little war between traditional publishers and libraries that hit its zenith last summer when McMillan decided to “embargo” Tor science fiction and fantasy titles from libraries for four months after release.

Or, to put it in clearer terms, McMillan believed (based on no evidence at all) that library users would spend those four months buying the books they couldn’t get at the library. No journalist asked why they chose to make this move with their Tor book line only.

I suspect the reason was twofold: Tor’s sales have never been all that great, so they’re probably on an internal bubble (about to be chopped off if they don’t become profitable by a specific date) and some stupid logic that all businesses seem to have about science fiction and fantasy—that their consumers are cutting edge because those consumers read about the future.

Traditional publishers have long seen libraries as their enemy. This is because traditional publishers are a B2B (business to business) entity not a B2C (business to consumer) entity. In other words, publishers believe they sell their books to bookstores and retail outlets, not to readers. The bookstore is the B2C business, not the publisher.

. . . .

Let’s look at some information, shall we? This is from the U.S. based Institute of Museum and Library Services, for fiscal year 2016 (the last time these statistics were available):

(The IMLS annual Public Library Survey) shows that public libraries continue to evolve to meet changing community needs. More than 171 million registered users, representing over half of the nearly 311 million Americans who lived within a public library service area, visited public libraries over 1.35 billion times in 2016. Public libraries offered half a million more programs in 2016 than in 2015; 113 million people attended 5.2 million programs in 2016. In addition, the number of electronic materials continued to grow, with public libraries offering over 391 million e-books to their patrons in the United States.

The Library Journal reports that 25% of the collection materials in public libraries are ebooks. Potash told LJ that the publishing industry’s B2B problem means that it has no idea how many (paper) books libraries ordered because the orders were fulfilled by paper distributors.

Potash said,

…prior to ebooks, even the publishers never knew which libraries bought their books or how many copies, because [library orders] were being fulfilled by the traditional wholesale distributors…. Authors and agents aren’t appreciating that libraries are spending hundreds of millions of dollars…in print and digital, which is contributing to their earnings.

That shows up in the behavior of traditional publishers. They continue to treat libraries like a problem rather than an important part of the book ecosystem.

Link to the rest at Kristine Kathryn Rusch

If you like the thoughts Kris shares, you can show your appreciation by checking out her books.



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A few weeks ago, PG posted a bit about his interaction with an early book wholesaler many years ago. He suggests that the long period of time it has taken for traditional publishers to decide to cut out these middlepersons and ship direct is Exhibit 2,507,438 in PG’s ongoing indictment of what terrible business managers inhabit the world of traditional publishing.

Publishers’ inability to understand the benefits of the marketing and promotional exposure their books gain through libraries is #2,507,439.

PG is less optimistic about the future of physical books and physical bookstores than Kris is.

PG has a long association with physical books. He was fortunate as a child that his mother took him and his siblings to the closest library on a regular basis and made certain there were always books around the house. PG worked in a large university library during his freshman year in college and became an expert at quickly locating books in the huge stacks where few mortals ever trod. When the PG offspring were young, the family visited a Borders on an almost-weekly basis to acquire more books and frequently stopped in at the local library as well.

When Mrs. PG was first published, PG attended a great many book signings at physical bookstores with her. For a period of about three years, the PG’s lived about 10 minutes away from a classic and well-known bookstore, a frequent stop for major authors traveling on national book promotion tours. Mrs. PG did a number of book signings at the store and the PG family frequently visited that bookstore on shopping trips as well.

Even after aggressive culling of the family book collection, PG still sees eight jammed bookcases, each 6 feet tall, whenever he walks out of his office. There are three other large (and jammed) bookcases elsewhere in Casa PG plus books on every coffee table, nightstand, etc., and a few corners where books are stacked on the floor.

PG has inserted that long history as a prelude for saying he doesn’t want to acquire any more physical books, in part because he knows he won’t read them. He can see several examples of unread physical books from where he sits. He much prefers to read ebooks now. The only time he is likely to touch a physical book these days is when he reads poetry to some of the third generation offspring (who are each extremely adept with an iPad).

On those rare occasions when the PG’s enter a physical bookstore, he’s pretty bored and neither of them have purchased a physical book other than as a gift for several years. PG feels no emotional thrill while wandering around looking at the books.

