The Perseus Books Group Launches Mobile Editions

(Book Business Magazine, 1/30/09)

The Perseus Books Group (PBG) announced its first mobile book editions. Working with Incelligence, a mobile phone application provider, PBG now will offer mobile editions of the following titles: "Wine Enthusiast Pocket Guide to Spirits," "Quit: Read This Book and Stop Smoking," "Your Pregnancy Week by Week," and a Spanish-language version of the pregnancy guide, "Su Embarazo Semana a Semana."

The new Perseus mobile editions will be available to millions of mobile users worldwide through Incelligence’s distribution network, which includes major carriers such as AT&T and T-Mobile, as well as independent mobile application distributors such as Thumbplay, Jamster and ClickApps.

“At Perseus, we are always looking for ways to reach readers wherever they are with books that matter,” says Rick Joyce, chief marketing officer for PBG. “Mobile editions put must-have content always in reach …. Relationships with mobile innovators like Incelligence are all part of helping independent publishers succeed in the digital marketplace.”

Books Unbound

(Wednesday, Jan. 21, 2009, By Lev Grossman)

Here's a literary parable for the 21st century. Lisa Genova, 38, was a health-care-industry consultant in Belmont, Mass., who wanted to be a novelist, but she couldn't get her book published for love or money. She had a Ph.D. in neuroscience from Harvard, but she couldn't get an agent. "I did what you're supposed to do," she says. "I queried literary agents. I went to writers' conferences and tried to network. I e-mailed editors. Nobody wanted it." So Genova paid $450 to a company called iUniverse and published her book, Still Alice, herself.

That was in 2007. By 2008 people were reading Still Alice. Not a lot of people, but a few, and those few were liking it. Genova wound up getting an agent after all--and an offer from Simon & Schuster of just over half a million dollars. Borders and Target chose it for their book clubs. Barnes & Noble made it a Discover pick. On Jan. 25, Still Alice will make its debut on the New York Times best-seller list at No. 5. "So this is extreme to extreme, right?" Genova says. "This time last year, I was selling the book out of the trunk of my car."

Something has changed, and it's not just the contents of Lisa Genova's trunk. We think of the novel as a transcendent, timeless thing, but it was shaped by the forces of money and technology just as much as by creative genius. Passing over a few classical and Far Eastern entries, the novel in its modern form really got rolling only in the early 18th century. This wasn't an accident, and it didn't happen because a bunch of writers like Defoe and Richardson and Fielding suddenly decided we should be reading long books about imaginary people. It happened as a result of an unprecedented configuration of financial and technological circumstances. New industrial printing techniques meant you could print lots of books cheaply; a modern capitalist marketplace had evolved in which you could sell them; and for the first time there was a large, increasingly literate, relatively well-off urban middle class to buy and read them. Once those conditions were in place, writers like Defoe and Richardson showed up to take advantage of them.

Fast-forward to the early 21st century: the publishing industry is in distress. Publishing houses--among them Simon & Schuster, Macmillan, HarperCollins, Doubleday and Houghton Mifflin Harcourt--are laying off staff left and right. Random House is in the midst of a drastic reorganization. Salaries are frozen across the industry. Whispers of bankruptcy are fluttering around Borders; Barnes & Noble just cut 100 jobs at its headquarters, a measure unprecedented in the company's history. Publishers Weekly (PW) predicts that 2009 will be "the worst year for publishing in decades."

A lot of headlines and blogs to the contrary, publishing isn't dying. But it is evolving, and so radically that we may hardly recognize it when it's done. Literature interprets the world, but it's also shaped by that world, and we're living through one of the greatest economic and technological transformations since--well, since the early 18th century. The novel won't stay the same: it has always been exquisitely sensitive to newness, hence the name. It's about to renew itself again, into something cheaper, wilder, trashier, more democratic and more deliriously fertile than ever.

What's the Matter with Publishing?

It isn't the audience. People are still reading. According to a National Endowment for the Arts study released on Jan. 12, literary reading by adults has actually increased 3.5% since 2002, the first such increase in 26 years. So that's not the problem. What is?

The economy, obviously. Plenty of businesses are hurting. And it doesn't help that new media like video games (sales up 19% in 2008!) are now competing with books for our entertainment hours and dollars. But publishing has deeper, more systemic problems, like the fact that its business model evolved during an earlier fiscal era. It's an antique, a financial coelacanth that dates back to the Depression.

