22 September 2010
A fascinating ebook recipe: lessons for the industry as a whole
Sales stats are coming through, new players are in the market, sales patterns are changing. Everyone is now at least talking "e". It's no longer just a game they play in libraries. It's something the general reader is part of and that means everyone in the book chain has their role to play. We're all learning, we are educating each other. But what about those with blinkers on?
I laughed myself stupid when I read this post on the FutureBook site today - because as much as I absorb everything "e", there's so much in this post that is true. Gareth Cuddy has nailed it in many ways. For all the progress, the training, the sharing of information, the digitisation that has been going around us, there's still a black hole.
I loved the way he approached the article: "Recipe taken from the Publishing Almanac 2010; Take a handful of wistful nostalgia and mix with a pinch of regret. Work in a fistful of stubbornness - being careful not to look at the actual mixture. Sprinkle uncertainty and doubt on top. Place in financial constraints and pop it in the oven pre-heated to miltonian temperatures. Close your eyes, wait an indefinite amount of time and hope for the best. When ready, the strategy cake should have a firm but uncertain texture accompanied by that new book smell."
Straight away, I could picture the publisher. I work with many of them day in, day out. As I read the article, I had multiple flashbacks to meetings with the "die-hards". Those with blinkers on..
We can't stop this industry from changing. We live in a digital age. Students of today are nothing like the students of yesterday. Reading patterns have changed. The web changed our life and our expectations. Consumer demand drives organisations yet many publishers still ignore their customers. At their peril.
I'm with Gareth: Open up to change and your authors and readers will embrace it. It is the changes you make now both in practice and philosophy that will determine the future of the industry we all love.
Time to act now people. Give the consumer, the reader, the customer what they want. It doesn't have to be all about the ebook but over time we'll see those sales patterns changing and the traditional business model for a publisher - bookseller, library supplier, wholesaler - moving with it. We all have a role to play in the supply chain. We need to be smart about it. And we need to change the recipe. Now.
15 September 2010
Pricing ebooks in the Australian market: what's going on?
I remember when we first launched Etitle in 2002 and an academic publisher wanted to get involved but they wanted to set premium prices for the texts they placed. Their model was the price of the book plus $40.00. The next publisher was the price of their book plus 10% minus our trading terms. The next publisher came in at different trading terms altogether. Nothing was easy. And that was THEN! It hasn't improved because each publisher has a different philosophy and a different mindset about the ebook market. Educational publishers look at it one way, reference and professional publishers another. If a publisher primarily released works for library consumption, it was easier to manage the transition (she says with hindsight). They had to provide both formats and give the libraries what they wanted or no sale.
Now I have no problem with an academic or reference book being the same price as the print. There is a lot of development work and the content has educational value. They are also higher priced items and they usually have a three year minimum lifespan. I have issues when publishers price their site licenses out of the market and then wonder why sales drop but that's a discussion for another day...
I fully support publishers charging more for enhanced e-books. If the product has more bells and whistles than a standard ebook (and by default the printed book), then the publisher has produced a superior product. Why should they not recover the costs of multimedia elements - videos, quizzes, links to webs etc.? That sounds perfectly reasonable to me both professionally and privately. Publishers will need to get their pricing right between a normal ebook and an enhanced one, although I'm getting ahead of myself. A lot of Australian publishers are still working on a "normal" ebook. I'll do a Ramble on enhanced books in the future..
Back to pricing. If we take higher priced scholarly, reference and academic works out of the equation, we are left with trade titles. As a consumer what has encouraged me to buy more books (as you know from my last post that doesn't always translate into "read more books"!) is the price point. A price point of US$9.99 to $12.99 for a trade title is a trigger point. If the book sounds interesting and it's a genre I like, there's usually not a lot of time between reading the blurb and pressing the "buy now" or "download now" button. This works really well for authors I don't know. It also works for authors who set their work in a place and time I love e.g. Florence in the 16th Century but I may find the author a little dull (Sarah Dunant comes to mind). At that ebook price point (anywhere under A$15.00) I'll still buy their works and read them, but I don't want to keep the book. It's a read now and throw away item (not that you necessarily do that on an e-reader but you take my point) I believe my price point threshold is A$15.00. Price it under that, make it easy to buy, and voila, it's a sale the publisher wouldn't have had before and one they wouldn't have had in print at the $32.99+ price point.
