business models
Transcription
business models
AL SPECI Frankfurt Academy Quarterly eBook Edition Business Models 2012 13 1 INDEX Preface By Holger Volland To Our Readers The Biggest Challenge is Mindset and Culture Siobhan O’Leary talks to Gus Balbontin Looking for a New Business Model? Just Follow the Customer By Carlo Carrenho Publush: Crowdfunding with a Social Conscience By Siobhan O’Leary PaperPad: from Publishing to the Market in 16hs By Marcelo Klein and Leila Jenkins From Buying to Lending: What’s Next for E-Book Libraries? By Siobhan O’Leary Dutch Delay App Gives You Stories Tailored to Your Free Time By Emile Op de Coul What Can Trade Publishers Learn from Fanfiction? By Ana von Veh Just Great Bookselling: Bilbary’s Simple Vision, Big Ambition By Roger Tagholm Digital Publishing in the Developing World By Octavio Kulesz 2 The Reinvention of the Bookseller By Joe Wikert The Future for Book Discovery By Jess Johns Amazon, E-Books and Advertising By Joe Wikert Similar Creativity & Low Barriers: Learning from the Music Industry By Katharina Ewald Die Herausforderungen für die Verlage: Wertschöpfung heute - die Modelle bei protoType By Harald Henzler Business Models –Videoimpressions 3 PREFACE By Holger Volland, VP Media Industries, Frankfurt Book Fair online bookstore and finally "Pasta do Professor"; Brazil’s answer to the formerly widespread textbook piracy in universities. In today’s publishing business startups also play an important role of new thinking. The young company "Publush" tries to make some money from the "slush pile" whilst keeping authors and readers happy, and contributes to the higher goal of raising the level of literacy amongst children. How do they do it? CEO Jesse Potash explains that for his company, users are rather seen as members Holger Volland In order to successfully implement new revenue strategies, companies need to invest in changing many internal processes; sometimes even look for new personnel. This might sound obvious but can be a tough job if every single aspect of the publishing value chain needs be touched. Australian travel publisher Lonely planet (LP) employs a full team to lead a very complex crossbusiness transformation initiative with significant operational restructuration (and ideally a minimum disruption of the business). Gus Balbontin from LP tells us how publishers can control a successful change process by thinking outside the box. The ability to constantly adapt yourself to changes is probably one of the most underestimated and yet most important skills for today’s media managers to have. A restless life can be good training for that. Take Brazilian publishing entrepreneur Bruno De Carli: after a career in engineering, followed by becoming an advertisement professional, he then developed an of the team than as customers. The business model behind this success story has only been made possible by the full digitalization of the value chain. Probably the biggest driver for new ideas in the publishing business at the moment. This is also the reason for startups being so much more agile than most established companies: They can develop all processes 100% digitally from scratch making them less resource intensive. "Skoobe" is one example in a series of technology-driven startups. The company offers reading experiences on a temporary basis (some would call it rental) and charges 9,99 € per month for this service. "Delay App" is another example. The business is only app-based and started as a paid collection of quick reads for those many moments in our lives when we have to wait around or ‘make time’. But it soon after became apparent that it might be more profitable to offer the content for free and charge publishers instead for using the app as a promotional tool. New business models are often enabled by but not necessarily limited to digital. Publisher Anna von 4 Veh shows in her contribution how Fanfiction can digital distribution platforms at their hand, they offer an alternative publishing model for no longer allow amazon to be the autocrat in community engagement, even if it seems digital trade. And to make it even better, the paradoxical to mix the roles of fans and authors. contender is one of UK's most respected book But can you make money with it? Sure you can. personalities; Tim Coates. Read Roger Tagholms Just rethink the idea of what a publication is or great Story on how Coates is reinventing the book who sets the price. selling business with a simple and convincing vision. A different point of view is also suggested by Do you know how to take full advantage of the Octavio Kulesz, who showed a truly global three new waves of book discovery? The short and approach in his study about publishing in concentrated burst of marketing support has a very developing countries. But "developing" takes up a narrow window to begin with, followed by a completely new connotation as Kulesz uses it to second wave of word-of-mouth support, and a allege that instead of who the future Apple of third wave of persistent discovery only for those China will be, we might soon be asking ourselves books and authors who managed to build enough who the new Shanda of the US will be. equity. But what are the criteria for readers to buy a book and how can data help to set the perfect Most booksellers did not seem too keen to timing? Find the answers in our interview with embrace the digital business at first. But that is Peter Hildick Smith about The future for book rapidly changing. With a myriad of services and discovery. 5 Dear Reader, The Frankfurt Book Fair is not just the biggest platform for promoting new brands and innovative business activities. With the Frankfurt Academy, it also highlights opportunities and possibilities for you to successfully position yourself in the markets of tomorrow. StoryDrive Conference Frankfurt, 11-12 October 2012 The all-media platform Frankfurt StoryDrive will highlight crossmedia business and cooperation models. This is the place to go to meet potential business partners from the publishing, film and games industries. Tools of Change for Publishing (TOC) Frankfurt, 9 October 2012 Tools of Change for Publishing (TOC) Frankfurt returns for a fourth year gathering the best and brightest in our global publishing and technology community for a full day of intriguing keynotes, sessions, and networking. The New Publishing Ecosystem with its shifts in business models and trends in e-commerce will be in the center of attention. Publishers Launch Frankfurt, 8 October 2012 Publishers Launch, the trade publishing strategy and tactics conference aimed at consumer publishing executives, agents, retailers –and those who wish to do business with them– is the can't-miss stop for an international trade or digital executive at the Frankfurt Book Fair 2012. International publishing experts will discuss digital and new business experiments and global e-publishing strategies and data. Discover new worlds: Publishing meets merchandising, 12 October 2012 From books to t-shirts, characters to stuffed animals – and vice versa. In the intensive three-hour programme “Publishing meets merchandising“, professionals from the publishing and licensing industries will discover how to successfully expand their business. Did you know that as a reader of Frankfurt Academy Quarterly you are entitled to a 10% discount off Frankfurt Academy tickets? To register for the conferences please enter the promo code FAQ10BK, select the reduced price and get ready to expand your knowledge. 6 THE BIGGEST CHALLENGE IS MINDSET AND CULTURE Interview with Gus Balbontin, Director of Transformation, Lonely Planet By Siobhan O’Leary, literary agent, translator and writer based in Berlin Gus Balbontin is a strategy and innovation expert. He specializes in leading complex cross-business transformation initiatives that require significant operational restructuring with minimum disruption to the business. He has a knack for incubating and integrating new products, market opportunities, platforms and technologies into existing businesses. Gus is playing a lead role in Lonely Planet’s transformation from print publisher to multi-format publisher. Gus Balbontin @ TOC Latin America Q: How important is it to think and work while they are on the road and when they come internationally when publishing multimedia back, so for us to be global, collaborative and so and multi-format products, not just in terms of on, is critical. licensing, but also in terms of co-production, collaborations, etc.? Q: In your opinion, what has changed the most about the process of publishing travel guides in These days it’s easier to think and work recent years? internationally. Publishing an e-book in various territories, for example, is as simple as uploading We have enjoyed a few decades of publishing it and ticking a few boxes, while in the past you improvements driven mainly by efficiency and needed people in each territory with relationships effectiveness (better layout tools, better writing that sometimes took years to build. Your question tools, better transport, better stock management, was how important it is. Well, this depends on etc). We are now entering a world of change what type of publisher you are, where are your driven by customers accessing and using content customers, etc. It isn’t important for everyone. in different ways. This latest shift is much more Lonely Planet has its customers spread all over the fundamental and comes from advancements in world. They need solutions to problems they face telecommunications, the internet, devices such as before taking off, phones and tablets, and so on. 7 Q: How has the publisher-author relationship places that you may have missed before. But the changed, if at all? way people travel is more impacted by wars, economic changes, etc., than by the actual travel The information a traveler needs to solve his or her guide itself. problems remains relatively unchanged. How a publisher gets this information – who they get it Q: How do you envision the future of from and how they get it – is certainly changing. multimedia publishing, particularly in the For example, do you contract an author to write a travel category? book, or to write about a place that may end up on a website, an app and an e-book? Do you get There will be a huge shift once the cost of roaming all the information from an author or use some on phones and tablets decreases and more UGC [user generated content]? As a publisher, do travelers start consuming their travel content live, you stand between authors and travelers (the on phones, tablets, laptops and books! Travelers readers), or do you become a platform to enable a will be able to combine great, rich content from a direct relationship? variety of providers to solve their problems seamlessly. Q: You are responsible for managing innovation and change at Lonely Planet. Can Q: Do you look to other models in publishing or you name some of the biggest hurdles you face other creative industries for inspiration? in the transition to multimedia and multi- Where do you learn about the latest trends in format products? Do some of the challenges publishing and beyond? relate to the cost of producing such products and the price customers expect to pay for Yes, all the time. My RSS feed is built with tech them? updates, media related news, financial news, and more. I look at the gaming industry, music, TV and The biggest challenge is mindset and culture. The even car manufacturing for clues and inspiration. rest is no different than any of the puzzles businesses solve regularly, i.e. cost, margins, Q: Do your primary competitors come from the profits, etc. Is it true that in the publishing traditional publishing industry or other industry we’re all a little out of sync with the industries? market (i.e. the cost of making something vs. the price people are prepared to pay)? Yes, but again, Primary competitors still come from the traditional these are puzzles businesses are relatively good at publishing industry… still… but not for much solving. On the other hand, changing mindsets longer. and the culture of a place is much harder. Q: How are multimedia travel guides changing the way we travel? They aren’t yet, really. Some of the more social guides like Wenzani will be able to get you to 8 Q: What distinguishes Lonely Planet from foreign publishers in the travel field, like Q: If you had to compare Lonely Planet’s, or the MairDumont, or from others in your domestic overall industry’s level of multimedia travel guide scene? publishing development to a human growth stage, would you say we’re in the baby phase, The main difference between us and the rest is or the terrible twos; are we toddlers, teenagers, that we are independent (we take no commissions or adults? for adding information to our guides), and we know because we go (we still send authors every Baby phase… definitely. two years to survey the world). MairDumont are our foreign partners in Germany. They translate and publish our guides for the German market. This article was originally published in “FAQ Magazine” 03/ 2012. 