My 2016 ebook marketplace hopes and wishes

Sylvester-1097596_1920Rather than speculate on what might happen in the ebook sector this year I thought it would be wiser to simply list the developments I’d like to see. So although some, and perhaps all, of these are a long shot, here’s my short list of hopes and wishes for the ebook market in the New Year:

Less DRM – Publishers continue to be their own worst enemy with digital rights management. It’s part of what makes it so hard for publishers to create an effective direct channel and it provides nothing more than a false sense of security. As I’ve said before, if a reader really wants to unlock and share an ebook there are a number of freely available DRM-removal utilities that are just a few clicks away. Plus, most readers have no idea where their mobi and EPUB files are stored on their devices; those who do know the location probably already have a DRM-removal tool on their computer.

Better direct-to-consumer options – Once a publisher abandons DRM it suddenly gets much easier to create a frictionless direct-to-consumer (D2C) solution. And of course I’m not suggesting publishers should abandon retailers. But it’s time for publishers to diversify their channel strategy and focus more on the one channel they have 100% control over: their D2C channel. As I’ve said before, don’t assume “if you build it, they will come.” You need compelling reasons for consumers to buy direct (see here, here and here, for example).

New, sustainable unlimited ebook subscriptions – My Oyster subscription expired a few days ago, consistent with the sunset plans Oyster announced a few months ago. Oyster itself is about to expire soon, the victim of an unsustainable business model. The all-you-can-read subscription model is not dead though. I’m convinced the way forward is with topic verticals such as sports, religion, cooking, etc. They need to offer more than long-form book content and they need to focus on building community. Think “membership” and the old AMEX line, “membership has its privileges.”

Better notes and annotations, outside the book – I’ve read quite a few ebooks over the years and I’ve highlighted a lot of passages. I’ve also added notes to several, but not as many as I should have. The reason I haven’t annotated more is because I know those notes are stuck inside the book. I want a quick and easy way to export my highlights and annotations, collate them into other documents and make them fully searchable. For example, I’d love to see ebook applications embrace Evernote functionality, making it super easy to sync all my highlights and annotations to an Evernote folder.

I hope we see progress on all of these fronts in 2016 and I hope that the New Year is a wonderful one for you, your family and your organization.


The ebook value proposition problem

Money-256319_1920My youngest daughter asked for a Harry Potter boxed set for Christmas. As I wrapped the heavy, bulky package I kept wondering why she didn’t opt for the ebook collection instead. On Christmas morning I learned why: each title in the boxed set comes with a new cover. Actually, they were supposed to have new covers but we got the wrong box, so the heavy, bulky package is about to be returned.

My daughter reminded me that ebooks are often inferior to print books. In this case, she values the ability to showcase her collection, something you just can’t do with ebooks. When we finally get the right set I’m sure she’ll smile every time she looks at the box on her shelf.

Let’s compare that to the ebook experience. My collection is a library buried deep within my iPad. When I look at my iPad I don’t smile…I just wonder if it’s fully charged for the day ahead. And although services like Goodreads can fill the digital void and help you show off your print and ebook collection, I stopped logging books there years ago; Goodreads can never replace the serendipity and conversation-starter capabilities of a physical bookshelf.

DRM and publisher pricing models also often make print more attractive than e. DRM prevents me from sharing a book with a friend or passing it along to a family member when I’m finished with it. Also, the the new agency pricing model means that consumers often only see a small savings between the e price and the print price. In some cases publishers are asking consumers to pay almost the same price for the e edition which clearly has no COGs, comes with plenty of restrictions and offers nothing more than a print-under-glass experience.

In short, most ebooks suffer from a value proposition problem. To address this situation publishers need to rethink their digital value proposition and invest in innovation.

Regarding value prop, publishers need to understand who is buying their content and how it is being used. For example, if the ebook is simply a digital alternative to the print version, offering nothing more than a print-under-glass experience, they might want to consider employing the digital companion model I described last week.

Innovation is where the real future opportunity lies though, and I’d like to illustrate that with a product that seemed to reach the end of its innovative life long ago maps.

Remember when GPS devices became affordable several years back? They brought an end to wrestling with enormous maps that required an origami degree to fold back into their original state. Then smartphones hit the scene and their built-in sensors made dedicated GPS devices obsolete. Google Maps on your phone showed you where you were and gave you turn-by-turn advice on how to reach your destination. It seemed as if there were no more innovation opportunities for maps…and then Waze arrived.

Waze brings the power of community to mapping and navigation. Thanks to Waze I see real-time warnings for debris on the road, stalled vehicles on the shoulder or congestion to avoid. Before I hop on the interstate I make sure Waze is up and running. And because Waze is community-based I try to be a good community member by contributing as much information as I consume.

