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Sourcebooks NEXT.

eBooks

Wednesday, March 21, 2012

In celebration of today’s anniversary of the birth of Johann Sebastian Bach, Sourcebooks MediaFusion is releasing an enhanced, introductory ebook on the life and music of the famed classical music composer. Johann Sebastian Bach 2Go, along with enhanced products on three additional composers—Wolfgang Amadeus Mozart 2Go, Ludwig van Beethoven 2Go, and Joseph Haydn 2Go—are available now for $2.99 in the ibookstore.

The classical music enhanced ebooks were designed to give you an introduction to the world of classical music through the composer’s work. In each ebook, you’ll not only discover the life and work of each composer through a thorough introduction to the artist and cues for what to consider when listening to his work, but, more importantly, throughout the text you’ll find embedded audio excerpts of the composer’s work. You can listen to short, representative samples as well as longer pieces by the composer.

For anyone from classical music aficionados and devotees to students and newcomers, this interplay of text and audio will allow you to more fully experience each composer’s contributions to classical music, and will become a jumping-off point through which you’ll want to discover more.

Sourcebooks has also released Presidential 2Gos from the multimedia book My Fellow Americans, by Michael Waldman (director of speechwriting for President Bill Clinton from 1995–1999). Ronald Reagan 2Go, Franklin Delano Roosevelt 2Go, John F. Kennedy 2Go, and George Washington 2Go are also available in the ibookstore $2.99. With these enhanced ebooks, you’ll discover some of each president’s most notable speeches, including the entire text of the speech and a brief introduction by noted political journalist and broadcaster George Stephanopoulos. Most importantly, you’ll be able to hear the heart of the speeches, either faithfully re-created by a guest contributor or delivered by the president himself.


Friday, February 03, 2012

There are loads of things that are interesting about ebooks. One of them is that you can fairly easily change the price of an ebook. So how eBooks are priced and why has to be a major aspect of any publisher’s (or author’s) strategy.

Pricing (as lots of people have talked about and discovered) is also one way to get your book or author discovered. But there's also been a conversation going on that free doesn’t work any more and there are loads of opinions about why or why not.

This week Amy Denim noticed two of our titles available for free and posed this question:

I mean, Sourcebooks Casablanca is a pretty big publisher (I'd die to get published by them) they sell zillions of Romance novels every year. Why are they offering free books? (both of which I downloaded as soon as I could possibly make it to the one-click button)

So I pulled some data together about why we did it. (Thanks for the question, Amy!!). We ask ourselves this kind of question every week as we are evaluating eBook promotions. Here’s a bit about what we’re seeing.

We have offered 7 adult fiction titles (in romance and in general fiction) for free within the past 6 months. 

On average, full-price sales for the 4 weeks after the promotion

were 46 times greater than the 4 weeks before the promotion.

That’s a really BIG increase – both in sales and in exposure for what are (in most cases) backlist or deep backlist titles. There’s a lot of variability in the results. Some titles saw a relatively weak 7-12 time increase. One book saw a staggering 844 time sales increase. The average was a 46-fold sales increase. The kind of novel seems to make a big difference here and we (as always) need more data.

We obviously use this tactic sparingly and as part of pretty wide arsenal of marketing and publicity tactics. We're testing a lot of different ways to drive sales and discovery. And while we are interested in driving sales and marketing results, we are unwilling to do that at the cost of the value of our authors’ work. So again, there's both analysis and discussion around when different tactics work best.

Anyone else have any data they’d be willing to share? I’d love to understand this better. What are you seeing from other publishers or authors?  What is your opinion of using free or discounted backlist to drive discovery?  Would love to hear what people are seeing and think works.

Thanks in advance for any discussion.

Dominique

Monday, October 17, 2011

Last Monday I spoke on a panel about eBooks at The Society of Midland Authors, here in Chicago. Also on the panel was author Libby Fischer Hellmann and Kelly Griffin of the Chicago Public Library's Collections Development Division.

I promised to make the handouts I used available. So here they are along with my handout on Six Ways to Explore the Digital Revolution in Books.

Digital Exploration- 6 Tips Handout 

Society of Midland Authors Presentation

Loved meeting all these Chicagoland authors.

