Disney shows how to tear down walled gardens

Tired of dealing with the fragmented mobile marketplace that iOS and Android represent? The imagineers at Disney have come up with a terrific way to address that problem. It’s both a much-needed solution for consumers and also a clever way for Disney to maintain a direct relationship with consumers who buy indirectly.

I’m referring to the Disney Movies Anywhere initiative, which lets you buy a movie on one platform and watch it on either platform. Imagine a world where all those ebooks you bought on the Kindle platform could also be read now on the Nook platform, and vice versa. You’d be free to choose the lowest price, no longer worrying about ebook library lock-in, where you’ve bought so many titles you can’t imagine abandoning that retailer.

Sounds like a nightmare for the big retailers but a huge win for consumers and publishers.

Of course, how many publishers have the Disney muscle to force retailers into such a model? Very few.

But wouldn’t it be cool if one or more of the Big Five book publishers pushed for something just like this? The first thing a reader would see when they open that ebook from Amazon, B&N, or anywhere else is a message from the publisher thanking them for their purchase and showing the steps necessary to register the purchase with the publisher so the book can be read on any ebook platform.

The publisher not only does the reader a service, they also establish a direct link to all their customers. That leads to a better understanding of customer interests and trends as well as the opportunity to upsell other products directly.

Every retailer except the largest should support this concept as well. If you’re the distant #2 or #3 ebook retailer, you should totally embrace the opportunity to level the playing field with this; you’ll suddenly gain more relevance as all those books bought on the #1 retailer’s platform could now be read on yours.

Here’s another interesting byproduct: How long would the #1 retailer continue selling ebooks at a loss when every sale no longer reinforces consumer lock-in and, in fact, becomes yet another ebook the consumer can read on competitor platforms?


Making apps a core part of your digital publishing strategy

Arun BentyOn May 15, 2013, Apple celebrated 5 years of the App Store and released some astounding statistics.  Over 50 billion apps have been downloaded and that number jumped to 60 billion just 5 months after that announcement. That’s an average of 800 apps downloaded per second! With Apple paying out $15 billion to developers and December alone recording $3 billion in sales, do publishers need more reasons to look at the app store seriously? Let’s not forget, we haven’t spoken about the Google Play store yet, for which numbers are difficult to come by.

But aren’t customers tuned to buying books from iBooks and apps from app stores?
The answer is no. 10 to 30 times as many books are sold on the app store as compared to iBooks. The iBookstore pales in comparison to the Appstore in terms of traffic. So why would you place your wares in a store that has no footfalls? App Stores have changed the way we buy and install software and this begs the question: Aren’t ebooks software in a sense?

What’s the most important benefit of using apps for publishing?
It’s a common notion among publishers that apps makes sense only if you want to plug in some “interactivity” into your book. But there’s so much more to publishing books as apps than just this. Apps give you direct access to the consumer so it opens the doors to promotions, up-selling and cross-selling. It creates a channel to sell direct and increase margins. With the ever increasing focus on direct-to-consumer methods, apps can help publishers build a relationship with their readers despite the control exerted by dominant ebook retailers. With 90% of book sales driven through word-of-mouth marketing, engaging with your influencers is becoming increasingly important.

Aren’t apps expensive to build and maintain?
Yes, apps are expensive to build and maintain. This is where the Papertrell platform comes in. With an easy to use, feature rich, do-it-yourself app publishing CMS that simultaneously builds for all device platforms natively, Papertrell dramatically reduces the cost of app development and maintenance. It’s a platform that’s built for scale: an interactive app can be repurposed from an ePub file in under 48 hours. The platform also supports tools to import and repurpose from InDesign, PDFs and even blogs.

What about distribution? Isn’t it a complex ecosystem across multiple device platforms?
Manually managing titles across app stores is a complex process. The Papertrell platform takes care of end-to-end app distribution, publishers can now automatically submit or update to 7 different app stores with a single click. This also makes managing price promotions and meta-data management simple across multiple app stores. Publishers have a choice of distibuting as a paid app or as a “collection” of titles within a Shelf app with in-app purchase or subscrition as a payment option. The Shelf is fully cusomtizable with a host of features like banners, collections, a fully-featured EPUB and PDF reader, a cloud synced library, offline access, social reading with Facebook and Twitter integration.

What about updating content?
One of the most important features in Papertrell is the ability to quickly respond to customer issues related to content. App stores are notoriously slow in reviewing apps and this can sometimes kill the chance of an app being successful. A Papertrell app can be updated instantly without the need for time consuming app store reviews and will still work in an offline mode.

Can any type of book be converted to an interactive app using Papertrell?
It’s important to define what we mean by interactivity. Most content apps use audio, video and animations to add interactivity, but Papertrell uses a completely different approach. The idea is use existing book assets and repurpose it into a usable, interactive app without relying too much on “bells and whistles”. There are many instances here and here where this principle has been effectively applied. These are examples of books that contain no multimedia but the products have been repurposed into commercially successful apps by simply “gamefying” the content around usage, for example, unlocking chapters based on the quiz result. This is how “interactivity” is defined in Papertrell.

