How “Send to Kindle” can help neutralize Amazon

Screen Shot 2016-02-07 at 10.52.39 AMPublishers who sell ebooks direct to consumers typically do so in EPUB format. That’s because most publishers are still wedded to the false sense of security DRM provides and EPUB offers a popular DRM solution. Contrast that with Amazon’s format, MOBI, where Amazon is the only company who can apply and manage MOBI’s DRM’d files and settings.

A former colleague of mine and I used to get a kick out of reading the many painful steps readers are forced to go through when buying DRM’d EPUB files direct from publisher websites. It’s not uncommon for the process to require more than a dozen steps to proceed from buying to reading. Most of the process has to be endured once again if the consumer decides to start reading the same book on another device.

Click here or here to see the many hoops one must jump through to install DRM’d EPUB ebooks on one device as well as read them across multiple devices. It’s no wonder when you search for help on the topic the most popular links aren’t how to manage the process but rather how to remove the DRM and eliminate the associated headaches.

More and more publishers are starting to realize that DRM is pointless but they’re still missing out on one of the biggest opportunities of all: Putting their DRM-free ebooks into a reader’s Kindle library.

It’s no secret that Amazon dominates the ebook marketplace. Most readers have built a substantial Kindle library and the last thing they want to do is create a new library outside the Kindle ecosystem. They simply want all their books in one place.

Amazon’s Send to Kindle functionality has been around for quite awhile and I believe it’s one of the most underutilized services available to publishers. The Send to Kindle email option lets publishers push non-DRM’d ebooks directly onto a consumer’s Kindle bookshelf. I’m sure it was originally designed for documents other than ebooks but I think it’s time for book publishers to take advantage of it for their ebooks as well.

In addition to simply selling EPUB or PDF ebooks, why not provide readers with the MOBI version and push them directly onto their Kindle devices and apps? All you have to do is ask the reader for their unique Kindle email address and then have them enable inbound emails from your domain. Once that’s in place you’re able to place the ebook on their shelf just like Amazon does.

Once you’ve established that direct relationship with the consumer and their Kindle account, why not ask them if they want to opt in to receiving future related ebook samples from you? They’ll no longer have to search for similar books from your list as you’ll be able to automatically push samples to the reader’s Kindle bookshelf as they’re published. Take it a step further and make your samples available via this service 30 days before they’re available anywhere else. Get even more creative and offer a random free ebook prize to some number of lucky winners every month. There are plenty of ways to make Send to Kindle work for you and your customers.

It’s all part of creating a compelling reason for readers to come to you, the publisher, rather than always relying on retailer partners. Used wisely, the Send to Kindle service can help neutralize Amazon’s dominance while also helping publishers establish a better direct relationship with their customers.


When will content truly become mobile?

Mobile-605422_1920After 7+ years of working remotely from my home office I recently started a new job with a daily commute. It’s actually quite an enjoyable ride and I originally planned to make it even better with a variety of mobile/audio content. Podcasts were at the top of my list but I also figured I could finally dive into audio books and a variety of text-to-speech solutions.

Mobile content has been a hot topic for years so I figured the options would be endless. Boy, was I surprised. My car has all the modern navigational bells and whistles but it seems the most cutting-edge mobile content feature is Sirius radio, a technology that’s now almost 15 years old.

Satellite radio is nice but is that as good as it gets? Since Sirius puts their receivers in most new cars I’m wondering if the publishing industry has missed an opportunity to create a new distribution channel. Why aren’t audio books and other digital content products available via satellite radio? Yes, I realize satellite focuses on broadcasting, not narrowcasting, but surely there’s bandwidth available to send individual packets of content like an audio book to an individual receiver. That content could then be stored locally and played back at the driver’s convenience.

You could argue that Bluetooth is the solution to this problem. After all, I can buy an audio book on my phone and listen to it in my car via Bluetooth. I’d rather see a service directly integrated with my car’s in-dash system though so I’m not fumbling around with both the dashboard display and a phone. Sirius could represent an entirely new distribution partner. (What’s more likely to happen is that Amazon will eventually make its way into your new car’s touchscreen and their dominance will be extended yet again.)

