A short essay about what I know about ebooks

One of my daily work routines is to review the RSS feeds, Google alerts, industry emails and newsletters for news about ebooks.  I've done this for years and can't believe some of the articles about ebooks that are now appearing all over the world.  Somedays I laugh because many of them have been covered in this blog over the past couple of years, let alone all the established bloggers and writers around the world who are much better at this than me!

Actually if you look at all the articles I've collected or distributed over the eight years we've been working with ebooks some of the information does not change. The stories are essentially the same.  An industry update here and there.  A new ebook vendor.  Different technology.  But often it's the same old commentary. Only the date has changed.

And don't start me on the prediction the book is dead.  It's not dead.  It's just the consumer has a choice of format these days.  And publishers, booksellers, library suppliers are all adapting to the digital world.  I'm over the naysayers.  Preach somewhere else because I'm not listening. 

Anyway, I thought today I'd do a thought dump about what I've learned about ebooks.  Feel free to comment and tell me what I've missed or what you think I've got horribly wrong.

1. Ebooks are convenient and immediate.  The click of a button and you have something to read.  Great for Award Winners, highly publicised books, events and current affairs.  Let's not forget the savvy consumer of today who wants something to read and they want it now!  And as we've all realised by now, an ereader is great for holidays, no lugging heavy books.  Load up the device before you go away.  Depending on how you purchase your books, you can buy more ebooks if you run out.  We took the laptop to Venice last year when we lived there for a month and even though we know the bookshops, their English selection is extremely limited (and I've read all the books set in Venice already!). Having access to ebooks was great, convenient and easy.  A real no-brainer when you're travelling. The downside?  Well for one, this is not iTunes.  Every click is committing time to read the book.  And two, credit cards can easily get a good workout if you're on a roll.  Automatic debit can be a killer!   And lastly, just how many of your downloads are you now going to read.  Think about that when you're clicking away because we're tracking your purchasing choices whether you like it or not. 
2. Simultaneous release anyone? Timing of releases has improved over the years with more publishers doing simultaneous release.  Some still use "windows" and while I can understand this some days, on others it is simply a case of not giving the consumer, the reader, the user what they want.  "e" is another format.  There will still be hardback (perhaps in greatly reduced numbers), paperback, large print, audio, multimedia, apps etc.  "e" is another format and over the years publishers will get to know how their content is being used by consumers and make better commercial decisions based on the market, historical data and access to information
3. Publication dates are not to be trusted.  As more publishers digitise their backlist, they put their products into the marketplace with a new publication date.  New in "e" is not the same as a new release.  Publishers need to spell out this in the descriptions because consumers are being cheated.  My blog post from April 2010 discusses this dilemma. 
4. Pricing is a mess.  Publishers you let Amazon determine the $9.99 price point and in many ways it's a killer.  But it's also worked in the US market.  Look at the downloads at that price versus other formats.  What does it tell you about your readers and what they are willing to pay?  Publishers play with pricing but do the maths and make the appropriate decisions for your content, for your author and the sales channels.   As a reader, I've realised my threshold is less than $20.00 so those Australian publishers that are charging the same price for the "e" as the "p" aren't getting my ebook sale.  There are so many arguments for pricing - higher, lower, distribution costs, production costs, royalties, margins - and I can listen to these for my "day job" but as a reader, I make very clear distinction about a) what I like to read in "e" and b) what I'm prepared to pay for it.
5. What you read it on can be irrelevant.  You don't need a specific e-reading device.  Got a laptop?  Got a mobile?  Technologies are converging.  Devices perform multiple functions.  Loyal to your iPad, great.  But if you want to use a specific device and have acquired your Kindle, good for you (the brand name is still the most recognisable to your average consumer).  Sony? Kobo? Whatever floats your boat.  Cloud technology is here and now.  Use whatever works best for you.  Just do your research and remember not all ebooks can be transported from one device to another. 
6. Technology can still be problematic: for me, it's using an old e-reader!  Battery life has improved since the Sony PRS700 and there are multiple devices available today that have a much longer run.  But I will still list forgetting to charge a reader as a downfall.  Having your battery die in the middle of a good read because you have no opportunity to recharge it is simply awful.  There is nothing worse than a device shutting down on you and you have no replacement reading.  Think long-haul flight.  That's where it's done most damage to me over the years!  And don't start me on the turning off the e-reader for take-off and landing.  I'm not a good flyer so I like to distract myself.  Reading has always been a way to do it, particularly with landing.  More and more articles about ebooks reference this, but it's not new.  We are reading using technology and our aircraft crew will always ask us to shut it down.  And while there are some Kindle and Apple devotees who use plastic covers on their devices while taking a bath, I'm not with you sorry.  I don't want to take my e-reader in the bath.  I don't want to accidentally drop it - whether in water or on a hard surface.  It just does not work for me in this situation no matter what you say. 