Happy reading!!

Dominique

Tuesday, June 14, 2011

One of the ongoing conversations at Book Expo America this year was the growth of ebooks. How fast is the market transforming? Is it cannibalizing the print book market? If so, which part? Or is it expanding readership? And all of the potential ramifications and implications of these questions.

I heard people say things like, “yes, ebooks are only a small percent of total book sales now, but you can see how they’re going to be 60% or 70% of the market in a few years.” And I thought to myself, “Really?” The “book industry” is not just one industry; books are purchased by different types of users and for different reasons. So it stands to reason that different parts of the market will transform at different speeds.

What currently sells in physical books

When you break out broad categories of physical books sold in 1st quarter 2011 (data from Bookscan), here’s what you see:

1st Quater book Sales

So the single largest category of physical books sold is adult non-fiction which makes up 42% of that market.

What’s selling in ebooks

On the other hand, when you look at what’s selling in ebooks, it’s primarily narrative. The only real data I can cite here are our own figures and the ebook bestsellers lists from individual e-tailers, which are dominated by fiction (the NY Times e-bestsellers separate fiction and non-fiction, but you can’t infer comparative volumes). For example,

  • Looking at BN Nookbook top 100 bestsellers, there were 12 non-fiction ebooks on the list.
  • On the Kindle top 100 bestsellers (paid), there were 16 non-fiction titles.

These counts were taken at one point in time last week and these lists change hourly. I checked back 3 other times and the results were roughly the same (under 20% of the bestselling titles). This is pretty much in line with what’s being reported by publishers.

Here is a chart of Sourcebooks’ unit sales for physical books:

Sourcebooks Physical book sales chart

And the same breakout for ebooks:

Sourcebooks eBook sales chart

So while the majority of our physical book sales are in adult non-fiction, the majority of our ebook sales are in adult fiction.

So what’s missing in this picture?

Right now we’re seeing relatively weak conversion of adult non-fiction to ebooks. While this category of physical books has declined a bit in the last few years (down 1.1% in Q1 2011, per Bookscan), as noted above, it’s still 42% of the print book business.

 Again via Bookscan, here were the 5 largest categories of adult non-fiction for Q1 2011:

Reference

15%

General Non-Fiction

12%

Health/Fitness/Medicine/Sports

11%

Religion/Bibles

11%

Biography/Autobiography/Memoir

9%

 

Reference is the biggest category of non-fiction and our experience at Sourcebooks is that reference is also the hardest category to get right in ebooks. At Sourcebooks, reference is highly formatted: lots of subsections, sidebars, pictures, diagrams, pull-quotes, etc. It’s highly “browseable,” “dippable,” not necessarily a linear reading experience. All the things that we put in to make the book more experiential as a printed book are the very things that are harder to replicate as an experience in an ebook. And there are so many different kinds of reference books.

The other difficult transformation area right now is children’s books (as distinct from young adult books). E-tailers’ bestsellers lists, publisher-reported data, and our own data are not suggesting strong conversion to ebooks yet for juvenile books, outside of cross-over YA (e.g., The Hunger Games and Twilight).

The importance of narrative

Stories seem to be at the heart of ebooks right now. Even the successful non-fiction ebooks we’re seeing skew to narrative - memoirs and biography and history. They’re all stories – and they’re all linear reading experiences.

Are apps the future of adult non-fiction and/or children’s books?

One of the interesting questions being asked today is what can digital look like for illustrated children’s books and reference products? It’s one of the things we’ve been thinking about a lot at Sourcebooks. Although it is still early days, I am inclined to believe that we are likely to make real progress with apps and websites. For example, you can look at the Books bestsellers list on Apple’s App Store and see a lot of illustrated children’s books.

That thinking is also why we decided to turn the #1 bestselling Fiske Guide to Colleges into the iPad app Fiske Interactive College Guide. And it’s at the heart of the development work that we’re now doing with our authors and other partners.

What do you think? Feel free to jot your ideas in the comments.

As always, looking forward to the conversation.

Dominique

Monday, February 21, 2011

(This post is based on 3 of the slides from a presentation I recently gave at O’Reilly's “Tools of Change in Publishing” conference. We'll be posting all of the presentation there shortly.)

