With readers increasingly looking to the web and digital media for information search, learning and content needs, publishers have drastically expanded their business models to adapt to new and emerging trends, yet without losing sight of their core competency.

An interesting phenomena is the role social networks play in the publishing industry.

I would say that it impacts the industry in two major spheres

a) Sales

b) Content

Let me delve into this a little further;

Everyone has an opinion, and in the past, well that opinion was just an opinion. But today, opinions can be shared, heard and actually listened to. People share opinions about toothpaste, chocolate and well, most definitely the books they read.

Sales

A 16 year old cheerleader sitting in Austin could well be influencing your sales through her twitter profile, her facebook account or even her shared shelfari/ Amazon reading lists. That famous Harvard professor has the power to influence more than just the students he has spoken to by endorsing a particular book. Your author now has an even more powerful sales strategy that physical book signings in form of a fan page or a blog, managed from the comfort of his writing desk, saving millions of dollars that would otherwise be spent on a book tour.

Viral marketing tools like widgets that can be spread all over the web either by you, by your fans and readers or by authors enable readers to preview a sample of the book, search within the book, view the table of content or be directed to the e-commerce or retail site.

Today publishers are seeing the shift from a traditional B2B business model, where the sales cycle was incomplete without distributors and retailers. Without them, sales were more or less: nil. Publishers are surpassing these middlemen and have the option of selling directly to their readers. Today, it is relatively simple for publishers to create their own delivery platform or end user portal from where they can sell books directly to consumers. This enables them to reach readers spread over vast geographies with minimal investment. It also enables them to study reader behavior and preferences, that enables them to offer readers content chunks at lower prices, rather than the entire book which may not be if use to the reader. This could in way save them from piracy practices such as copying of books or the used textbooks market.

Content

Today readers are influencing and creating content in more ways that one. Not only do they call the shots when it comes to exactly which part of the content they prefer, social networking allows them to share opinions with readers who have the similar interests and expertise. Professors, schools and institutions now have the option of sampling content online. Social bookmarking too gives your content more visibility

Publishers now share a one on one relationship with readers and they have the option of ready reporting tools which tells them everything, from the number of pages read, time spent on each page, number of readers of a particular book old through an institution, notes made, recommendations and opinions shared, ancillary content used. This enables them to build content that is specific to user needs, and gives users the option of buying only that part of the content that they require.

In the education and professional learning sectors, too, social networking plays a vital role in creation of content. Readers of a particular book/topic are able to network with others of similar interests and expertise which allows the learning  experience to be enhanced by asking of questions, sharing of experiences and discussions.

Social networking in business has seen tremendous growth in the past few years, and its full potential, well, we’ll have to wait and watch where it takes us!

source: www.businessinsider.com

The iPad hit homes in the beginning of April and users have been going berserk playing with their sleek and shiny new toy. One single beautiful looking machine, gives them a host of entertainment options, starting from online web surfing, gaming, and most importantly reading and information consumption.

With the launch of the iPad, reader expectations seem to have skyrocketed. Readers now expect so much more from a book than just plain text. The iPad changes the way in which content is created and consumed owing to its video streaming, audio and interactive media capabilities.

The publishing industry for one is abuzz with predictions, hopes and, ambiguity. Many wonder, if the iPad will indeed define the future of books. Will print books eventually die out? Will publishing houses perish or evolve, the questions are endless and the predications aboundless.

Opinions are varied. Quoting Mr. Ulrich Hegge, Managing Director Burda Media Innovation Lab,

“We have to take readers’ view and expectations in regard to start telling stories in a way that suits the new possibilities. We have that potential and we already proved that in the printed publications department. We believe a new era has begun.”

Jim McGregor, who is Chief Technology Strategist at In-Stat believes the significance of the iPad for publishers will be much smaller than some seem to hope for:

“Although the iPad and other tablets are being positioned as next generation e-readers, their value really extends to more multimedia rich content. This may be a boost for audio and video, but it is unlikely to change the fate of the publishing industry which has to adapt to a digital world driven by the Internet. Devices like the iPad will probably accelerate the move to digital content, especially in areas that are traditionally tied to printed material, such as education.”