Perhaps PG is an outlier, but he doesn’t think so. He has not been inside a busy bookstore for several years now.

Even assuming that PG’s generation includes many who feel the excitement Kris describes when she discusses some of the attractive and unique bookstores she mentions in the OP, what about the younger generations?

PG submits that music stores were not all that different than bookstores a few years ago, with people of varying ages going in to feel the ambiance, listen to the latest releases and discuss artists and songs with other music aficionados. On Friday and Saturday nights, it wasn’t unusual for a local band to play at some of those stores. Buying a record or a CD in a music store was undoubtedly an emotional experience for many.

What happened to those music stores?

iTunes happened.

Today, only a small fraction of music enthusiasts buy or care about music on physical media. Everybody downloads music from iTunes or other online music retailers. How would you play anything but downloaded music on your smartphone?

PG is informed audiophiles believe that the quality of downloaded music is not as good as music written to CD’s or vinyl, but how many music lovers are interested?

PG would love to hear a reason why digital music and digital books are inherently unlike each other and why physical books will have a unique ability to survive as a mass medium when music in physically recorded form has not.

Publishers Endanger Free Speech

9 January 2019

As PG has mentioned before, unlike many other places of online discussion, TPV is not about politics.

The cited article includes political commentary, but the portions PG is excerpting may be of significant importance to authors regardless of their personal political preferences.

From National Review:

The First Amendment has never been stronger. Yet freedom of speech is under dire threat. Both of these things can be true, and both are.

. . . .

Publishers are presenting authors with contracts containing clauses that essentially say, “We will cut you loose should a Twitter mob come after you.” It’s a revolting, shameful trend.

As Judith Shulevitz writes in the New York Times, Condé Nast, publisher of The New Yorker, Vanity Fair, and many other magazines, recently started burying in its standard writers’ contracts a landmine. If the company should unilaterally rule that the writer has become “the subject of public disrepute, contempt, complaints or scandals,” the publisher can void the contract. Shulevitz mislabels such stipulations “morality clauses.” To paraphrase Mae West, morality has nothing to do with it. “Cowardice clauses” would be nearer the mark.

. . . .

Book-publishing giants Simon & Schuster, HarperCollins, and Penguin Random House have added cowardice clauses to their standard book contracts, and Shulevitz says she’s heard that Hachette Book Group is considering doing the same. (Penguin, to its credit, allows authors to keep their advances, but others don’t, says Shulevitz.) Penguin’s clause justifies itself with a reference to anticipated adverse impacts on business, warning authors not to do anything that might cause “sustained, widespread public condemnation of the author that materially diminishes the sales potential of the work.” That rationalization won’t withstand much scrutiny. Bill O’Reilly’s latest book stands at number four on the Times’ nonfiction bestseller list, and he was not only pilloried for years but actually fired by Fox News Channel due to scandal. Ann Coulter, Dinesh D’Souza, Tucker Carlson, and many other commentators who are vilified daily on social media (and in D’Souza’s case, actually spent time behind bars) sell books by the truckload. If anything, “being the subject of public disrepute, contempt, complaints or scandals” seems to boost sales, and publishers are well aware of this. Calumny, contumely, and controversy sell. I’m On the Fence About Trump is not a title Simon and Schuster wants to publish.

. . . .

So why are book and magazine publishers putting such language in their contracts? Because they fear rebuke themselves. They don’t want to get dragged by association. “@PenguinRandom are you okay with what your author Mac McSmartypants just said to Chris Cuomo???” is not a comment a book publisher wants to see issuing from the Olympus of Alyssa Milano’s Twitter account and retweeted so many times it reaches more people than the population of France. The temperate response — “Publishing an author does not constitute an endorsement of his or her ideas” — will be ignored, laughed at, swept away in the tide of outrage, even though it’s true.

Link to the rest at National Review

Yet one more reason for authors to read their contracts very carefully.

PG hasn’t seen any political chastity clauses in contracts his clients have asked him to review. He would love to see any that visitors to TPV would like to send to him.

Although PG will not disclose the identity of those who submit such contracts to him, he would prefer that such contracts he receives omit or remove the names of the authors, book titles, or any other information that might be used to identify the author or book(s) in question.

