The uproar over ebook prices

Much has been said about ebook pricing, particularly in recent times as Amazon is forced to move to agency pricing.  And haven't their customers revolted!  Not surprisingly - we've all been getting books at ridiculous prices.  Why would we buy hardcovers or paperbacks when they are several times the price of the ebook.  Fine, if you are like me and you want the printed work as the PREMIUM product, something to share, something to keep, something to treasure - and not a digital file!  But the US 9.99 price point did create demand.  Amazing demand.  Even at 11.99, 12.99, 14.99 the price points are still good.  Where is the balance? 

I must say ebook pricing is getting ridiculous.  The US Sony Store has Tony Blair's My Journey still available for US 9.99.  What is absolutely ridiculous however is local pricing.  Local site Readwithoutpaper.com has the book for $35.58 - that's what the local distributor has set the price at.  AU $35.58.  On the Random House Australia website the Hardback is $59.95.  The ebook is also $59.95.  Sorry guys, you know I love you but where do you think I ordered the book from?  (Yes I know, I usually order from work at staff rates but when it comes to ebooks it's a different kettle of fish).

To make matters even more confusing, ebook vendors aren't familiar with how bibliographic data works.  For all of us in the booktrade, we've had to sigh, heave, yell, scream, moan and groan over what the metadata looks like.  We've worked through 100s editions and versions of the Harry Potters and Dan Browns of this world.  It is confusing.  It's awful.  And now you're yet another victim of it.  On today's Sony newsletter I saw a book entitled Cleopatra.  For those of you that know me, I have several grand loves.  Tudor History, War of the Roses, lives of famous poets and painters, and Ancient History - particularly Egyptian.  The first thing I do is link on the title and what happens when I get into the Sony Reader Store - two different prices for the same bloody ebook. It's an EBOOK people - it's not a hardcover or a paperback.  There should be one price UNLESS the book specifically mentions an enhanced edition.  And on old Sony readers, an enhanced edition doesn't do anything.  It's an electronic reader only. 

This is just going to get worse folks.  It's bad enough having "e" and "p" prices all over the place, locally and internationally.  More mature ebook markets like the US doing crazy things, the UK market having a play, and then us not wanting to cannibilise print in any way.  it's going to happen.  The consumer will decide how they want to read.  We've seen it in the library market for years.  Library budgets for print massively cut back so they can purchase more ebooks, online databases and journals.  We've HAD to work with ebook vendors to survive.  And it does come with a cost.  Economically you operate with different margins - or not at all.

When will publishers start looking at price points, look at the readers, look at the business models, and find something that helps SELL the work - regardless of format.  Give the reader what they want - at a price suitable for the product offered.  Or lose the sale.

In industry alerts today there was an upcry when Amazon started listing the publishers ebook prices in the UK.  "Increase in piracy" "people will go elsewhere" "ban the agency publishers".  The peasants are revolting folks.  But publishers, you've only got yourselves to blame.  You got out the content to the market, played with the big boys, let them build up the demand (and where demand had never gone before!) at a price point soo unbelievable it became mainstream, then said sorry and clawed it all back. 

Personally I think the price points are way too high locally - but that goes for the printed product too.  I've been in this industry a long time and I've seen the picture from all sides.  But price it better and sell more.  Be prepared to play, be prepared to give up margin, but don't lose the sale.  Don't become irrelevant.  Adapt or die.

Oh, and try not to piss off the customer.  In the digital world, they have more power than you know.

The Andrew Wylie Debate

I've been reading all the news articles about the Andrew Wylie deal with Amazon and thought I'd throw my two cents into the ring. Firstly, for those of you who aren't up to speed, agent Andrew Wylie has bypassed the traditional supply chain (in this case publishers) and signed over digital rights for some 20 books to a two year EXCLUSIVE deal with Amazon. Authors wrapped up in the arrangement include Salman Rushdie, Martin Amis and John Updike. I understand they are backlist titles but would be happy to be corrected on this.

Random House is furious and other publishers have released statements. According to The Guardian, Random declared Wylie a "direct competitor" and ruled out "entering into any new English-language business agreements with the Wylie Agency until this situation is resolved". The Guardian article is pretty good so here's the link.