7. Rights: one of the biggest issues with ebooks, the reluctance by publishers to give up territorial rights for their ebooks.  I can see ebooks going "world rights" and placed with all the vendors.  Why not revenue share with your print distributors in each territory to recognise the work they do promoting the author, the content and more.  Distributors and publishing partners have a key role with "e".  This should be recognised and not have them shut out.  Before you know it, there won't be a Frankfurt rights fair.  No one will want to engage if there isn't something in it for them. 
8. Formats and layouts are still problematic: Format extensions are confusing for those readers who don't know any better.  Readers want to read an ebook but don't know what they are looking for when they move away from one of the more established ebook vendors they've been using and go direct.  The download process can be confusing for them.  I had a friend trying to purchase some books from a US publisher's site and had no idea whether or not her iPad could read any of the device formats listed. And as for layouts, well I still have ebooks with "dodgy" layouts.  This was covered very well in an Open Letter to publishers on the Teleread site a few months ago. While I've adapted to reading that way over the past few years, it still annoys the hell out of me.  I don't want text to drop away or a handful of words justified across the page unreasonably.  Some of the hypens are poorly done and some text goes a little funny at times.  Don't get me wrong.  It's improved over the years. But it still needs work.
9. Get the metadata right: Publishers can't get their print metadata right so how on earth do we expect them to get the ebook metadata perfect?  (Of course they will argue this with me but booksellers and bibliographic agencies around the world will back me up on this one) In a world where we need to search and discover our content, we need to have the correct path laid by publishers so we can find it in a click or two.  And as for one e-ISBN across multiple platforms.  One word - nightmare.  If you want to sell ebooks across vendors and you've used the ISBN as your primary identifier in your database, you need to find another solution.  And it will cost you.  Booksellers and online sites - get ready.  It's not pretty.
10. Profiling & Selection of ebook releases: I'm signed up a few ebook vendors and they send regular newsletters about what's new in "e".  I don't want simply what's new in "e".  I want to see my favourite authors, my favourite subjects.  I don't want to see a new ebook about Donald Rumsfield or travel guides to places I don't have on my wish list.  Ebook vendors need to profile my interests.  They can see what I download.  Now make some recommendations based on that.  Ah, you've got my attention at last.
11. Ebooks are established in academic libraries.  Search and discover content through your academic library.  Electronic journals lead the way, ebooks followed.  Information is at your fingertips.  Patron driven demand is exciting.  Scholarly and reference works are best served in a digital world.  Updates can be better managed electronically.  Access, availability, wonderful for research.  It all makes sense.
12. Etextbooks?   I'm not yet convinced.  Enhanced ebooks for students, now that excites me.  Just check out a Wiley textbook demo on Blio if you need convincing.  Questions, answers, rich media content.  It's all there for the taking.  Publishers need to hop on board.  It will be an exciting ride for the students of tomorrow.
13. Consumer choice is important.  As I mentioned above, there are some things I like to read in "e" and there's others I enjoy in "p". I can loan the "p".  I can show off the "p".  The "p" has cover-art, often beautiful at times.  My friends know what I'm reading when I'm reading the "p".  I will use bookmarks and I will turn pages.  And I will enjoy doing that.   I will always be loyal to the "p".  In fact, after a few years reading ebooks, it's my preference now.  But I also get books cheaper through my workplace - sometimes half the price.  If I wasn't paying staff rates for my books, I wonder whether I'd have a different point of view.  I'm guessing I would but that would be on price, not on format.  I want my historical fiction, autobiographies, biographies and history books in print.  I want them on my bookshelf.  I want to turn the pages and look at the images.  I want to share.  But I will try new authors in "e" and occasionally, very occasionally, I will treat myself to both formats. 
14. Consider the booksellers - both online and bricks & mortar.  These guys have been with you for years and many of your authors would not be where they are today without booksellers promoting their products, having events in-store, and more. There is so much I could write on this point alone.  Pros and cons.  Politics and issues. Consumer buyer behaviour.  Pricing, supply, industry matters and more. For now, I will simply say consider the bookseller.
15. Consider the libraries, the librarians, the library suppliers.  I could get really rough on this one.  As you know, I work for the leading library supplier in the Australasian marketplace.  We've heard it all before from our publishers and ebook vendors.  Librarians want to play in the digital sphere.  They are playing.  Many have been doing ebooks for a long time.  But publishers don't like having something available free through a library at the best of times.  Ask Harper Collins about ebooks, libraries and boycotts due to changes in ebook policies and access.  There are ways to work through these issues and it seems single use is the way most publishers are comfortable with.  But tell the reader they can't borrow an ebook because it's already on loan.  It's digital for crying out loud.  There are models that can deal with this.  Ask EBL.  Just don't shut out this part of the market.  They are important, they have one hell of a role with reader recommendations, access and information.  
16. And consider the role of the publisher.  As a publisher, you will know what I'm saying.  There's a lot of articles about this already.  What do you bring to the table in a digital world?  Authors and agents can deal directly with ebook vendors.  They can choose to sell the books direct.  They can set the price.  They can do the work. And they can make more margin. It's a reality check for all of us.  Publishers need to be looking at their strengths and weaknesses too.  