And as for award-winning, highly regarded books - like Markus Zusak's The Book Thief - I will pay up to AUD $20.00 to read the ebook. However this is where the trend changes. In my case the publisher benefited TWICE - they got the "e" first and then the "p". Why? Because I wanted to read the other anytime and not have to worry about battery life or where my e-reader was at that precise moment in time. It's on the shelf. I grab it. I may want to share it. Recommend it. Read it again (it's an extraordinary book). Somewhere down the line additional sales result - they've got the "e", "p" and hopefully sales from friends who realise what an incredible work it is.
We are already confused with setting the "retail" price of the book. Wholesaler discounts are another kettle of fish altogether. I had a discussion only recently with a publisher who couldn't fathom giving anything more than 40% to a wholesaler of ebooks. Last time I checked, said publisher was offering upwards of 47.5% discount to the chains and grappling with massive returns. (Alas my Ramble is not on the broader book trade here in Australia otherwise this would really open another can of worms!).
Your e-book sale is firm sale. Is it not? I haven't yet heard of someone wanting to return an e-book. And yes, our supply chain for ebooks is a long way from being organised and stable. When it comes to selling ebooks to consumers or via a wholesaler like Kobo or Baker & Taylor for their fabulous Blio product *, there are a lot of costs in the supply chain that need to be factored in. Technology is not cheap, security is a major issue. At the Digital Symposium one publisher leaned over to me and said "did you hear what I just heard? No one is making any money out of ebooks. We're all investing though."
Yes, but sell your content at the right price. Encourage purchases don't divert them elsewhere. Get your ebook rights. Get the supply chain happening and work with those people who know what they are doing. You can't afford not to.
Then again, after reading PubDate Critical recently we may all have second thoughts about this digital revolution? Or that publisher at the Digital Symposium was right. We're not making money out of it. Everyone in the trade is going through this. We've seen the shift to "e" in library supply. And how do we make it work? We are incredibly focused on our customer. At the end of the day, without them we don't exist.
Peter said it beautifully: The central tenet is to be aggressively and remorselessly customer-centric. That is hard for any business, for any industry, but it is the only way to break through into the future.
Just remember there are customers at every step of the supply chain. And get your pricing right.
* I should add I work for a B&T company and I love the Blio product :)
13 July 2010
A learning curve for many publishers

How times have changed. I've been having ebook discussions with publishers now for well over seven years. Granted, they are discussions based around the library platform and working with our library customers. Not always a publisher’s favourite type of customer particularly with their requirements. There’s always access issues, pricing models, and various sticking points in any ebook agreement with libraries. What a library wants and what a publisher is willing to offer nearly always varies - and varies dramatically in some instances. As a leading trade publisher said to me, I'm currently selling 30 copies of this book to this library consortium. You think I'm prepared to sell one for the same price but have 30 people access it all at the same time? I don't think so.
But taking libraries out of the equation, ebook discussions with publishers are now very very different to seven years ago. They are listening more. They are engaging more. However if you listen really closely, the verbs they use often sound the same. You get used to listening for the "doing words". When discussing ebooks – whether for direct to consumer, retail or library models – I am still hearing the words like "daunting", "challenging" and phrases like "experimenting with ebooks" or "experimenting with a variety of business models". There’s nothing definite about ebooks. Everyone is looking at this in a slightly different way. The one thing they have in common – is that they are now looking at them. And taking them seriously.
In many ways, Amazon paved the way. Took over the US ebook market and then released The Kindle to the rest of world. There was a surge of interest when the Kindle came to Australia. But I’m putting it down to Apple and the consumer response to the iPad that pushed publishers further. After years and years, ebooks were at the top of their “to do” list. Finally! Everyone’s thinking of them, everyone’s talking about them. The world has gone “e” mad. We’ve got Kindles, Apples, Sonys, Kobo, Blio, Google Books. And no doubt more on the horizon.
We finally have Digital Directors on board with many trade and academic publishers locally. If not, there’s an ebook project manager. When you talk about ebook production, you have people on board who know what you are talking about. If you start talking about DADs, publishers here are aware of their options. There’s only a few names that crop up but I can’t begin to tell you how relieved I am that when you mention DADs to a publisher, they now know what the hell you are talking about (Digital Asset Distributor).