Consider the advance system, whereby a publisher pays an author a nonreturnable up-front fee for a book. If the book doesn't "earn out," in the industry parlance, the publisher simply eats the cost. Another example: publishers sell books to bookstores on a consignment system, which means the stores can return unsold books to publishers for a full refund. Publishers suck up the shipping costs both ways, plus the expense of printing and then pulping the merchandise. "They print way more than they know they can sell, to kind of create a buzz, and then they end up taking half those books back," says Sara Nelson, editor in chief of PW. These systems were created to shift risk away from authors and bookstores and onto publishers. But risk is something the publishing industry is less and less able to bear.

If you think about it, shipping physical books back and forth across the country is starting to seem pretty 20th century. Novels are getting restless, shrugging off their expensive papery husks and transmigrating digitally into other forms. Devices like the Sony Reader and Amazon's Kindle have gained devoted followings. Google has scanned more than 7 million books into its online database; the plan is to scan them all, every single one, within 10 years. Writers podcast their books and post them, chapter by chapter, on blogs. Four of the five best-selling novels in Japan in 2007 belonged to an entirely new literary form called keitai shosetsu: novels written, and read, on cell phones. Compared with the time and cost of replicating a digital file and shipping it around the world--i.e., zero and nothing--printing books on paper feels a little Paleolithic.

And speaking of advances, books are also leaving behind another kind of paper: money. Those cell-phone novels are generally written by amateurs and posted on free community websites, by the hundreds of thousands, with no expectation of payment. For the first time in modern history, novels are becoming detached from dollars. They're circulating outside the economy that spawned them.

Cell-phone novels haven't caught on in the U.S.--yet--but we have something analogous: fan fiction, fan-written stories based on fictional worlds and characters borrowed from popular culture--Star Trek, Jane Austen, Twilight, you name it. There's a staggering amount of it online, enough to qualify it as a literary form in its own right. Fanfiction.net hosts 386,490 short stories, novels and novellas in its Harry Potter section alone.

No printing and shipping. No advances. Maybe publishing will survive after all! Then again, if you can have publishing without paper and without money, why not publishing without publishers?

Vanity of Vanities, All Is Vanity

When Genova had reached the end of her unsuccessful search, she told the last literary agent who rejected her, "I've had enough of this. I'm going to go self-publish it." "That was by e-mail," she says. "He picked up the phone and called me within five minutes and said, 'Don't do that. You will kill your writing career before it starts.'"

It's true: saying you were a self-published author used to be like saying you were a self-taught brain surgeon. But over the past couple of years, vanity publishing has become practically respectable. As the technical challenges have decreased--you can turn a Word document on your hard drive into a self-published novel on Amazon's Kindle store in about five minutes--so has the stigma. Giga-selling fantasist Christopher Paolini started as a self-published author. After Brunonia Barry self-published her novel The Lace Reader in 2007, William Morrow picked it up and gave her a two-book deal worth $2 million. The fact that William P. Young's The Shack was initially self-published hasn't stopped it from spending 34 weeks on the New York Times best-seller list.

Daniel Suarez, a software consultant in Los Angeles, sent his techno-thriller Daemon to 48 literary agents. No go. So he self-published instead. Bit by bit, bloggers got behind Daemon. Eventually Penguin noticed and bought it and a sequel for a sum in the high six figures. "I really see a future in doing that," Suarez says, "where agencies would monitor the performance of self-published books, in a sort of Darwinian selection process, and see what bubbles to the surface. I think of it as crowd-sourcing the manuscript-submission process."

Self-publishing has gone from being the last resort of the desperate and talentless to something more like out-of-town tryouts for theater or the farm system in baseball. It's the last ripple of the Web 2.0 vibe finally washing up on publishing's remote shores. After YouTube and Wikipedia, the idea of user-generated content just isn't that freaky anymore.

And there's actual demand for this stuff. In theory, publishers are gatekeepers: they filter literature so that only the best writing gets into print. But Genova and Barry and Suarez got filtered out, initially, which suggests that there are cultural sectors that conventional publishing isn't serving. We can read in the rise of self-publishing not only a technological revolution but also a quiet cultural one--an audience rising up to claim its right to act as a tastemaker too.