 When it comes to the digital world, there are still hurdles to face, difficulties to encounter, issues than may remain unresolvable, but we've got one hell of a publishing industry.  Whether you are an ebook reader, an author, a publisher, a library, or a reseller, we need to keep engaging, working together and finding a model that's right for us.  Those in the industry have a role to play and there may be some that don't want to be involved in the "e" world.  We keep saying they have to in order to survive in the digital age, but is that right?  It's what we want to believe...

At the end of the day, people have different experiences of reading, loaning and sharing books.  There are Luddites and there are those that are already committed to e-reading.  Does one format have to win over the other?  Consumer choice is important, pricing and availability is important.  And whatever you do, publishers need to get their product information and metadata sorted.  In an online world, anything sloppy and incorrect will cost you.

The above points are a combination of the professional and the consumer ebook world.  I can extend on some points, some are a political minefield, and I've probably missed others.  But it's the Ramble for today.  And I'm exhausted!

Ebook vendors still have a lot to learn about their customers

Overseas media has been reporting on the "millions" of iPads, Kindles and other reading devices sold this Christmas.  I must admit, it was the first time in years of reading ebooks that family and friends started talking to me about getting an e-reader.  At work I'm asked every other day for my opinion on what device someone should buy, but it's such a personal choice.  I still use my old Sony ereader but I bought my partner the new Sony Touch and it's being used quite frequently thanks to the take-up of the device while we were on our extended holiday in Venice.

At a certain point, the physical books ran out and it was only a few clicks on a website to download some new and recent releases.  The interesting thing, it wasn't an ebook/online vendor that was chosen by my partner - it was the US publisher who sold the content directly from their website.  It didn't take long for the words "bookshops are going to die, aren't they" to be uttered as the transaction took place.  But here's where I disagree - albeit to a point.

Bookshops and libraries have such an important role to play for book lovers.  They recommend, they have the items on their shelves, you can browse and you are not reliant on metadata to make a purchasing decision.  There's nothing like picking up the book and flipping through it.  As always, the jacket grabs my eye first, the author's name, the title, the picture, and then I read the blurb.  I flip through it.  I've got an idea of whether or not it's my kind of book.

With ebooks we're reliant on the image and the metadata which can sometimes drive me up the wall.  Released this month often means "it's eight years old but like all publishers active in ebooks, we digitised it and released it as a new edition, technically it's available this month so we can say it's new, grab your attention, and you buy it, yeah lucky us, we get the sale and you get an older book.  Sorry did we say it was new?  Of course we did, it's new in "e"!" Yeah, thanks publishers.  As you know from this post in April 2010 - I don't appreciate this.  Publishers please put it somewhere in your ebook data the book you are saying is "NEW" is in fact new as an ebook and it was originally published in year x.  We don't want dishonesty in our transactions with you and if you want us to engage in reading and support of an author, do the right thing, and put the right information in the metadata. 