9 LOOKING FOR A NEW BUSINESS MODEL? JUST FOLLOW THE CUSTOMER By Paulo Carrenho, PublishNews In earlier days, Brazilian students photocopied Talking to many college students revealed that the the books they needed as the only alternative to main “drivers” that were always behind their purchasing them. That’s until a new service called visits to the copy shops was stated as “only what I Pasta do Professor offered a legal alternative to need”, “only when I need” and, of course, “for a book piracy –with a huge success. reasonable and better price”. Or in just a single Pasta do Professor has been on the road for over 6 word: “cheap”. years already and sometimes it is good to stop for Most publishers always tell me “price” is the ONLY a little while to look back and evaluate what has reason for so many illegal copies but I decided to been done since the beginning. I am frequently take a deeper look: I believe “price” can be asked about how we reached to where Pasta do explained as the result of “only this”. In other Professor is today and my answer has been very words, “only what I need” means “I can buy less”. simple: we have just followed the customer. And “buying less”, of course, means “less money” In fact, we haven’t invented any new concept but (price). And even more and most importantly: rather just put certain concepts that were already Brazilian professors don’t normally use the entire known in the publishing industry together in a content of the adopted textbooks. And to make it different way. worse: they are asked to consider more than one Pasta do Professor is based on two main concepts: author, using chapters by diversified authors, “custom publishing” and “on demand printing”. what is believed to give the student the possibility These concepts were already known in 2006 when of a broader view in any subject, and is also a I started developing our first business model; but reason for students to look for the cheapest way to who helped me the most was in fact our main get purely what they need, instead of buying customer: the college student. We started off entire books. because we were looking for alternatives to offer in that specific market, in which way fighting the The same can be said for “only when I need it”: illegal photocopying of university textbooks. This the entire content is normally used throughout a 4 has been and remains a main and very important to 6 month period. If students buy books as they issue for all textbook publishers in Brazil, are sold by the publishers in bookshops, the value representing a market at least 2 or 3 times bigger of the whole book has to be paid at once and the than regular sales. entire content (including what will not be used) has to be carried around throughout the whole period. What the student was trying to tell us was 10 that buying the content in many parts reduced the their content into chapters; though this had kind amount paid per purchase (once again the of been going on at copy shops for years, most of perception of “price”) and also allowed him to them were simply unaware of it or had unnoticed carry less weight on the daily basis. it. On the publishers side the biggest challenge So, my conclusion after hearing what the customer was related to technology: how could we assure had to say was that “price” is unsurprisingly quite we would not simply be giving away the content important, but could possibly be handled in a in PDF files? It took us a lot of technological smarter way if our focus was changed to the development but in the end all of them found it “reasons behind” the price itself. comfortable to send their files to our servers. To get even closer to our customer, we discussed in Later on, whilst on the road trying to take the length about what the name of the project should project to more and more universities, we realized be. We had discussions among the publishers, a different business model was needed, so we re- where the better ranked ones proposed names formatted again trying to adjust to our different always somewhat related to the word “library”. customers’ real needs. Our first model was a B2C We weren’t able to reach a consensus on any of model, but depended on the engagement on the proposals; but suddenly a bright idea came universities’ behalf to adapt the bibliography of up: why not adopt the name of the “system” that their different courses to the content available on had already been “running” in photocopy shops our servers. all over Brazil for so many years: “Pasta do Professor”. “Pasta” is the Portuguese word for The new challenge was to adapt what we had “Folder” and “Pasta do Professor” means a plastic (“textbook contents split into chapters” and folder, with a tag on it, identifying the discipline “print-on-demand availability”) to a new B2B and the professor’s name. Inside each of these business model. plastic folders were photocopies of chapters from One of the leading private universities decided to different books suggested by each professor enlarge its proposal, offering all its students not (though ironically, most of such copies were taken only the same its competitors were offering from the evaluation copies professors ask from the (classes, professors, tests, pedagogic model, etc), publishers and get in most cases for free). So, for but also all the necessary content for free; printed students, “Pasta do Professor” means the same as and delivered to their home addresses in the form “bibliography”. of brochures. The proposal in fact took effect but their next challenge became “how can we get all And so, just by understanding the customer, Pasta these different academic contents in a single do Professor was born, offering students a legal place, not having to engage in discussions and alternative to get “legal copies” only of the negotiations with all the publishers that supply in desired chapters chosen by their professors, so many different knowledge areas?” (Many printed in loose sheets and stapled on the corner; universities in Brazil have been producing their exactly what they had before, but in this way own content for some of their courses, even paying also for authors’ copyrights. It looks simple though they know the quality of such content is but I can confirm “simple” fits only to the involved very poor compared to bestselling textbooks concepts. A lot of work had to be done in order to available in the market). The fore mentioned convince publishers and authors to accept splitting university was then told about Pasta do Professor 11 and in mid-2009 after 6 months of hard work, we We’ve been on the road one year already began to deliver content for 6,000 students. Right with this specific business model but are fully now the project has already reached more than aware that technology itself won’t be enough for 170,000 students, each of them with specific needs the customer. I am sure the customer is expecting between over 1,000 different titles from the 1,300 much more than “text scalability”, “zoom”, different disciplines. Since the first group of 6,000 “portability”, “text search capabilities” and other students, we have delivered more than features normally linked to tablets as we know 475,000,000 pages (the equivalent of 1,200,000 them right now. academic books) to a market which wasn’t Rather than looking for a different business normally a textbook buyer. model, it seems that publishers and I will have to Right now our challenge is to find the business re-invent the way in which knowledge is brought model that will better fit the new electronic to our customers. I can assure we will continue to media. Our same main B2B customer has started a observe them closely and try to fulfill their needs. new form of delivery; using tablets with content for the 70 imprints held in Pasta do Professor’s servers. 12 PUBLUSH: CROWDFUNDING WITH A SOCIAL CONSCIENCE By Siobhan O’Leary, literary agent, translator and writer based in Berlin How can you make money from the “slush pile”? And, at the same time, keep readers and authors happy, while contributing to a great cause? Pubslush tries to make the seemingly impossible a reality –on a global scale. Jesse Potash is the founder and CEO of Pubslush, a crowdsourced publishing platform exclusively for authors to raise funds and build an audience for new book ideas. Jesse hails from a financial services background but has also worked across a wide array of industries, including publishing, fashion and advertising. He was recently named by mediabistro as one of its “5 eBook Publishing Experts to Watch”. He also serves on the board of directors for the Pubslush Foundation, which is committed to supporting children’s literacy initiatives worldwide. He is a native New Yorker, a yogi, a boxer and an avid traveler. Pubslush is still in its beta phase, having started we work with in our literacy programmes,” says in 2011. It operates an independent publishing Potash. The objective, he adds, is to harness the imprint, Pubslush Press, that acquires books from power of digital reading technology to reach some the online platform, and for every book sold it of the nearly one billion people in the world who donates a book to a child in need. There’s certainly are illiterate and the more than a hundred million no shortage of crowd- funding platforms out children who don’t have access to books. there, but the Pubslush model evolved from the team’s discussions with authors, when they realised there wasn’t a platform available that actually catered for their specific needs. Kickstarter, perhaps the best known crowdfunding platform, recently revealed that less than 32% of its publishing projects actually get funded. Pubslush works as a hybrid, for-profit and nonprofit enterprise. “Our goal in operating in this fashion is to create a sustainable brand of nonprofit that purposefully involves the consumer,” Potash added. In fact, Potash doesn’t think of Pubslush users (“slushers”, as they’re called) as customers. “They are part of our team,” he says. The firm’s philanthropic focus started when Jesse “They are the ones who are actually making the and his partner Hellen visited an orphanage in industry more democratic and philanthropic.” The Kenya, at around the time the company was Pubslush model also guarantees a certain level of launched. The orphanage became the company’s transparency in terms of what readers want and first charity partner. “There’s no question that the what they are willing to pay for it. main motivation behind Pubslush is the children 13 The role of technology and social media Pubslush is powered by technology. “While we strive to keep the books on our site to high standards, those standards are primarily technical (formatting, grammar, spelling, etc.). We’ve passed on the job of judging con- tent directly to the readers,” explains Potash. Digital publishing has certainly led to an explosion of content, but it also opens the door for readers to choose what they actually want to read. “Our concept is based on social networking,” he adds. “Authors submit their book to our site, and while we have established a core constituency, successful authors always harness social media to their own advantage.” Authors work to raise funds and build momentum for their books, usually starting with their own social network. As a book gains traction, it trends higher and becomes more visible to slushers. Social media has already enabled readers and authors to communicate directly with each other. But Potash notes that Pubslush is taking this a step further, “by enhancing that connection with the ability to raise funds and actually understand the analytics of social media interactions in an actionable way.” Global reach for crowdsourced authors Pubslush plans to launch in several additional languages in the coming months. “My dream for five years is that we will have books from literally every country in the world on our site,” says Potash. In addition, the company handles rights and licensing for titles published by its imprint, Pubslush Press. “Our publishing imprint operates uniquely, in that we actually build a freelance, project-based team around each book... One of the members of this team is a rights specialist who looks after these transactions.” One of the most interesting changes he’s seen in rights and licensing is that authors are now taking an increasingly proactive role – a sign that traditional publishers often fail to meet the changing expectations of their authors. “When we acquire books,” he says, “we don’t just think of them as books, but as content that must translate across entertainment mediums and languages.” Although the company performs almost all its operations in house, it is about to announce a new “trusted partner network” – a group of affiliate companies that provide services that can greatly benefit their authors. Potash’s greatest wish is to take Pubslush’s literacy programmes to the next level. “It is my personal goal that the phrase ‘children without access to literature’ will be a phrase of the past, and that every child will have access to an e-Reader (and ideally have their own), essentially giving them not only a library’s worth of books, but also the tools (text-to-speech, dictionary, built-in light, etc.) to learn and empower themselves to build a fantastic life.” This article was originally published in “FAQ Magazine” 04/2012. www.2erpack.com STORYDRIVE LICENCE TO TELL 11–14 OCT 2012 Tell your story across all channels! The all-media platform Frankfurt StoryDrive is your key to crossmedia success: A marketplace for media rights, a think-tank for transmedia projects, a forum for the media business of the future and a meeting place for anyone who wants to make more of their stories. Frankfurt StoryDrive – Maximise your story, maximise your business. www.storydrivefrankfurt.com 15 PAPERPAD: FROM PUBLISHING TO THE MARKET IN 16HS By Marcelo Klein, Marketing Manager at Pigmalion Studios and Leila Jenkins, TOC Latin America In response to the growing need for quickly adapting to changes in the world of publishing, and as a result of the dreams of visionary engineers who believed they could change the world by bringing their ideas to life, Pigmalion Studios was born. And their plan is exactly that: to generate ideas to change people’s ways of working, playing and communicating, Marcelo Klein, lets us in on how this idyllic system works… The innovative proposal suggests selling your content through your own application rather than making it available on known virtual stores where it would compete with an endless list of others’ titles and become less discoverable. In this way users may effortlessly and rapidly find As avid readers and tech fans, Pigmalion Studios’ your products all at the same spot, and purchase founders realized that carrying piles of books them with a credit card within seconds whenever around whilst traveling was quite inconvenient, so wanted. they decided to buy an iPad. But the device was lacking a good reading application which would let them make the most out of all of iPad’s capabilities. And you can make it all work in three simple steps: convert your content to PDF format; upload the file(s) to your content management system, and get yourself selling away all over the world in Being the techies they are, they then came up no time, waving goodbye to distribution costs. It with a self-publishing, multi-compatible product; takes 2 weeks to publish the app, and content PaperPad. An easy and fast way to sell and from 12 to 16 hours from publishing to availability. distribute your publications on tablets and mobile devices. Pigmalion Studios’ marketing manager, Just deal with your content and leave the tech bits to Pigmalion Studios. 