Throughout 2010 it was clear that ebooks were growing in popularity. By the end of September 2010, the below chart shows the sales history for ebooks (in dollars) we were looking at here across all of Sourcebooks:

ebook sales oct 2009 thru sept 2010

As you can see (and this is Sourcebooks data only) ebooks were growing pretty steadily every month. We all knew the holiday season would propel this upswing further. People would be given empty devices as gifts for the holidays and they'd begin filling them, so I expected to see December and January ebook numbers that were a significant increase. But would the upswing be a nice new plateau or would it suggest a legitimate "tip"? Well, take a look:

ebook sales 2010

That's an extraordinary increase in just two months. Current ebook sales put all the previous sales figures into striking perspective – what we believed was remarkable growth for all of 2010 was nothing in comparison to what was actually possible. And (as people who are familiar with what we've been doing at Sourcebooks know) we've done a tremendous amount of work to obtain these results.

Particularly striking is that:

sourcebooks ebook sales

It's obviously too early to tell but if the December 2010 and January 2011 numbers hold their level, it seems clear that this may well be a much faster transformation than we anticipated.

At Digital Book World - only a month ago - there seemed to be consensus that the ebook tipping point would occur around 2014. That seems too slow to me now. Based on what we're seeing in our current data, I think we may well be at the tipping point and that certainly has a lot of implications. I suspect that we're going to see some dramatic reassessment when publishers look at their numbers at the end of first quarter, 2011. And for certain types of books, ebook units this year may be more than 50% of units sold (but more on that in a future Sourcebooks Next post).

Dominique

Wednesday, February 09, 2011

Are we reading more because of ebooks?

How is reading changing because of ebooks? This weekend I posted a Twitter poll asking ebook readers for their impression of any changes that were occurring in their reading habits since they started reading ebooks. Obviously twit polling is not a scientifically rigorous methodology. We know that self-reported behavior differs in some important ways from actual behavior (often making us look better in our own eyes for example), and I'd also suggest the respondents here lean to heavy users. But I thought it was interesting to at least see what people believed about what they were doing.

Of the more than 200 people who answered the poll:

•  80% believe that they're reading either somewhat or much more than before. (I reclassified some of the other category when it was clear the person was reading more)
•  14% believe that they're reading about the same
•  And 4% believe that they're reading less (either much less or somewhat less)

    Here's what the poll looks like:

    twitpoll

    (By the way, that 80% was consistent right from the start of the poll.)

    What also interested me were the comments on twitter, LinkedIn and left in the "other" category of the poll. We had 211 poll respondents, but only 7 left comments and only 8 commented on LinkedIn so we should be careful not to over-generalize:

    •  People are reporting buying more books, whether or not they read them:
    "I buy a lot and read only a small part of it"
    "Buying but not reading"

    •  They're also reporting a greater breadth of reading (as if they're more willing to try to new kinds of books). For example:
    "Reading more varied material & reading more"

    •  And more simultaneous books being read:
    "I'm reading many more books at once than before"

    •  And there was a sense of more cursory, less deep reading:
    "I am reading 'more'... But I am also skimming more. . .reading faster, thinking less about what I am reading compared to how I used to read"
    "I am reading more cursory."
    ". . .going towards flicking through things and multitasking many things instead of committing to one thing."
    "'dark side' of e-books. . .I'm sacrificing ever more depth for breadth. . ."

    But those comments were not universal:

    "I read the same way -- I'm interested in the language and not the ink and paper. I read more because it's more convenient to have a large number of books with me always."

    "Ahh, now my experience is different. Perhaps that is because I have a Kindle, not an iPad - so there is less temptation to do other things?"

    "My reading experience hasn't really changed that much, I tend to just plough on through the book regardless of the format....until I have finished what I am reading."

    How widespread is any or all of that? We don't know. Since reading ebooks is relatively new for most people, we are seeing only the early stages of  changes that may occur in our reading habits. And what happens as people become more familiar with and skilled at new reading habits? Time will tell.