While both industry leaders question the extent of impact that the iPad will have on publishing they are the first to admit that the iPad cannot be ignored. They both endorse that publishers have recognized the need to adapt to the digitally skewed changes engulfing the industry. Many publishers are migrating towards the ePub format, thus making their content iPad ready. Yet, despite uncertainties, the iPad does open up a market of over 10 million users that publishers can target opening up a whole new business model that could be centered on selling through apps.

Publishers such as Condé Nast announced they were working on an iPad version even before the device became official, and according to a leaked memo will have GQ ready for the April launch, followed soon afterwards by Wired, Vanity Fair, New York and Glamour magazines.

Some publishers have even released demos of their iPad versions already, including the New York Times and Sports Illustrated, while Children’s novels such as the Toy Story and Alice in Wonderland are already on the iPad. In approximately two months, school textbooks will be available on the iPad in the form of highly interactive applications. TSTC Publishing is adding the first e-books to its inventory.

Yet questions still loom, will the iPad really transform publishing – boosting circulation numbers and opening up new audiences? Will selling content through apps and the iPad actually bring in additional revenues from end users?

With over 700000 introductory versions of the iPad already in homes, and thousands of people still awaiting their orders, one thing is clear - the iPad is here to stay. The rising number of apps also suggests that users are enthusiastic about milking this device to its full potential. iPad competitors such as Germany’s WePad, the Google tablet and more such devices, prove that this trend is here to stay, and publishers now have unlimited possibilities when it comes to creating interactive content.

While a huge problem is the investment required to optimize this platform, the sooner publishers realize the need to convert to ePub, (which is emerging as the industry standard, and whose open source features make it the ideal platform, accepted by a wide range of devices) the more return on investment in the long run. With the popularizing and acceptance of the value of e-based consumption of content, it is likely that content publishers will actually leverage interactive media to the fullest. Dynamic links and multimedia content will readily be embraced and supported by those that provide content.

Brief history

In September 2007, ePub became an official standard of the International Digital Publishing Forum (IDPF), superseding the older Open eBook standard. Since then ePub has gained widespread acceptance, starting with Project Gutenberg endorsing it as a preferred standard owing to its free and open source features.

ePub: Catching on

The main reason why ePub seems to have caught on as the most favored format is that this open book format is not owned or controlled by any one company or device as is the case with the Amazon Kindle’s AZW format.  This enables scope for critique and improvement as is the present case where IDPF has invited discussions on how to improve ePub standards so that it is more holistic and suits the needs of, and leverages the capabilities of newer devices such as the iPad.

Not only has ePub been built on existing standards, but ePub specifications or standards are free to be downloaded by anyone with out any licensing costs or restrictions. ePub file can easily be examined by simply renaming it to a .zip file and opening it with any tool or OS that supports the zip archive format (e.g. Windows XP and above, Winzip, gzip, 7-zip, etc).

A typical ePub file contains the following,

• Metadata, an xml file containing information about the ebook, such as the author, publisher, title and a list of all the other files in this ePub file
• A table of contents for the ebook
• One or more html pages, containing the ebook text
• Any images used in the ebook, such as a cover image, and images that accompany the text, stored in standard formats such as jpeg ePub uses the same standard file formats such as xml, html, jpeg that are used to build the web.

This has one indisputable benefit. Since every modern OS or programming language supports these formats, ePub files can be read on any system with an OS. The technology required to create an ePub reader application is the same as that required to display a web page and any modern computing device, be it a PC or a mobile device is compatible to this technology. Another advantage of ePub is that all text is represented in form of text files that can be easily opened with a text editor, viewed or edited. Also, the ePub format is DRM-free, which means that anyone purchasing an ePub file can be certain that they have full access to the content, and are free to convert it to any other format, transfer and display it on any device, print it and importantly in this case, convert it to speech. Yet, ePub does provide the option of adding DRM as an additional layer, if a publisher so chooses to protect the rights of his ebook/content.