16 Your application, customized with your logo, View and manage your sales report, product prices branding and colours, will be available to and catalogue from Pigmalion’s web-based download at most leading virtual stores such as platform, which stores your content; creates and Apple’s AppStore or Google Play, and will be maintains your application; deals with payments, compatible with all iPad, Android, Google devices; and deposits your earnings into your account and even through the web in the future. And your monthly. And rather than charging you for the books, magazines or newspapers will be service of providing the application and making it purchasable from within the app. All protected widely available. under Pigmalion’s own DRM. Sounds good so far? How about this; don’t think of engage your readers with social sharing on major this concept as selling your content through an social networks like Facebook or Twitter; be it app; think of it rather as selling yourself as a pages or news they’d like most. Advertise yourself brand including everything you have to offer. Add on social media monsters and spread the word. anything from a photo gallery, to videos, or your bio… add new titles; re-sell your old ones reviving You need not special equipment, or millionaire them in digi-format… include free digests of your budgets; but purely the conviction and the want to publications for users to look at before they decide do so. to purchase the full versions… offer users the possibility to subscribe to your issues when To stay ahead, be ahead. The future is suitable, for periods of 6 months, 1 year, or the applications. Overcome paper boundaries. timeframe of your choice… and what’s more; Welcome to the digital era. .... g. .. ............... ... .. A . . FR .... ... W W W. joiN NoW Nk Fu oR t miND Ne t Whe oRk R t- A C A D e m Y. New York New Delhi Casablanca São Paulo Beijing Buenos Aires Frankfurt Academy With its range of conferences, workshops, and seminars, the Frankfurt Academy offers guidance for the media and publishing industries worldwide. From 10 – 14 October 2012, the Frankfurt Book Fair will be the meeting place for the industries’ leading minds. See you in Frankfurt! Publishers Launch Frankfurt (8 October 2012) Tools of Change for Publishing – TOC Frankfurt (9 October 2012) International Rights Directors Meeting RDM (9 October 2012) Innovative Teaching and Learning Conference (10 October 2012) StoryDrive Conference (11 & 12 October 2012) Frankfurt Academy Professional Programme (10 –13 October 2012) Reserve your space today: www.frankfurt-academy.org Guest of Honour New Zealand 19 FROM BUYING TO LENDING: WHAT’S NEXT FOR E-BOOK LIBRARIES? “Use it, don‘t own it!” –under this slogan borrowed from the ‘collaborative economy’ a number of lending models have recently emerged for eBooks. Skoobe is the latest in a series of technology start-ups that offer digital reading experiences on a temporary basis. By Siobhan O’Leary, literary agent, translator and writer based in Berlin. Christian Damke is the managing director of Skoobe. After completing his studies in economics at Brunel University and earning an MBA at the IESE Business School, he got his start at Bertelsmann in 2005. Starting in 2006, he supervised the digitisation of books as director of business development for Verlagsgruppe Random House. He is responsible for cooperation with publishers, marketing and finance. Christian Damke, CEO of Skoobe In mid-June, Penguin and 3M announced a deal to be avid e-book buyers. with the New York and Brooklyn Public Libraries to Launched in February 2012, the German mobile eBook make Penguin’s e-book catalogue available for library Skoobe is betting on eBook lending as a lending. Amazon recently signed an exclusive license viable commercial model. Skoobe is the brainchild of with Pottermore to make all seven Harry Potter Verlagsgruppe Random House, Holtzbrinck and eBooks available for free through the Kindle Owners’ arvato. It offers readers a new form of access to the Lending Library. Bilbary.com launched its US world of electronic books –one that raises interesting bookstore and library in March and its UK platform questions about the meaning of ownership in the this month, with more languages and territories on age of digital reading. the way. eBook lending is certainly a hot topic in the US and beyond, although according to a poll by the As managing director Christian Damke explains, Pew Internet and American Life project, 58% of “Readers do not buy single titles, but become library patrons don’t know they can borrow e-books members of an ever growing mobile library. They can from their library and only 2% of people aged 16 or borrow titles... and read them immediately on their older in the US have ever borrowed an e-book. The smartphones or tablets.” Skoobe has a limited same study showed that e-book borrowers also tend introductory offer that allows its first 10,000 readers 20 to borrow any number of new books each month for The Skoobe app is currently one of the highest 9.99 euros a month, until 1st March 2013. Readers ranked book apps in the Apple store (with 4.5 stars) may keep up to five borrowed books in their and can be installed on an iPhone, iPad or iPod personal libraries at any one time. When the touch using iOS 4 or later. It will be available for introductory offer ends, members will be allowed to Android devices later this year. Another goal is to borrow two books per month for the subscription encourage price- conscious readers to use their fee. Publishers get an undisclosed share of revenues smartphones or tablets to read eBooks, maybe even based on how many times each of their books is in combination with the printed versions at home. To borrowed. “In developing Skoobe,” says Damke, “we date, high prices have been a major deterrent for have tried to understand the special needs of eBook potential eBook readers in Germany. readers better. Now, browsing, reading and Although Skoobe does have a strong publishing organising one’s own library, and the possibility of connection, given its founding companies, it is still a using the books on up to three devices, all offer a very new player in the market. According to Damke, rewarding reading experience.” it is an ongoing challenge to raise awareness for the brand through marketing, press and social media. Skoobe currently works with nearly 100 publishers “We have a very active community on Facebook, and and it adds new titles and imprints every week (all in we use Twitter and other social media channels to German at present). “We are [also] in discussions talk with our potential customers.” They even invite with many international publishers and intend to their customers to visit the Skoobe offices in Munich, intensify our talks at the Frankfurt Book Fair 2012,” and they actively request feedback. “More than says Damke. anything else,” says Damke, “our customers value the ease of use, as well as the simplicity with which eBooks still represent a very small slice of overall they can access a great catalogue. The willingness to book sales in Germany - around 1%, as a recent pay depends on the size of the catalogue and the study by the German Publishers and Booksellers type of reader.” Skoobe is, above all, a technology Association revealed. But Skoobe views itself as a company that aims to meet the changing demands way of attracting customers who wouldn’t otherwise readers make of the eBook market, while offering a have purchased books for their mobile devices, and rewarding reading experience. it hopes to have a positive effect on the industry as a whole by making it easier for people to discover This article was originally published in “FAQ Magazine” titles. “Our goal is to help people find new books 04/2012. and e-books using smartphones and tablets, by offering a very simple, free app which provides immediate access to book extracts,” explains Damke. 21 DUTCH DELAY APP GIVES YOU STORIES TAILORED TO YOUR FREE TIME By Emile Op de Coul, Rights & New Business Manager at Querido, Nijgh & Van Ditmar and Athenaeum publishers. AMSTERDAM: The omnipresence of smartphones and tablets has led three Dutch literary publishers, Querido, Nijgh & Van Ditmar, Athenaeum, to create an app for reading on the go. The first idea was to do something with the lost time when waiting for a bus or train that is running late. A lot of people turn to their smartphone in those situations, checking the news, the weather forecast or even worse, their email. As an alternative, the Delay App offers stories and The Delay App was published as a digital collection of novel-excerpts tailored to your ‘delay:’ as a reader stories, selected on reading length and not as a you can choose between stories that take you 5, 10, reissue of a previous collection in print. The 15, 20, etc. minutes to read. Stories and books in the publishers chose a paid model, selling the app for app vary from classic to modern, written by both €2.99 and €0.79 at the time of introduction. The Dutch and international authors, such as Arnon price was much lower than most e-books of that Grunberg, Anna Enquist, Roddy Doyle, Franz Kafka, volume (the Delay App contains over 300 pages of Elia Bárcelo and many others. literature), but was in line with other book apps in It’s different than having an e-reader or tablet with the Apple App Store. your own collection of e-books on it, since the app offers a (surprise) collection of stories from authors that you do and don’t know, enabling you to discover forgotten classics, rising new authors or the first two chapters from a bestselling writer. I suppose the quote from a Dutch newspaper says it best: “If your train or bus is late, your mobile phone transforms into a book.” Consequently, we the publishers offer a royalty of the income made through Apple to the authors whose books or stories are featured in the app. Some might argue that the app is also a promotional tool and that this could be an argument not to pay royalties, but as long as we are offering it as a paid app, the 22 publishers feel they should pay royalties just the It then took just one experiment to convince the same as you do when publishing an e-book. publishers that the freemium model was the right way forward. After offering the Delay App for free Publishers abroad recognized the potential and have during a single day resulted in 10,000 downloads in bought licenses to publish the app in their language. 24 hours! German and Swedish editions of the app have already been released by Kiepenheuer & Witsch Obviously, a free app will mean reaching a much (German) and Bonnier (Swedish). Both companies larger reading audience. The concept is the same or have initially chosen to use the paid-for app as a even better, as the content in a free edition will be model, with the Swedish version, Dötid, reaching #1 refreshed regularly instead of having to pay for a of all paid book apps in Sweden. We’re also new set of content. In a larger context, the app confident that more publishers will follow. changes from a form of ‘new’ publishing into a tool for marketing and sales, since a free app will mainly The creators of the Delay App have learned an be –apart from being a nice service to the mobile important lesson from their pioneering year as well. reader– a promotional tool for selling e-books. Even though the number of 10,000 paid downloads in a year is nice enough for a collection of stories The first year has proven that the concept is that is also a promotional tool -and one that vied appreciated by almost everyone who tries it out and with Angry Birds for the top spot in the Dutch app that there’s a huge potential of readers who will use store during its first week of release- the revenue it so long that it’s free and offers updated content. was always going to be modest, especially at the low price of €2.99 and €0.79. We believe it’s a very versatile app that can be filled with new stories and novel-excerpts by publishers, no matter the language. This article was originally published at www.publishingperspectives.com . 23 WHAT CAN TRADE PUBLISHERS LEARN FROM FANFICTION? By Anna von Veh, co-founder, Say Books Fanfiction has current notoriety in the publishing world because of the almost outrageous success of the Fifty Shades series. The first book was allegedly based largely on erotic Twilight fanfiction that the author had written. I’m not going to discuss the merits or otherwise of the book itself, but it raises the point (so to speak) of issues that are becoming ever more pertinent in the digital world, and boundaries that once seemed clearly defined are becoming increasingly blurred. Nathan Fillion poses as fiction writer Rick Castle I am a fan of ABC’s TV show Castle and tweet about the show using a ‘Castley’ pseudonym. I ‘fangirl’ might not have read otherwise, if they read books at all. with the best of them (English majors, doctors, teachers, film/media people, teenagers, and of It is all very meta. On the one hand, there are the course, Fireflyfans). What has become increasingly very successful, high profile, official tie-in ‘Nikki interesting to me as I’ve watched the show and Heat’ novels by ‘Richard Castle’ complete with a followed fans on Twitter over the past year or two is cover photo of Nathan Fillion as Richard Castle, the way the show crosses the usual boundaries of published by Hyperion. On the other hand, there is fandoms, age groups, media types and genres, with ‘fanfic’, fan-written fiction that flies under the radar reading being central to it all. and lives on the web. As I became engrossed in the show last year, I kept seeing references to ‘fanfic’ on ...and, since it's TV, he has the hottest fans. my Castle Twitter timeline and decided to take a look. Expecting the worst (and believe me, the worst Much has been written about the dearth and death is there too), I was delighted to find not only ‘OK’ of reading, and I became fascinated with how a writers, but truly excellent writers, such as the show about a crime writer and his muse seemed to fabulous ‘chezchuckles’ (it took me a while to get the be encouraging the show’s fans, and many younger Edith Wharton reference). fans, to read long-form narrative, a form some 24 Fanfiction sits at the margins of mainstream creative In many ways, Fanfiction is, and has been for many endeavour, and interrogates established views of years, ahead of its time in terms of its embrace of what it means to be a writer; the meaning of the possibilities and potential of digital technology, intellectual property, creativity, originality, of community and niche interests, its very ‘ownership;’ and traditional boundaries surrounding questioning of established domains of knowledge these concepts, as well as the whole vexed issue of and ‘right/s,’ and its acknowledgement of the role international rights. As a publishing person and reading plays in writing. As Saul Bellow said, “A daughter of an artist, I have an uneasy