A Month of Exhausting Changes - Here's Your Daily Requirement of Publishing News

Looking to surf the publishing industry tidal wave these days? The business is moving at the speed of a molecule in a particle accelerator, and getting faster and more complicated by the nanosecond. These changes cover everything from who you sell your book to (if you sell it at all or rather pub it yourself!) to how to market it, to how it is distributed, what the laws are and how you can be read.

As an example of the sound and fury, I pulled together a “highlight reel” of digital industry news from a single month’s worth of Publishers Weekly issues. Grab a life preserver and hold on tight. This is going to be quite a ride!

October 17, 2011

PW reported on sales results from the 2nd quarter of the year. Shifts in “Channel Market Share (in dollars)” showed trade bookstore chains dropped to 27.3% share from 30.6%; non-traditional and independent bookstores’ sales rose by 1.7%, and .5%, respectively. No surprise, “e-commerce” market share rose to 37.0% from 27.6%, overtaking by 10 percentage points sales at large chains (though as with everything else, nothing is what it seems – the closing of Borders’ stores may well have upped the digital numbers). And shifts in market share in various formats (by unit) showed paperback down 7.3%, hardcover down 4.7% and digital up 10.5% for the quarter.

Further fueling the digital bonfires, Amazon announced the launch of its latest imprint, 47North, for sci-fi/fantasy/horror titles. 47 joins Montlake Romance and other genre imprints that put Amazon into direct competition with their most powerful adversaries, traditional publishers and the remaining big trade chain/publisher, B&N. This is the latest of the major changes in publishing that began with digital publishers challenging the traditional houses as e-book sales began to take off. After the trad pubs got their digital ducks in a row as another format for print titles, we saw them next begin to set up their own digital imprints to capitalize on the trends – what started with Harlequin and Carina Press was just the tip of the iceberg. We saw Avon Impulse launched this summer and . . .

October 24, 2011

. . . PW reported the launch of InterMix, the digital arm of Penguin imprint, Berkley/NAL. Like Avon Impulse, and Amazon’s Montlake, InterMix will produce genre fiction, including romance. For romance authors, this continues to expand the arena of possibilities for publication – while at the same time it creates a quagmire. Digital publishers with one set of royalty rules, different publication schedules and distribution networks, traditional publishers with their own structure for print and evolving business model for ebook formats of print titles, and now traditional publishers with all-digital arms – in many cases of they are not competitive (royalty rate wise) with the digital publishers, but still bear the cachet of being a “real” publisher, in some minds. How do you educate yourself about the pros, cons, dangers, and differences? Beyond the choice in publishers, what are the differences for you, as a career author? Is it about the money, the prestige, the exposure?

Then, there’s an entirely different arena that every author needs to know about, the . . .

October 31, 2011

. . .public library system. This issue of PW focused on the libraries, their influence with publishers, and their importance to authors. In tough times, library offerings can be very meaningful to authors when people can’t buy books, but they can borrow them and discover new authors. Did you know libraries spend billions on books? Authors can still be very successful by creating a new reader fan base – provided their books are on the “shelves”. Digital publishing hasn’t caught the library system off guard. They jumped immediately onto the bandwagon and quickly began offering digital books (yes, Virginia, there is an app for that!). But this is yet another rocky road to travel. How libraries will acquire e-books outside the traditional catalogue, the logistics of licensing digital copies, and the jockeying by publishers to get as big a piece of this new pie as they can. Macmillan, for example, playing greedy and cutting the number of “loans” allowed per digital title, ended up having their titles boycotted by libraries in both formats (and the trickle down impact of these negotiations hits the author head on). We are witnessing the rule book being re-written and until the ink is dry, we authors are all in the tumult together. From Patron Profiles, a new Library Journal quarterly survey & report, a telling figure: Library patrons read 47 books per year, compared to an average of 27 of all responders. Of this ongoing survey, says Library Journal Executive Editor, Rebecca Miller: “If they’ve (publishers) ever doubted the role of libraries in launching an author, this will set them straight. In turn, librarians get new insight into what their patrons want and need. And they are getting many of their hunches confirmed: that library users are avid readers, listeners and talkers, and that the library is an important part of a rich ecosystem of cultural exchange that is seamlessly connected to the marketplace.”