How scalable is app production in Papertrell? Can the process be automated?
Papertrell automatically ingests content from EPUB and other digital formats into a structured content dictionary using pattern recognition methods. Once the content is mapped, and a template is created, an app can produced from a subsequent EPUB in the same series in a matter of seconds. Here’s an example of a series that was produced using automation. This makes it incredibly easy to quickly make changes to the design and look and feel. The structured content dictionary also helps in reusability as new titles can be easily produced by remixing content across a series.

What sort of publishers are best suited for Papertrell?
Papertrell provides a robust platform for publishers who want to build a direct-to-consumer sales channel. Today this pretty much covers every type of publisher: trade, educational, comics, graphic novels, STM, Illustrated, non-fiction and even B2B publishing. With a range of options available to reach out, acquire, sustain and nurture readers, Papertrell provides depth and breadth in terms of features and flexibility to suit any requirement. Whether it’s creating highly engaging and interactive interpretations of books, social reading, ebook promotion and bundling or direct selling and subscription, Papertrell can play an integral part in your digital publishing strategy.

This article was written by Arun Benty. Arun is responsible for Papertrell's business development and product strategy. He is also the Co-founder and Director of Business Development at Trellisys.net, Papertrell's parent company. He has guided several globally recognized app projects for publishers including HarperCollins and Hachette including The SAS Survival Guide - a Webby Award winning app.


Global Ebook Market Report

TOC is dead but I'm glad to see some elements of it live on. A couple of years ago the TOC team launched the Global Ebook Market Report with Ruediger Wischenbart. Ruediger updated the report once or twice a year and we typically released a major update each October for the Frankfurt Book Fair.

The book fair opens this week and I was delighted to see that Ruediger and his team did yet another thorough update to the report for 2013. You'll find all the various formats of it here.

If you're looking for the latest data on ebook momentum by geographic region you'll find all the details in this update. If you want to read what's happening globally regarding popular formats, piracy and pretty much everything else related to ebooks you'll also find it in this report. The best news though is that the Global Ebook Market Report has always been and continues to be free. No cost, no registration, nada.

Do do yourself a favor, download this report right now and start reading. You won't regret it and you'll quickly become an expert on the global ebook marketplace.


Best of TOC

Best of tocIt's challenging keeping up with publishing industry news and analysis. I have way too many content feeds to monitor and I'm sure you do too. We do our best to highlight the most important developments on the TOC website but you're forgiven if you fall behind or miss an article every so often.

Most of analysis on the TOC site is somewhat timeless but the blog format might not make it feel that way. That's why we gathered the best of the best articles and assembled them for you in a handy, to-go version. It's called Best of TOC: Analysis and Ideas about the Future of Publishing. More than 60 of the most thought-provoking articles from the TOC team and community are featured and it's available in EPUB, mobi and PDF formats. Best of all, it's completely free.

If you need to catch up on your TOC reading you no longer have an excuse. Download your copy today and tell us what you think.


The Kirtsaeng ruling: What’s your opinion?

Wow. I’m very surprised by the Supreme Court’s ruling in the Kirtsaeng vs. Wiley case. I figured it would go the other way. Here’s a nice summary of the majority opinion from the Supreme Court (you’ll find more detailed analysis here):

Putting section numbers to the side, we ask whether the “first sale” doctrine applies to protect a buyer or other lawful owner of a copy (of a copyrighted work) lawfully manufactured abroad. Can that buyer bring that copy into the United States (and sell it or give it away) without obtaining permission to do so from the copyright owner? Can, for example, someone who purchases, say at a used bookstore, a book printed abroad subsequently resell it without the copyright owner’s permission?

In our view, the answers to these questions are, yes. We hold that the “first sale” doctrine applies to copies of a copyrighted work lawfully made abroad.

Read more...


Used ebooks: Why your assumptions are wrong and the opportunity is huge

Amazon has a patent and now Apple does too. I'm talking about the techniques both companies might use to let you resell your digital content. They join ReDigi, who already offers a platform to resell your digital music.

Ebooks are next, of course, and the concern I hear isn't so much about the legal aspect but rather the risk of cannibalization. Most publishers seem hung up on the notion that a used ebook sale will mean one less original sale for them. And even if they participate in the used ebook revenue stream, they're concerned that the selling price will be lower, so they'll make less when cannibalization happens. I think that's a very shortsighted view of the opportunity.

This isn't just about lower-priced versions of the original work. It's time to think about the added-value aspects of a used digital content platform.

I've written before about how consumer might be able to resell their highlights and notes. Let's take that a step further. What if someone reads a 300-page business ebook and condenses the key lessons into 10-20 pages? Think of it as the Cliffs Notes, summarized version. Let's further assume that reader bundles their summary with the original ebook they bought and sells it via a used ebook marketplace. Could they charge more for their version? Absolutely.