Speaking of which, I'm now officially jaded with the ebook vendors I choose to buy from.  And this is where Amazon could teach them a million lessons.  Just because I buy ebooks, doesn't mean your weekly or monthly "new releases" email should be so general it's almost unappealing.  Haven't you noticed the sorts of books I read?  Build up a profile on me as your customer and start targetting "new" releases better.  Apple does it brilliantly.  I can't begin to tell you how many songs on iTunes I've downloaded because of their recommendation - whether it's on purchasing information from their other customers or it's on the Genius programming.  It's A LOT.  And I've enjoyed being introduced to new bands along the way. Of course the difference is it's a 3-4 minute entertainment experience whereas a book can be weeks, but the point needs to be made.

Ebook vendors should be noting that I purchase historical fiction.  Let's nut this down a bit more.  I read historical fiction set from the Plantagenets through to the Tudors.  I read authors who write about Venice between the 15th and 19th centuries.  I read most books set in medieval and Renaissance Italy, particularly Tuscany.  I read fictionalised accounts of lives of artists, poets and writers.  And when the mood takes me, I like to escape to Ancient Greece, Rome or Egypt.  So with all the technology you have available, do I want to know about new ebook releases from Jack Higgins and Colm Toibin representing action and mystery?  Hello.  You've lost me.  And no, while there may be romance in the historical fiction I'm reading, that doesn't mean I want every Harlequin release.  And no, putting them in a bundle, won't entice me either. I do not want the traditional romance genre. And yes, when you send a "Focus on New Historical Fiction" ebooks, that was fine.  But did you need to add all the historical romance books too?  Ebook vendors have A LOT TO LEARN about consumer reading behaviour.  A new ebook release is just that.  But for goodness sake, match it to the reader.  It's what booksellers do.

Dialogue with bookseller.  So Rachael, how did you like the last Sarah Dunant book?  Didn't really work for you?  That's a shame.  Have you read anything by Marina Fiorato.  She's got a new book out "The Botticelli Secret".  I'm sure it's right up your alley.  In this particular case, I've already got the print book, because yes I do like reading Marina Fiorato and I enjoy having some books in print to share with families and friends who may be interested.  Of course, I could have bought the ebook.  Afterall, it's Allen & Unwin who has published the title here - a publisher I admire and respect because they lead the way, particularly in "e" - and their website links me to their ebook vendors.  If one of the ebook vendors had just thought to alert me to the release of the ebook, I may have considered it.  But no, I'm happy to have the print in this case ... BUT as a consumer I would have liked the choice and with so many books published every month, someone needs to help me navigate that.  Getting on ebook portals and trying to search for something I'd like to read can be a real drain at times.  Their searching abilities are poor.  The metadata average.  They don't understand the consumer. 

The hard part is, there's a MASSIVE wave of consumers now jumping on the ebook bandwagon here in Australia.  They have their devices but they haven't really thought about acquiring content for them (the new Sony for example didn't even reference the Sony library because it's only in the UK & US!) Yes, consumers know about getting the public domain classics for free and there will be a zillion downloads for these.  For a while they will experiment with ebook portals and click, click, click.  But what are they reading and how can their purchases be influenced?  Amazon and Apple know how to do it.  It's time for the other ebook vendors to lift their game.  And for publishers to support them with accurate metadata that educates the consumer, encourages a purchase, and more importantly another one in the future.

Pricing ebooks in the Australian market: what's going on?

As you know, I spend a lot of time talking "e" - trends, devices, digital content, retail, library and wholesale models - but what I'm really having problems with in the local market is PRICING.  Professional seminars often encourage publishers to set the ebook price as the same as the cheapest print edition.  So if the first edition is the trade paperback at $32.95, the ebook is the same.  When the mass market paperback comes out at say $18.95, lo and behold the ebook price comes down too.  Some publishers have said they are bucking this trend and all ebooks will be cheaper - at least 10%.  I even hear reports that the ebook will dearer.  And others that say the $9.99 price point cracked it so that's what they are looking at. 

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 :)

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.

Exactly how is this supposed to work?