Am I surprised? As an observer of the publishing industry: Not at all. Ebook royalty rates have been debated left right and centre. The agency model attributed to Apple is also a hot topic. Everyone's looking at the ebook pie and trying to carve it up. In the digital world, publishers don't have the control they used to. The barriers to entry have come down. With "e" and Print on Demand, the landscape has changed, and publishers have been examining their role and what they bring to the table so closely they must be getting eyestrain.

Of course his Wylie arrangement is all about the dollars. By going with the industry leader (Amazon's Kindle) as the ebook device and vendor of choice (not mine I might add) they believe a direct arrangement with Amazon - bypassing the publisher of the printed work (who has assumed ebook rights)- is going to yield a much better return for the authors.

Am I surprised? As a consumer: bloody oath! Why should I be locked out of purchasing the titles concerned because I don't own a friggin' Kindle!?

When publishers speak about ebooks they speak about non-exclusive arrangements and getting the content into all devices, platforms and work into the ebook supply chain. You give the consumer the choice and the power to choose what works for them. That's the handshake arrangement. The honour system. Who is Andrew Wylie to say I can't have access to these ebooks unless I purchase a Kindle? And Amazon is probably grinning from ear to ear, but I'm not impressed at all. Shame Amazon. You think it's a leadership position but you've just lost my vote. You have championed the consumer in the e and p world. And I don't mind if you get them earlier and have some competitive edge, but I'm disgusted you've done the deal.

I guess it's lucky for all I don't like these authors. Then again, the beauty of ebooks is that I pick books I haven't read previously, give the author or the genre a go. A quick, cost effective read that may turn into a life-long love. Who knows? I guess with Rushdie, Upton et al, it's not going to happen now for their backlist titles. I'm not going to buy a Kindle just to read them electronically. And I can't see me looking out for the print now. Your names will trigger a reaction in future. And it's not a nice one.

The Andrew Wylie/Amazon deal is just another example to highlight everything we thought about the publishing and bookselling supply chain is wrong. This digital world is not straightforward. It's turning everything on it's head. How it will all end up? Who knows. Am I surprised? No. We've seen it coming. Normally I'd say pick yourself up and dust yourself off, get back on that horse. But in this digital, greedy world. I'm not sure what direction we are heading.

A new e-book isn’t always new

As a library supplier, we have faced this issue since we started selling ebooks years ago. Libraries wanted to know about all new ebooks. But many publishers are digitising the backlist first then releasing as “new” in e-format. It has tricked many of us particularly when the pub date is a current one but the original book was published in 1989. There are a small percentage of publishers that publish e and p simultaneously. They know their market and the preference for libraries to purchase in the format of their choosing. But when we work off publication dates and publisher metadata, when it comes to e - what exactly is a new title?

It’s something that I’ve discussed professionally (a “new release” in ebook format is separate to new in e) but privately I experienced it for the first time recently. I usually scan ebook sites for “new” titles. On the Sony site I sort by date and then pick something that will suit my ebook reading nature. By that I mean, something I can read, hopefully enjoy, satisfied I will only want a digital file (not a “keeper” or an author that I would like to collect their physical works on our wonderful floor to ceiling book case at home) and something that I’m unlikely to want to share with friends – afterall you can’t lend the ebook to someone!

Separate to the explanations to customers over the years as a consumer I must say I felt absolutely ripped off when the new book I purchased on the Sony ebook portal A Favorite of the Queen: The Story of Lord Robert Dudley and Elizabeth I published on 1st March 2010 was most definitely NOT published this year in it’s physical form. The book was originally published under the title Gay Lord Robert (not surprising they changed that title as the word “gay” took on a different meaning over the years!) and the imprint page on the ebook clearly showed the book was published in 1971. That explains the poor editing and uninspiring writing!

Where did it say in any of the metadata, “originally published in X”, “reissued in ebook format”, “introducing this work to today’s e-reading generation”. Something that gave me an indication the book was old. And not one or two years old, but 40 friggin years. Forgive me for never having read Jean Plaidy before but surely publishers and ebook vendors need to take some responsibility here. Perhaps there should be two dates available to ereaders – originally published in and released in ebook format in …

I can’t begin to tell you how disappointed I am. Reissues are not new releases, new in e is not a new title. At least when trade houses release ebooks three months later (for those that believe that is a suitable time frame – I’m most definitely not one of them) the book is still in our minds. It is still the same year. None of this 40 year time span.