    So here's what I seem to be doing. I'm finding that I'm buying significantly more books, I'd estimate as much as 50% more. I'm also starting and dropping more books, which is completely new behavior for me (I used to have to finish a book before I could start another and I would always finish a book even if I didn't like it). Old habits seem to be gone.

    I too believe that I'm reading a lot more. And I seem to get more attached. So I find an author or series I like, I buy all of their books—right now— and then devour them in a weekend. Part of that has to do with availability on every device, so while I'm waiting in line at the airport I just keep reading on my iPhone. That sync function seems to allow for greater continuity of experience.

    What about you? Have you seen a change in your own behavior since you started reading ebooks? Please feel free to comment below and tell us what you're experiencing.

    Dominique

    Saturday, February 05, 2011

    In talking to ebook users, there seem to be some themes developing on this subject. I thought we'd get a quick read with a not very scientific poll and we could all discuss. So if you read ebooks, have you noticed changes in the way you read? Here's a quick poll. If you want to talk about what you're noticing, please add to the comments below.

    Thanks,

    Dominique

    Thursday, December 16, 2010

    So we had a good idea, perhaps you heard about it.

    December 16 is Jane Austen's birthday and we thought to celebrate by giving away free ebooks of a number of our bestselling Jane Austen-inspired works, plus special ebook editions of Austen's 6 novels including the famous Brock brothers' illustrations. The goal? A one-day only extravaganza giveaway just for her birthday, and we'd offer it everywhere ebooks are sold.

    One of the things we're trying to do on the Sourcebooks Next blog is talk about digital experiments from the point of view of those actually doing the work. So this is the short story of our Jane Austen promotion - and how it went wrong.

    Let me start by explaining what went wrong: simply put, on the morning of December 16, the books in the promotion were not free. And people noticed of course – everyone who'd so graciously spread the word of the promo was now justifiably taking us to task.

    So what happened? Here are the challenges we faced, whether we knew them or not (and in a number of cases, we just didn't know).

    Challenge #1: Not Enough Time
    For starters, we came up with the idea for the entire promotion on December 3, less than two weeks before the date. Within days we had announced the program internally, drafted our releases, and begun the gears turning. It turns out, though, that when we run promotions across multiple etailers, they need at least two weeks to ensure proper setup and we've found it's usually best to have about six to eight weeks of total processing time (and cushion) to ensure that all our external retailers can process the information and set it up to happen at the same time. Is digital retailing and cataloguing instantaneous? No, it's not.

    Challenge #2: Multiple External Systems
    Every one of our external vendors has a different system and schedule, so we work individually with the iBookstore, Google, Nook, Kindle, and everyone else. Each of our etailers has a different timeline and process for implementing promotions. We have a mix where we manually adjust prices at some accounts and we submit price changes via spreadsheet to other accounts. We generally cannot specify an exact time for these promotions to take effect, though most of our accounts let us specify the day. So it's more complicated than you (or I obviously) would expect.

    Challenge #3: "Available Everywhere Ebooks Are Sold"
    This would've all been easier if we'd just done something like offer the files on a designated landing page on our website, right? Certainly, it would've been easier for us, but what reader wants that kind of restriction? With some devices, we know you're restricted to where you can get your ebooks. So we were going for ultimate ease – no extra clicks, syncs, or heaven-knows-what workaround to try getting these ebooks on your device. Turns out that goal complicated things.

    Challenge #4: "One Day Only!"
    We've run countless ebook promotions with our ebook partners, but I don't think we'd ever tried a one-day-only promotion. Usually a special offer runs a week, two weeks, a month. A day? Didn't know if we could do it. And the answer is yes, many of our partners can run one-day offers. But not all of them. A few places can't or don't run one-day offers. Well, we didn't know that at the beginning of this process.

    Challenge #5: Territory Restrictions
    Here's one that frankly didn't occur to us. If you wanted to download an ebook from the promotion and you were in Australia, the UK, or elsewhere, could you get it? The answer was sometimes no. In some cases underlying territory restrictions on the publishing rights side may have gotten in the way, and in some cases the territory restrictions may have come from your account at an etailer. This too was a result of our attempt to have the books available with each retail partner. And what happened with those partners when some of the books were available but some were not? Well, that turned out to be new learning too.