PG will also note that just like no one knows you’re a dog on the internet, no one knows that you are a jealous rival, former spouse, partner, etc., on the internet, so the wildest accusations, well designed, can trigger internet outrage.

 

 

2019 Publishing Predictions from Agent Laurie McLean

31 December 2018

From Anne Allen’s Blog:

By Laurie McLean, Founding Partner of Fuse Literary Agency

. . . .

Diversity Continues its Dominance

One of the unforeseen yet marvelous results of the democratization of publishing is the emergence of #ownvoices authors and the increasing desire for marginalized voices to be heard and read. Top Ten and Best Books of the Year lists are crammed with nearly unpronounceable author names and stories about people and places foreign to most readers.

Publishing is slowly becoming more reflective of our society as a whole and that is a very good thing. We Need Diverse Books. In 2017 only 9% of children’s books featured African or African-America characters. We obviously have a large upside to explore.

Editors and agents are hungry for well-written books written by non-Caucasian authors. And I think that trend will accelerate in 2019.

Resurgence of Indie Bookstores as Destinations

When Borders Books went bankrupt and consumers began buying more and more of their books (and everything) from Amazon, things looked bleak for publishing’s beloved retail channel.

But something wonderful has happened. Indie bookstores, whose demise has often been predicted but has not happened, began to flourish. They added complementary items to their stores. They added cafes or partnered with good ones. Some added the capability to print books instantly through technology.

But the heart of indie bookstores was what really saved them. They are filled with book lovers as staff who can help you find the exact book you want for yourself or as a gift. Bookstores, with their bestselling author visits, workshops and conferences, classes, parties and other events, have finally become the destination book lovers craved.

Through smart expense management, good solid marketing, and really knowing their customers, indie bookstores are thriving across America. Let’s hope this trend continues (and it will if you buy books there!)

. . . .

Audiobooks and Podcasts are More Popular Than Ever

The sales numbers continue to accelerate. More people are listening to podcasts and books in commute traffic, at home while relaxing, pretty much anywhere they have a mobile phone or mp3 audio system. And it doesn’t look like they’re going to put the brakes on anytime soon.

Because they’re so popular (and profitable) audiobooks have joined ebooks and print books as “must have” rights traditional publishers won’t do a deal without. Audible continues to innovate in this space with subscription-based services, original audio stories, and “all you can absorb” genre titles (romance for now) for a monthly fee.

Podcasts are getting more and more professional and interesting. If you haven’t listened to a podcast ever, there’s a new year’s resolution you’ll be happy you made.

Link to the rest at Anne Allen’s Blog

With due respect to the author of the OP, if Barnes & Noble goes under during 2019 (PG says that’s a 90% certainty), indie bookstores will experience increased sales from people who formerly shopped at BN and Amazon will experience increased book sales from the same source.

However, after this false economic dawn, indie bookstores will continue their long decline.

For one thing, with BN gone, big publishers will not order printed books in quantities that allow book printers to put their presses on cruise control whenever a big new book is released. Printing costs will increase. Some printers will get out of the book business to focus on more profitable printing markets.

Will traditional publishers eat the increased production costs of printed books to help keep sales up?

As PG has mentioned here before, in a former life, he had extensive business dealings with large European publishers (which own all but one of the big US trade publishers). Based upon that and some other experiences, PG predicts the European publishers will increase prices for printed books in order to maintain profitability. There is also a possibility that large publishers will squeeze advances and author royalties to help make ends meet.

If PG is correct, Big Publishing will bestow yet another growth stimulus upon Amazon.

Amazon can afford to cut book prices to maintain or increase sales volume and gross revenues much, much more easily than any indie bookstore can. Amazon will need to be careful about violating U.S. antitrust laws because of its increasing market power, but, in another of PG’s personal experiences, Amazon employs some very smart and savvy lawyers. So long as management listens to legal counsel, Amazon should be able to avoid any encounters with the Antitrust Division of the U.S. Department of Justice.

Is smart money going into the bookstore business any more? Is a big investment in a chain of bookstores going to generate a better return than buying and holding yet more Amazon stock or buying Facebook or Apple stock on the dip?