Audio books probably aren’t the right solution for me after all though. I’m still reeling from sticker shock after surveying the audio book landscape. You’d have to be pretty committed to the book and format to pay more for the audio edition than you’d pay for the print edition. I thought the unlimited monthly subscription platforms might be an alternative but they have too many restrictions. Scribd is a great example. I’m limited to one audio book per month so it’s really unlimited for ebooks but very limited for audio.

I get it that most audio books incur a high production cost, especially if they’re read by a celebrity author. But why does the author have to be the audio talent? In fact, do we really even need human voice talent to create the audio editions? If you haven’t recently explored the text-to-speech world you’ll be amazed at the current capabilities. We’re no longer limited to those tinny, lifeless monotone streams, so why not automate the text-to-speech conversion without the need for pricey audio talent?

Here’s a radical idea: Sell the all-in-one edition where my print purchase also includes the ebook and audio formats. We’re seeing the beginnings of this with alternate format add-ons like Amazon’s Audible narration and Kindle MatchBook; the former brings audio to the ebook and the latter provides a discounted Kindle edition if you’ve already bought the print version. Let’s make things simpler though and stop hoping consumers will discover these tiny add-on links on the Amazon product page. Publishers should sell the all-in-one edition directly, and perhaps exclusively, giving consumers a compelling reason to buy direct.

The untapped mobile opportunity goes beyond books. In fact, I think there’s an even bigger mobile opportunity for short-form content. For example, why don’t newspapers and magazines offer audio editions? They seem to think the “digital” version of their content is limited to website articles and print replica editions. Yes, some of the replica edition platforms offer text-to-speech but not a complete, mobile audio experience.

Periodical publishers should ask themselves this question: what would Steve Jobs do? I’m pretty sure for starters he’d offer a full audio edition, structured in playlist format enabling the consumer to simply say “next” or “listen” as the app reads each of the headlines to you. Today’s audio options are simply grafted onto the written edition and not offered in a mobile-optimized format.

Many of these periodical publishers continue losing brand relevance with the younger generation. I wonder if a better mobile audio solution could help them reverse that trend.

For now my commute is limited to a variety of podcasts and one-off audio feeds and I’m left asking this question: Can we really call it “mobile” content when there are still this many gaps?


Kindle Instant Preview reinforces Amazon’s dominance

Screen Shot 2016-01-10 at 3.51.46 PMEbook preview widgets have been around for quite awhile but when was the last time you saw one on a blog or website? I can’t recall the last one I saw but I’ll bet that’s about to change.

Amazon recently released their Kindle Instant Previews widget and it does what its name suggests. In short, this tool makes it incredibly easy to embed or share an ebook sample on a web page or via email. The fact that it’s offered by the biggest ebook platform on the planet means it’s well positioned for success.

The sample below showcases the Kindle Instant Preview widget with one of my favorite books, The Innovator’s Dilemma.

It’s simple yet quite powerful. Most authors want to push their sales towards Amazon to help boost rankings there. Now authors will be able to place samples directly on their site, encouraging visitors to explore their content without ever leaving the site. Kindle Instant Preview also lets you add your Amazon Associates ID so you’ll be able to earn income from purchases generated by the widget.

As simple and effective as this widget is, there’s at least one key feature that’s missing. Some website visitors will have the time to read an entire sample while they’re on your web page but many won’t. The widget offers a “Read in Kindle App” button that opens the sample in the Kindle app on your device. I don’t want that though as I’ll probably discover the sample while browsing on my laptop but I don’t have (or want) the Kindle app installed on my laptop. Amazon, the king of “one-click buy” should add a “one-click send” option to push the sample directly to my Kindle app or maybe even my email inbox where I can read it later.

Given the popularity of free titles, especially the first one in a series of other paid titles, I’m wondering how liberal Amazon is with their definition of “sample.” Since the book is free I could see where an author might want to offer the entire book as the sample. If so, they could then enable visitors to read the entire book on their website. Again, that’s only for visitors who have the time to read an entire book on a website, but perhaps a few creative authors will find ways to encourage this sort of behavior.

No matter how this service evolves, one thing is clear: It only helps Amazon further increase the reach and dominance they already enjoy in the book industry.


Using ebooks to connect with indirect customers

Colorful-791927_1920Low website traffic and a lack of existing customer engagement are some of the most common reasons book publishers aren’t pursuing a direct-to-consumer (D2C) model today. They’ll point out that almost nobody comes to their site, so they question the value of investing in a D2C solution.