relationship writer is a reader moved to emulation.” The leaching with how Fanfiction steps on these well-established of boundaries described above is exemplified by the fences, particularly with regards to the Fanfiction infinite trail of hyperlinks on the web (Derrida based on novels, rather than TV or films. (The latter anyone?). It is therefore apt that Fanfiction should seems more ‘legitimate,’ but that might just be exist online, and make use of the technology that justification for my own interest.) allows deferment of meaning and certainty; a metaphorical and literal leaking of content from the container (c.f. Brian O’Leary’s ‘Context First, Revisited’). Fanfiction as an alternate publishing model Fanfiction as digital Text also embodies a paradox: reader recommendations, both on the Fanfiction it harks back to the days of Dickens in the way it is sites and on social media. Once a year or so, readers written and ‘published,’ and it shows a potential vote on the best Fanfiction in a number of path for mainstream trade digital publishing. categories, and there are curated lists of recommendations too. And disclaimers are included The longer fanfics are serialised, with the popular at the beginning of each chapter, with many being ones being updated every day or so. Many chapters very entertaining. end on true cliff-hangers; and readers are included in the writing process. Writers include disclaimers about copyright ownership and many write author notes at the beginning and end of each chapter (many of which are very entertaining in themselves). The writers invite their readers to review each chapter and sometimes even to suggest pointers for the narrative arc. ‘Beta’ readers, who qualify for the role by being experienced Fanfiction writers themselves, edit the chapters before they are posted. An incredible community is built around the stories, and Tumblr and Twitter are alive with cross blogging, reviews, and accolades for favourite writers. The popularity of individual stories or writers largely depends on discovery provided by the web through And the fans read and read. Fanfiction shows that the web need not be just a technology for making or distributing books (e-books and print), or for social marketing, but a home, distribution and communication technology for longform narrative content itself. Fanfiction and its fans take the web seriously; it is the default mode, not an afterthought. The online platform means that readers can be based anywhere in the world and are defined by their interest in the particular fandom and genre, rather than by their own geographical or political location. Might is not right in this environment. The idea that someone might limit the 25 right to read a fanfiction to a particular region or day about the latest chapter is also a way of country would be regarded as ludicrous and marketing the book beyond the subscribers tantamount to abusive behaviour towards readers. themselves. There is a lesson here too for publishers. So as well as being a serious fan of Castle and its In publishing today, we can no longer rely on selling Fanfiction, the ‘mechanics’ of Fanfiction interests me individual products that may or may not succeed. as it meshes with my interest in web technology and Fanfiction suggests another way: a model based on digital publishing. And of course, I love good writing. the web, based on the ideals/ideas of community, After having read a few stories by ‘chezchuckles’ last which encourages readers to interact with authors, year, I wrote to her to ask if she had written any of editors, designers, perhaps where they can her own material, and it turns out that Laura contribute photographs and advertise wares (if Bontrager, an unassuming school library assistant (I related to the story), etc. The online presence also just knew she had read widely) from Memphis, means that publishers have tools such as Google Tennessee, had indeed written an original, Analytics available, providing real-time statistics of unpublished romance. Laura was willing to engagement and traffic. A subscription model allows improvise with us (Say Books) in an online ‘Fanfiction publishers to get early revenue for the author (and model’ for her novel and we were delighted. themselves) and early marketing too. Tweeting each The Say Books ‘fanfiction’ model We decided to make the first chapter of Fences others from elsewhere); and have subscribers from publicly available on the web all around the world, including Mexico, the Ukraine, fences1saybooks.pressbooks.com with subscription France, the UK, Canada, Australia, and the USA. It is a instructions at the end of it. We let subscribers wonderful thing to be part of. decide how much they wanted to pay upfront for online access to the rest of the chapters which were And returning to Fanfiction itself, it can be seen as uploaded daily, with readers who paid more than $5 free marketing for the original content; for instance getting the e-book at the end. Over 80% of our it has been acknowledged by the writers and cast of subscribers paid at least $5. We used Pressbooks™, Castle that fan power, particularly on Twitter, played started by Hugh McGuire, because it is a simple, a huge role in getting ABC to retain the series after its web-based book production platform with some of modest first season (a fifth season has recently been the features I was looking for (including a confirmed). So perhaps we should be more accepting commenting system, the ability to create a working of Fanfiction and its authors who are often brilliant, e-commerce model, and the production of valid witty, intelligent, and very literate, and who in the EPUBS). Castle Fanfiction world at least, write with The other advantage of the Fanfiction web-based publishing model is that one can look outwards to the world and not be limited by location. We are a publisher from New Zealand; use technology from Canada; have an author in Tennessee, USA, (and soon admiration for and acknowledgement of the ‘original’ creators. Yes, much of Fanfiction revolves around romance and ‘M-rated’ stories (and there’s a whole book to be written about that). However, focusing only on the 26 subject matter and traditional boundary issues online interaction between readers, writers and obscures what Fanfiction has to offer us as publishers, and a new way of thinking about and publishers: a model for community engagement, doing business. This article was originally published at www.publishingperspectives.com . You can meet Anna von Veh as a speaker at Tools for Change in Publishing (TOC) Frankfurt 2012 at the Frankfurt Book Fair, Germany. Tuesday, 9 October 2012 , 8:30 a.m. to 6 p.m. 27 JUST GREAT BOOKSELLING: BILBARY’S SIMPLE VISION, BIG AMBITION By Roger Tagholm, Freelance writer and journalist contributing to a variety of print and web publications, including the Guardian, the Bookseller, Publishing Perspectives and the Herald (Scotland). LONDON: There is no one quite like the UK’s Tim Coates in the book industry. He has been a bookseller, an author, a library campaigner and a publisher. Now, with the launch of Bilbary.com –the international eBookstore and library that went live in the US in March and opens for business in the UK and Europe in June– to that list must be added the description digital innovator, though Coates smiles at the suggestion. As he sees it, he is simply doing what he has done many times before –building a bookshop. Tim Coates Bilbary.com allows users to download titles to any device – PCs, laptops, tablets, anything Android, Sony Readers, Nook, Kobo, even the Kindle, although Coates concedes that “you have to be a little bit techy to make it work.” Currently, it has some 320,000 e-books from around 2,300 publishers – chiefly academic houses, small presses and specialist publishers. But by the end of May a further 110,000 titles will have been added from the big six: Penguin, Macmillan, Random House, Hachette, Simon & Schuster and HarperCollins, and he has hopes for many, many more. A viable alternative to Amazon He has a simple, open access vision for the site, borne of frustration at the walled garden systems that are proliferating in the digital space. “We want Bilbary to be a place that people who like reading, who love books, can come and find things and read them on whatever they have.” Naturally, he wants the site to differentiate itself from Amazon –a considerable challenge. Here he starts to sound both evangelical and frustrated. “Amazon is not a site where you want to hang around. They’ve done a brilliant job in promoting Kindle –they’ve made e-books a proper, viable proposition and they’ve forced publishers to act. But what they haven’t done is force backlist to emerge. We’re really only just getting started when it comes to e-books. A lot of what Amazon offers is self-published. You can find something to read, but the real quality is not there. 28 “So at Bilbary we have this relentless pursuit of content. We want to replicate the sort of quality and range you find in Foyles or a huge Barnes & Noble –and the text of all our books will be searchable too. I’d say that at the moment, only 30% of a large, stockholding bookshop is available in digital format. There are vast riches out there. How many Penguins are there as e-books? There are only about 9,000. But how many Penguin titles have there ever been? So we’re speaking to them about Pelican, about the classic green crime…You can go to the big six publishers and it’s the same story. “Publishers obsess about their front lists – a certain author is about to publish their fourth novel or whatever. Then they let things go out of print and forget they ever had them. Publishers think their job is to keep publishing, but their job is also to sell what they’ve already published. Instead, they’re always looking for the next pot of gold.” Publishers blame agents for lack of eBooks He maintains that publishers blame the agents for the lack of digital titles. “They say they haven’t been unable to negotiate a digital deal. Well, they should sort it out. If print is going to decline, if that industry is going to collapse, then let’s manage the transfer to digital properly. We need a massive digitisation programme. Publishers will say it is happening, but I’m saying to them ‘where are the titles?’ Why is so little Marquez available digitally, for example? I really don’t think we’ve got started yet.” Bilbary will also carry reviews, as well as recommendations and comment from booksellers and teachers and experts in their field. It has a library which has a link on the homepage that takes browsers to an interactive illustration of an old, small town library. “We want people to have fun here,” says Coates. “This is somewhere they can go for a good rummage around, just as in a physical library. You enter through some swing doors and we’ll have things like a science room where you can see the books being converted into digital in pickle jars. We’ll even have a cat on the rocking chair outside. Jo Budler at the State Library of Kansas [which has recently signed a deal with Bilbary] said ‘librarians have a great affinity with cats’.” Users of the State Library of Kansas who do not want to wait for one of the handful of digital files provided by Overdrive are given the option to buy a title, with a percentage of the revenue going back to the library. If he sounded critical of publishers above, it’s more a case of urging them to act on the treasures they have. In fact, he despairs at some of the animosity that is currently around. “We want to be nice to publishers, not at war with them. Publishers produce absolutely wonderful material. There are people who say why do we need publishers, I can publish a book – but they can’t. What they produce is awful. It’s just that at the moment, you have publishers at war with librarians over lending, and at war with agents over digitisation contracts. And everyone is at war with Amazon. That hostile world is awful.” Bilbary has private backers, including John Bartle of advertising agency Bartle Bogle Hegarty and a staff of around 14, including representatives in Beijing, Delhi and the US. Its home is in London’s glorious Bedford Square in Bloomsbury, just along from agent Ed Victor’s office and directly opposite Bloomsbury Publishing. Occasionally, the sound of a cello can be heard from an adjacent room, which means Coates’ younger son Oliver is practising. He’s a professional musician, artist-in-residence at the South Bank Centre and winner of 29 the Royal Philarmonic Society’s Young Artist award earlier this month. Coates’ other son, Sam, is Chief Political Correspondent of the Times. A long, personal commitment to bookselling At the age of 62 Coates is embarking on a big project at a time when many might feel like sitting back. Perhaps it’s a case of Yorkshire grit, as the English phrase has it, but this unusual figure is quite happy tackling new ventures, taking on new challenges. The son of amateur musician parents – his mother was a school teacher – he grew up in Huddersfield and studied maths at Oxford, during which time he became active in musical theatre and composed. Classical music remains a passion today. After university, he joined WH Smith as Marketing Planning Manager, thus beginning his 40-odd years in the industry. He ran the Smiths-owned Sherratt & Hughes chain of more upmarket bookshops, which was eventually subsumed into Waterstone’s where Coates was briefly MD. Disagreements between Waterstone’s shareholders and WH Smith shareholders led to his departure, with subsequent years seeing him establish Uncovered Editions, which published government reports unearthed in the archives, such as the Titanic enquiry. Exploring these archives led him to Mary Cornwallis West, mistress of Edward VII, whose story he began writing for his own enjoyment. Bloomsbury heard about it and the house that is now his near neighbour published Patsy (her nickname) in 2003. He combined these publishing and writing activities with a growing interest in the fate of the UK’s libraries, an interest that led him to some impassioned campaigning which gained him enemies and friends in equal measure. In more recent years he ran Baker and Taylor’s UK office for academic library supply. E-Lending is a Mess, this may be an answer The idea for Bilbary arose out of his involvement in libraries, with Coates seeing its model as a solution to the current mess that is e-lending. The last year has seen him visit the US frequently, speaking to publishers and librarians and getting his mind around the complexities of the US tax system. He owns a Sony Reader, currently loaded with Henry James’ Portrait of a Lady (“beautiful”) and he has a lifelong love of Josef Svorecky and other Eastern European writers. “I do like Czech writers very much — they are subversive in a way that English and Americans don’t quite know how to do. People are watching Coates and Bilbary with interest. Publishers would all like to see a competitor to Amazon, but the Seattle giant is a mighty body to take on, with a name embedded in consumers’ minds. And yet there was a time when Twitter was a start-up no-one had heard of. Coates has taken the bold step of building Bilbary in public, “so we can learn from people as we go along”. He is also not taking himself too seriously in the process. “John Sargent at Macmillan in New York said to me. 30 ‘Well, this is different. I’m used to having fresh-faced MBA students come and tell me how they can save publishing – I don’t usually see a grey-haired industry veteran from across the Atlantic…” This article was originally published at www.publishingperspectives.com . 