The Current State of Disruption (Planning for 2019 Part 1)

27 December 2018

From Kristine Kathryn Rusch:

 For years now, I’ve done a year-end review, examining what happened and where the industry stands.

. . . .

I wrote down lists and links and reviewed notes and thought long and hard about things…and still couldn’t figure out how to wrap my arms around what I wanted to talk about.

I initially thought about combining the different parts of the industry under topics, and examine the topic rather than that part of the industry. But the industry is diverging in some important ways, making that way of writing these blogs exceedingly difficult.

This afternoon, it struck me: I write the year-end reviews so that I can focus on what to expect from the year to come.

So rather than look in detail at what happened in 2018, I’ll be looking at what happened with an eye toward the future.

. . . .

A reminder: I write these weekly business blogs for other writers who want to make or already have a long-term career. If you’re just starting out, some of this stuff won’t apply to you. If you’re a hobbyist who never wants to quit your day job, again, some of this stuff won’t apply to you. Don’t ask me to bend the blog toward you. There are a number of sites that cater to the beginner or the writer who doesn’t really care if she makes a living.

. . . .

For the most part, however, dealing with beginner and hobbyist issues doesn’t interest me. I’m a long-term professional writer who has made money as a writer since I was 16, who has made a living at it since I was 25, and who started making a heck of a great living at it by the time I was 35. I started writing these weekly blogs to make some kind of sense out of the disruption in the publishing industry in 2009. I did it for me, because I think better when I am writing things down.

The disruption continues, albeit in a new phase (part of what I’ll discuss below), and so I am focusing on what I need to focus on for my long-term writing career. I hope that some of these insights will help the rest of you.

. . . .

The disruption in the publishing industry will continue for some time now. Years, most likely. I don’t have a good crystal ball for how long it will go on, but we are past the gold rush years in the indie publishing world and have moved into a more consistent business model. It’s at least predictable, now. We know some patterns and how they’re going to work.

. . . .

The disruption in traditional publishing has gone on for nearly two decades now. It began before the Kindle made self-publishing easy by giving writers an easily accessible audience. Traditional publishing became ripe for disruption in the 1990s when the old distribution model collapsed.

Many of you saw it from the outside—the decline of the small bookstore, the loss of bookstores in small towns, the rise of the bestseller only in chain bookstores. All of that came from a collapse in the distribution system, from hundreds of regional distributors down to about five. (I don’t off the top of my head recall the actual number.) That made publishers panic. They couldn’t figure out what kinds of books sold best in the Pacific Northwest as opposed to what sold well in the Southeast, and worse, they didn’t have time to figure it out.

(When I came into the business, a top sales person for a major book company would know that science fiction sold well in California and quest fantasy sold well in Georgia, that the Midwest really enjoyed regional books, while New Yorkers often didn’t.)

Bestsellers sold everywhere, so publishers ramped up the production of already-established authors and sent those books all over the nation. Then, when the crisis leveled out, the publishers did not return to the old ways, scared of what to do. They continued to push for huge sellers rather than grow newer books.

Writer after writer after writer got dumped by their publisher in this period, while some new writers made fortunes because they wrote books that were similar to existing bestsellers.

When the Kindle came around and disrupted publishing, both writers and readers were ready for something new. That combination of forces created the blockbuster indie sellers—which were not blockbuster to traditional publishers. (The writers were making significantly more money, but selling fewer units than trad pub bestsellers.)

Hold that thought for a moment while I remind you that another disruption—a different one—was hitting publishing at the same time. Audiobooks went digital, and exploded. It became easy to download an audiobook and listen to it on your iPod (remember those) or your favorite MP3 player. Some cars made it easy to hook up those players to the sound system of the car.

And thus, commuters wanted everything on audio, and the demand in audio grew exponentially. As so many industry analysts said five or six years ago, if the Kindle hadn’t come around, the big story in publishing would have been the audiobook.

And here’s another publisher problem: most publishers never secured audio rights to the books they published. That money went directly to the authors.

. . . .

For years now, those of us who watch business trends have predicted that book sales would plateau. In reality, “plateau” is the wrong word for overall book sales. Those continue to grow, sometimes in ways that aren’t entirely measurable. New markets are opening all the time, bringing in new readers.