In an ever-increasing e-world, what is the role of publisher, distributor, sales agent - when everyone wants a piece of the sale. When you talk to publishers, the industry advice is don't buy the print book without guaranteeing the ebook rights. But Australia's supply chain for ebooks still has a long way to go. We've of course got the ebook vendors - EBL, Ebrary etc - with established distribution models for libraries. And in the case of EBL, Ebooks Corporation provides a wide range of services to publishers as well as fulfilment to individuals wishing to purchase titles. You've got readwithoutpaper.com which is powered by OverDrive, Kobo is making inroads with their exclusive deal to The Red Group, and we've got Blio coming in the months ahead from Baker & Taylor.

At the end of the day, however, the publisher still has to work with multiple vendors to get the digital content out there. So what happens with existing distribution agreements? Traditionally they wouldn't have included any ebook component. It's a physical book, going in and out of a warehouse. Widgets in. Widgets out. But if a press uses a distributor here for their traditional book, and then by-passes them by providing content to the Kobo's, the Blio's, the OverDrive's of this world, what role does the distributor have? Are contracts being updated to get a piece of the ebook pie. Afterall, in many circumstances the distributor or sales agent has done the pre-publication work, the reps have sold into the bricks and mortar stores, there's been marketing, advertising, promotions, publicity. All for the physical book. At the distributor's cost. So if the sale comes through readwithoutpaper, how is the commission or sales percentage being paid to the distributor?

It's a very different scenario if you are a first tier publisher, a local subsidiary, to being a second and third tier distributor. In the case of the latter, your contact in the traditional book supply chain is with the Sales Director, the Operations staff, Service people, marketing people, editorial. Authors. Everyone who's job it is to get the information to you and then the printed book in a timely manner.

But when the publisher or originating source has a Digital Director who's job is to put content in and out of platforms, they don't always have the full picture. They are tasked with the job of ensuring the content goes to as many sources as the company designates are appropriate. I'm assuming they are focusing on just the big guys and it's still a relatively small group. But what's going to happen when it explodes? Will there always be a dozen or so players in the market that has the ebook supply chain sewn up or will every man and his dog get into the act.

At least with book distribution, the supply chain is not very complicated. When you start putting more and more into the ebook mix, the distributor (who has the exclusive rights to all materials published) is not always at the front of their mind. Remember I'm thinking about the second and third tiers here.

What is the model that is working for people? Do the traditional book distributors eventually become just a sales & marketing office for the publishers they represent? Surely when you are speaking "e" that's not going to keep people in business. Everyone wants a cut, and it's the ebook vendors that get the larger slice. If local operators were solely working off a percentage of a percentage, surely that's not a sustainable model. I guess we don't know what percentage will go from p to e - and how soon that will be. And I'm talking the general reader here, not the student. The student expects "e". The library is "e-preferred". And what will happen when the patron driven model in libraries really takes off? What effect will that have on publishers and ebook sales? I'm all for getting collections right and managing budgets, but publishers will want more.

But back to the ebook mix. The existing print distributors want a slice. Ebook Vendors want a bigger slice. Publishers want their mix. And let's not forget the author who created the work. Exactly how profitable do we expect this supply chain to be? A new business model is emerging.

I welcome comments here on the blog as to how this is all working in reality.

My Presentation at the Digital Symposium

Ebooks and libraries: two subjects that are often discussed separately but when taken together produce such a wide range of reactions from publishers. In many ways, publisher responses to ebooks for libraries actually help define the publisher, their business model, the way they approach their content, and the role they play in the full supply chain. It is easy to identify those that are dynamic and those that are traditional or tied to the “mother ship” overseas as is often the case. Those who are willing to engage with the full spectrum of customers - in our case, libraries - and those that won’t. Those who are preparing for the digital future and those we feel will be left behind.

As many of you know, James Bennett has been supplying public and academic libraries for over 40 years. With digitisation, we’ve seen one of the most challenging periods of our history. If we rewind the clock back only seven years, it was a time when library suppliers were selling dozens of multi volume reference sets to our customer base - encyclopedias with price tags in the thousands. Multi volume reference sales were priority products with targeted marketing campaigns and good margins. Fast forward to today and print reference sales have been cut dramatically as libraries opt for online versions, a site license, perhaps a direct relationship with the content provider, and in some cases no purchase at all because patrons choose to use freely available web content. Trading terms are very different. The goal posts have moved.