November 7, 2011

And speaking of being in the thick of things - Amazon was in the thick of a heated debate after the debut of their virtual “lending library”. Seems the titles being offered for free, to members who’ve paid a subscription fee to Amazon – with murky arrangements still unclear as to how, and how much, royalty is paid to the requisite publishers of said titles – were all offered up unknown to most of the publishers whose books are represented. (Another situation destined to impact the original creator of the product: You, the author.) As with so much of the digital arena, here’s another area, too, where evolving legal and ethical concerns impact authors. On top of the ever-shifting royalty rates (and differences between publisher-offered digital titles and those sold through third-party vendors), the conundrum of “out-of-print” and free downloads and piracy, though the thorny issue of Google “orphan” scanning is apparently now dead, there’s the issue of how and where your books are being made available by “legitimate” operations. Is your publisher aware? Are you aware? Are you being served? Or screwed?

And keep in mind that digital just keeps getting bigger. Witness this issues’ report of August Sales – Adult hard down 18.2%, Adult paper down 18.4%, Mass market down 29.6%. Electronic: UP 144.4%.

Over the past few months just about every aspect of the publishing industry has begun to morph. Successful, traditionally publisher authors breaking with their publishers, taking back their backlist rights and self-pubbing them, along with new titles, to great success. We’ve seen: ebook millionaire author Amanda Hocking go traditional (for huge advances) and option her self-pubbed series to one of Hollywood’s premier fantasy filmmakers; the first million digital copies sold authors, and perhaps most telling and disruptive, the first “big book” titles to sell more in digital than they did in print (after the industry got over the concern of simultaneous release cannibalization of the latter format by the former). Need more to convince you digital’s the word? Writers’ Digest already had self-pubbed (or “indie pubbed, the hip new term for independent authors) awards, but now PW has added the PW “Select” quarterly edition that (for a price) lists self-pubbed titles and provides extensive review of same. And while PW had hard, mass, trade and audio book sale bestseller lists, not yet jumping on the bandwagon as the NY Times did with its convoluted new bestseller lists (paper, digital, combined and more), will it be long in coming?

With the major players in the technological end providing better, faster, and cheaper gadgetry to read upon, digital is destined to keep growing. Industry insiders can only guess at how long digital will soar, when it will begin to level off – or if it will. With Amazon’s Kindle e-readers and tablets giving Apple’s iPad a run for the money, with Barnes & Noble and their latest releases – cheap dedicated e-readers along with a B&N tablet to compete with the big 2 (and don’t forget all the other technology entities working on their own gadgets and apps and software for readers and digital books) it certainly seems that there is one guarantee: If you, as an author, are not keeping abreast of this revolution, you will be left behind, left out of the running behind authors who have educated themselves to ensure their best sales, best venue, and their equitable treatment as a vital member of the business community that is publishing.

Kowabunga, dudes!

2010 Roundup

The year is winding down, it’s time for that annual activity known as “looking back at the year that was while we’re all waiting for the old mirror ball to drop in Times Square” so let’s see what we remember about the year in publishing:

Amazon. Nook. iPad. Kindle. Kindle. Kindle. iPad. Google. Barnes & Noble. Dorchester. Digital. digital, digital. Then there was Riggio vs. Burkle. RWA vs. Harlequin. BEA vs. Tools of Change. Wiley vs. Random House. Rowling vs. Meyer. Salinger vs. Colter. E-book pirates against everyone.

Need a bit more to refresh your memory?

I think it is safe to say the word of the year was “Digital”.

Contrary to the predictions of all and sundry, digital did not begin a slow, steady march toward the expected “10% of sales by 2012”. It put on its boogie shoes and made a mad dash for double digits, leaving folks in a state of shock and awe as month, after month, the e-book sales went through the roof. (as reported by PW, digital showed a 171.3% year-to-date increase in digital sales).

One reason? It was the year of the e-reader wars. Sony was already lagging far behind when the Kindle began really heating things up. Then came the newer Kindle. Then came the Nook. And the iPad. And Kobo. Now the playing field is rife with e-reader gadgets and dozens of apps and while Kindle still reigns supreme, the iPad is nipping at its heels. B&N’s bookstore and sales of its original Nook and now the hot and well-received Nook Color, have been managed beautifully and their strategy is paying off (unlike Borders whose dismal third quarter is raising new speculation that they risk “liquidity issues” [PW, 12/13/10], B&N’s 2010 third quarter sales were up 64.3% over last year, based in great part on sales of the Nooks, the success of their new B&N on-line store and digital book sales). Much-anticipated books like Dan Brown’s The Lost Symbol and Ken Follett’s monster Fall of Giants were reported to have sold more in digital copies than hard copies. Other bestsellers did similar business, lending weight to the publishing fears that digital was going to cannibalize print.