The system for measuring both readers and sales is so inadequate that we can’t count the readers we have, let alone the new readers who are coming into the book industry sideways. However, there is a lot of evidence—scattered, of course—that new readers are coming in. (I’ll deal with this in future weeks.)

Readership is growing, but individual sales are mostly declining. Traditional publishing’s fiction sales are down 16% since 2013. Traditional publishing has a lot of theories about this, delineated out in the Publishers Weekly article I linked to.

Indie writers believe a lot of the trad pub sales migrated to them. Maybe.

But some of what happened here was the inevitable decline from the gold rush of a disruptive technology.

Let’s look at traditional publishing for a moment. Traditional publishing moved to the blockbuster model at the turn of the century, meaning that the books that were published had to have a guaranteed level of sales or the author’s contract wouldn’t be renewed. The sales rose, partly because traditional publishing was the only game in town.

In that period, if you went to bookstores all over the country, and followed that up with a visit to the grocery store, as well as a visit to a story like WalMart or Target, you’d find the same group of books on the shelves. A few more in Target than in the grocery store, and certainly more in the bookstore, but still, the same books. And the airport bookstores were the same way.

If a reader needed reading material, he only had a few hundred titles at any given time in the stores to choose from. So the reader read the best of what he found, not necessarily what he wanted to read.

Then the disruption happened. Kindles and ereaders proliferated. Readers found books they’d been searching for, often for years. The readers also found some genres and subgenres that they hadn’t seen in a decade or more, usually books by indie writers that oculdn’t sell to the big traditional companies.

The boom in ebooks grew and grew and grew. (And if traditional pubishing hadn’t dicked around with pricing, their book sales would have grown even more.) That’s why the S-curves on that graph grow precipitously in between Stages Two and Three. Adoption increases revenue for a very very very short period of time.

That kind of growth is not sustainable for years, though. That’s why I say it was an inevitable plateau. If you’ll look on that graph again, though, you’ll see that both curves end higher on the y-axis—the profit axis—than they were at the beginning.

But hitting that plateau after years of rapid growth and, in the case of traditional publishing, a near-monopoly on the market, is painful. And that’s what we’re experiencing.

Also, sales are spreading out. I’ll talk about this a bit more in the next couple of weeks. But think of it this way. Instead of a lot of readers reluctantly reading the latest blockbuster because they’re trapped in the airport and can’t find anything else to read, those readers are now downloading dozens of books on their phones, and reading a variety of things—some of which we don’t have measurements of. Those readers have left the blockbusters they barely liked behind and found books/authors they like better.

So the money that would have gone to five different authors at three different publishing companies is now going to twenty authors, and only two of those authors are with traditional publishing companies. The books the readers are reading, though, aren’t the latest blockbuster by that author, but an older book that came out a decade ago. The price is lower, and the companies aren’t interested in those sales. They want the newest book to sell the most copies.

The consumer spends the same amount of money, but spreads it out over a wider range. Many of these sales are untrackable. Not all of those twenty authors report their sales to anyone, and not all of those sales were made through traditional channels. A few of the authors sold on their own websites. Some of those books came out of bundles. And some came out of a subscription service like Amazon. The traditional publishing companies lost most of the revenue, because their book sales have legitimately declined.

But that doesn’t mean people are reading less or that fiction reading is declining.

I’m not the only one who sees this. Mark Williams of The New Publishing Standard had the same reaction to the traditional publishing fiction numbers that I did. He wrote on November 18:

The big problem we have is that the fiction market, much more so than the wider book market, is so fragmented now, thanks to digital (by which I mean not just ebooks and audiobooks but online POD and most of all social media democratising the promotion of fiction titles), such that it seems like fewer people are reading fiction, but the reality is likely just the opposite.

The fragmented market is but one thing we’ll talk about in the next few weeks. We’ll look at how writers can use that market to their own advantage.

Link to the rest at Kristine Kathryn Rusch

PG always appreciates the analysis Kris and Dean bring to the publishing world, traditional and indie. He was going to add a few of his thoughts to Kris’ excellent post, but, perhaps as a result of holiday hangover (not the alcoholic kind), his little gray cells are not as well-regimented as usual.