You're concerned about this being more attractive than the ebook by itself? You should be. But what if the publisher owns this platform? What if all these sales were done directly by them, so they're capturing 100% of the revenue stream and sharing the appropriate cut with the author? Now let's take it another step further... What if that reader isn't just able to sell the one copy they bought, but an unlimited number of copies that come bundled with their summary? The consumer price of this version would be higher than the version with the ebook by itself and the reader who created the summary would receive a portion of the difference between those prices, essentially making them a royalty-based author on the bundle.

Btw, there's no reason the original author couldn't create this summary instead of or in addition to whatever is created in the reader community. In fact, why not open this up to all readers to create their summary of the ebook and let consumers decide which version they want? Use a voting system so that the best summary writers build a reputation and generate the most income.

These summaries aren't limited to written material either. There's no reason video couldn't play a role here. There's also plenty of room for an idea I suggested a couple of years ago: The "VIP Notes Edition." The key is to create a model where author, publisher and summary writer all share in the revenue stream.

So let's stop thinking of the used ebook market as yet another step towards the race to zero content valuation. This is different from the used print book market and it represents some very interesting opportunities for publishers who are willing to embrace a new model.


Why B&N should abandon hardware

The ebook retailing business consists of three elements: hardware, content, and selling model. Dedicated e-readers (think eInk devices) are losing momentum to tablets. Content is mostly quick-and-dirty print-to-e conversions, or "paper under glass", if you will. The typical selling model is to buy one ebook at a time. Pretty simple. And not a whole lot of innovation happening in any of the three areas by the major players.

Recently there's been speculation that B&N is about to ditch the hardware part of their Nook business and focus instead on content and licensing. If true, that's probably the wisest thing I've heard from Riggio & Co. in a long time. Hardware has been, and will increasingly become more of, a fool's game for B&N.

They can't possibly steal Apple's mojo, so why try? I'll bet more people are reading B&N ebooks on an iPad or iPhone than they are on the Nook tablets.

On the Amazon side, B&N simply doesn't have deep enough pockets to lose money on both hardware and ebooks as long as Bezos can, so it's time to cut bait. Plus, Amazon's goal is to turn the Kindle Fire into a gateway for purchasing much, much more than ebooks. Amazon has a significantly larger product catalog outside of books, so Amazon can afford to lose money on the device if they make it up on the sale of electronics and other goods B&N doesn't sell.

So if B&N completely gets out of the hardware business what can they do to compete in the ebook world? Think app functionality, reader experience, and content sales model.

Today's e-reader apps have pretty much the same functionality as yesterday's. There's basically no innovation happening with the user experience in any of these apps, whether they come from Amazon, B&N, Kobo, etc.

Now is the time for B&N to shift all those resources they have in hardware onto the team that develops their Nook apps. What features are customers asking for? More importantly, what features have readers never even envisioned but would love to have? Channel Steve Jobs. We were all pretty content with our MP3 players back in 2000 and then in 2001 the iPod hit the scene. What a game-changer. What will be the "iPod moment" for e-reading apps?

And while they're working on that, be bold and work with publishers to develop some genre-specific, all-you-can-eat, ebook subscription programs. Romance is a good place to start but look at other verticals as well. What kind of package would compel customers to pay a subscription rate of $5 or $10 per month? They'll need to find the publishers who are willing to experiment here but that's why you focus on just one genre to start and build a success story to create others down the road.

At the end of the day B&N should continue to let Apple, Google, et al, distribute their Nook apps. They don't need to lose any more money selling devices that are viewed as commodities. They should instead focus on dramatically changing the reading experience and content acquisition model. After all, once hardware is eliminated, those are the only two other elements of ebook retailing that matter.


Amazon and Wall Street

I’m a big fan of The Week news magazine. It’s one of the last print products I still subscribe to (and I prefer the print version over the digital one). They deliver short summaries of what’s happening around the world and they’re careful to provide all sides of every story. Most of the content delivered in The Week is excerpted from other news sources.

Read more...


The slow pace of ebook innovation

I love this comment from Dave Bricker regarding an earlier post, EPUB 3 facts and forecasts:

Ebook vendors enjoy a closed loop ecosystem. They have millions of reader/customers who are satisfied with EPUB 2 display capabilities and devices. Amazon readers, for example, are largely content with the offerings in the proprietary Kindle store; they’re not lining up with torches and pitchforks to push for improvements. While publishers wait for eReader device manufacturers to add new features and EPUB 3 support, eBooksellers are just as happy to wait.

Read more...

TOC’s Global Ebook Market report

One year ago we published the first edition of our Global Ebook Market report. We focused on the major English language territories but also featured coverage of several other popular languages as well.

A lot has changed in the past year so we recently published a completely revised edition of the report. You’ll find it here. The good news it’s totally free, both in terms of cost and DRM. :-) It’s also available in all the popular formats (PDF, EPUB, and mobi), so you’ll be able to read it on any device you own.

Read more...