The publishing environment is learning. We're moving on – still slowly when you’ve been talking “e” as long as I have. But it’s moving, and I’m grateful. And while content has been predominantly backlist, many publishers are working on simultaneous release. Ebooks are becoming part of the production process. Publishers have concentrated on digitising their core content. It's been a learning curve for many publishers. File format has been a subject of interest and everyone is learning as they go along. Publishers are thinking about hardcover, trade paperback, paper and e. They are getting content management systems in place, contract negotiations are moving along, ebook vendors are part of the supply chain, and publishers are looking at the digital world in a different light.
But there are still concerns. Imported titles are top of the list. Where do they stand in the “e” world and how are local publishers being compensated for sales generated in the ANZ market. There are more discussions to be had and much to learn along the way.
15 March 2010
Struggling with ebook reading

Battery life on the Sony PRS-700 – particularly when the back light is used – has been flagged as being problematic on this blog before. Together with not being able to read in the bath or reading long enough on domestic flights, it’s one of the Top 3 reasons why NOT to read an ebook. It really is one of the downsides of this whole e-reading experience.
When I think about the downsides there’s more: not being able to promote the book you are reading to strangers (I’m always fascinated with what people are reading and always check out the covers!), you can’t loan an ebook to someone the way you can a physical book (unless you loan the device with it!), and the gift book market really doesn’t offer anything to an e-book reader (here’s a beautiful photographic book on Paris that I’d love to give you to show off on your coffee table, oops, sorry, it’s in electronic form only! Still want it?). You can’t handle the content the same way and it can be pretty bland in black and white. Of course that’s going to change with the plethora of e-reading devices and tablets hitting the market, particularly the iPad, but for now your main e-readers are not offering colour and so you usually use the device to read fiction and suitable non-fiction (like biographies etc).
Of course there is another downside that ebook readers will ‘get’ straight away! I’ve mentioned it before but it’s really problematic purchasing books online – not the process, it’s the ease of which we push the “buy now” button! It’s like being let loose in a candy shop. We are conditioned these days to search and discover what we’d like to buy using the web. A little typing and a few clicks here and there. Shopping experiences vary. The content that we are offered to assist with our purchasing decision varies greatly. We can find what we want from an online vendor - if we don't it’s a couple of clicks of the mouse elsewhere. You are at a competitor in an instant.
We aren’t carrying anything heavy. We don’t have a shopping bag filled with physical books. The file is electronic. It doesn't weigh anything. It’s easy. And we click that button again and again when we find books we want to read. And then when we find them. God help us. Particularly if the magic US$9.99 price is offered. It’s only $11 Australian dollars to read this and that. Better buy now. Good price. Cheaper than physical book. Click click click and the device starts to fill.
When you work for a library supplier you pretty much see most books come through the front door. Trolleys in our Operations area are laden with books – trade books, academic, reference, commercial products and non-commercial (independent publishers, organisations and self-published authors). They move in and out of our building, day in and day out. Masses of books. You see the physical item and you think oh Wolf Hall, that’s one hell of a tome. Will take me a month to read. If you are like me, you purchase it anyway. (Yet again, that involves going into our site and clicking on the order now button – simple, effective, and what’s more the purchase comes straight out of the pay-packet….DEADLY!).
You start to collect unread books. Last count there were 30 books sitting on shelves on my floor to ceiling bookshelf at home (which is magnificent to look at by the way!). However on the e-reader (not so good to look at!) there’s something like 46 books waiting for me to read them. They aren’t in colour. They are just files.
Granted a good number of those were freely available classics from Gutenberg, but they are ones I want to read….one day. I’m starting to collect more and more books and as I’ve mentioned before it’s not like being on iTunes and downloading a song. A song is a few minutes of enjoyment. A book can be days, weeks, months. I’m beginning to struggle with time management and balancing my reading list with the time I actually have to read.
And still I can’t stop myself. My e-book newsletters and new product alerts continue to come through on a regular basis. New books in e-book format, old books now available electronically. A few clicks and that book can be on my device.
I’ve sent a help message through to Mastercard previously via this blog. But as more and more publishers get their digital strategies moving, it will only get worse.
Somebody…..help….me…..soon. I'm....DROWNING!!!!!!!