The next time you think about your digital content strategy, try to avoid looking at everything through the simple, restrictive lens of print-under-glass. If maps can continue to evolve I’m quite certain books will as well.


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.


Solving discovery with better content marketing

Screen Shot 2015-12-07 at 9.39.30 AMAsk a publisher to tell you the biggest challenge they face today and you’ll get a variety of answers. I know because I’ve been asking publishers for quite awhile now. I also made sure I posed the same question to the 20+ publishers I met with at the recent Frankfurt Book Fair.

Although the answers vary there are a small number of popular responses. One of the most common ones is simply “discovery”. Publishers are concerned that their content will never rise above all the marketplace noise.

One of the keys to addressing discovery is to focus on where consumer eyeballs already are. Facebook is a terrific example. As the planet’s largest social media network it represents an enormous opportunity for content discovery and consumption.

But go to any publisher’s or author’s Facebook page and what do you see? Mostly timelines with tips, comments and observations. Many authors that I’ve spoken with tell me that they’re trying to quickly redirect Facebook visitors to their personal websites where they have more control over things like sharing content samples with prospective customers. These same authors tell me they realize they manage to get far less than 100% of those Facebook visitors to click through, so many visitors leave without ever sampling the author’s content.

Other publishers and authors tell me they love it that they have tens of thousands or even hundreds of thousands of Facebook likes, but they don’t see any way to engage more deeply with those fans. As one author put it, “most people probably simply like my page and never come back.”

I’m pleased to announce that the Olive Software team, where I’ve had the pleasure of working since 2013, has come up with a way to help publishers and authors make their Facebook pages more engaging. And while it’s not limited to Facebook, let’s start there…

For a live example of this, check out best-selling author Valorie Burton’s Facebook page. It looks like a lot of author Facebook pages, right? One key difference is the “Read FREE Sample” button in the page’s nav bar. Click it and you’ll be taken to this view of her page; there the timeline has been replaced by a sample of her blockbuster hit, Successful Women Think Differently.

Rather than asking visitors to jump to another site or go through a multi-step process to download her sample, Valorie now lets them experience it right there on her Facebook page. And thanks to Olive’s SmartLayers capabilities, we were able to quickly add a call-to-action at the end of the sample where readers can buy the book from their favorite retailer.

I mentioned this capability isn’t limited to Facebook. Olive’s platform presents content directly in the browser, so there’s no app to download and no plug-in to install. That means the same sample widget you see on Valorie’s Facebook page can also be docked on an author website, on a publisher’s catalog page and even right inside the message body of an email marketing campaign. That’s right, publishers can now embed their ebook samples in email messages and not force readers through a bunch of multi-click gymnastics before they can even experience the content.

This solution goes well beyond samples, btw. A couple of publishers I’ve shown it to noted how they could resurrect some of their older, long-tail titles by publishing them in a serial fashion on their website, Facebook page and elsewhere. Their plan is to put the first chapter up one week, then replace it with the second chapter the next week, etc. They see this as a way of encouraging readers to visit their website or Facebook pages regularly, not just clicking a like button and never coming back.

It’s time for publishers to revisit the discovery problem, this time, applying tools like Olive’s Dynamic Book (ODB) application where content can be placed directly inside the pages and platforms where prospective customers are spending all their time.


Why the “smiling curve” has publishers frowning

Screen Shot 2015-11-30 at 9.30.33 AMAre you familiar with the “smiling curve” phenomenon? The details are provided here, but the short explanation is that a smiling curve depicts the value-add potential for each stage of an industry. For example, in the publishing space, you have three stages of content: creation, delivery and discovery. Those three stages are illustrated with a smiling curve here as part of a terrific article from Ben Thompson of Stratechery.

Note the y-axis in that graph. It represents value, so the stages with points higher up the y-axis generally add more value to the overall ecosystem. That graph indicates two stages with high value-add (creation, discovery) and one with low value-add (delivery).

Creation and discovery rank high because they’re capabilities that are extremely hard to copy. Sure, the self-publishing movement has resulted in a glut of authors, but how many are actually making money? How many have created a brand name for themselves they can leverage every time they release a new book?

The graph indicates Google, Facebook and Twitter are some of the more well-known discovery players. Thompson’s article focuses mostly on the newspaper industry but if you add Amazon to the list of discovery players the piece applies just as well to book publishing.