Thus, the advantages of ePub format can be summarized as below:

• Compatible with almost any modern OS based device
• Can be created by common softwares such as InDesign and Quark
• Publishers can reduce the cost of conversion by only creating a single ePub file for multiple distribution channels
• Content can be sold from multiple outlets
• Compatible with most mobile devices including the coveted iPad

ePub Patrons

Currently, the ePub format can be viewed by Calibre, Adobe Digital Editions (ADE), Stanza, Aldiko, Sony reader, iPad, iPhone. Google too has 500,000 public domain titles in the ePub format. Many countries such China, Taiwan, Germany and France have chosen to use ePub as their primary electronic book format.

One point worth mulling over is the future of ePub. What could the format finally develop into?  Will it see more animation options, resizing, cross referencing, linked table of contents and footnotes?

The opportunity is endless. The future of ebooks could well be written by the ePub standard and converting to ePub is an investment in the future.

The electronic age has changed the way we explore, access and consume information. Today much of our information needs are fulfilled through the internet, for absolutely no cost. Much of professional and scholarly research is done through data collected from the internet, and through networking with other researchers. Yet, many argue about the perils of free content, as well the authenticity of content. The magnitude of free information, even throws up the argument of the need for books, or data that has a price tag attached to it. What is it about some content, that you can charge a premium for it? How do you get people to buy content rather than rely on free information sought through the internet?

Readers are given the option to search within the book and ensure that they are getting exactly what they are paying for. Up-to date research reports and full volumes of encyclopedias usually only allow for free book previews, through online readers. Access of an entire volume costs the reader, and if the preview shows content that is worthy, readers are indeed wiling to pay a price for it. The new system that is emerging is of “mixed bundling” - offering a product and its components in different permutations to satisfy different consumer needs. In a manner of speaking, your content is no longer just a product, i.e. a book. Today readers are demanding that there are no restrictions on structure and in a way turning your traditional ‘product’ into a service that requires more than just the physical version. Consumers are demanding specifics, and well, today they are getting what they want. Today, content providers give their readers content in the way they wish to consume it. They give them the option of buying part of the content, add supplementary material to the content, allow them to rent content and many more such options. Thus, to some extent curbing the attitude of, “why should I have to pay for something I don’t need/can get free”.

In a way, content, especially e-content, is looked on as an experience. Today, readers want to envision rather than imagine, they want to participate rather than watch. eBooks give them this experience. You can read an ebook, add notes, share notes with friends, discuss with experts, watch videos, take tests, play games, listen to audio and more, with the added advantage of consuming this content, anywhere and at anytime.

The trend of cloud computing, or saving of data on the cloud/internet, enables portability of content from device to device which represents the future of media and content consumption. The device market is constantly evolving, due to changing consumer preferences and the developing electronics landscape. Device manufacturers, marketers and publishers alike are challenged to make content available where, when and how their readers want to consume it—and that is anywhere, anytime and on any device. Multiple devices, numerous access modes and shifting consumer preferences mean, marketers and content owners cannot afford to choose any one single method. Until formats and device platforms get more established, multi-mode, multi-device support remains a must. So the overall expectations have increased and is more about convenience of accessing the content, choice of formats and price. In a nutshell, it’s about enhanced reading experience, and accessibility to needed resources.

The question of revenues for publishing is on top of everyone’s mind. In studying industry trends, and knowing that readers are not willing to pay for content that they can already access for free, the problem needs to be looked at from another angle. The real opportunity could lie in what we have been calling ‘the reading experience’. Publishers need to take on the role of service providers rather than sellers of a product. Real opportunity could lie in options such as is in selling access to repositories of content or in a constant stream of value adds, such as updates, buying in chunks, renting, links, audio, video, networking, gaming, sharing, participation and engagement and giving readers what they are looking for.

It’s been a month since the conference, and I still haven’t gotten over the whole “TOC experience”. My mind keeps going back to all the discussions we had, and I find myself constantly pondering over opinions expressed, predictions made and in general, visualizing what the outlook of our industry might look like few years down the line.

Having worked closely with the publishing industry for over a decade, it was both inspiring and exciting to see publishers from all around the world come together with the realization that change is here to stay. Encouraging, was to note how earnest publishers were towards understanding this change and the focus they have towards preparing themselves for the future.