Of course it made sense for the reference market to shift to online as the product could be kept up-to-date, thereby making it more valuable to the library patron. Some libraries still order a print version but we’ve seen a massive shift to online reference. One of the leading players in the reference market kindly advised us prior to this Symposium that in Australia a staggering 75% of their sales are now from their online products. The sales channel has evolved.

This discussion is not about digital reference. I use the example merely to highlight what’s happened in the last few years. For library suppliers, it was digital reference that prepared us for the ebook world. It was a sign of things to come…

James Bennett entered the digital world in 2003 with our own ebook platform – Etitle. Allen & Unwin was the major publishing partner and a handful of other publishers supported the product in its early days. Targeting university libraries – a small market in terms of numbers but large in annual dollar spend – we offered only Australian scholarly and academic titles. Back then, publishers were concerned about their existing contracts and ebook rights, they cited lack of resources and time to review, there were issues with conversion costs, return on investment in such a small market, when to issue the ebook, pricing models, file security and of course the cannibalisation of the printed work.

These issues haven’t changed. The marketplace did. Etitle became superseded as bigger players entered the academic library market. Being solely Australian, Etitle could not compete with the larger players who had the breadth of product libraries wanted – US, UK, European published materials as well as Australian content where it was available. Ebook vendors with hundreds of thousands of ebooks on offer – as opposed to our hundreds. In the past five years, the major ebook players have become well and truly established in the academic library supply chain. EBL – Ebooks Library from Ebooks Corporation based in Perth, Netlibrary, Ebrary, Myilibrary from Ingram, Dawsons in the UK and Blackwell Book Services came up with their own products. Publishers too created their own platforms, investing money in digitisation even when their ebooks were already in the portals of the ebook vendors, but it was about controlling the content and having direct access to the end user.

We supported ebook platforms where available however this was complicated with the single e-ISBN issue that we now needed to address. Yes, silly us! We used the ISBN as the primary identifier in our database! Despite recommendations from the international ISBN agency, not all publishers created a separate ISBN for their ebook vendors and this created more than a headache or two for us as an onseller of these products across multiple platforms. We entered a whole new bibliographic world, one that was slightly more complicated when we started selling both publisher portals and via ebook vendors. Which platform did the customer have? Where was the order to go? With so many technical workflows and with limited time today, we’ll save the e-ISBN issue for another day, another soapbox.

The academic publishers in the room would know that James Bennett has been an agent for EBL for several years now. A few years ago EBL sat comfortably in our Top 30 suppliers, then the Top 20, the Top 10. Astounding growth figures – from 2008 to 2009 270% growth in dollar value, 578% in units. This year ebook sales continue to track between 100-200% growth on previous periods. They have become a major supplier to our business and to our libraries.

If we go back a few years, ebook sales were a little hit and miss. We’d get a six figure sale one month and then nothing for months. Academic libraries were moving more slowly than we originally anticipated to “e” – often using special budgets - and we were all navigating the ebook waters together.

As we worked our way through bibliographic data issues we also had to come to grips with different margins and different workflows. Receiving and invoicing processes had to be totally reworked for ebooks, afterall you aren’t physically handling anything! New title workflows, promoting through our kit service for example, the role of the sales representative, all had to be reviewed. And of course, over time, ebook sales started coming out of the library monograph budget. Sales patterns were changing.

Ebooks are now part of our daily workflows for our customer base. These days, academic libraries are very experienced with ebooks and ebook selection. They understand digital reference and ebook requirements for their patrons. Some like Charles Sturt University prefer to order “e” over the “dead tree”. Many are talking about simultaneous release and ordering “e” only. YBP Library Services now offers ebooks on their approval plans and believe around 10% of publishers are actively pushing simultaneous release. The delay in providing both formats is being noticed by key libraries and library vendors. Libraries ask us to put pressure on publishers to bring both to market at the same time particularly with overseas based university presses. Once they know about the “p”, students, academics and researchers are searching the library catalogue for the “e”. Their expectation is that it will be available. But publishers delay – and hope to get two bites of the cherry. This is not going to last. The larger libraries will continue moving to “e” in line with demands of their patrons. It’s their level of expectation that is pushing us all forward and publishers will have to address it sooner rather than later.