The key point is this: Publishers have considerably less industry and market leverage today than they did 20 years ago. Once upon a time book publishing was built around a scarcity model and publishers thrived. Digital disruption generally eliminates (most) scarcity. The resulting abundance completely destroys yesterday’s business models and forces most players to reinvent themselves to remain relevant. Those at the bottom of the smiling curve are at the mercy of those who rank higher on the y-axis.

In his article Thompson suggests that AT&T is “trying to stave off their inevitable future as a dumb pipe between valuable content and valuable devices”. Sounds very similar to the position book publishers find themselves in today, doesn’t it?

So how does a publisher climb out of the trough of the smiling curve? It’s easier said than done but I believe it comes down to publishers placing significantly more emphasis on what they do best.

For example, has your organization truly distinguished itself by being the best at finding and nurturing new author talent in a particular topic area? What would have happened to those authors without your team’s discovery and development efforts? If you truly believe your organization was the game-changer for these authors then you need to emphasize that capability and make sure every new author in your space is aware of it.

That’s one approach for dealing with the left side of the curve but what about the right side? If you’re wildly successful dealing with the left side you might not have to worry about the right side. But let’s face it. Most publishers aren’t really that great at the left side so they need to pay attention to the discovery element.

Is it even possible for a publisher to play a significant role in discovery? Some publishers would suggest they rely on their channel partners (e.g., retailers) to take care of this. These same publishers have a marketing and PR team though. They all have websites and most of them tend to utilize social media and email marketing campaigns, so I’ve got to believe they want to play a role in discovery.

The problem is most publishers only apply a half-hearted approach to discovery. They might even offer a full e-commerce solution on their site but then they wonder why nobody comes to buy. The problem is they don’t offer consumers a compelling reason to change their buying habits. It can be done though and I offered some advice in a recent article here.

Most publishers desperately want to preserve yesterday’s scarcity-based business model but what they really need to do is acknowledge and embrace abundance, be willing to cannibalize yesterday’s revenue stream and focus on what really defines their brand for both authors and consumers. If you haven’t done so already, it’s time to read The Innovator’s Dilemma and think about how it applies to your business and the discovery challenge.


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.


Why publishers should embrace the evolution of “fair use”

Scale-310471_1280When I meet with publishers I always ask them about the biggest problems they face in today’s market. One of the most popular answers is “discoverability.” Most publishers fret about getting lost in a sea of other books and promotional campaigns.

Life seemed much easier in the brick-and-mortar days. A publisher simply paid a retailer for premium placement, resulting in endcap promotions and books stacked in high-traffic areas of the store. Those options still exist, of course, but they’re less important now that one retailer dominates distribution and discovery.

That’s why I’m scratching my head about all the negative publisher and author reaction to the recent federal appeals court ruling on Google Books. If you’re not familiar with Google Books, it’s an extension of the search engine enabling discovery and sampling of digitized books. Many of those books are still protected by copyright, hence the delicate nature of the case.

If you’ve never explored Google Books you need to take a closer look before forming an opinion on the ruling. Here’s a quick search for “FDR” on Google Books. The first book link points to my favorite FDR biography, by Jean Edward Smith. Click that link and the first thing you’ll see is a frame with scanned pages from the book. Scroll down a bit and the following note is displayed:

This is a preview. The total pages displayed will be limited.

Every so often you’ll see more notes like this one:

Pages 2 to 9 are not shown in this preview.

In other words, what you’re seeing are merely snippets of the book. There’s no way you can read the entire work inside Google Books. What you can do, however, is search and discover more book content than you’ve ever been able to before.

For example, on page 10 of the FDR book I noticed the phrase “Richard Crowninshield of Boston”. Let’s say you’re a researcher working on a project about Mr. Crowninshield. A colleague said they read something about him in a book but they don’t recall which one. You need that source because you want to buy the book to understand the context and your research requires more than just a page or two where the reference was made.

I challenge you to find the book by searching that phrase on Amazon. I just did that and here are the search results. Smith’s book is nowhere to be found.

Now search the same phrase in Google Books and here’s what you get. One click takes me directly to that page and the left side of the screen tells me Smith’s book is what I need. Notice that Google also includes links to buy the book as well, in print or ebook format.

Publishers, wake up and realize that the largest search engine on the planet offers a powerful way for your content to be discovered and purchased. Rather than getting all litigious about this, why not embrace it and find a way to fully leverage it?

The simple truth is that as technology evolves, the notion of “fair use” is also evolving. I think this is a very good thing, and not just for Google. History is littered with marketplace incumbents who crashed and burned as they tried to protect yesterday’s model. Tomorrow’s publishing leaders will be the ones who take advantage of services like Google Books, not those trying to make it go away in a courtroom.