In this blog, I would like to share a few anecdotes, and what I thought was especially interesting and defining for the future of our industry.  For the past ten years we have studied the dynamics of the publishing industry, its trends, changing reader habits and one session that struck an instant chord with me was by Peter Collingridge from Enhanced Editions. He describes the work he does as “tailor-making books for the iPhone, and the challenge that they set, on how to translate a book to a device in a way that creates a valuable new user experience and adds to the content. He highlighted the fact that the app was being offered as an ‘optional experience’. To quote him, “You don’t have to listen, or read and listen, or watch. Its how the reader wants it to be. We can build stuff around it and online – but the reading should be left between the reader and the content. The app is all about engagement with the content.” The key to their success here is their understanding and empathy towards the reader. His insight into reader behavior is an important lesson for all of us in the content business. The sure win sales strategy is to give your readers the content that they want.

Over the past couple of years we have seen the lightening quick pace at which the industry is evolving and this experience has helped us build innovative solutions such as reporting and data analytical tools that are helping publishers the world over take their publishing to a whole new level. As Tim O’Reilly mentioned in his session, today publishers have a better understanding of their markets with the help of data analytical tools and are building direct relationships with their readers. These tools enable publishers to put reader habits under the microscope, and use this information to tailor make content to suit the readers need. This and the ease through which they can convert their content into digital formats and deliver it through custom built platforms enable them to cash in on the opportunities that the web offers.

This year at TOC, I too had the opportunity to share my thoughts on ‘The new dynamics of publishing’ at the keynote and at a focused session on the ‘Next generation of ebooks’. Publishing has evolved, and now more than ever publishers need to focus on their core area of expertise - Content. Yet, understanding and exploiting the advancements in technology and reader demand and consumption habits could very well be the key factor that defines success. My belief is that in choosing the right strategic partners, publishers can remain focused on their core business, while still being able to implement the right technological strategies that keeps them at the top of their game.

Earlier this month, Apple did something which by now they seem to have mastered - launch yet another killer product that has left everyone spellbound.  Even those who are picking holes in the product can’t stop talking about it.  Because, notwithstanding all the shortcomings (Read, no flash, just one USB port, 4:3 screen display, etc.), everybody knows that it will sell in millions.

For those in the publishing industry the launch of iPad meant a little more. By launching a device that supports rich multimedia, eBooks, eBook Reader, etc. backed by a full fledged iBookstore, Apple has sounded their arrival into the eBook market in style.  While the Amazons, Barnes & Nobles, Sony, etc will go in to a huddle in their respective boardrooms to devise a counter strategy, the Publishing community has much to cheer about.  So, what could be the single most talked about topic in the publisher organization.  May be figuring out how to get their content ready for the iPad.

Isn’t that quite obvious.  Here is a device that packs eBook functionality unlike any of its predecessors.  The leap from e-ink to full color graphics, and complete multimedia support opens exciting opportunities for the publishers. It is said that the iPad supports epub format, and has proprietary DRM in the mix to allay any copyright worries for the publisher.  Publishers that have already have an epub strategy will probably find it easier to capitalize than those that do not.  But, they still have the challenge of devising a strategy for the iPad specifically as their earlier strategies were probably built around the standard devices like the Kindle, Sony Reader, etc. In other words, having their content in epub format is just not going to be enough for publishers; not if they want to harness the power and performance of iPad optimally.

Let’s just give it some thought.  STM Publishers can now have eBooks that are rich in multimedia illustrations, and exciting ancillary content built around their existing content that makes the learning experience more interesting and absorbing.  K-12 publishers can build Talking eBooks, animated storybooks, etc. that redefines the way a child interacts and relates to books and characters in books. There are many that agree that the iPad could be the ultimate plaything for a child. A child likes to touch and feel, hold, push buttons, etc, and the iPad allows all this and more, making a very strong case for more and more interactive content for children. WARREN BUCKLEITNER, in his blog on NY Times, stresses that this is a new outlet for storytellers.  And, publishers are storytellers, and the iPad has just made it more exciting.