That’s a great point and one that shouldn’t be ignored. But it’s also a problem that can be solved and it starts with leveraging the indirect business every publisher participates in today.

I’ve suggested before that each book a publisher sells, print and digital, should include a prominent message to consumers encouraging them to connect directly with the publisher. I’m not talking about those lame “register your purchase with us” pleas that offer no meaningful benefit to readers. Just as you have to offer consumers a compelling reason to buy direct instead of from Amazon, you also have to give them a compelling reason to stop by your website and start a dialog with you, the publisher.

One bold way to do that is to offer the free e-edition of the book a consumer just purchased from a retailer. Let’s say you just bought a print book from a retailer but you also like to read ebooks in the Kindle app. Would you be willing to give the publisher your email address in exchange for them giving you the Kindle edition of that same book for free? I would.

Here’s how it would work… When I open my print edition I see this message on the very first page: Thanks for buying this book. Please visit whatever.url.com to get details on the free Kindle edition awaiting you.

Readers go to that web address and are asked to scan and email the receipt from their print purchase. They’re also asked to provide two email addresses. One is for future promotional e-mailings from the publisher and the other is the unique email address Amazon provides every Kindle customer; there’s an opt-in process for both, of course, so publishers can only send messages and ebooks after consumers have agreed to receive them.

If you’re not familiar with the Amazon-generated email address it’s something you should familiarize yourself with. It’s a terrific way to quickly send files to your Kindle app/device for future reading. For example, the Kindle app on my iPad mini uses this email address: joewikert_49@kindle.com. I’m fine sharing that with the world because Amazon also offers a simple way of preventing spam being sent to that address: In order for emailed content to make it onto my device I first have to approve the sender’s email address. So the opt-in process from the publisher says something like, “Be sure to enable messages from whoever@url.com in your Kindle settings.” Once that’s in place the free content can be sent and will automatically appear on the customer’s device.

You’re probably wondering about the authentication process. How do you prove a consumer really bought the book before you send them a free e-edition? As I mentioned, you ask them to scan and send their receipt. That requires someone on the publisher’s end to verify, of course, although I could see a programmer creating a fairly simple app that automates most of this verification step. Till then it’s something an intern or other resource would need to handle. You’ll also want to filter out the scam artists who digitally modify one receipt after another to game the system. Perhaps a limit of X books per year per email address is built in till you’re comfortable with the volume and flow of redemptions.

As you process these requests you’re building your direct email list and opening countless new marketing doors. For example, why not turn this into a way of delivering future ebook samples directly to consumers? Let them select the topics, authors or genres they prefer and use the send-to-Kindle functionality to push samples of new books before they’re published. In fact, make it more special by providing the samples direct to consumers days or weeks before the sample are available anywhere else. Maybe this becomes part of a larger membership program consumers can join.

Finally, in order for this to work the ebook (mobi) files have to be sent in a DRM-free format. After all, the only way an ebook can be DRM’d in the Kindle ecosystem is for Amazon to lock it down. If that scares you, consider this: Anyone who wants to dig into their device’s Kindle folder to find and share unlocked mobi files is more likely to simply grab a tool like Calibre and break the DRM on their entire ebook library. DRM provides publishers with nothing more than a false sense of security so it shouldn’t be the reason to ignore this opportunity.

It’s time for publishers to start leveraging all those indirect sales and establishing a direct relationship with their customers. This is simply one way of accomplishing that goal and I hope it leads to more D2C experimentation in the industry.


Whatever happened to innovation in the publishing industry?

Creativity-819371_1920Remember the excitement surrounding the launch of Amazon’s Kindle eight years ago? It was a clunky device, even by 2007 standards, but it was revolutionary. One of the original Kindle’s breakthrough features was the ability to download books via cellular network. The eInk display and extremely long battery life also led to its popularity despite the device’s hefty $399 price tag.

That was eight years ago and it’s hard to name even two or three other innovations that have had as significant an impact as the first-gen Kindle. Sure, the iPad was noteworthy but it didn’t exactly reinvent reading. And while today’s devices are faster and cheaper than yesterday’s they feature incremental improvements, not groundbreaking innovations.