Of course my preference would be simultaneous. If I want to collect, share and treasure I will buy the print over e. But for other books I want to read the ebook.

Publishers, ebook vendors, everyone who is interested in the digital world, please note as as a consumer I'M NOT HAPPY – publisher metadata and the blurb itself should have given something away. A trigger point as such. For the record this is what is listed:

Torn between her heart's passion and duty to her kingdom, a young queen makes a dark choice...

Robert Dudley, Earl of Leicester was the most powerful man in England during the reign of Elizabeth I. Handsome and clever, he drew the interest of many women--but it was Elizabeth herself that loved him best of all. Their relationship could have culminated in marriage but for the existence of Amy Robsart, Robert's tragic young wife, who stood between them and refused to be swept away to satisfy a monarch's desire for a man that was not rightfully her own. But when Amy suddenly dies, under circumstances that many deem to be mysterious at best, the Queen and her lover are placed under a dark cloud of suspicion, and Elizabeth is forced to make a choice that will define her legacy.

The metadata shows:

• Published by: Three Rivers Press
• Publish Date: March 01, 2010
• Print ISBN: 0307346234
• Filesize: 2.60 MB

And the author info (on a separate tab)

JEAN PLAIDY is the pen name of the prolific English author Eleanor Hibbert, also known as Victoria Holt. More than 14 million copies of her books have been sold worldwide. Visit www.CrownHistorical.com to learn about the other Jean Plaidy titles available from Three Rivers Press.

When it comes to Tudor history I’m loyal to Alison Weir, Alison Plowden, Antonia Fraser, Margaret George, Philippa Gregory and if pressed I might just throw David Starkey into the mix. I shouldn't have tried something new. Sorry old. New only in a format. Anyway, I clicked away because I thought it was new, the publisher got the sale. But live and learn folks, live and learn....

A ramble on the EPUB format

As you know from my recent post regarding Random House Australia and their free Wil Anderson ebook offer, I'm a fan of standards for ebooks. Having sat in Supply Chain meetings at Frankfurt and London Book Fairs for the past few years, I'm all for reducing confusion in the marketplace, working to industry standards, and keeping costs of conversions down for publishers. The EPUB format is the one preferred by industry representatives, as it's a natural progression from the PDF - already core to the publishing process. Adobe Digital Editions, the home of EPUB files, is also Sony friendly. Or so I thought....

On the Adobe Digital Editions site, they also offer a few free ebooks to download. Now a few of you may laugh after my recent Twilight ramblings, but I thought I'd return to the classics and Bram Stoker's Dracula was there for the taking. I had already picked it up on the free Mobipocket portal as it is one of the classics readily available through Project Gutenberg. Unfortunately Mobipocket isn't Sony friendly - I can read books stored there on the Hanlin, but not on my preferred Sony e-reader.

Getting Dracula into Adobe Digital Editions was easy peasy (click click) and once I'd hooked up the e-reader to the computer, getting it downloaded to the reader itself was a piece of cake (drop drag). So far so good, but then the read commenced and once again the format distorted on the e-reader. I understand that is one of the challenges of ebooks so I simply tried to change font size and view. In the end I went back to my standard view. The reading experience has been okay to date but every couple of page turns, the text disappears and I have to skip through a blank page. Alternatively half way down the page the text distorts. You get used to it. But it really isn't ideal. It makes you understand why the proprietary formats exist and that unfortunately one size does not fit all.

Random House Ebook Promotion

What a great promotion this week from Random House. Nice to see Brett Osmond and the team there moving on the ebook front (even if it's a title published a couple of years ago!) For those of you who don't know, they offered Wil Anderson's book "Survival of the Dumbest" absolutely free - as an ebook, as long as you sign up to the Random House newsletter. (See the Random House Australia website for details)

There are several smart strategies employed here by RH. The first is to have the right author. Wil is a popular comedian and television host and people find him funny. He is also active on Twitter and other online social networks, so that makes him accessible and hip. And while he was known to many viewers as one of the hosts from "The Glass House", I think he raised his public profile further with the success of "The Gruen Transfer" on the ABC. Some people may have recently discovered him and may not be aware of his published work. So what better promotion than to offer it absolutely FREE as an ebook. Just having the word FREE will no doubt have lots of people signing up! We're a funny lot.