I’ve been thinking about last month’s New York Times story, Textbook Publisher to Rent to College Students, and the subsequent NYTimes blog post, A Cheaper Way to Get Textbooks: Rent and I’m a bit confused.

I’m not surprised that companies like Cengage, Chegg or Follett need to take these steps in the hopes of preserving the dwindling revenues that the entire book business is seeing. But I’m surprised that the Times saw fit to stand behind these efforts so blindly in light of the facts.

The basis of this story is that companies are adopting textbook rentals to counter the online sales of used textbooks to outfits like Amazon.com.  They believe this approach will increase profitability because they won’t have to go for additional print runs.

Even if this were a solid deal for students - which most of the blog comments seem to indicate otherwise – the economics just don’t add up. The companies still have to manage lending centers; replace damaged, lost or destroyed books, and they are still limited to a certain geographical area or be subject to large shipping fees.

If we accept that e-books will be the norm sooner or later, this new business can hardly be seen as anything more than a last gasp for the physical textbook business.  (For those doubters still among you, I am reminded of the music industry execs that couldn’t be convinced that digital music would ever replace CDs).

When e-books become the norm:

1. Books become available to all just with an Internet connection.
2. They can sell it at a much lesser price compared to their print versions.
3. They can rent it for a period of time.
4. They can sell content in chunks.
5. They can rent content in chunks.
6. Publishers do not have to worry about the used book market.

I don’t know…maybe I’m over thinking this one.

A million dollar question, quite literally. Ebooks that are out there now, are priced anywhere from a couple of dollars to a few thousands, the most common price point being $9.99 of the Amazon Kindle. Amazon, in its model, allows publishers to set a selling price and reconciles 30% of that amount, irrespective of the selling price being at $9.99. Having more or less taken up a loss-leader position in this for all popular titles,  their model focuses on gaining market share.  They do charge higher for the less popular and niche books. They are making sure that people get habituated to buying and reading ebooks, though their reconciliation to the publisher may be higher than the selling price of the book – at least in some cases (http://www.teleread.org/2009/05/13/amazon-losing-money-on-999-e-books/).

One other interesting case study to look at would be that of O’Reilly, probably one of the most innovative and early-adopting publisher in the market today. They offer a deeply discounted model of selling most books in DRM-free ePub and PDF versions at $4.99. They have experimented constantly and arrived at a model that covers the marginal cost of an electronic version. The fixed costs still remain in getting a book out. The marginal cost of going from print to electronic is what O’Reilly is focusing on. They are, as always, experimenting with different models and trying to figure out the expectations of the market. In fact, today they sell more ebooks than print books from their own site! (http://radar.oreilly.com/2009/02/state-of-the-computer-book-mar-24.html)

The recent boycott of books on the Kindle, priced over $9.99, provides an interesting comparison on how much the market expects an electronic edition of a book to be priced at.

• Are people right in demanding that all books be sold at the same price, irrespective of the nature of the book?
• Can a different model be explored that offers better choice than a high priced ebook?

“I’d charge fifty cents for an online rental. It would immediately hammer the rental stores (which is fine with Hollywood) and DVD replicators (also fine with Hollywood) but would instantly teach people a new habit. Then, once the new habit is set and you’ve earned permission, sure, charge more for new movies and for blockbusters. 300 million movie theatres, all selling tickets every single night–you don’t need to charge $10 a seat when you have access to everyone.

It’s important to charge something, because the act of paying fundamentally changes the dynamics of the relationship. The question is this: at the start, is your goal to maximize profit or to build a platform that scales? The fact is that the market is too small right now for the price to matter. What matters is whether you can build an audience that is in the habit of paying you, an audience that wants to hear from you, an audience that you can build a business on.

At fifty cents a rental, all desire for piracy goes out the window, replaced by convenience, ease of use and a clear conscience. More important, entire new services show up, habits are built and the studios end up with a direct relationship with consumers who want to hear from them. If they don’t get greedy at the start.”