Here’s a link to Kris Rusch’s books. If you like the thoughts Kris shares, you can show your appreciation by checking out her books.

Here is the most recent Kris Rusch book selling on Amazon:

Publisher Revenue for eBooks Increased in October

7 December 2018

From The Association of American Publishers:

October 2018 marked the second time in two years that publishers saw modest revenue growth in eBooks (+4.4%), with increases for the format across all trade book categories. Aside from downloaded audio, eBooks had the largest percent of revenue growth for the month, compared to October 2017.

. . . .

Publishers’ revenues (sales to bookstores, wholesalers, direct to consumer, online retailers, etc.) were $1.16 billion in October 2018, down from $1.17 billion in 2017 (-0.8%). The trade book categories either remained flat or declined in October, while educational and scholarly publishing saw some revenue increases.

. . . .

October format preferences varied from 2018’s norms, with modest revenue growth for eBooks (+4.4%) and a decline in revenue for hardback books (-7.5%). eBook revenue increased in October for Adult Books (+3.0%), Childrens/YA Books (+17.3%), and Religious Presses (+12.0%).

However, for the year-to-date (Jan. – Oct.), eBook revenues were down -3.1% from the same period in 2017. Downloaded audio remains the format with the highest percent revenue growth year-to-date (+37.7%).

Link to the rest at The Association of American Publishers

Different Ways of Reading Books

4 December 2018

From Publishing Perspectives:

Devised as an annual season-closer, the FutureBook conference is positioned by The Bookseller to focus on the digital context of the publishing business that’s more compact in the UK and, in some ways, more easily sorted than are other markets.

Presumably next year’s FutureBook Live will be seated in a non-European UK—something both emotionally and economically hard to face for many in the business. So it’s understandable that a kind of pause might have been in place at Friday’s event. This was nothing tangible, but it gave the day a gentle tremor, the perfectly logical sense for how much is unknown about what the creative industries of the UK and publishing in particular may encounter after Brexit takes place on March 29.

The Publishers Association’s annual report for 2017 showed British publishing to be dependent on book exports for 60 percent of its revenues. Thus the impact of exiting the EU could mean a lot to this industry’s fortunes. It hasn’t helped that the government’s efforts to put together a plan for Brexit have been so contentious and inconclusive.

. . . .

One of the most interesting and maybe telling developments in this market arrived in November 28, too late to be built into the day: the announcements that Penguin Random House and Hachette UK both are looking at placing offices in northern parts of the country—outposts beyond the citadel of London.

For more than a year, various industry players, some of them members of the Northern Fiction Alliance, have been arguing that too much of the industry’s control and activity is centered in London.

. . . .

Hachette UK CEO David Shelley, for example, was the most successful speaker of the day to get at Brexit and its darkening mysteries.

In the past, Shelley said, “As trade publishers, I think it’s fair to say that we usually thought of the UK first” in terms of choosing books to publish “and then hoped that the rest of the world would like them.”

But “our mindset today,” he said, “has completely transformed. In trade publishing, as has long been the case in education publishing and academic publishing, I feel that we now see ourselves as global publishers who happen to be domiciled in the UK, publishing books that appeal globally and reach consumers all around the world.

“We no longer think and talk so much about ‘home sales’ and ‘export sales,’ but one global market—which obviously is associated with Brexit, believe me.”

While discussing audiobooks—which, like edtech have their own track of programming at the FutureBook—Shelley talked of how streaming and downloads not only have enabled the distribution revolution that has fueled audio as the one dependable growth sector for years in publishing but also the integrity of the content. The old cassette-tape delivery of audio required almost everything to be abridged, he reminded us, which wasn’t good for publishers, authors, “or readers—I mean listeners.”

. . . .

Pan Macmillan’s digital director, Sara Lloyd, asked her panel on new platforms whether the day might come when the print copy of a book would become simply the merchandise accompanying digital sales.

. . . .

How comfortable is the industry delivering its content to Shelley’s listeners and Lloyd’s merchandise fans, if the actual act of long-form reading is a casualty in the process?

This is a different question from literacy, per se. The book business is terrific at supporting literacy charities and educational initiatives, scattering free books about for youngsters and adults and climbing onboard for reading campaigns.