    So what did we learn?
    Well, as with so many things, your results are often determined by communication, time, and raw effort. Our lack of time probably knocked down what we could accomplish with the other two. And I really have to give kudos to our etailing partners, many of whom scrambled to help us through these unforeseen problems. Indeed, as the morning of December 16 ticked along, the promotion went live at store after store. And we quickly chose to extend the promotion an extra day to make up for the awkward start.

    In close, we first and foremost offer our apologies – we tried, we screwed up, we're sorry. We hope those who wanted the books were able to get them, and that readers have been able to discover the work of these wonderful authors. We believe that all the stores now have them free except Sony (who will shortly). And we've added one more day as a Bonus Jane Austen Birthday Celebration!

    Feel free to tell us what you think. It's been an exciting day. And did I mention, we launched a new website (the new sourcebooks.com) and an incredible new initiative, Books Change Lives in conjunction with awesome partners Friday Reads and Shelf Unbound today too! Can't wait to see what tomorrow brings!

    Thanks to everyone who participated!

    Dominique

    Books Change Lives

    Wednesday, November 03, 2010

    The following article by Sourcebooks CEO Dominique Raccah ran in the November issue of RWR: Romance Writers Report, the official publication of the Romance Writers of America.

    On ebooks: A Publisher's View of the Digital Transformation
    Dominique Raccah
    Publisher and CEO, Sourcebooks

    I've been a book publisher for 23 years and today I believe we are at the transformation of the book. You may call it the tipping point or the point of no return but whatever you call it, this is that moment in the history of the book.

    The digital transformation is bringing with it an onslaught of content. In fact, more content was published last year than ever before. Bowker (the ISBN agency) reported that 2009 self-publishing or what they call the non-traditional book publishers drove total book production over 1,000,000 units for the first time-that's over a million books produced last year. Think about that as a reader, an author or a publisher.

    This deluge of books has, I believe, two big implications:
    1. It devalues content-there's too much of it and too little time. So there's increasing pressure to keep prices low and to give readers more for their money. Not necessarily a bad thing, by the way.
    2. It also creates an overwhelming sense of constantly being sold to, which, when combined with the fragmentation of media, makes marketing increasingly difficult. No one likes being sold to. And today there are fewer and fewer mass market media outlets.

    Because of a willingness to embrace new technology and go beyond traditional boundaries, romance readers know better than anyone the diversity of self-publishers, ebook-only publishers, fan fiction, and numerous other sources of reading material. So in this new landscape, how does an author get heard? How does a reader find the next book she's going to love?

    What Does a Publisher Do?

    For me, the real job of a publisher is many, many things, all of which center around the incredibly rewarding challenge of connecting authors and readers. In the end, whether physical or digital, the role of the publisher is to create an audience for the author. It's to bring the author and the book to market. It's never really been about printing. And that's really clear now, isn't it? It's always been about connecting authors and readers.

    And that's where your publisher comes in. Because the digital transformation hasn't created less work. It's created more. Let me explain.

    The Ugly Stuff

    During the Q&A at a recent writers conference panel, a writer stood up to extol the virtues of publishing his own ebooks to the world. Yet in the same breath he asked me, "could you help me fix my files and upload them for Amazon and Sony Reader so they read correctly?" It seems that ebook creation could use an "easy button." And paraphrasing Tim O'Reilly at Tools of Change earlier this year, that's one of the reasons there are publishers - to handle the ugly, not easy stuff.

    I have yet to meet the ebook customer who's never purchased a bad or at least slightly wonky ebook. Poor page flow...new typos that weren't in the printed book...dashes and apostrophes that now resemble weird Cyrillic symbols. Regrettably, I'm only scratching the surface of the problems that occur. And that's all assuming you had a good description and cover image to know what book you were buying in the first place. Were the ebook free, these might be problems you'd accept. But here's the thing - you paid for it, why should you accept less than you'd get in a printed version?

    As a publisher, I sure could use that easy button too. Up to now, it's been a commonly accepted notion that ebook sales were supplemental, additional, a nice added bonus using book files that have already been created for the print edition. But publishers deeply engaged in both print and ebook know differently. It is true that the book is the book - happily, its content doesn't have to be redeveloped. The starting point is still the final file we delivered to the printer in InDesign, PDF, or the like. But it turns out that starting point doesn't aim you toward one finish line, it's more like the center of a wheel, with spokes running off in multiple directions.