31 DIGITAL PUBLISHING IN THE DEVELOPING WORLD: IMITATION OR AUTONOMOUS EVOLUTION? Excerpt from “Digital Publishing in Developing Countries” by Octavio Kulesz, Editorial Teseo and Digital Minds Network Octavio Kulesz, Editorial Teseo and Digital Minds Network Many assume that the digital models that work in the United States and Europe can easily be applied to China, Latin America, and elsewhere in the developing world. This could not be more wrong, argues the study “Digital Publishing in Developing Countries,” carried out by Octavio Kulesz in October 2010, and commissioned by the International Alliance of Independent Publishers, with the support of the Prince Claus Foundation. The report covers developments in Latin America, the Arab World, Sub-Saharan Africa, Russia, India and China. In the last 15 years, the digital revolution has comes to testing out hardware, software and new thoroughly modified the way in which cultural assets digital publishing business models, which means are produced and distributed. Music was probably that companies like Amazon, Apple, Google or Sony the first industry affected, but the impact has now are taken as references in the media and at reached all sectors, and in particular the book world. professional events all over the world. Now, it is Indeed, e-books, audio books, print on demand, clear that in the case of countries from the South, virtual stores and the expansion of cellular phones infrastructure limitations and low rates of human have profoundly transformed the means of development hinder the advancement of electronic circulating texts. publishing such as it is known in more advanced Digital publishing models that work in the United regions. And certainly what little news that comes States and Europe cannot always be applied to China, out about digital publishing in the developing world Latin America and the developing world. is usually related to incursions undertaken by those same actors from the North. As is well known, there are marked contrasts in the assimilation of these technologies from region to Thus, the conclusion reached in numerous articles region. The industrialized nations –in particular the and international conferences is that, in order to US, Canada, Europe, Japan and South Korea- have promote electronic publishing, the countries of the access to extremely efficient Internet services and South have no choice other than to await the arrival plentiful human resources. Their firms therefore of successful models from the North. However, this enjoy a considerable margin for action when it assumption is highly objectionable. For a start, so far 32 it has not proven easy to identify a “successful the qualitative difference in the characters used in system” of digital publishing, even in advanced each case. Of course, a company like Apple will countries; indeed, the sales figures for publications certainly find a highly profitable niche among the through Amazon’s Kindle Store or Apple’s iBooks are most affluent classes in developing countries, since not widely available, which prevents us from the cultural and consumption patterns of these knowing the extent to which in themselves these sectors merely imitate those of the North. But the publishing platforms constitute as lucrative a model interesting thing would be to find out what digital as is publicized. In fact, the constant changes in models might be a hit not just with the wealthiest setting sale prices, defining formats and applying 20% of the citizens of developing countries, but with digital rights management (DRM) –or not- show that the rest of the inhabitants, that is to say with the even the major players are still feeling their way. bulk of humanity. Secondly, we must ask ourselves how useful it would Thirdly, given the enormous population, and above be to reproduce the prototypes from the North in the all the accelerated economic growth observed in South, as in addition to the disparities in many countries of the South, it is hard to believe infrastructure, there are also enormous cultural, that the developing world isn’t making its own linguistic and even religious differences. Let’s not contribution to the electronic age. In addition to the forget that digital models represent more than just a countless IT service providers in India and hardware tool: with a notable dose of egocentrism contained manufacturers in China that support the Western in its very name and the attraction produced by a platforms from behind the scenes, there are original logo that refers, amongst other things, to biblical sin, and innovative digital publishing projects being an iPad may well captivate a young Westerner carried out at this very moment in the South -– local educated in a particular tradition, but it won’t have platforms that will one day be able to compete with the same effect on someone from India or the foreign ones. In fact, some of these ventures are so Cameroon. And, as we will point out later, the dynamic that instead of debating who will be the experience of reading from the screen of a cell phone future Apple of China or the Amazon of South Africa, means something very different to a Chinese user, for perhaps we will soon be asking ourselves who will be example, than it might do to a European one, due to the Shanda of the US or the m4Lit of the UK. A Matter of Enormous Significance The development of electronic publishing in the tends to be defective in these regions, then the South proves therefore to be a topic that is in itself infrastructure of the book sector –distribution, retail worthy of discussion in global forums. But, more sales and printing– is even worse. In some cases, importantly still, it constitutes an absolutely vital then, certain technologies can be employed to help issue for developing countries themselves. skip the “Gutenberg stage” and work directly in On the one hand, according to the observations of digital form by making use of the equipment already the main actors involved, many of the typical available. obstacles of publishing in countries of the South can be overcome by incorporating digital technology into Likewise, the electronic solutions that certain the book chain. Indeed, if the Internet connection countries of the South have implemented to 33 overcome their problems of content distribution can development (R&D). Sooner or later, these countries also serve as a model for others, thus facilitating will have to ask themselves what kind of digital South–South knowledge and technology transfer. For publishing highways they must build and they will example, the rich prospects for mobile phones in be faced with two very different options: a) financing India, China and South Africa represent a fruitful the installation of platforms designed in the North; precedent for the Maghreb and the Middle East. b) investing according to the concrete needs, expectations and potentialities of local authors, Lastly, the rapid economic growth experienced by readers and entrepreneurs. many nations in Latin America, Asia and Africa has increased the funds states have available to them to Whatever the decision of each country may be, the invest in infrastructure, training and research and long term impact will be immense. Note: For the sake of expediency, we have eliminated the footnotes, which can be found in the original text. The full report can be read free of charge in Spanish, French and English. This article was originally published at www.publishingperspectives.com . 34 THE REINVENTION OF THE BOOKSELLER By Joe Wikert, General Manager & Publisher at O’Reilly Media, Inc. If you’re a brick-and-mortar bookseller, does your blood pressure rise when you think about e-retailers while others are busy trying to sell a bunch of meaningless features. and their deep discounts? Do you look at ebooks as a threat or an opportunity? Depending on how you What are the benefits you’ve successfully provided in answered those questions, you might need to ask the past? When I think of my local bookstore, some yourself another one: What business are you really of the key benefits I see are personalized service and in? community. If I want to know more about a book I’m If you’re simply in the business of “selling books,” I considering, I’d rather talk with a real person than believe you’re thinking too narrowly. Think of the simply trust a bunch of reviews on a website, story of the successful tools salesman who explained especially if some of those reviews might be planted why he was able to sell so many drills: “My by the author or publisher. The main advantage a competitors sell the drill while I focus on selling the physical bookstore has over an online one is the in- hole.” In other words, he emphasizes the benefits person advice and support the former can offer. A lesson from Apple Despite the sluggish economy of the last few some bookstores have done over the years. It’s time years, some brick-and-mortar retailers have found to think much bigger. ways to grow their businesses. Apple is a terrific These days most bookstores have some sort of coffee example. Regardless of whether you’re an Apple fan, shop or snack bar. Years ago it was a brilliant move there’s always something new and interesting to to add that dimension, as it helped turn bookstores discover in an Apple store. I can’t tell you the last into a hangout rather than just an in-and-out retail time I felt that way about a bookstore. I’m not destination. If in-store coffee shops were the game- talking about eye candy or glitzy merchandising; changing idea of the ’90s, what’s the new one for when you enter an Apple store you know you’re in the current decade? Here’s one possibility: an in- for a treat. store self-publishing resource. Self-publishing is Wouldn’t it be awesome if customers entering your red-hot and still gaining momentum. But what’s bookstore had that same feeling? I realize Apple can sorely lacking in the self-publishing world is a invest a lot in its store experience because it’s selling reliable place to go to ask all the questions. How do I higher-priced items, but maybe that means you get started? What’s the best platform? How do I need to look beyond simply selling $20 or $30 books. create a marketing campaign? Self-publishing I’m not talking about adding stationery and toys, like enthusiasts are left with a slew of questionable online options and a few in-person events. Why not 35 create an in-person self-publishing resource within “The Espresso machine has allowed us to create a your store? self-publishing business and more. It has changed Take a page out of Apple’s playbook and create a how customers view the bookstore. The self- Genius Bar service for customers interested in self- publishing business is a complementary business publishing. Establish your location as the place to go that takes advantage of technological developments for help in navigating the self-publishing waters. while being true to our mission.” Remember, too, that most of the income earned in If my self-publishing suggestion isn’t the best option self-publishing is tied to services, e.g., editing, cover for your store, don’t simply give up and assume design, proofreading, and not necessarily sales of the you’ll always have a future in selling print books. It’s finished product. Consider partnering with an clear to me that the number of brick-and-mortar established expert in these areas or build your own bookstores will continue to decline; more network of providers. The critical point is to evolve specifically, the number of brick-and-mortar your business into something more than just selling bookstores that mostly rely on selling print books will books. continue to decline. Bookstores have always been a This doesn’t mean you need to invest in self- source of inspiration and an important community publishing equipment to enter the field, but it’s resource for their customers. Think about your own interesting to hear from someone who has. I spoke store’s unique attributes and how they could be about this with Chris Morrow, co-owner of Northshire extended as print sales decline. If you go about it the Bookstore in Vermont, which has had an Espresso right way, the digital reading revolution won’t be a Book Machine for a number of years. According to threat but rather a once-in-a-lifetime opportunity Morrow: to reconceive your business. This post originally appeared on Publishers Weekly. You can meet Joe Wikert as a speaker at Tools of Change for Publishing (TOC) Frankfurt 2012, at the Frankfurt Book Fair, Germany. Tuesday, 9 October 2012 , 8:30 a.m. to 6 p.m. 36 THE FUTURE FOR BOOK DISCOVERY In interview with Peter Hildick-Smith By Jess Johns, Director of Operations, Publishers Launch Conferences Peter Hildick-Smith of the Codex Group has been that discovered it in the first wave. If publishers have conducting consumer research for the trade book done their job right in the flash discovery phase, publishing industry since 2004. He believes that then word-of-mouth will follow. publishers face an increasing challenge now and in the years to come in getting readers to find, and Wave three – “persistent discovery” – applies to the ultimately buy, newly published books online. brands, series, and authors that readers already know and like. Once an author has built enough According to Hildick-Smith, the life cycle of a book equity, the discovery process is not necessarily includes three key “waves” of discovery. The first, triggered by any particular event. “That’s the lock- which he calls “flash discovery,” is the short, in,” says Hildick-Smith. When a reader is actively concentrated burst of marketing and merchandising looking for your next book, choosing to stay support when pre-press marketing and publicity, connected to you, or continually recommending you early bookstore placement, promotions, blogs and on an ongoing basis, they are no longer reliant solely book reviews all work together to capture book on a publisher’s discovery campaigns to find you. buyers’ attention. “For a new book by a new author, you have 4 to 5 weeks where it has the advantage of In the shift to online discovery, “the Janet being “new,” and has its greatest chance to be Evanoviches will continue to do very well,” seen. It’s a very short period of time where debut maintains Hildick-Smith. “It’s the flash discovery works and authors are found. That narrow window is that’s challenged. That’s where publishers and the first wave, the little flash of time where the book bookstores are struggling.” Debut authors and new alone must attract an audience all by itself.” fiction, he says, still rely heavily on physical bookstore merchandising and traditional media The second wave kicks in 4 to 8 weeks after a book is outlets for discovery. As these traditional channels in the market and once enough book buyers have fade away, so too does the publishing industry’s had the time to read and complete the book. ability to help those books reach their audiences, “People start talking about it, people who’ve read it particularly in fiction and narrative nonfiction. and liked it. That’s the real word-of-mouth that sells books.” Publishers, says Hildick-Smith, cannot Codex’s most recent survey of nearly six thousand directly influence this wave as much because 90% of heavy book buyers shows a marked erosion of heavy book recommenders make their discovery through physical bookstores. In February recommendations in person, only 17% through social 2011, 27% of respondents first discovered their last media. This organic word-of-mouth is dependent on book purchased in a bookstore. Just a year later, in the quality of the read itself for the initial audience February 2012, that number had dropped to 19%. 37 Source of discovery of book last bought Feb 2011 Feb 2012 Physical bookstore 27% 19% Personal recommendations 14% 20% Analog publicity 10% 10% Internet bookseller browsing 8% 10% Author website, blog, email 5% 5% 4% 5% Other online (book blogs, online reviews) 4% 4% Reading groups, analog book clubs 3% 4% Online search 0.9% 2.1% Social media 0.7% 1.4% Online video/trailers 0.2% 0.4% Professional recommendations (teachers, librarians, booksellers) Source: Codex Group, Feb 2011, Feb 2012 The online book discovery experience is a Book shoppers’ openness to discovering new authors fundamentally different, less spontaneous activity also varies dramatically by book category. In their than more traditional discovery mechanisms like February survey, Codex found that in nonfiction bookstore browsing. Among Kindle owners for three-quarters (75%) of Diet/Health/Fitness/Medicine example, nearly two-thirds (62%) already knew buyers’ last book bought was by an author that was what book they wanted to buy on their most recent new to them; while in fiction, three-quarters (74%) online bookseller visit. In contrast only one-third of of genre fiction buyers’ last book bought was by an them (32%) went to a physical bookstore knowing author they already knew. “Fiction buyers stay with what book they wanted to buy, making them two the authors they like, and are simply less open to times more open to discovering new books in a discovering new authors than nonfiction buyers are,” bookstore. “Discovery is conditional on where you’re says Hildick-Smith. “For nonfiction books, people shopping,” says Hildick-Smith. “You don’t know are more interested in solving a problem. The author what’s not there, and you have to know a book is less of a priority.” exists before you can go search for it.” 38 Books purchased last % Written by “unfamiliar author” Non-fiction (overall) 48% Health and medicine 75% Fitness and diet 75% Biography 51% Entertainment/celebrity 25% Fiction (overall) 32% Historical 47% Women’s 46% Literary 42% Genre 26% Source: Codex Group, Feb 2012 Digital sales channels, like Kindle and Nook, skew view and create encounters with over 35 million significantly toward fiction sales in general. Just 24% different products.” By necessity, Internet search, of purchases on Nook and 26% on Kindle were of list-based browsing, and even permission-based nonfiction titles. Physical stores on the other hand marketing work to navigate this “long tail purgatory” were more evenly balanced, with nonfiction by narrowing the scope and range of discovery. representing 46% of purchases at Barnes & Noble “People opt in to what they know and like. It’s self- stores. fulfilling,” says Hildick-Smith. So, genre fiction readers, enthusiast communities, and devoted As more discovery and purchasing of books shifts author fans will be able to find new books and even online, Hildick-Smith is concerned not that readers new authors. But as physical book outlets diminish, will not be able to find new books to read, but other categories of books like narrative nonfiction or rather that they will simply find more of what they literary fiction will become increasingly difficult to already know they like. “As more people read chance upon and discover. “You don’t have the same digitally, they read more of what they’re already brand or author equity with literary fiction as with a familiar with, and as a result are discovering fewer genre author. Every book is different.” new books and authors.” There are no easy answers, but Hildick-Smith The paradox is that in an online market with nearly encourages publishers to pay attention to the data endless book choices, “we have one tiny screen to on how and where consumers find new books and 39 other products. He tells a cautionary tale about Buy, Staples and others. That’s when Kindle sales Amazon’s original Kindle launch in 2007. At that time really started to take off.” Amazon aggressively marketed the Kindle within the Amazon ecosystem but did not pursue any traditional Publishers should not underestimate the power of marketing and discovery channels. “After a full year traditional marketing and merchandising of online marketing, the majority of book buyers still techniques, and Hildick-Smith encourages the didn’t even know that the Kindle device existed. industry to continue to look for ways to support Amazon realized online discovery was not enough to physical bookstores. But publishers also cannot ensure Kindle’s success, and aggressively expanded forget that “discovery” is just the first step. their Kindle marketing and discovery strategy to “Discovery by itself won’t solve the problem.” include TV advertising, publicity and physical retail distribution in their direct competitors – Target, Best Three criteria that must be met before a reader buys a book: Discovery: the book consumer has to first know a book exists. Conversion: the book consumer must be intrigued enough by the book’s story or message to want to make the effort to browse and hopefully buy. Availability: the book consumer has to be able to purchase the book “in whatever format and outlet, whenever they want it.” “You need all three elements to sell books,” says Hildick-Smith. “Discovery is only the first step. You can discover anchovy pizza for the first time, but that doesn’t mean you want to buy it.” And that’s precisely where he has an encouraging message for publishers. Readers respond to the quality of content: “The best discovery in the world won’t make a reader buy a book, but a great story just might!” 40 AMAZON, E-BOOKS AND ADVERTISING By Joe Wikert, General Manager & Publisher at O’Reilly Media, Inc. It all started harmlessly enough with Amazon’s hypothetical wholesale model title with a digital list Kindle with Special Offers. That’s the cheaper Kindle price of $25. Amazon is required to pay the publisher that displays ads when the device is in sleep mode or roughly half that price, or about $12.50 for every copy at the bottom of the screen when paging through the sold, but that ebook might be one of the many that owner’s catalog of books. It is very unobtrusive and, are listed at $9.99 for the Kindle. So every time since it lowered the price of the device, has made Amazon sells a copy, they lose $2.51 ($12.50 minus that Kindle an extremely popular device. $9.99). Amazon has deep enough pockets to continue Now there are rumors that Amazon is selling ad doing this, though, so they’re quite comfortable space on the Kindle Fire’s welcome screen. That losing money and building market share. sounds pretty reasonable, too, as it’s a simple way for Amazon to drive a bit of additional income that’s So, what’s preventing Amazon from taking an even pure profit for them. bigger loss and selling that ebook for $4.99 or $0.99 instead? In the wholesale model world, the answer Given that Amazon’s goal is to offer customers the to that question is: “nothing is preventing them lowest prices on everything, what’s the next logical from doing that.” And if selling ebooks at a loss for step? How about even lower prices on ebooks where $9.99 makes sense, especially when it comes to Amazon starts making money on in-book ads? Think building market share, why doesn’t it also make Google AdWords, built right into the book. Of course, sense to sell them at $4.99, $0.99 or even free for Amazon won’t want to use Google’s platform. They’ll some period of time? It probably depends on how use their own so they keep 100% of the revenue. much pain Amazon wants to inflict on other retailers and how much attention they’re willing to call to The changes the DOJ is requiring for the agency themselves for predatory pricing. model means a retailer can’t sell ebooks at a loss, but they can still sell them for no profit, or break Make no mistake about the fact that Amazon would even. In other words, the 30% the retailer would love to see ebook pricing approach zero. That’s right. keep on an agency ebook sale can be passed along to Zero. That might seem outlandish, but isn’t that the customer as a 30% discount on the list price, but exactly what they’re doing with their Kindle Owner’s that’s as deep a discount as that retailer can offer. Lending Library program? Now you can read ebooks for free as part of your Prime membership. The cost The rules are different with the wholesale model. of Prime didn’t go up, so they’ve essentially made Amazon already loses money on sales of many the consumer price of those ebooks zero. wholesale-model ebooks. Let’s talk about a 41 Why wouldn’t they take the same approach with in-book advertising? At some point in the not-too-distant future, I At the same time, Amazon will likely tell publishers believe we’ll see ebooks on Amazon at fire-sale the only way they can compete is by significantly prices. I’m not just talking about self-published titles lowering their ebook list prices. They’ll have the data or books nobody wants. I’ll bet this happens with to show how sales went up dramatically when some bestsellers and midlist titles. Amazon will make consumer prices dropped to $4.99 or less. I wouldn’t a big deal out of it and note how these cheaper be surprised if Amazon would give preferential prices are only available through Amazon’s in-book treatment to publishers who agree to lower their list advertising program. Maybe they’ll still offer the ad- prices (e.g., more promotions, better visibility, etc.). free editions at the higher prices, but you can bet they’ll make the ad-subsidized editions irresistible. By the time all that happens, Amazon will probably Remember that they can only do this for books in the have more than 90% of the ebook market and a nice wholesale model. But quite a few publishers use the chunk of their ebook list that no longer has to be wholesale model, so the list opportunities are sold at a loss. And oh, let’s not forget about the enormous. And as Amazon builds momentum with wonderful in-book advertising platform they’ll have this, they’ll also build a very strong advertising built by then. That’s an advertising revenue stream platform. One that could conceivably compete with that Amazon would not have to share with Google AdWords outside of ebooks, too. publishers or authors. That might be the most important point of all. Publishers and authors won’t suffer as long as Amazon still has to pay the full wholesale discount What do you think? Why wouldn’t Amazon follow this price. Other ebook retailers will, though. Imagine strategy, especially since it helps eliminate B&N trying to compete if a large portion of Amazon’s competitors, leads to market dominance and fixes ebook list drops from $9.99 to $4.99 or less. Even the loss-leader problem they currently have with with Microsoft’s cash injection, B&N simply doesn’t many ebook sales? have deep enough pockets to compete on losses like this, at least not for very long. This post originally appeared on Joe Wikert’s Publishing 2020 Blog “Why Advertising Could Become Amazon’s Knockout Punch“. This version has been lightly edited. You can meet Joe Wikert as a speaker at Tools of Change for Publishing (TOC) Frankfurt 2012, at the Frankfurt Book Fair, Germany. Tuesday, 9 October 2012, 8:30 a.m. to 6 p.m. 42 SIMILAR CREATIVITY & LOW BARRIERS: LEARNING FROM THE MUSIC INDUSTRY Interview with Josh McIvor, SONY Music’s Vice-President of Corporate and Business Development for Europe and Africa By Katharina Ewald, Interim Director German Book Office New Delhi Katharina Ewald spoke to Josh McIvor at GLOBALOCAL 2011.The theme of the conference was “Crossing Currents” –looking at how content is being produced, packaged, sold and consumed differently in the current world of increasing digitization. The conference was organized by the German Book Office New Delhi. Q: What can the digital publishing industry learn digital music retail, the major labels insisted on from the music industry? restrictive DRM. Unfortunately, there was no consistency as to which DRM was being implemented The overwhelming lesson is to listen to your readers. by different hardware manufacturers and music They will tell you how they want to interact with retailers. As a result, music fans were driven away content online. The trick it to monetize around that from legal DRM services and towards piracy as they usage rather than attempting to dictate business became frustrated with the inability to transfer music models that aren’t a joy for