The same can be said for all aspects of the digital publishing ecosystem, not just devices. The most interesting development over the past few years is probably the all-you-can-read subscription model. But any momentum there has been halted as Oyster is about to disappear and Amazon’s offering has no Big Five content. FWIW, I still believe in all-you-can-read models but only if they’re focused around a topic/genre and they avoid the unsustainable business model that crushed Oyster.

Why has there been almost no innovation in the book publishing industry since the original Kindle?

As I meet with publishers I hear a lot of conservatism and anxiety in their voices. Many are just trying to survive revenue shortfalls and staff downsizings. They’re also afraid of doing anything that might be perceived as a threat to the key retailers.

I believe most publishers are relying too much on the industry leader, Amazon, to also serve as innovation leader. Given that books (print and e) represent less than 10% of Amazon’s overall revenue I’m not convinced they’re motivated to innovate. Amazon is more focused on building other areas of the business and not so much on the book industry they currently dominate. They want to protect and grow their book market share, of course, but I doubt they want to pour a lot of money into reinvention breakthroughs. Amazon didn’t invent the all-you-can-read model, for example; they simply launched a service in reaction to Oyster and Scribd.

This is why I’ve always been a huge fan of the startup community. But it seems as though there are fewer and fewer new, interesting startups in the publishing space. Perhaps it’s because techies see more upside in other industries or maybe they too are afraid of getting squashed by the dominant player. Whatever the reason, there seems to be less startup innovation focused on publishing than ever before.

One interesting development on this front is the Ingram Content Group’s 1440 accelerator program. It’s great seeing an industry leader like Ingram stepping in to help drive and encourage innovation. I plan to keep a close eye on the startups who make the 1440 cut and I hope other publishers and leaders in the publishing ecosystem will work to support and develop similar initiatives.


How digital can complement print

Laptop-819285_1920The beauty of the web is that feedback for what I write here is spread across a variety of platforms. These days it seems most of those community discussions are happening on LinkedIn and that’s where some recent comments helped me see the common thread across a few different topics I’ve been writing about.

A couple of weeks ago I noted how Nielsen data indicates a large chunk (49%) of ebook readers are also still buying print. In other words, almost half the reading community surveyed by Nielsen is straddling the fence between print and digital.

Now think about the topic of last week’s article: Publishers are worried about whether or not they can change buyer behavior and attract consumers with a compelling D2C solution. As I mentioned in that piece, a successful D2C offering must include content and services a consumer can only find directly from the publisher, not via retailers.

Instead of looking at digital and print as separate initiatives and consumer bases, it’s time for publishers to invest in digital companions to print products.

What can you create digitally that makes the print reading experience more engaging? Think about companion apps for your most successful print products. More importantly, think about how you’ll deliver those apps directly to consumers.

Here’s an example: I’m currently reading the legendary Gordie Howe’s autobiography, Mr. Hockey. I bought the e-version but this applies to print readers as well. I’m still in the early part of the book, learning about Gordie’s youth and curious to learn more about where he grew up and what that part of Canada looks like. I’m sure my curiosity will continue through the book as I read about the various youth hockey programs he dominated as well as his many years in the NHL and WHA.

If I want to take a deeper dive into Gordie’s story most of it is only a few Google searches away. But why force readers to sift through piles of Google results in search of the most interesting nuggets? Why not have the editor or author provide their recommendations? Put those links in an app that I can open on my phone next to my tablet (or print edition of the book).

Next, make it social. How many people reading this book saw Gordie play in person? Quite a few, I’ll bet. Many of them probably also have photos from those days they could quickly and easily contribute to the app, making it even more valuable for everyone. I’d love to see some previously unpublished shots of Gordie from the 1950’s or even the early WHA days. The app then evolves into a community product and becomes richer as time goes on and more readers contribute their memories.

Next, and I realize Gordie isn’t in the best of health these days, but why not have the author make a cameo appearance in the app from time to time? Publicize a live chat with the author every so often and make sure that session is only accessible in the app. Record those sessions and maintain them in an archive area of the app.

The companion described above is probably a freebie for everyone but I can envision some models where the app might cost 99 cents or even a few dollars. It all depends on the added value it offers. It’s a terrific promotional vehicle for the publisher and a way to establish a strong, meaningful direct relationship with consumers.