05 March 2010
Trying to get a piece of the ebook pie
OK. I've worked in this publishing industry for some 20 years now and the past seven years in library supply, I've worked with thousands if not tens of thousands of publishers and suppliers. We have to have a business relationship with every possible vendor as our library customers expect it. We are here to service our customer's needs and meet all their collection development requirements. From new title alerts to promotional material to books on profile to shelf ready services, we have to provide the full mix. The full kit and caboodle as you can imagine.As the country's leading supplier to academic and public libraries, we are used to working with publishers and suppliers of all different philosophies, business models, customer service principles, business etiquette, professionalism, organisational efficiency. You name it, we know the ins and outs of our purchasing partners. We know what makes them tick. What they do well, what they don't.
Then along comes ebook vendors. A different model. We've worked out the library workflows and watch the dollars transfer from print to e (as you would know if you saw my presentation at the Digital Symposium recently - see last post for full text of my talk). But library ebooks are one channel. Ebook vendors targeting the direct user - either with (or without) a bookselling partner - seem to be coming out the woodwork. Every day there's a new one "getting into" ebooks. Is it my imagination because are they all starting to look and feel the same?! We have Kobo in one corner (great talk at the Symposium BTW Michael!). We've got Blio in another but of course they're not interested in getting content from Ingram Digital because of fierce competition and will go direct where possible to publishers for ebook content. We've got the mighty Amazon, Sony, and of course Google. There's Overdrive who power various booksellers sites as well as the Australian readwithoutpaper.com There's ebooks.com Now O'Reilly is getting in on the act! And so on and so forth.
Ebook vendors launch with all their marketing spin and "bells and whistles". But put them all together, stir them up a bit, and what do they really offer that's different for the end user? With all the larger players, the interface looks pretty similar, the ordering process is usually a few easy clicks, the content isn't remarkable - if it's in ebook format, it's usually there. How do you stand out? If you are an ebook vendor what attracts your customers to you above everyone else?
If you're Amazon, you got in early and got marketshare. You've got millions of loyal customers. Fiercely loyal. You've got the data, the purchasing history, and the clout. And if you're Apple? You've got something everyone has on their wishlist - the iPad. But how are you going to distinguish yourself with ebooks? How are you going to think and act like a bookseller, like a publisher? Amazon's being doing it for years. Apart from already having millions of customers ready and waiting, what are you going to offer that is different to everyone else?
For example, when I think about ebooks, marketing and distribution, I know what I want from my ebook supplier. As an individual who reads ebooks, I can tell you I want a superior browsing service, I want to be able to find titles of interest quickly, clicks to relevant genres, my favourite authors, click click click. I want to see an image, a good description, recommendations, information about the author, and possibly a preview. Has the book won awards? Does the ebook vendor really know books? Can they get the metadata and the target marketing down to a fine art. They have the technology and the customer demand for the e-reading experience. They won't last if they don't get the customer experience right. But when everything starts looking and feeling the same, will we ever get to know them inside out and back to front? I don't think so.... the game has moved on.
29 November 2009
A day in the life of an ebook reader

I've just finished an ebook (purchased locally surprise surprise) of The Book Thief. What a remarkable book. Will go down as one of the best I've ever read.
I've been laughing at myself lately because I either forget to charge the Sony ereader, or I don't turn it off properly, and then of course there are the problems with the device when I use the backlight (which chews up the battery). Trust me, I made sure I kept the battery strong for this book as I didn't want to get to a critical point and have a battery warning! There's nothing worse than wanting to read and not having the battery charge to do so...
It made me think about school students. I've heard many stories about (mainly private) schools wanting to have content on ereaders for their students but being rejected by publishers who either don't have the content digitised, don't want to participate, or just don't want to provide it for other reasons (piracy? who knows...). Anyway, I don't know about you, but my experience with teenagers in particular suggests they will lose their ereader, misplace it, forget to charge it etc. I can just imagine the teacher saying everyone turn to page 10 and some people have it on large font, some on small, so the page number is irrelevant. Then hearing cries from several students "miss, my battery is dead, I can't read it". Hysterical!
Of course they could always lose the print copy but you don't have battery issues with the traditional format. You don't risk damaging the whole device if you spill liquid on it. You can take it in the bath. You can read it throughout the flight (there's no "switching off all electronic devices" for the takeoff and landing period). The beauty of an ereader is storage and taking choice with you wherever you go.