In addition to reading ebooks via the nominated ebook platform, academic libraries are also looking at the handheld devices. QUT for example is looking at trialling ebook readers this year. The library currently offers 60,000 ebooks across most subject areas. An additional 10,000 titles will be made available to patrons in 2010. While their policy has been formed around ebooks being available on their network they are now looking at the next stage of development and take a leadership position with students and staff.

As the academic library market matures with regard to ebooks, the public libraries start experimenting. In many instances they have been slower to adapt, with the exception of larger libraries – Gold Coast, Brisbane, Yarra Plenty, Sutherland. Those that service a wider demographic and have the book budget available for print, ebook and audio.

As Australian publishers stalled on making ebooks available to libraries, players like OverDrive in the US have done quite the job sewing up the larger library accounts here thank you very much. When we speak to OverDrive’s customers, they advise us the audio downloads are currently the most popular of the products offered. Nevertheless we know OverDrive is now engaging Australian publishers in discussions about content and paying more attention to rights. They got into the market first and like the other ebook vendors have an extensive range to offer their client base. We are seeing the pattern repeated in the public library sphere, albeit some six or seven years later than the academic.

Ebook interest – mainly due to the content that has been available and the slow take-up of e-readers – has been small but that will change as more content is made available and the level of reader interest picks up. And of course the launch of the iPad changes the landscape yet again. At the supply chain meeting at the Frankfurt Book Fair last year one of the most senior representatives said the ebook world will change with the entry of another player and in his words “It will be Apple, it will be cool, and everyone will want one”.

Nevertheless where libraries are concerned, e-reading devices are not essential. For those who don’t know how it works now, a reader taps into the library’s website, searches through the catalogue, selects the relevant title and checks out their ebook. Using the freely available Adobe Digital Editions Reader, the content is downloaded within seconds to the patron’s computer. They can then transfer it to an e-reader, if they have one, or can read on screen. Say the book you wanted to read was The Slap. When the book is downloaded, your computer and your e-reading device clearly shows the time remaining for the loan. At the end of the period, the book expires and is no longer accessible either on the computer or on the device. It’s accessible, convenient, easy, quick and what’s more, to the library patron it’s free. For libraries, it’s already the digital reality.

While the user doesn’t pay, it’s worth mentioning the EBL model (as referenced with this example) is not a free for all. Each copy of a title comes with a restricted number of access days per year. If a title is extremely popular with students, the library’s access runs out and that library needs to purchase an additional copy of the ebook. Translating that same arrangement to the public library market, a large public library such as Yarra Plenty in Melbourne or Sutherland in Sydney would need to purchase multiple copies of an ebook version of a Matthew Riley title, just as those same libraries now purchase multiple copies of print editions.

Access models vary. Some ebook portals don’t let you “borrow” the title if it’s already out i.e. a single user model. Others allow multiple concurrent access depending on loan periods purchased by the library or the original pricing. Some ebook portals allow short-term loans, rentals even. There are many considerations from printing, downloading to computers and devices, the whole DRM spectrum that ebook vendors must take into account based on the publisher’s requirements. One of the popular offerings from EBL is the demand driven model i.e. automatic or mediated purchase based purely on patron demand. We know only too well that what libraries often want and what publishers are prepared to give will naturally vary. But when hasn’t it? There is a lot of work in developing a successful ebook model that pleases all but it can be done.

Another plus for ebooks is that patrons no longer have to wait for the physical book to be returned to the library, no more holds. A popular author can be accessible to readers without these delays. But it’s more than timing, it’s about providing library readers with the content they require. It’s about servicing additional markets. A library in Queensland told me a few months ago they are responsible for some islands off the coast and on one of those islands is a disabled man. He finds it very inconvenient to come ashore as he is in a wheelchair. He has asked the library about ebooks and is currently reading them from a variety of sources. An avid reader and supporter of his library, he wants them to provide him with an ebook service. Some public libraries also mentioned keeping their readers longer. Young adults, particularly females, give up on the library in their teens and don’t come back until they are parents with their own children. Libraries want to keep these people reading and if reading ebooks on computers, hand-held devices, mobiles are the way to do it, then that’s what they want us to consider. Libraries, like their suppliers, are looking at their role in the wider book supply chain and the services they can offer their community.