However, the strategy I think works best is promoting the EPUB format via Adobe Digital Editions. Publishers would like to see one standard ebook format and various Standards Committees have put forward the EPUB version as their preferred option, rather than having to convert to proprietary formats like the Amazon Kindle, mobipocket etc. I will eagerly be waiting to hear back as to how many people installed Adobe Digital Editions and downloaded the book. Of course, the magic number will be how many people actually READ IT as an ebook. And the Holy Grail, whether RH sees an increase in the print sales as a result of the free ebook offer and/or a better sell-thru for Wil's next book which I believe will be released in November 2009.

Either way, it's a wonderful brand promotion - Wil Anderson himself, Random House, and Adobe Digital Editions. Can't wait to hear more about the results....!

Exactly when should I jump?

For today's blog, I'm going to give you a quick rundown on industry headlines from some of the articles that are currently flooding my desk. All associated with ebooks, e-readers, and the like. In no particular order (and apologies in advance to those I've left off the list):

• Springer Leaps Ahead in Academic E-book Market (FT) - about how ereaders like Amazon's Kindle are transforming academic publishing much faster than the consumer market
  
• Borders kick-starts UK reluctant e-book revolution (Times Online) - BTW the picture of the e-reader looks awful, very basic and unappealing. What were they thinking?
  
• Copyright, cost, content - so many barriers between Australians and ebooks (Special report in the Australian Library News)
• Ebooks: is this their ipod moment? (ALN again)
• Is Amazon taking over the book business? (Time Online) granted this was more about the Amazon business model but The Kindle featured prominently as did the comment"When it comes to ebooks, Amazon doesn't just sell them; it practically owns the entire medium". Ahem.
  
• Amazon vs Google (cut & paste from the web so did not note source) loved the opening line "Amazon's Kindle is not so shiny and new anymore and it was Google that made the biggest ebook splash"
• Stay Ahead of the Shift: What Publishers Can do to Flourish in a Community-Centric Web World (Online Presentation by Mike Shatzkin, a man I admire for his vision of the publishing industry)
• The E-book Pricing Conundrum (Publishers Weekly)
• Kindle DX: Bigger Screen, Higher Price, Many Questions (Publishers Weekly)
• The Lonely Stand of Print Reference (Publishers Weekly): mentioned purely because the the article has to mention the internet and Google's role in diminishing/changing print reference
• Commercial eBook Conversion Utilities (post from the web that is in double dutch - how to covert all different files and the software required, I think I'll wait for the Dummies Guide to...)
• More and More Books Digitally Published (AOL news): this was more about POD (of which I'm a big fan) but it has implications for e, particularly when another article refers to the restructure of Ingram (also a big fan) and the role of content in their future
• The Random House Group Launches Ebook Reader Apps on Apple App Store (that's nice, anyone using it in Australia? Contact me if you are please!!!!)
• Reading Mobipocket ebooks on a Blackberry (ditto)
• Google Books now available through Sony
• Analyst sees Amazon's Kindle Generating $2B in Sales (Streetinsider.com)
• Indie Booksellers Debate the E-book Conundrum (Publishers Weekly)
• Whither interior Book Design: ReadSmart re-creates publishers' book designs on iPhone (Publishers Weekly)
• So is $9.99 the ebook price point? (Brave New World blog: excellent blog from the UK Bookseller Association)
  
• Preparing to sell e-books, Google Takes on Amazon (New York Times): another good opening line "Google appears to be throwing down the gauntlet in the ebook market"

Glancing across my desk it's all e-focused. Is the death of the book finally around the corner? After 20 years in publishing, what do I do next? Exactly when should I jump? The questions start pouring out of me and my heart rate rises. Beyond my desk, I look at the noticeboard in my office where I've been storing these sort of articles for years. I glance for a headline that will restore my confidence in the industry I've chosen to work in all these years and the one I would prefer to stay in. Searching... searching... searching... Yep, there it is one entitled "Why e-book readers don't stand a chance". I breathe again. I start to relax. Then I remember I'm reading e-books onscreen and off a reader. Argh! My eyes focus on another article "How the E-book will Change the Way we Read and Write" a wonderful item from the Wall Street Journal. And I ponder the future silently....