From our particular perspective, the recent NY Times article supported what we already knew – that romance has always, and continues, to drive digital sales. Something Ellora’s Cave, Samhain and others could have told NYT! The powerhouse Harlequin has the Carina e-book imprint and the print houses are all on board with simultaneous (or nearly) release of digital formats for all their romance titles, making it not too farfetched to expect similar supremacy, and an even more massive rise in sales for next year.

Several publishing heavyweights have predicted that by 2012 digital will represent 25% of all book sales. No wonder everyone in the industry is scrambling to adjust those business models!

Beyond the issue of sales, comes the other big one-two punch for authors when we’re talking e-books: Changes in contracts regarding the digital format release of books and how it compares to print release, particularly as it pertains to the definition of “out of print”. Agents and publishers are already haggling over how to tweak this definition. It will be a vital issue for authors who are looking to regain rights over titles so that they can utilize the digital format for re-issuing backlist titles. Definitions too favorable to the publishers may mean an author can expect to NEVER see rights to those titles revert. The second sticky wicket as far as authors are concerned is even more contentious: Royalties on e-books. Right now, they are all over the place but generally not favorable to authors. We get 40% from some digital publishers. 25% from print publishers (against an average of 4 or 5% for print format). Arguments that lower production costs to publishers mean they should be paying a higher royalty to authors have so far fallen on (apparently) deaf ears. And the pricing tug of war between sellers like Amazon and publishers, and among publishers themselves over pricing of digital versus print, adds another wrinkle to the problem. As advances shrink, print runs get smaller, shelf-space for midlist titles continues to decrease, and marketing funds are chopped, for authors not in the top tier, might this make digital a more appealing option, if only for the higher royalties available? Except for the bestselling authors who get the full-page print ads and TV interviews, the rest of the pack of authors are out scrambling for ways to market and sell themselves anyway, so the smaller print advances, against higher digital royalties, may well make it a more appealing option.

Beyond the digital news, sadly, the world of books lost some major authors, and, by extension, some much loved characters. Robert Parker died at his desk, leaving one last Spenser novel to enjoy. J. D. Salinger slipped away, but we’ll always have Holden to remember him by. Belva Plain, whose epic romantic novels swept us away died at 95. Genre authors Dick Francis, Philip Carlo and popular romance author Elizabeth Thornton passed away, as did Eric Segal, author of that iconic three-hanky book of 1970, Love Story.

In our little corner of the world, we saw RWA quietly back away from their hard-line stance against Harlequin. Further, they have made baby steps toward studying the issue of digital and how it affects – and stands to benefit – the 10,000+ RWA members. We found some new confidence in the Dorchester situation as the independent publisher changed commanders at the helm. As authors of genre-blended romance and romantic fiction that doesn’t quite fit in the “box”, we saw our stories being accepted in greater and greater numbers by the e-pubs who are willing to give us – and our readers – a chance to embrace more diversity. Erotic romance and its steamy brethren continued to surge ahead, and Amish and Mennonite romance became a “thing”, but the real story was the continued rise of YA paranormal. We saw Publisher’s Weekly begin a romance review section (what were they waiting for?) and there was increased coverage of our genre by the news media, as well as a starring role for romance novels in the film RED.

What will 2011 bring? Obviously – more discussion and debate. More jockeying for supremacy on line and in the hearts of readers. Perhaps a Google settlement, once and for all. There’s bound to be new readership figures, contract quagmires, store closings, higher digital sales, new apps (by the dozen), better and cheaper e-readers. New strategies by the old-timers, and more innovation by the new kids on the block. There’s sure to be a “surprise” bestselling hit that makes a new star out of someone (perhaps even a digital-only novel!), and no doubt we will see the slew of books optioned for films resulting in yet another blockbuster motion picture.

What is the one thing that we can all be sure of?

People will keep reading.

So keep writing.

Here’s to success in 2011.