But where are the consumer seminars on what it takes to read for hours? Where are the free symposia on the immersive/imaginative advantages to pursuing such an exercise? When do publishers and booksellers tackle the problem of an almost lost art that’s essential to the book world? Most people we’ve asked in publishing have said that they no longer read as much as they once did. And yet the industry keeps selling to a public it seems to believe is still ready for long-haul reading.

. . . .

From the States, Sourcebooks’ publisher and CEO Dominique Raccah was on hand in a closing keynote to echo that, talking about “the ways that innovation requires a change in our culture and in our thought patterns.”

. . . .

As it turned out, The Bookseller‘s Flatt had asked the key question at the top of the day as she opened the conference: “How on Earth do we make people care about what we do” in publishing—”and keep caring?”

Link to the rest at Publishing Perspectives

PG suggests the types of discussions described in the OP would have done a lot more good had they been held in 2008 or 2009, when publishers might have had more room to maneuver and adjust to the impact of Amazon and ebooks.

Instead, in 2009, under Apple’s direction, most US traditional publishers illegally agreed on a price-fixing scheme which, until broken up by the United States Department of Justice, insuring that buying and reading an ebook was one of the more expensive things you could do for a couple of hours with your smartphone or tablet.

Amazon doubled-down on an earlier decision to make it easy for authors to self-publish their books and earn much higher royalty percentages if they priced their ebooks between $2.99 and $9.99. Amazon understood online consumers and price ranges better than anybody else, including Apple and very much including traditional publishers. Based on Amazon’s experience selling ebooks and everything else online, optimum online pricing for intangible goods would generate the most sales and income at lower rather than higher price-points.

Unlike the management of major publishers, Amazon understood that ebooks were nothing more than a well-organized group of electrons. Electrons were and are pretty much free.

Amazon was very good at handling groups of electrons.

Taking money from readers in exchange for sending them a bunch of electrons called an ebook could allow Amazon to earn money without anybody stuffing a product in a box and giving it to UPS. Amazon could earn this money while outsourcing the task of organizing electrons into ebooks to individual authors and publishers.

For Amazon, ebooks were an electrons-in/electrons-out business.

For publishers, electrons were pretty much of a mystery. (English majors, you know).

You couldn’t hold a bunch of electrons. You couldn’t put a collection of electrons you had never read on a bookshelf to impress your friends. You couldn’t print special editions of electrons, bind them with Corinthian leather and sell them at an even higher price.

As far as “How on Earth do we make people care about what we do” in publishing—”and keep caring?” is concerned, as far as most readers are concerned, the manner in which ebooks are created and distributed is near the bottom of their “Things to Care About” list, located below “Is this lettuce too far gone to eat?” and above “Did I remember to set Dancing with the Stars to record?”

Does anybody really care if a book is published by Sourcebooks or Hachette?

If you asked 100 people who published the last book they read, would any of them know? Well, maybe if one of them worked at Barnes & Noble and wasn’t overly distracted by their search for a new job.

As far as what most publishers really “do”, if he assumes “do” implies some value added, PG must admit he’s stumped.

Six Myths  (and a Few Facts) About Traditional Publishing

2 December 2018

From BookBaby Blog:

Despite the constant upheaval that defines the current publishing landscape, many authors (and would-be authors) labor under some old “assumptions” about traditional publishing that are simply no longer relevant.

Myth #1: Traditional publishers serve as “gatekeepers”

As the argument goes… with a bloated book marketplace being invaded by millions of self-published titles, readers can depend on publishers to maintain quality literary standards as they allow only the best stories to be told through well-written tomes. This is false for many reasons.

First, publishing is a cold business. There is no noble mission to protect readers from bad books. Publishers put out books they think will make money — for the publishing house, maybe the bookstore, and possibly the author.

It’s true that traditional publishers are full of book professionals, some of whom are pretty good at spotting talent. The best placement editors also have an instinct for what the market will consume. They’ve published a lot of wonderful books. They’ve also published a lot of stinkers.

But if the gatekeeper myth were true, surely no good manuscript would ever be rejected, right?

. . . .