The Orchard and the Jungle

So if the economic and technological changes of the 18th century gave rise to the modern novel, what's the 21st century giving us? Well, we've gone from industrialized printing to electronic replication so cheap, fast and easy, it greases the skids of literary production to the point of frictionlessness. From a modern capitalist marketplace, we've moved to a postmodern, postcapitalist bazaar where money is increasingly optional. And in place of a newly minted literate middle class, we now have a global audience of billions, with a literacy rate of 82% and rising.

Put these pieces together, and the picture begins to resolve itself: more books, written and read by more people, often for little or no money, circulating in a wild diversity of forms, both physical and electronic, far outside the charmed circle of New York City's entrenched publishing culture. Old Publishing is stately, quality-controlled and relatively expensive. New Publishing is cheap, promiscuous and unconstrained by paper, money or institutional taste. If Old Publishing is, say, a tidy, well-maintained orchard, New Publishing is a riotous jungle: vast and trackless and chaotic, full of exquisite orchids and undiscovered treasures and a hell of a lot of noxious weeds.

Not that Old Publishing will disappear--for now, at least, it's certainly the best way for authors to get the money and status they need to survive--but it will live on in a radically altered, symbiotic form as the small, pointy peak of a mighty pyramid. If readers want to pay for the old-school premium package, they can get their literature the old-fashioned way: carefully selected and edited, and presented in a bespoke, art-directed paper package. But below that there will be a vast continuum of other options: quickie print-on-demand editions and electronic editions for digital devices, with a corresponding hierarchy of professional and amateur editorial selectiveness. (Unpaid amateur editors have already hit the world of fan fiction, where they're called beta readers.) The wide bottom of the pyramid will consist of a vast loamy layer of free, unedited, Web-only fiction, rated and ranked YouTube-style by the anonymous reading masses.

And what will that fiction look like? Like fan fiction, it will be ravenously referential and intertextual in ways that will strain copyright law to the breaking point. Novels will get longer--electronic books aren't bound by physical constraints--and they'll be patchable and updatable, like software. We'll see more novels doled out episodically, on the model of TV series or, for that matter, the serial novels of the 19th century. We can expect a literary culture of pleasure and immediate gratification. Reading on a screen speeds you up: you don't linger on the language; you just click through. We'll see less modernist-style difficulty and more romance-novel-style sentiment and high-speed-narrative throughput. Novels will compete to hook you in the first paragraph and then hang on for dear life.

None of this is good or bad; it just is. The books of the future may not meet all the conventional criteria for literary value that we have today, or any of them. But if that sounds alarming or tragic, go back and sample the righteous zeal with which people despised novels when they first arose. They thought novels were vulgar and immoral. And in a way they were, and that was what was great about them: they shocked and seduced people into new ways of thinking. These books will too. Somewhere out there is the self-publishing world's answer to Defoe, and he's probably selling books out of his trunk. But he won't be for long.

O'Reilly and XML

I was fortunate enough to attend O'Reilly's StartwithXML Conference at the McGraw-Hill Auditorium. The focus of the conference was how publishers can get on the xml bandwagon, with pointers from publishers already doing so.

Since PW posted a great article on the conference, I won't repeat what they've covered, but I will mention the few points that stand out in my mind:

1. To save costs, xml is only one of three necessary steps a publisher takes; the other two are offshoring and using standard, automated templates.
2. To have xml be the most useful, you need to start with an xml-first workflow--not an xml-last one--and this means that the authors and editors need to be trained in xml tagging and taxonomy.
3. The more "chunkable" and repurposable your content, the more important it is to get an xml-first workflow going.
4. XML allows easier updates and synchronicity of multiple files.
5. XML allows for simultaneous deliverables that can be adjusted to any medium since it is content-centric and design-agnostic.
   

Overall, it was great hearing how many publishers have embraced the new technology and realize that it's all about the content--and not its container--anymore.

The Terrible Burden of Destiny

(By Bob Sacks)

6 guidelines publishers need to consider while pondering their futures.

As we move forward in this economic recession, it is important to remember that while some processes may be slowed, others will continue to fling us forward and create both unexpected opportunities and, depending on your perspective, unfortunate struggles to simply survive. We are faced with, some might say, “the terrible burden of a digital destiny.” As an industry, we will adjust and adapt to the conditions at hand, not necessarily because we want to, but because we must.

The following is a series of guidelines or propositions that we must be aware of and be prepared to deal with as we move forward.

1. Advancements by the digital universe will never retreat, and will only improve and become more ubiquitous.
Digital publishing will continue to become a stronger platform that is easier and easier to use. The print-only world has not been able to hold its own, nor will it be able to do so against such formidable odds. If you can’t accept this as a truthful premise, you will continue to struggle with your own destiny.