Ebooks get a lot of column space as we all know. Meetings we have with publishers are totally devoted to ebooks at times. But they are still not mainstream in public libraries. We’ve done a lot of research and we can see why this is. Expectations differ across the board. Some libraries want to engage, others don’t want to consider ebooks, devoted to the printed word as they are. For many there are budget restraints.

With regard to content there is no common ground – well apart from all wanting Twilight! If it wasn’t Stephenie Meyer, it was whatever the book of the moment was. Last year libraries wanted The Slap. A lot is author driven. Tim Winton was a popular request. When you start breaking it down further, there isn’t a lot of common ground. Movie adaptations and classics were popular but libraries were divided when it came to popular science, computing, cooking, foreign language, childrens, reference so on and so forth.

Some public libraries were very uncertain about the role of ebooks, some are preparing for ebooks, some are buying e-readers with little understanding about acquiring content, some don’t want to think about it. And then there are those that do – they want to provide patrons with ebook content and as the leading library supplier in this country, we are who they come to for answers and solutions. Whether it’s “p” or “e”, libraries generally work with only a few chosen vendors. It is the library supplier who must be able to provide the library with what they require for their collection development needs. It’s about consolidation and supply chain efficiencies, regardless of format. We offer them more than supplying a product. We must provide the service, the workflow, the access to content, and competitive and efficient distribution for “p” and “e”. Not every library can afford the outlay for EBL or OverDrive. So library suppliers need to look at how content can be sourced and priced for libraries factoring all of the publishers issues in terms of availability, accessibility, security, and sales models – to name but a few. These are challenging and interesting times for all of us.

Libraries are generally early adopters and we’ve seen this in the academic market. The public market will catch up in the years ahead. Publishers should remember libraries are one of the most important ebook markets at present to consider as part of their ebook strategy. The role of the library supplier or vendor in that market is another piece of the puzzle. Talk to us about libraries – we know our customers, we’re visiting them constantly. And please please please if you haven’t already, get your digital strategies underway. Content is king. It’s what libraries and their readers want. Your competitors will take advantage of the growing ebook market in the trade, direct, and library markets. Are you prepared to be left behind?

Read Without Paper

Yes folks, DA has finally launched their ebook website - www.readwithoutpaper.com - partnering with OverDrive in the US. I was already aware OverDrive had approached Australian publishers for content but there's only a handful who are in a position to provide at present - but it's a-changing world as we know.

I've gone into the Read Without Paper site to assess their offer and structure. Lots of foreign language, PDFs and audio downloads. I just want to see the EPUB titles available. (PDFs are crap to read on the Sony e-reader.) And I really don't want to see all the foreign language materials. There should be a view you select up front so you can see the titles that are relevant to you.

In many ways I'm disappointed this isn't a uniquely Australian venture and wonder how local publishers feel about overseas original publications being sold now as ebooks. Yes that might sound hypocritical as I've been getting my ebook content elsewhere but I genuinely want to see a truly local offer - even if it is through someone like DA! :)

Some major publishers here have told me they don't believe there is an ebook market. Some of these discussions have taken place in the last six months so I'm not talking about two or three years ago. We are talking major trade houses here and while the e-readers aren't yet taking off in this market, the day will come where people want more choice and read on whatever device takes their fancy. Many people are waiting for that rumoured iTablet from Apple. That's if they aren't already reading on their iPhone or some other device.

Don't get me wrong - I'm all for the book. The old fashioned one that is. But I read on an e-reader as well. All fiction titles. I pick them up cheaply or free from Gutenberg. I'm more than happy to pay US 9.99 through Sony for a latest release in certain genres but I'm still buying most books in the traditional format. I like to collect and I like to share. There's something personal about the book and flicking through the pages, dog-eared and all.

But back to the Australian ebook market where rumours and confusion reign supreme. Start-up companies are approaching publishers left right and centre. All after the ebook dollar. I feel a little sorry for the local publishers that are only now looking at their digital strategies, having left them to US and UK head offices.

Read Without Paper is a start but I wish it was a truly Australian venture. Will I order ebooks through them? So far, they haven't got anything that I want but I will keep you posted on anything I order through them and how the process goes.

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!