Here’s the most important point: Make sure the digital companion is prominently featured in all versions of the book, including print and every flavor of e. It should be the first thing readers see when they open the book. A message like, “Thanks for buying this wonderful product. Be sure to visit our website to obtain the free companion we’ve created for it.” When they come, they register and are asked to opt into your marketing program(s).

A strategy like this not only increases the value of the original book, it also helps publishers create that compelling D2C solution and converts indirect customers into direct ones. It may not work for every book but I’m convinced it’s a model worth pursuing for most titles, especially your bestsellers. 


Direct-to-consumer: Can you change buyer behavior?

Shopping-cart-728408_1920I recently visited a mid-size publisher to discuss direct-to-consumer (D2C) strategies with their sales and marketing leaders. Towards the end of the session I was asked the most important question of the day and it’s something publishers pursuing a D2C solution need to carefully assess: Can we really change buyer behavior?

The point is that most consumers are trained to buy from Amazon. Further, those same consumers don’t want to bother with multiple bookshelves and accounts. Once you start buying from one ebook retailer you tend to stick with them.

I’m an Amazon Prime member and that means Amazon is the first place I look to buy just about everything. Heck, we even “subscribe” to dog food on Amazon for our three basset hounds, so I’m a textbook example of a consumer who’s been trained by Bezos & Co.

My answer to the question was simple: No, you can’t change buyer behavior…unless you can truly offer a compelling reason for consumers to buy direct.

Simply adding a shopping cart to your catalog pages won’t cut it. You’re also not going to make a dent trying to beat Amazon on pricing, so why create a race to the bottom?

In order to change buyer behavior you’ve got to think about how you can offer something consumers won’t find anywhere else.

I told this publisher’s sales and marketing leaders they need to envision a product assortment that showcases items not available on Amazon or any other retailer. I’m talking about short-form content that complements their books, video material that’s only offered on the publisher’s site, and yes, even some full-length ebooks that aren’t distributed through traditional retailer channels.

Samples are another way of creating a compelling D2C solution. Publishers should super-size the samples they offer on their site. Make them longer than the ones consumers can get elsewhere and, when possible, add elements to make them richer as well.

Timing of samples can also be leveraged. Why not make those samples available earlier and exclusively on the publisher’s website? One of the things that frustrates me about upcoming titles is how the sample isn’t available till the book publishes. Why? OK, I know the goal is to have a coordinated launch date so that title rankings will all benefit from a synchronized release. Fine, but let me grab the sample before publication and backorder the title so I don’t forget about it. Publishers, you should offer samples exclusively on your website a month or so before the book actually publishes. Attract consumers and train them to come to you for the sample, not the retailer.

For publishers willing to acknowledge that digital rights management (DRM) only provides a false sense of security, sell your ebooks without this annoying limitation. Also, provide all formats to consumers when they buy direct (e.g., EPUB, mobi and PDF). Leverage services like Amazon’s “Send to Kindle” to push your D2C books onto the consumer’s Kindle bookshelf.

Turn all these services into a club readers can join then focus on surprising and delighting them every step of the way.

I admit this isn’t a model for all publishers. If your title list is wide and shallow, offering only one or two titles each on a large number of topics, you’ll never make this work. But if you cater to a particular genre or subject and your title list has plenty of depth you’ve already got the foundation for a compelling D2C solution.

Also, don’t underestimate the amount of work it takes to build and maintain D2C momentum. You need to plan a steady stream of exclusive content offerings and services, just as a magazine publisher creates an editorial calendar. Don’t assume you flip a switch, offer a few exclusive items and you’re done. This requires an ongoing commitment of dedicated resources.

If you’re one of those publishers with a deep foundational list you have two choices: You can either diversify your channel strategy by investing in a strong D2C model or you can sit back and let the big retailers determine your destiny. I strongly believe those who choose the former will be in a much better position to survive and thrive. 


U.S. book publishing industry stats from Nielsen

Business-925900_1920Frankfurt Book Fair 2015 is in the rearview mirror but there were a few noteworthy tidbits gleaned from the event. Some of the more important facts and figures were shared by Nielsen’s Jonathan Stolper his state-of-the-U.S.-market presentation.