readers. The music between devices and share purchased content with industry did a poor job of listening to music fans in their friends. Recognizing this trend, the major labels the nascent era of digital music. As a result, we removed their insistence on DRM for album and track alienated potential consumers by not providing the downloads in 2007-2008. The lesson for the right digital products at the right price. We’re getting publishing industry is, to either come to a consensus much better at listening now and so we’re seeing on a universal DRM with reasonable usage music fans paying for music in all sorts of innovative allowances or don’t use it at all. ways based on their preferred digital consumption habits. Q: How difficult was it to change the public’s perception about paying for digital music Q: DRM has evolved significantly over the years downloads and can the same be applied to the in the music industry which has limited the publishing industry? advent of piracy. Can the same DRM tools be applied to the publishing industry? If the music industry is being honest with itself, there is still a lot of work to be done to meaningfully Well, actually DRM for download purchases has change public perception towards paying for digital devolved in the music industry. During the advent of music. Exponentially more fans continue to get their 43 music illegally rather than paying through legal Q: Do you see a new model emerging in digital services. Luckily for the music industry, Apple, the publishing where people will only pay for dominant digital music hardware manufacturer, has selected content within a book similar to how been incredibly successful at convincing a decent people now purchase individual songs as opposed portion of their customers to purchase music from to entire albums? within their eco-system. In order to convince the broader public, we need to and are embracing I can’t imagine a world where people will pay a-per- several different types of services and ensuring that chapter cost for ‘Great Expectations’ or the new Dan they are a pleasure to use. The growing success of Brown novel. However, I think that technology will models such as ad-supported services and unlimited start to influence the structure and limitations of a all-you-can-eat paid subscriptions are a promising traditional linear narrative. In the music industry, we development. Copyright legislation and piracy are starting to see incredible innovation away from awareness campaigns have an effect but the best the traditional canvas of an ‘album’. An excellent solution to piracy is to license and support services example is Icelandic singer Bjork’s new work which that are superior to the pirates. was released as an iPad application. The free ‘mother’ app featured a ‘cosmos’ filled with experiences involving her music. Each week, fans could pay to introduce a new ‘planet’ into the cosmos. Each ‘planet’ featured a song along with other interactive features. Similar creativity and low barriers to entry will allow publishers to charge micro-payments for selected content. 44 The following text is in German, as it is part of the german protoTYPE project initiated by Börsenverein des deutschen Buchhandels. For more information please contact http://www.innovation-prototype.de/ . Die (neue) Wertschöpfung der Verlage Von Dr. Harald Henzler, Gründer der smart digits GmbH. Er hat mehrjährige Erfahrung in der Entwicklung digitaler Geschäftsmodelle als Produktmanager, Verlagsleiter und Geschäftsführer bei Carl Hanser und Haufe-Lexware Die Herausforderung für Verlage liegt in der Entwicklung ihrer Wertschöpfung im digitalen Umfeld. Digitale Produkte werden zunehmend genutzt. Gedruckte Werke werden nicht verschwinden, aber ihre Bedeutung im Markt wird sinken. Für Autoren und andere Anbieter von Inhalten stellt sich deshalb die Frage, was Verlag für sie leisten. Digitale Werke können leichter selbst produziert und vertrieben werden. Zahlreiche Plattformen bieten Dienste für die Produktion an und die großen Plattformen wie Apple, Amazon und Co. auch die entsprechende Reichweite für die Distribution. Fachverlage haben meistens schon einen direkten Zielgruppenzugang aufgebaut. Publikumsverlage beherrschen das Zusammenspiel mit dem Sortiment, aber verfügen meist nicht über den direkten Kundenzugang. Zwar werden einzelne Programme und Verlage für bestimmte Zielgruppen positioniert, aber die Vermittlung erfolgt immer über Händler. Für Autoren gibt es zwei wesentliche Dienstleistungen, die Verlage für sie erledigen können: Sie können den immer komplexer werdenden Prozess der Produktion, Distribution und Vermarktung von gedruckten und digitalen Werken anbieten. Sie können eine erhöhte Reichweite versprechen durch die Kombination der Medienformen und den eigenen Zugang zur Zielgruppe. Der Autor kann sich höhere Einnahmen erhoffen bei weniger Aufwand. Die künftige Wertschöpfung Die Alternative liegt für Verlage in der Spezialisierung nur auf das gedruckte Werk. Damit geht allen Prognosen nach auch eine Reduktion der Umsätze einher. Will man aber die oben genannten Aufgaben lösen, müssen zwei Voraussetzungen geschaffen werden: 45 Branding und Reichweiten-Steigerung Der Ausbau der eigenen Marke in die Zielgruppe im digitalen Umfeld und die Entwicklung eines geeigneten Instrumentariums, um eine erhöhte Reichweite bieten zu können, ist notwendig, um Umsätze zu steigern und Autoren zu gewinnen bzw. zu binden. Zum geeigneten Instrumentarium gehören social media-Marketing, der Ausbau der eigenen Kundendatenbank und der Aufbau eines Netzwerkes von Kooperationspartnern (wie Zeitschriften, Portale, Firmenpartner). Dadurch wird die Abhängigkeit von globalen Anbietern vermindert, direkte Rückmeldungen der Kunden sind möglich und Kunden können frühzeitig in die Entwicklung digitaler Produkte eingebunden werden. Die Aufgabe besteht in der Festlegung, wie viele Marken entwickelt werden müssen. Denn für den Endkunden werden die Werke und Autoren im Vordergrund stehen, für die Autoren aber die Verlage. Verlage sehen sich immer in der Aufgabe, neue Werke in den Markt zu bringen. Deshalb wollen sie sich nicht auf wenige Zielgruppen und Themen reduzieren lassen, sondern mit den Markttrends gehen können: Sie sorgen für neue, anregende Inhalte und Produkte. Bücher werden langfristig im Spektrum aller Medien für vertraute, bekannte Produkte stehen. Wollen Verlage auch Treiber und Sprachrohr des Neuen sein, dann müssen sie auch digitale Produkte entwickeln. Es empfiehlt sich, mit Partnern, die über entsprechende Zugänge zu den Kunden verfügen, gemeinsame Programme aufzubauen. Die Qualität der Werke und der Beratung des Kunden muss hier vom Verlag übernommen werden. Von den großen Plattformen und dem Handel wird sie nicht mehr erfolgen. Kompetenz und Kollaboration Der Aufbau von Projektteams für die Produktentwicklung benötigt internes Change Management, Weiterentwicklung und Fortbildung der Produktmanager, Redaktionen und Produktioner die das Portfolios an digitalen Produkten konzipieren und umsetzen. Diese werden über reine eBooks hinausgehen und können zahlreiche Dienstleistungen für die Zielgruppen umfassen. Um Inhalte in verschiedenen Formaten anbieten zu können, müssen sie mit den entsprechenden Metadaten versehen werden. Das ermöglicht eine gezielte Nutzung für die Vermarktung und zielgruppengerechte Beratung und die häufigere Verwendung in einem anderen Umfeld. Bei Fach- und Sachthemen wird dies zwingend nötig sein, um kontinuierlich Themen aktuell und vernetzt zu halten und weiter zu entwickeln mit und für die Zielgruppen. In der Belletristik kommt dies weniger deutlich zum Tragen, wenn das Einzelwerk im Vordergrund steht, kann aber für Fortbildungswerke, Themenwelten und Genreliteratur wichtig sein (Beispiele sind Pottermore und Perry Rhodan). Die Wertschöpfung der Verlage wird deshalb in Zukunft auch in der Strukturierung der eigenen Inhalte, dem Aufbau der richtigen Metadaten und der direkten Vermarktung an die Zielgruppe liegen. 46 . Curation – oder können Algorithmen die Verleger ersetzen? In der Verfilmung von 2002 des Klassikers "Die Zeitmaschine" von H.G. Wells ist es ein Avatar, der in einer fernem Zukunft die Kinder lehrt. Er verfügt über das gesamte Wissen der nicht mehr existierenden Bibliotheken und führt geschickt alle Informationen zusammen. Er ist das Schreckgespinst aller Verleger! Was, wenn ein Algorithmus all die Mühen eines Verlages ersetzt? Wenn der Leser der Zukunft von einem Computerprogramm geleitet immer genau das erhält, was er braucht, was er wünscht? Wenn er nicht nur wie bei Amazon andere Titel empfohlen bekommt, sondern direkt zu dem geführt wird, was er wirklich will? Algorithem statt Verleger. Die Herausforderung für Verlage lässt sich so auf den Punkt bringen: Warum sind die Inhalte, die mir ein Verlag anbietet, besser als die, die ich im Netz kostenlos erhalte, bzw. die mir von anderen Anbietern wie Firmen, Universitäten oder Autoren angeboten werden? Warum soll ich als Autor zu einem Verlag gehen? Irgendwas muss ja ein Verlag besser machen in der Selektion der vorhandenen Informationen als eine Suchmaschine und ein Autor im Eigenverlag. Der Verlag hat sich im Laufe von Jahren eine Marke aufgebaut, die für bestimmte Inhalte und eine bestimmte Art der Qualität steht. Er hat die Vorschläge von Autoren geprüft und abgewägt und sie dann durch das Lektorat, die Gestaltung und die Vermarktung zu einem guten Produkt gemacht. Er hat für den Leser selektiert. Und für den Autor vermarktet. Die Grenzen der Suchmaschine Jetzt sorgen Suchmaschinen in Kombination mit all den von Kunden selbst abgegebenen Daten dafür, dass sie mehr wissen als jeder Verlag. Aber sie können sich nur auf die Vergangenheit beziehen. Und so wie kaum ein Controller für die Innovationen in einem Verlag verantwortlich zeichnet, so werden auch Suchmaschinen nicht in der Lage sein, Neues zu produzieren. Sie können Fundstücke aus dem Netz miteinander verknüpfen, weil diese mit denselben Metadaten versehen wurden. Aber den inneren, logischen Zusammenhang, der zu einer Innovation führt, der kann nur zufällig erfolgen. Sie können im Wesentlichen nur Zugang verschaffen. Es bleibt also die Aufgabe der Verlage, den Kunden, den Leser zu überraschen. Durch neue Gedanken, durch eine überraschende Kombination von Vorhandenem, die mehr als eine Zufälligkeit ist. Und durch die kritische Prüfung dessen, was sonst so im Netz kostenlos eingestellt wird, so wie es Corinna Milborn am Beispiel eines Fotos aufzeigt. Im Journalismus ist man oft bei der Formulierung des eigenen Mehrwerts im Netz schon einen Schritt weiter als in den Buchverlagen, weil die Konkurrenz der Hobbyreporter schon länger zu spüren ist als die der Hobbyverleger. Was bedeutet das für die multimediale Aufbereitung von Inhalten und der guten Verlinkung dieser Inhalte mit dem Wissen im Netz? Verlage verfügen über das Know How, Inhalte so zu veredeln, dass Wissen daraus wird. Sie sind die Experten der Vermittlung. Aber sie müssen die multimedialen Plattformen bedienen lernen. Und sie müssen die 47 Grenzen ihrer eigenen Arbeit akzeptieren und den Leser zu anderen Quellen führen. Denn kein Verlag wird gleichermaßen gut Texte, Bilder, Filme und Audio beherrschen. Er wird mit diesen Spezialisten zusammenarbeiten müssen. Er wird kooperieren müssen mit anderen. Das fällt schwer, weil man bisher die Oberhoheit hatte, die schöpferische Leistung und Botschaft des eigenen Autors unters Volk zu bringen. Die Vermarktung Bisher war der Autor glücklich, wenn ihm der Verlag das Buch gedruckt und in den Handel gestellt hat. Ein eBook kann er selber herstellen. Es bei Amazon oder Apple in den digitalen Handel zu schleusen ist ein Kinderspiel. Seinen Freunden auf Facebook kann er auch davon erzählen. Und jetzt will er wissen, wo der Verlag das Buch vermarktet. Konnte der Einkauf von Büchertischen bei Thalia und Hugendubel bisher dem Autor noch als Geheimwissenschaft verkauft werden, so steht der Verlag jetzt gehörig unter Druck. Er muss beweisen, dass er die Botschaft des Autors noch besser aufbereiten kann als dieser selbst, und dass er auch besser an die Zielgruppen gelangt als die Autoren. Der Verleger muss sein Team neu formieren Wir müssen Abschied nehmen von einem lang gepflegten Bild, dass das Abendessen mit dem Autor, dem Experten, dem Wissenden auch die Geburt des Neuen ist. Das zähe Ringen von Lektor und Autor sind nur noch ein Teil einer Wertschöpfung, die im digitalen Umfeld ein ganzes Team von Kreativen fordert. Die Veredelung der Information braucht heute mehrere Teilnehmer als bisher. Und den ständigen Austausch von Wissen. Das kann keiner mehr alleine. Das heißt Curation: Das Richtige auswählen aus der Fülle der Informationen, es gut aufbereiten und in einen neuen Zusammenhang stellen und es gut zugänglich machen für die passende Zielgruppe. Hier liegt die Chance für das, was in fünf Jahren vielleicht noch Verlag oder Medienhaus heißt, aber eine andere Wertschöpfungskette anbieten wird. Immerhin ist das noch mehr als in der Verfilmung "Die Zeitmaschine" von 1962, in der die Bibliothek zu Staub verfällt. Und damit für immer verloren ist. . e-Books machen – so etabliert man ein dauerhaftes Geschäftsmodell eBooks machen in den meisten Verlagshäusern noch weniger als 10% des Umsatzes aus. Das Geld wird fast überall noch mit den gedruckten Werken verdient. Aber es ist klar, dass das nicht mehr lange so sein wird. Welche Strategie eignet sich zur Implementierung der neuen Prozesse? Soll eine kleine Truppe Verschworener zu Experten werden oder gleich eine neue Firma aufbauen, die sich nur mit digitalen Themen befasst? Oder soll crowdsourcing gleich zu Beginn in der eigenen Firma funktionieren? 