Myth #2: You can only make the big bucks through traditional publishing

The truth is, thanks to today’s self-publishing revolution, you have an equal chance at huge sales results no matter which route you choose: traditional or independent publishing. In fact, the vast majority of authors will tell you there isn’t a lot of money to be found in a traditional book deal. Sure, you get an advance check, which averages around $5,000-$10,000, but you have to earn that back before you see another dime.

Moreover, the royalties associated with publishing through one of the major houses are paltry. If you publish through a large publishing house, you can expect to make $1-$2 per book sold. To make matters worse, most publishers only pay authors twice a year, so you can’t expect to see your monthly income increase because of your book.

It got to the point that, in 2016, the US Authors Guild sent an open letter to the Association of American Publishers demanding better contract terms. In the letter, these writers stated, “Authors’ income is down across all categories. According to a 2015 Authors Guild survey —  our first since 2009  — the writing-related income of full-time book authors dropped 30% over that time period, from $25,000 to $17,500.”

. . . .

Myth #5: Once you land a book deal, your author career is set for life

Loyalty to authors is, largely, a thing of the past. The duration of a traditionally published author’s career is controlled by his or her publisher, and it’s usually all about sales of the latest book. If your new book doesn’t perform well, the publisher will not want your next one.

In fact, your first book must perform exceptionally well before the next one will be considered for publication. And the odds are long: only one to two percent of all books published become bestsellers.

Link to the rest at BookBaby Blog

The UK’s 2018 ‘Building Inclusivity’ Conference: A Safe Place for Discussion

30 November 2018

From Publishing Perspectives:

There were several key messages highlighted in the UK’s third conference on Building Inclusivity in Publishing, presented by the London Book Fair and the Publishers Association on London’s South Bank on Tuesday (November 27).

. . . .

  • Inclusion should be a given, not an exception
  • Unpaid internships should disappear completely
  • Publishers should establish “safe places” in which conversations concerning issues like identity can take place
  • Children’s publishers need to recognize how important it is for black, Asian, and minority ethnic (BAME) children to see themselves in books

Self-defined “queer working-class woman” Kerry Hudson—whose memoir Lowborn Growing Up, Getting Away, and Returning to Britain’s Poorest Towns is to be published February 5 by Penguin Random House’s Chatto—noted that strides have been made to improve inclusion.

One example Hudson pointed to is the Good Literary Agency, specifically set up with the purpose of reaching marginalized voices, for example—but she also pointed out that a recent report funded by the the Arts and Humanities Research Council and titled Panic! 2018 Social Cass, Taste and Inequalities in the Creative Industries (PDF), suggested that only 12.6 percent of employees in publishing are of working-class origin.

“Marginalized writers aren’t looking for a scheme or a month of open submissions when for the rest of the year they feel as isolated and overlooked as ever,” Hudson said.

“We want an industry where inclusivity is the norm and not the shiniest new project. The aim must be not for superficial changes but actually changing the bones, the very structure of what this industry is. That means moving away from pilots, meetings, and mission statements and looking at how to roll-out, scale up, and truly integrate these principles.”

Link to the rest at Publishing Perspectives

PG suggests that traditional publishing is built upon a foundation that is exactly the opposite of inclusive. Publishing drones sift through the never-diminishing slush pile looking for the rarest of manuscripts. They automatically exclude 99%+ of the voices who want to be heard in the broader society.

One might argue that the principal value of traditional publishers for most readers is to create an exclusive collection of books that will appeal to those readers. If a publisher doesn’t exclude manuscripts its readers will, for whatever reason, not enjoy, the costs of publication, overhead, etc., will quickly exceed the publisher’s income and the publisher will disappear.

Self-described “curators of culture” can’t open the gates to just anyone without failing in their curational role, the only value they provide in a world in which self-publishing is becoming more and more widely accepted.

One might also ask if traditional publishers are providing a useful service to marginalized authors by inviting those authors into a business structure in which, “Don’t quit your day job,” is the most common piece of honest advice publishers give to debut authors.

Isn’t Kindle Direct Publishing “actually changing the bones, the very structure of what this industry is” to a far, far greater extent than conferences held on London’s South Bank?

Won’t more marginalized authors succeed in sharing their unique viewpoints with the world by self-publishing? Won’t most marginalized authors find a life as a professional writer easier to attain by selling their work in ebook form on Amazon?

 

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