Although you can argue Nielsen’s data isn’t complete and it’s therefore far from perfect, it’s one of the few resources available for market trends and analysis. With that in mind, here are the most interesting points I saw in Jonathan’s presentation:

Self-publishing and the Big Five are crowding out everyone else – According to Nielsen’s data, from Q1 2014 to Q1 2015, self-published books have grown from 14% to 18% of the overall market. In that same period the Big Five’s share has grown from 28% to 37%. Meanwhile, the rest of the market, all the large, medium and tiny publishers, have seen their share decrease from 58% to 45%.

The print/e split is now roughly 74%/26% – Plenty of articles have been written about the plateauing ebook market. Most publishers report ebooks represent anywhere from 15% to 30% or so of total revenue. According to Nielsen, the current state of equilibrium is closer to a 74%/26% split. That ratio varies widely by genre, btw, but it’s worth looking at your own rate to see how it compares to the overall industry average.

Price drives ebook interest – According to Nielsen’s consumer survey, almost 60% of respondents said they’d choose e over p if the savings is at least $4 for the former. Additionally, approximately 50% said they’d do the same even if the ebook is only $2-3 cheaper than the print version. So as publishers wrestle back consumer pricing via the new agency model, driving ebook prices up, it’s clear they’re inadvertently (and sometimes deliberately) nudging consumers back to print.

Consumer prefer print and e, not or – 49% of consumers surveyed said they bought print and ebooks in the past 6 months vs. 42% who only bought print and a paltry 9% who only bought e. Just because a consumer buys ebooks doesn’t mean they’ve abandoned print. This is a huge opportunity most publishers are overlooking. Why aren’t there more digital products that complement print rather than assume the ebook is replacing the print one?

Amazon dominates subscriptions too – It’s been hard to find data on the all-you-can-read ebook subscription market but Nielsen is finally shining some light on the model. And just as they do pretty much everywhere else, Amazon is crushing it. First of all, according to Nielsen only 5% of consumers have signed up for any ebook subscription solution, so the market remains small. Kindle Unlimited led the way with the largest chunk of market share, jumping from approximately 40% in January 2015 to almost 60% in April. Scribd and Oyster were tiny players by comparison in that period, and they’re only getting smaller. Given their teensy share of a small segment, it’s no wonder Oyster is going away soon.

Btw, this was the first year for the Fair’s Business Club option and I hope it’s not the last. The Business Club was a terrific location for quiet meetings, away from the traffic and noise of the hall floors. It ranked high in serendipity value as well: I bumped into and met with at least a handful of other attendees I might not have crossed paths with otherwise. Highly recommended.


Direct-to-consumer (D2C) starts with building community, not owning the sale

Directory-881420_640More and more book publishers seem to be focused on building a better direct relationship with consumers. Some of these direct-to-consumer (D2C) efforts are well thought-out while others are nothing more than publishers following the crowd.

How else do you explain so many publisher sites that are simply catalog pages with the option to by print or ebooks direct? What’s the compelling reason for someone to come to the site? Even if they find the site why would a consumer consider buying direct rather than from their favorite retailer?

It reminds me of the old days when everything was driven by seasonal (print) catalogs. The accounts insisted on having enough lead-time to promote titles, so the summer titles were presented the previous fall or winter. The print catalogs were then left behind with the buyer as evidence of the sales call presentation.

Most of today’s publisher websites are nothing more than the digital version of those seasonal catalogs. And since there’s no compelling reason for consumers to discover and explore them, many of these websites are ghost towns.  Publishers create them and then wonder why nobody visits or buys.

Here’s something most D2C-focused publishers overlook: It’s virtually impossible to change a consumer’s buying habits. The larger my Kindle ebook library, the less likely I am to buy my next ebook from a retailer not named Amazon, and that includes an aversion to buying direct from the publisher. It’s that wonderful retailer walled garden phenomenon; and those walls are something publishers helped create by insisting on locking their books inside DRM.

So if that spiffy website is unlikely to generate direct sales why does it exist? If your answer is “to increase discovery”, do yourself a favor and study the results of a Google search for your top titles, series and authors. If your pages aren’t among the top search result links you’re kidding yourself with the “discovery” justification. The top results are the ones getting all the clicks.