48 Der Inkubator Ein beliebter Weg ist die Beauftragung einer Person, die das jetzt "richten" soll. Klingt vernünftig, denn die Margen sind noch zu gering, um damit einen ganzen Stab auszustatten. Und es folgt dem Prinzip, dass zunächst nicht die ganze Belegschaft durch das Neue irritiert werden soll. Abgesehen davon, dass es nicht alle wollen oder können, wird so die Kompetenz schrittweise bei einzelnen Personen aufgebaut. So vernünftig dieses Vorgehen ist, weil man nicht gleich alles auf eine Karte setzen will und der first mover nicht immer der Gewinner ist - einige Risiken sind zu bedenken und bei der Umsetzung im Auge zu behalten: Wenn die erwählte Person das Haus verlässt, weil der Aufbau einer eBook-Struktur auch für andere Verlage nach einer attraktiven Stellenbeschreibung klingt, gerät der Betrieb ins Stottern. Ein Backup, um in der Sprache der digitalen Medien zu bleiben, erscheint deshalb dringend geboten. Digitale Produkte sind neu im Markt. Anders als bei etablierten Prozessen ist deshalb nicht vorherzusehen, wo und wann die nächste Frage um die Ecke kommt. Eine Person allein wird nie alle Themen beantworten können, sondern "nur" managen. Sie ist der Projektleiter. Aber dazu braucht sie auch gute Projektteilnehmer. Und je besser die Verantwortung auf alle Schultern verlagert wird, desto effizienter und schneller werden Lösungen gefunden. Dies trifft vor allem auf die Weiterentwicklung zu. Keiner weiß, wie eBooks in drei Jahren aussehen, ob sie alle "enhanced" sind, es ein paar Produktformen nur noch als Apps/enhanced eBooks gibt (wie Reiseführer, Lehrbücher, Ratgeber...) oder ob doch noch viele Texte genau so gelesen werden wie jetzt in gedruckter Form. Die Schlagzahl der Neuerungen ist hoch und auf dieser See werden nur die überleben, die als Team unterwegs sind. Dies führt unweigerlich zum zweiten Ansatz, dem klassischen "Change Management" des gesamten Hauses. All together now Auch dieser birgt natürlich Risiken. Die Beschäftigung mit dem Neuen frisst Arbeitszeit, die bei sinkenden Erlösen im Printbereich doch dringend benötigt wird, damit man gegen den Strom nicht zu viel verliert. Und es ist nicht immer sofort einzusehen, warum man jetzt als Bester in der Sparte "Gedrucktes" plötzlich hinter den digital natives herlaufen soll. Aber: Wie soll die Wertschöpfung von Verlagen neu definiert werden können, wenn nicht alle im Unternehmen mitziehen? Eine Chance der Verlage besteht ja gerade darin, seine Kompetenzen (Auswahl von Themen, Bearbeitung von Themen und Inhalten mit den Autoren, Aufbau einer Marke mit einem klaren Profil zu bestimmten Themen...) auch auf digitale Produkte zu übertragen. Man wird künftig Gedrucktes und Digitales bewältigen müssen, sprich auf mehreren Hochzeiten tanzen lernen. Das geht nur, wenn man nicht mehr so lange auf einem Fest verweilt und sich die Zeit besser einteilt. Und wenn alle den Tanz beherrschen. Immer nur einen auf die Reise zum Mond zu schicken wird diesen nicht bevölkern. 49 Gerade digitale Produkte verlangen Know how aus verschiedenen Bereichen. Nicht nur die Technologie, auch die Didaktik, die Kompetenz in der Aufbereitung verschiedenster Medien, die effizienten Produktionsprozesse, die neuen Vermarktungsformen und das Wissen um realisierbare Geschäftsmodelle sind zwingender Bestandteil des Vorgehens. Die Entwicklung der Strategie, die Implementierung und die kontinuierliche Erweiterung ist in den Zeiten des Wandels zwingend eine Aufgabe aller. Vor allem, weil natürlich die Angst umgeht, man werde seinen Arbeitsplatz verlieren. Und dieser ist am besten mit Tatkraft, Schulungen und gemeinsamen Entwicklungen zu begegnen. eBooks sind nur ein Schritt in Richtung Digitalisierung. Die Fülle der Möglichkeiten zeigen sich auf jeder re:publica, Next Berlin oder K5 (um nur die aktuellen Kongresse zu nennen). Je früher die Verknüpfung der old school mit dem new business erfolgt, desto eher werden die richtigen Geschäftsmodelle entwickelt. Da viele Mitarbeiter privat auch schon Kunde und Nutzer von Smartphones und Tablets sind, können sie viel beitragen zur Entwicklung. Und wer will schon in einem Unternehmen arbeiten, das selber die Möglichkeiten des Smartphones und des Tablets gar nicht nutzen will? Gleich welchen Weg man nun wählt: Die Digitialisierung wird für die nächsten Jahre eine dauernde Herausforderung sein. Dabei müssen parallel verschiedene Fragen beantwortet werden: . Technologie: "Brauche ich ein CMS über alle Produkte? Lohnen enhanced eBooks jetzt schon und wie lange wäre denn die Entwicklungszeit? Soll ich auf native Apps setzen oder webbasierte?..." . Methodik: "Mit welchen Tools werden digitale Produkte entwickelt? Brauche ich ein neues Projektmanagement? Auf welchen Plattformen tauschen sich die Mitarbeiter aus?..." . Geschäftsmodell: "Ist crossmediale Vermarktung wirklich sinnvoll? Bietet der App-Markt ausreichende Erlöse? Sind Kooperationen zwingend nötig?..." Die Geschäftsmodelle der Zukunft werden andere sein. Um crossmedial publizieren zu können, braucht man andere Strukturen, andere Verrechnungsmodelle, ein anderes Portfolio. Reichweite und Kundendaten gehören zu den wesentlichen Assets eines Medienunternehmens. Hier muss Know how aufgebaut werden. "E-Mind" kommt nicht über Nacht Die Entwicklung hin zu digitalen Medien muss von vielen getragen und das Know-how muss an vielen Stellen aus- und aufgebaut werden, weil kaum jemand der Spezialist für alle Fragen sein wird. Inkubatoren sind wichtig und hilfreich. Sie dürfen auf keinen Fall allein gelassen werden. Das Interesse für und das Verständnis über den digitalen Markt für Verlage wird dringend für einen erfolgreichen Change-Prozess bei Verlagen benötigt. Er entwickelt sich nicht über Nacht und schon gar nicht nur in einzelnen Köpfen. Der gesamte Verlag muss sich auf die Veränderungen einstellen können und wollen. Erst dann erhalten Verlage eine entscheidende Kompetenz im Markt: Sie können das komplexe Zusammenspiel von gedruckten und digitalen Produkten managen. Wenn nicht, droht die Agonie der Zeitschriftenverlage in den USA: She, not busy beeing born, was busy dying. (Bob Dylan) 50 Dieser Artikel beruht auf den Markforschungen der smart digits GmbH und fasst Beiträge des Blogs www.smart-digits.com sowie anderer Veröffentlichungen und Vorträge zusammen. . protoTYPE - Eine Entwicklungsschmiede für die Verlagsbranche Über Innovationen und die Zukunft der Branche sollte nicht nur geredet werden. Deshalb ging Anfang März das vom Börsenverein des deutschen Buchhandels initiierte Projekt protoTYPE an den Start. Bei protoTYPE sind kluge Köpfe aus verschiedenen Bereichen der deutschen Buchbranche versammelt. Gemeinsam arbeiten sie an neuen Geschäftsmodellen und geben damit Denkanstöße und schaffen die Voraussetzungen für neue zukunftsträchtige Entwicklungen. Nach dem Motto „Schluss mit reden, Zeit zu handeln!“ startete protoTYPE nach dem Auftaktwochenende im März mit 7 Projekten in die Realisierungsphase. Die Projekte sollen bis zur Frankfurter Buchmesse beispielhaft (digitale) Innovationen in der Branche beflügeln und werden im Rahmen der Frankfurter Buchmesse präsentiert. Die einzelnen Projekte und Präsentationstermine finden sie hier. Einblick in die Entwicklungsschmiede – Chancen und Herausforderungen Klarheit gewinnen braucht, um auf dem Weg greifbare Resultate zu Kooperation und Austausch über die Grenzen erzielen. Die sieben Gruppen haben sich je ein Unsere Branche sieht sich als Förderer der Kultur und solches gesetzt. Sie mussten zügig im Elevator Pitch ist zugleich kleinteilig. Ihre Geschäftsmodelle fordern ihre Ideen anderen präsentieren und Zustimmung oft eine starken Abgrenzung: Das ist mein Autor, mit finden. Die Kleistsche allmähliche Verfertigung der dem ich einen Vertrag habe und dessen Ergebnisse Gedanken beim Sprechen war aus Zeitgründen gar ich erst nach Abschluss mit einem großen Tusch der nicht zu umgehen. Allgemeinheit präsentiere. Die Projektgruppen müssen ihre Ziele definieren und Aus der Sicht der "Textproduktion" verständlich. Die Meilensteine festlegen. Und sie müssen konkret Darstellung von Hüftgelenkoperationen erfordert werden, sei es in Form eines Konzepts, einer andere Autoren und Inhalte als ein Kinderbuch. Demoversion oder einer Handlungsanleitung. Das führt dazu, dass man sich schwerer tut bei der Dadurch werden die eigenen Gedanken geschärft. Entwicklung von Lösungen, die einer allein nicht Und selbst wenn in der Kürze der Zeit das Ergebnis stemmen kann. Die technologischen im Herbst 2012 in Frankfurt noch nicht ganz so weit Herausforderungen fressen Geld. Viele Lösungen Jeder Projektleiter weiß, dass es ein klares Ziel werden nur möglich sein, wenn man sich die Kosten sein sollte, wie von allen Teilnehmern erhofft - es teilt. wird sehr viel weiter sein als beim Auftakt in Leipzig. Allein bei Apps oder enhanced eBooks könnten Ein rein geselliges Plaudern über die Digitalisierung beispielsweise aber bei der Entwicklung und ist nicht möglich. Die Flucht in den Konjunktiv ("man Darstellung eines guten Storyboards Medizin- und sollte doch, könnte man nicht") wird vermieden. Kinderbuchverlage kooperieren, denn die So werden die Ergebnisse angreifbar. Und fruchtbar. 51 Anforderungen an die didaktische Klarheit sind einen Plan. Ungewohnt für eine Branche, die seit dieselben. Viele teure Lösungen könnten durch hunderten von Jahren ein Produkt verkauft, das Kooperationen ermöglicht werden, ohne dass man mehr oder minder gleich geblieben ist. Standard für das eigene Geschäft torpediert. Die bisherigen alle, die je digitale Produkte entwickelt haben. Grenzen werden jetzt auch bei der protoTYPE ist auch ein gemeinsames Lernen on the Produktentwicklung und Vermarktung aufgeweicht. job. Ein In-Projekten-Denken, natürlich vernetzt Die Teilnehmer kommen alle aus unterschiedlichen über Facebook, SkyDrive, Twitter etc. Bisher auch in Bereichen der Branche und darüber hinaus. Und sie vielen Verlagen keine Selbstverständlichkeit. erkennen Synergien und schaffen sich ein Netzwerk, auf das die Branche in Zukunft schon aus Gründen der Kooperation im technischen Umfeld nicht verzichten darf. Projektmanagement und vernetztes Arbeiten Know-how aufbauen Niemand wird am Ende des Projektes dümmer sein. Jeder hat seine Idee besser durchdenken können, weil er präsentieren musste und er die Rückmeldung von anderen erhält. Alle Teilnehmer werden mit neuen Technologien, neuen Vermarktungswegen und Unsere Branche ist aufgewachsen mit dem Bild des damit auch mit neuen Geschäftsmodellen vertrauensvollen Gesprächs des Verlegers mit seinem konfrontiert. Auch das hilft, die digitale Zukunft Autor beim Italiener oder in der exklusiven Villa. Der leichter zu verstehen, leichter zu bewältigen. Davon Rest war mehr oder minder Standard. wird auch der Arbeitgeber profitieren können. Softwareprodukte, multimediale Produkte sind nur im Team zu stemmen und deshalb hilft von Beginn Das Team des Börsenvereins arbeitet hier sehr an nur ein Vorgehen: gutes Projektmanagement. Es engagiert und will sich an Ergebnissen messen braucht Organisatoren und Wadenbeißer, kreative lassen. Es verfällt nicht in die so naheliegende Köpfe und Streitkultur, Moderation und Motivation Lethargie vieler Verbände, die vor lauter Abwägung und und und. Und der Start ist wichtig. Lieber vorher aller Interessen der Stakeholder zwei Schritte nach noch einmal Hirnschmalz reinstecken, bevor man an links, zwei nach rechts gehen, um in der Mitte zu das Lastenheft geht und hinterher merkt, dass ganz verharren und nur ja nicht voranzugehen. banale Punkte übersehen hat. Man braucht also Aktuelle Informationen gibt es auf http:/ www.innovation-prototype.de, der Facebook-Gruppe http://www.facebook.com/groups/innovation.prototype/ oder auf den Seiten des Börsenvereins http://www.boersenverein.de/de/portal/Forum_Zukunft/175359 52 NEW BUSINESS MODELS VIDEOIMPRESSIONS Get some new perspectives on how to successfully position yourself in the markets of tomorrow – provided by our conference speakers and exhibitors. He believes the most successful game format is online playing due to its world-wide accessibility, and his main concern is to maintain a quality standard, being the game a result of the digitization of a book or movie, a form of advertisement, or whatever else… Richard Tsao, Managing Director for Ubisoft China “Give a man a fish and he’ll eat once; teach him Talk about Crossmedia connecting people globally..! That’s what the StoryDrive Festival is all about. how to fish and he’ll eat for life”. Ubisoft China’s Managing Director strongly believes in co-operative minds. As he puts it himself, “1000 brains are better than one” and no one knows better what game players thrive on most than players themselves. So he’s convinced that real investment; the future; is in providing players with the tools to further eBookPie is an e-book store and developer of develop user-generated-content. innovative tools for publishers, such as the The importance of ‘changing with change’ is best groundbreaking eBookSlicer and eBookRemixer, explained at the TOC (Tools of Change) conference. which enable publishers to instantly slice e-books, then mix and match content iTunes-like. Nils Holger Henning, CCO at Bigpoint in Germany As a CCO, Nils’ main interest is the Customer. He works at BigPoint: a videogame company, which makes the Customer the Player. 24symbols is a service for reading and sharing digital books. 24symbols is to books what Spotify is to music or Netflix to movies. It is a multiservice, multi-publisher service that enables users to read 53 in the cloud and via a subscription model. Since 2007 comiXology has been developing the technological infrastructure to bring comics into the digital mainstream and expose new audiences to the rich history and culture of the industry. Through partnerships with top comic book publishers including Archaia Entertainment, BOOM! Studios, DC Comics, Dynamite Entertainment, IDW Publishing, Image Comics and Marvel Comics as well as their own mobile and web apps which host over 16,000 digital titles, comiXology has become a leader in digital comic book proliferation. 54 IMPRINT Frankfurt Academy Quarterly / Frankfurt Book Fair Publisher Holger Volland, Frankfurt Book Fair Chief editor FAQ Magazine Nina Klein Project editor Kerstin Rothkirch Production editor Frederik Fensch, Leila Jenkins Contributors Carlo Carrenho, Katharina Ewald, Harald Henzler, Nils-Holger Henning, Leila Jenkins, Jess Johns, Marcelo Klein, Nina Klein, Octavio Kulesz, Siobhan O'Leary, Emile Op de Coul, Roger Tagholm, Richard Tsao, Anna von Veh Art Direction Dipl. des. Manuel Rauch www.manuelrauch.com Production & Design Alexandre Vallette, Jouve www.jouve.com Media Information Contact mailto:faq@book-fair.com www.book-fair.com/academy Ausstellungs- und Messe GmbH Frankfurt Book Fair Braubachstraße 16, 60311 Frankfurt am Main Sales Tax ID: DE 114109154 Register of Companies No. AG Ffm HRB 6882 Disclaimer The articles are property of the author. Ausstellungs- und Messe GmbH (Organizer of the Frankfurt Book Fair and the Frankfurt Academy Conferences) is not responsible for the quality, correctness or completeness of the information provided by the author. Any third-party trademarks and logos are the property of their respective owners. Ausstellungs- und Messe GmbH does not review or monitor any web sites linked to this e-book and is not responsible for the content of any such linked web sites. We also cannot be held responsible for the information on such other sites and will not be liable for any damages arising from access to linked sites. 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