2. Our competition has been totally redefined.
While our publishing competitors used to be easy to identify, today almost any company, group or individual can become a future competitor. New technologies empower this and enable it to be done anywhere on the planet. There is a new and increasingly lower threshold of entry, which means new competitors are in abundance. They can come from anywhere and will come from well below the radar screen. They will be online, global, fast-moving and smart.

3. Content remains important.
A critical concept to understand is that content is more important than the delivery vehicle. This is a new concept for publishers rooted in tree fibers. The digital delivery of news, information, instruction or fiction has just as much validity as pulp-delivered products, and in many cases it has more creditability—the creditability to be timely and immediately fact-checked for accuracy.

4. New revenue models are required.
The new technologies of information distribution offer endless options to reach a world full of future customers. The shipping cost to reach this global market is exactly the same as it is to reach the girl next door. This empowers a style of publishing that I call “universal niche”—an idea, concept or hobby enjoyed by a few on a global basis. Basically, the scale of the available readership redefines small as big.

5. Our audience will increasingly demand to be treated as individuals.
Despite the growing trend of individualism in society, mass media continues to offer the same message to everybody while new media opportunities have the power to offer individual content based on our uniqueness rather than our sameness. This concept combines very nicely with the power of citizen journalism. The “screenager” generation wants to be involved and take part in news reporting. They have grown into a generation that has the ability to be in touch with each other immediately at earlier and earlier ages. This from-birth experience is fostering a new generation of readers who are naturally adept with technology and comfortable with having virtual access to friends, family and the world at large.

6. Advertisers will demand accountability more than ever.
Advertisers increasingly want to reach their customers directly. They want a one-to-one relationship that heretofore was not possible.

Today, that kind of science is not only possible, but perhaps mandatory as a part of doing business. Simply put, digital media offers improved measures of success. Digital publishing has an increasingly important advantage of being able to measure the impact of advertisements, clicks, transactions, etc. As the economy goes through the current parabolic curve of dipping south, flattening out and then starting the climb to profitability again, publishers need to adapt to the inherent changes before them.

Will publishing survive? Definitively yes. Will it survive with the old-school business models of our fathers? Categorically no. Every aspect of publishing has to be reevaluated and reexamined against the digital criteria outlined above and be reconstituted as an advanced publishing formula for the 21st century. It is never going to be the way it was, and sure as the sky is blue, it is not going to be the way it is. Your future is in your hands.

The Future of Dedicated eBook Readers

(Joe Wikert's Publishing 2020 Blog, 12/30/08)

BusinessWeek recently published an insightful article called Move Over Kindle; eBooks Hit Cell Phones. After reading it I feel I need to make a confession: My enthusiasm for the Kindle has dramatically shifted to the iPhone. There. I said it. It feels good to come clean.

Don't forget that I'm the guy who was so bullish on the Kindle that I started a separate blog dedicated to it. I'm not suggesting Kindleville is going away, but I do wish I would have jumped on the Apple bandwagon earlier and created iPhoneville instead!

Think about it. Amazon is the 800-pound gorilla but their numerous missteps (e.g., proprietary model, poor inventory management, no brick-and-mortar presence, high price, lack of an innovative pricing model, etc.) have prevented them from shutting the door on Sony. Sony, for cryin' out loud...the company that completely dropped the ball in the consumer electronics world!

So now while Sony is still hanging in there just fine, thank you very much, quite a few prospective customers are starting to realize the smartphone they already own is a better alternative to a $300+ dedicated e-reader. I was a skeptic till I got an iPhone a couple of months ago. Even though the book selection is very limited in the AppStore, I'd be hard-pressed to buy a Kindle now that I have an iPhone. In fact, I had been planning to buy the next generation Kindle that's rumored to appear next year but I doubt I will now. Again, this is coming from one of the Kindle's biggest advocates!

I still don't agree with Steve Jobs and his comment that "people don't read anymore." But wouldn't it be ironic if his platform turned out to be the winner in the e-content battle? After all, he's the guy who's shown the least interest in this sector and yet he now seems to have all the momentum.

Why do I get the feeling Amazon has implemented the equivalent of a "prevent defense", playing "not to lose"? Both those approaches often lead to upsets and that's exactly what it will be if the Kindle fails at the expense of the iPhone.