Rather than trying to change consumer buying habits and owning the sale, publishers should instead focus their D2C efforts on building community. Publishers own the relationship with authors, so as a publisher, what are you doing to build community around your authors? What are the top three reasons are you giving consumers to come to your website?

Btw, authors are just one component. Many publishers have popular series or dominate a specific genre. What are you doing to build community around that brand or genre?

It’s OK to still offer direct buy buttons on each title’s catalog page but your D2C buy buttons should be offered alongside buy buttons for all the popular retailer sites.  That includes buy buttons for print as well. Let the consumer decide where they want to buy and don’t force them to hunt for your product on a retailer’s site.

If publishers don’t spend the time building this community with consumers, who will? The retailers aren’t going to do it. Their focus is way too broad.

So although most publishers missed out on the opportunity to go direct in the digital era, there’s still plenty of time to establish a strong consumer relationship by using your site to build and foster community. Just be sure to keep your priorities straight and focus on community first and owning the sale second.


How Amazon Underground will affect content pricing and business models

Screen Shot 2015-08-31 at 9.29.05 AMAs interesting as the all-you-can read models from Next Issue, Oyster Books and Scribd are, I believe Amazon just introduced a new model that’s likely to be much more disruptive in the long run. I’m talking about Amazon Underground, where paid apps go to be free.

If you haven’t heard about Underground it’s a collection of paid Android apps that are now available free if you download them directly from Amazon. The initial collection is mostly games but it will undoubtedly grow over time. It’s also important to note that the catalog includes paid apps as well as those with in-app purchases (e.g., additional levels for a game); those in-app options also become free in the Underground world.

App developers get paid for engagement in the Underground model. So if their app gets downloaded but never used they earn nothing. On the other hand, if their app is wildly successful and used extensively, Underground represents a whole new developer revenue stream.

Any app developer will tell you there’s an enormous difference between the number of downloads of a 99-cent app and that same app as a freebie. Amazon gets that and may have cracked the code in leveraging free while also driving revenue.

It all has to do with advertising revenue. You may not see much (any?) advertising in some of these apps today. For example, I haven’t seen a single ad in a casino game and Office app tool I downloaded. That will undoubtedly change in the future. After all, in order to keep investors happy, Amazon’s losses today always need to point to profits and other benefits in the future.

What are those benefits?

First of all, it’s an interesting way to co-opt the Google Play store. Remember, you can only get these Underground apps direct from Amazon, not Google. I’ve got to believe Amazon’s own app store isn’t exactly thriving, so this is a great way to give it a gentle boost.

Second, all those Underground apps you download ultimately pull you deeper and deeper into the Amazon walled garden. This too might not be apparent today but it will become crystal clear when those ads start popping up. And don’t forget that you’re opting into a model where all your app usage is closely tracked. After all, that’s how Amazon determines how much to pay developers. If you’re a privacy freak, Underground is not for you.

Why should publishers care about Amazon Underground? It sounds like an interesting model for game developers but not all that applicable for books, newspapers and magazines, right?

Wrong.

I’ve been talking about advertising in books for quite awhile now and I think Underground represents a viable, incremental business model for this vision. It’s obviously not the best option for some content but I’m convinced enough publishers and authors will embrace it, so much so, in fact, that naysayers will even have to consider it.

Let’s be clear about this though: I’m not suggesting an ad-based model will generate the same amount of per-unit revenue as the paid edition. That’s simply not going to happen. If a publisher is earning $5 per copy sold of an ebook today they might only earn ten or twenty cents (at best) from each download of the Underground version.

So why would any publisher ever agree to this?

It’s all about extending reach. Sure, nobody wants to trade a $5 sale for one netting ten cents. But what about all those readers who aren’t going to buy the book, newspaper or magazine to begin with? You’re netting zero from them today and possibly ten cents from each of them in the future. All that, with no cost of goods, btw.

Here’s another interesting use-case: Underground becomes a better sampling solution. Once the service is loaded with a bunch of ebooks, readers will be able to download the entire catalog without paying a penny. Amazon won’t be on the hook for any payment till pages are read. Consumers who like what they see but get frustrated with all the ads will always have the option to go back and actually pay for the original, ad-free edition. The rest of us will simply deal with the ads and enjoy the free ride.

That sounds like a win-win model for quite a few books, newspapers and magazines.