(http://sethgodin.typepad.com/seths_blog/2008/01/how-much-for-di.html)

This was written almost 17 months ago by Seth Godin when he was pondering over on how much movie studios should be charging for digital downloads. Probably, the answers lie in Seth’s quote above. Micro-payments and micro-subscriptions, broadly put as rentals, is one model that has rarely been explored in electronic books.

• Can publishers look at a market segment that is willing to pay a small price for a limited time access to content?

“But isn’t this very similar to our real-world or electronic libraries?” - one might ask. It is, to some extent. Yet, it is not a membership-based cover fee to access multiple titles. That particular model already exists for electronic book sales to institutions.

For single users, though, one can look at a model where access is limited to a particular title of choice, for a restricted period of time and has a small attached fee. This model will also be easier to reconcile in terms of royalties, compared to electronic library models, as the payments are for specific titles. A sale can be easily broken down into the royalty percentages and reconciled with authors and content creators.

The market segment that we are talking about here, would probably not buy the print book at all. They are on the fringe. They are consumers, but not buyers, of the print book. This segment of the market is price sensitive and will not buy beyond a price point. However, they will buy in great numbers - if the price is right. There seems to be a good elasticity at lower prices for ebooks. The consumer wants access to read, if it is legal and within their expected price-point - they will go for it. Otherwise, they will look at alternatives. If the price is too high for them, they will explore an alternative Wiki text or risk pirated sources of access on torrents or YouTube-like user uploaded websites for books. We are talking about:

• Students who refrain from buying that ‘important, but non-prescribed book’ needed for their examination.
• Researchers who would rather refer at a library than buy books required to prepare a report.
• Professionals who would not buy all the books that cover a topic.
• Readers who want to check out the book by an author before making the buy decision.

If you look at it closely, everyone benefits from this ‘fringe market’ sale; from the publishers to the authors and more importantly the readers. Will this model work for all segments in publishing? Maybe not. Will it work for popular paperbacks? Again, maybe not. However some early experiments by Harper Collins and Random House indicates that giving easy access to books in the electronic format does have a positive effect on people buying the print edition. (http://www.idpf.org/events/presentations/digitalbook08/lHulse08.pdf

The micro-subscription models will encourage people to explore more books and may result in driving more print sales. What it does warrant though, is experimenting. With technology and tools available now to actively experiment, it is just a question of trying.

Some more links on this topic..

• Joe Wikert’s Publishing 2020 Blog
• Lance Ulanoff’s take on the PC Mag
• Glenn’s take on the BenBella Blog

The current economic downturn poses tough challenges for the publishing industry. Many reactions have started coming in: staff cuts, slashed budgets, web-only deliveries (see Christian Science Monitor and PC Mag) and a host of fixes that will hopefully provide answers for publishers to tide over the bad times. All this has led to a huge amount of concern on what will work and how one can sustain and innovate in the current environment.

iPublishCentral answers some of these challenges by focusing totally on the need for a low-cost and low-risk solution that reduces the cost for publishers to market their content. Here are the top reasons why iPublishCentral should be looked at by publishers and marketing managers when planning their marketing strategies for the current environment.

1. Our Software as a Service (SaaS) model ensures that capital expenditure plans are converted to revenue expenditure - taking away the need for up-front investments in installations, operations, support, maintenance and training. A Level 4 SaaS architecture and scalable infrastructure takes care of operational needs like software upgrades, server space and bandwidth usage.
2. iPublishCentral offers an entirely self-service workflow for creating Book Widgets and page previews (as ViewInside) to market titles online. Our fully automated content workflow and ready-to-go functionality offer zero-conversion costs and quicker time to market.
3. Our pricing model starts at free, through an advertisement/affiliate driven Basic model. In our Pro model, publishers only pay for what they use, on a per-title per-month pricing model.
4. Publishers can switch between the free and paid model as and when they choose for individual titles. This ensures absolute control on the spend with no pre-commitments on the number of titles that a publisher needs to put on iPublishCentral.
5. As there are no hidden costs, publishers need to only commit for a specific, all inclusive and defined monthly charge that is declared up-front. Publisher can also pull-out titles anytime they want without worrying about complex lock-in periods and contracts.