    Book/Content to Digital Content

    The Book Wheel
    Authors want their books available everywhere possible. We agree! If you're our author, we want your book available anytime, anywhere, any device, any format. If your local car wash sells romance novels (and we know a few that do) but they're not carrying your books, if I'm your publisher, I expect your call.

    The same goes for the evolving ebook market. If publishers and authors want the ebook available broadly - everywhere readers might buy their ebooks, rather than just one e-tailer - the publisher has to manage every one of those customers individually.

    That also means that we have to manage their technical requirements individually. With printed books, we ship the same product to different retailers. Barnes & Noble, Borders, Walmart, Target - everyone receives the same book. That's not the case with ebooks.

    Ebook retailers use different file formats. Despite attempts at standardization, the reality is that if you want ebooks available in as many retailers as possible, you will be creating a minimum of three different file types based off that one original file. The technically savvy among you who've worked with InDesign might say, "easy! I select ‘Export for Digital Editions' from the pulldown menu. Done!" And welcome to the world of broken files, widows, orphans, and stray Cyrillic symbols.

    At Sourcebooks, we've calculated that just the proper production of separate ebook formats requires an additional 13 steps in the workflow process, and that's before production, metadata, file upload, or customer-specific requirements. Add to that the quality assurance (QA) process which by itself is a separate 40-item checklist across a number of devices (with more coming).  And new stuff arises all the time because these are all new processes so you're constantly reviewing, changing, and updating all of these processes as devices, specs, etc. change.

    Every separate ebook file format runs through the technical steps to create the file properly, the proofing steps to ensure editorial integrity, and the quality control steps to recheck both of the above. We also run quality assurance for every device to which we output, so, for example, the same epub file requires separate quality assurance when output to separate devices (Nook, iPad, Kindle, Kobo, etc.). On the conservative end, that's a minimum of 10 e-tailers and devices, but most publishers are working with many more.

    In total, we've added 6 new workflow processes with 80+ steps to our existing processes, but here's the real rub - almost every one of those processes is manual. Just as "spell check" won't produce a cleanly written text (in lieu of writers, editors and proofreaders) automation and technology are aids but not an all-encompassing solution for ebook production (at least not at this time). You still need human beings to check it all.

    More interesting than the steps, though, are the skill-sets involved with executing those steps. Many of the editing steps fit within what production editors have traditionally done. The exact work has changed and the technology is significantly upgraded, but traditional publishing people can do the job.

    When it comes to the file preparation, output, and delivery, however, publishers have been investing capital in retraining existing production and design staff or simply hiring those skill-sets anew. Those skills are often more akin to computer programming and technical workflow management than they are to traditional publishing production skills, so the people and processes of the back engines at publishers are changing. At Sourcebooks, for example, our entire production process, including old-guard talents like copyediting, composition and design, actually report into our technology group. Making that change several years ago has helped drive us into the future at a much more rapid pace.

    Metadata Matters
    Metadata may have become my favorite word in recent years. In fact, it's been a big buzz word around a number of romance blogs as well. Most publishing companies of any reasonable size these days have a person or persons who are responsible for nothing but "metadata." So what is metadata? Metadata is all the information/content related to a specific book, from the title, author name, and ISBN all the way through the description, marketing copy, author bio, and images you see for a book on an e-tailer's site. Ebook buyers run into metadata problems all the time - it seems like it's the book you want, but there's no description, no cover image, and hmmm, I think that might not even be the right author.

    As with ebook production, managing metadata is challenging in part because of inconsistencies in how e-tailers receive, handle, and post it. Once again, most have unique requirements and needs. Everyone has a different approach and once again each must be handled individually by a human being in order for it to be done properly. And truth be told publishers can also be challenged by metadata. It's only recently that we've understood that book publishers (all us folks with English degrees) needed to actually be paying close attention to data. And in metadata, there are even industry-wide challenges. For example, we haven't as an industry agreed about how to identify ebooks and digital content, and specifically the role of the ISBN. But that's another story.