Oh and further to my previous post, I had the ereader out and about with me yesterday - in a cafe and in a hairdresser. Only men asked me whether it was a Kindle. All older men - as previously identified - and all had lots of questions about it. Most women glance at it and it really does challenge their opinions. I think there's been half for and half against todate. Most add "I really hope the printed book doesn't die though". Me too folks, me too.
07 October 2009
And here comes The Kindle

Amazon has finally announced its Kindle ereader is available to customers outside the US including Australia. For US$279 you can order your Kindle and they'll ship it to you from 19 October. I imagine there won't be a lot of Australian content available for us, as local publishers have been relatively slow to get behind ebooks. Allen & Unwin and Pan Macmillan are two notable exceptions thanks to Elizabeth Weiss and Victoria Nash respectively. These two publishing leaders continue to promote the digital agenda and I don't know what the local industry would do without them!
Mind you, I had to laugh when I read that Don Grover, CEO of Dymocks, spoke about the take-up of devices being driven by content. They were the first retailer to get on the ebook bandwagon (we library suppliers having gotten on it some years back...). But now the ebook kiosk at Dymocks tells a sad, sorry tale. Dismantled and hidden away at the back of the store, it failed to attract a wider audience. Of course it would! If you want to buy an ebook you don't need to go into a bricks and mortar bookshop. That's the beauty of it! Hop online and a few clicks of the button later you have your content. Also, apparently Dymocks sold thousands of Iliads. Ahem. Thousands? A contact at the distributor advised the real figure was much less but don't let us stop you upselling the demand and promoting the uptake of ereaders! We all know it's the future so get your e-reader today folks. Of course you can't get much content but hey, here's a device that you'll enjoy carrying around with you!
And then, of course, there was this beauty from Don: ‘We're finding consumers like the wide screen of a laptop computer instead', he said. No kidding! Didn't we see that all along? Ereaders are great but at the end of the day readers will read on whatever device they use the most - their phone, their laptop, their ereader. Dymocks started the ball rolling but I really do hate to see them drop it.
And for those who have been following this blog: for the record, I'm still reading printed books! However I've got plenty of content (mainly US sourced) on the Sony e-reader. This is the first year I will be taking the device with me to the Frankfurt Book Fair and I must say I'm excited and nervous at the same time. Excited because there's around 46 books currently on the reader, including Audrey Niffenegger's new one Her Fearful Symmetry and nervous in case I have trouble charging the bugger and find I have nothing to read but German magazines I'll pick up while I'm there. My German's good, but not that good!
Oh, and before I sign off this post - perhaps in the months ahead people will stop asking me "oh is that a Kindle" every time I take out the e-reader. No it's bloody not a Kindle. It's a SONY!03 July 2009
The curious reader

What an interesting week it’s been. The Sony e-reader has created such curiosity whenever I’ve taken it out of the handbag and started reading. Last Saturday I took the e-reader to the hairdressers. I’m usually there around 2 hours while I have my hair cut and coloured. My hairdresser and colourist are used to me bringing a book and reading while I wait. They usually ask questions about what I’m reading and whether I would recommend it. They both nearly fell over when I showed them the handheld device!
Located in the swish Chatswood Chase complex, the salon had around 30 customers and several began talking to me about the e-reader. A few were noticeably horrified but one lady in particular spoke about The Kindle and the impact it’s made in the U.S. Why didn’t buy that? I explained it wasn’t available in Australia. What made me buy the device I was reading on? I had to explain I work in the book industry and had two e-readers for a project. The Sony e-reader wasn’t available here either but I’ve heard rumours it may be towards the end of the year. A few customers wanted to know what was available and the price of them. I answered all the questions that were fired at me however no one had a burning desire to run out and buy one there and then. But those who were asking the questions were obviously interested – or overly concerned, I couldn’t really tell. Was it because it was a new gadget? Something to admire, to be envious of, to be interested in.. Who knows, but inevitably the conversation would take one of two directions. Either “not sure I like it”, “can’t see me reading from it”, “I’m sorry I just love a book”, “the book is really dead then” OR “it will be great for travelling!” and “that will solve my [book] storage problems!!”