    If you remember only one thing from reading this article, let it be this: metadata really matters for ebooks. On the web, reading with your e-reader, on your phone or however/wherever you access ebooks, discovery is everything. Unlike in a physical bookstore where you can browse shelves and find that next perfect book that you want to read, how you find a book online (whether a physical book or a digital book) is all about metadata. So making sure all those descriptive pieces are correct and where they're supposed to be really matters.

    Keeping up with Technology
    So we want ebooks published, we want them published correctly, and we want to publish simultaneously with the physical book's release. As a publisher, what that means is that you need to add staff and time. Even publishers outsourcing the work add staff to manage the outsourcing, and either way it adds cost with a return on investment that's often unpredictable.

    Here's where things get extra challenging. There are new devices coming, and on our end it feels like it's every week. Many of them look kind of neat, they're loaded with potential, but they're untested. Moreover, the reporting mechanisms for views, uploads, and usage are usually poor - unlike in the physical business where we see sell-through data on at least a weekly basis, in ebooks we often can't quickly tell why, how, or sometimes even how many people are using a given format's ebook.

    And in fact, reporting for digital books is a big issue. For physical books, we get weekly reporting from every major customer, daily when we need it. Not so with digital books. And how we audit those digital book sales is something that publishers and retailers will need to create that's essential to the well being of authors and of the industry. But again, those are matters for another day.

    As of this writing, we have exactly three e-tailers from whom I can confidently expect enough sales to make creation of their ebook files an in-the-black activity. Everyone else falls into the "hopefully soon" zone. So in this area publishers are subsidizing technology's research and development costs.

    Distributor's Timeline

    As you can see from the timeline I've included, my belief is that as the market evolves we will be adding new ebook retailing partners, each undoubtedly with their own requirements. And I probably should note that while forcing publishers to fit proprietary systems is good for our technology partners because it provides them with a competitive advantage, it is not necessarily of value to the individual book publisher (or to the reader).

    From a business perspective, it's an unpleasant reality. It's also something on which you don't want to cut corners. If you want the job done right and you want things to work as well as possible for authors and readers, you have to invest in the future. As a friend of mine said to me: "When publishers don't invest in digital, that's dangerous...because what we need is continuity between the book and the future of the book."

    As a lifelong book lover, it's the most exciting and most rewarding investment we can make. What we're doing together is nothing less than creating the future of the book. At the end of the day, it's the promise of what's next that moves us all forward, and it is vital that publishers push innovation and create more immersive experiences on behalf of authors and readers.

    But what is also true is that we're experiencing an explosion in the amount of work we have to do. And that's just in the making of ebooks never mind the distribution, marketing, promotions and sales aspects. We're incurring more expense for less dollar revenue, and we're investing significantly more in the business at a time when our traditional brick and mortar business partners are challenged.

    So What Does a Publisher Do?

    What gets lost sometimes in the ebook discussion is an understanding of the role of a publisher. It goes without saying that a publisher does all the things discussed here, but the reality is that those are just a few of the things a publisher must do in order to help authors be successful. It's great that we make ebooks, but even in an emerging digital marketplace, merely making the ebooks isn't the core activity of any publisher. Labyrinthine as it might be, making the ebook isn't the hard part, nor is making them available at various e-tailers. The hard part, and indeed the ultimate job of any publisher, is helping the author find their readers, making those connections that enhance, enlighten and maybe even change people's lives.

    And today we are walking towards a future in which books can be with you always. And not just some books, but any book you choose... any time, any place, any device and any format. We are creating a completely new future for the book. And anything this important is going to be challenging, complex, maybe even difficult. Got it! Game ON!

    Tuesday, July 14, 2009

    Sourcebooks CEO Dominique Raccah is featured in a New York Times article discussing the release of e-books.
    http://www.nytimes.com/2009/07/15/books/15ebooks.html?_r=2&src=twt&twt=nytimesbooks

    The coverage follows the decision to delay the e-book release of Sourcebooks' fall juvenile fiction/middle grade release Bran Hambric: The Farfield Curse by Kaleb Nation announced this week via an article in The Wall Street Journal.

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