At the beautician a few days later, the young 18 year old behind the counter couldn’t contain her interest and was by my side in two seconds! “Oh MY GOD! Is that an ebook!? Where did you get it? Do you think it will eventually replace the book? AWESOME!” There was a different awe right up until I told her the price of e-readers in Australia. She just sighed.
Then today while waiting at Pattisons in St Ives for a coffee before work (I mention Pattisons purely because if you know it, you’ll know the queue that forms each morning for coffee!) my docket number was 100. They had just called 86. So what does a girl do while she waits? Well she pulls out an e-reader that's what! I could feel eyes looking over my shoulder and while I read Michael J Fox share his thoughts about politics, stem cell research and Parkinsons in his book Always Looking Up, I heard two women next me talk about reading and how kids don’t like to read anymore. They discussed the books they were currently reading. They said loudly how much they love a book. I hid my grin because they were so obvious! I was a traitor. How could I?! I should be shot. What they didn’t know was that I work in the book industry, I’ve worked in it for nearly 20 years, and I wanted to shout at the top of my lungs “hey I love a real book too but give me a chance, I’m trying to understand the appeal of an e-reader and is it really the future?”
I can’t deny there is an appeal but will it cannibalise print sales or bring in new readers? The more I live and breathe ebooks the more I think a percentage of readers will move over to electronic devices – e-readers, mobile phones, whatever takes their fancy – but ebooks will appeal to a new audience, another layer of reader. The critical factor will be what content will actually be available, the price, the release date, and whether it’s in the format you – as the customer – prefers to read from.
29 June 2009
Sony e-reader review

I'm currently trialling the HanLin and the Sony PRS-700 e-reader for an ebook project at work. When I started this blog I thought I'd review the HanLin e-reader first, but it's actually the Sony one that I'm reading more from at present, so it's going to end up reviewed first.
So my first thoughts about the Sony? Easier to use and more modern than the HanLin. Unfortunately the screen isn't as clear and the reflection from lights is annoying. You can't change the font - only the font size. The touch screen is good, I like it a lot. The main menu has the Continued Reading button, Your books, Your notes, Collections, Audio, Pictures and Settings (see image). I think the picture option is stupid, as the e-reader doesn't come in colour. Why would I want to look at a black & white picture? Not sure what Sony was thinking here! Once a title is selected, it's easy to set up how to turn the page. You can use the buttons or the touch screen. I'm actually using the stylus that came with it and you can set up what direction you'd prefer when turning the page. Once reading you can increase the size of the font to suit your needs and if it's your cup of tea, you can change to landscape. I'm finding the search function works well as does the Go To page. I haven't really used the Notes component but I played around with it, and no issues there. The synching from the Sony ebook portal isn't as good as I would expect and they have a bit more work to do until it has the same functionality as iTunes, for example. My main concern relates to the downloading of ebooks to the reader and for me, it's not as obvious as I would like as to whether the books have successfully loaded onto the e-reader. I need to keep playing with the type of books placed on the reader and moving content on and off the device so I am more familiar with the process. Lastly, the battery life is not as good as I would expect. The website says it lets you turn up to 7,500 continuous pages (or up to 2 weeks reading) on a single charge.. However if you use the built-in light, it chews up the battery very quickly. I would not recommend using it unless absolutely essential.
The Sony e-reader was sourced through our office in Portland Oregon. I believe it cost around $350 U.S. from the Sony website exclusive of shipping and extras like the charger (although you can charge by connecting via USB to your computer). The U.S. website advises the eBook Store is limited to U.S. and Canadian residents so my address is c/o our Head Office and I used my hotmail address so it would not impact on my project. I hear rumours Sony Australia may be launching towards the end of the year but have concerns about what product will be able to be sourced from them. Will they be creating a Sony Australia ebook store? I haven't heard from any publishers about being asked to provide Australian content. I DO know some trade publishers have made the Sony e-reader available to their publishing and senior sales/marketing staff. I can imagine how brilliant it would be when assessing manuscripts - no more paper, just the electronic file downloaded to the reader. Portable, paper-saving, easy access. Makes sense. And it also helps publishing staff become familiar with the device and thinking about the reading experience overall. So far, I've only heard a few publishing contacts mention they may move to reading all their books electronically but most in the publishing industry love the look and feel of a book. I'll continue this train of thought somewhere in future..... that, and a review of the HanLin. The one I thought I'd review first!

