Publetariat

This post, from Mike Shatzkin, originally appeared on the Idea Logical Blog on 7/25/10.

Apologies in advance for a much-longer-than-usual post.

It is not like the publishers haven’t seen the ebook royalty fight coming. On a panel he and I were on together in March of 2009, John Sargent, the Chairman and CEO of Macmillan, identified ebook margins as the critical issue for publishers going forward. Even though ebook sales at that point were financially insignificant and the growth surge that we’ve seen in the past 15 months wasn’t yet evident, Sargent expressed the belief that ebooks would be the future and that publishers had to be diligent to preserve their margins in the digital environment.

There are three moving parts to the publishers’ margin equation for ebooks.

The one that I think Sargent was thinking most of at that time is ebook pricing. If “misguided” publishers or market forces drive down prices a great deal, that could threaten publishers as sales migrate to digital.

The second one, which was then and remains today a focus of publishers, is the potential consolidation of sales channels so that power moves from a multitude of publishers to a small number of, or perhaps a single dominant, point of contact with the customer. Until the Nook came along from B&N last winter and the iPad from Apple in the spring, Amazon and Kindle looked dangerously close to being able to dictate both pricing and margin in the ebook supply chain.

And third, of course, is the amount of the consumer spend that is taken by the authors: the royalty.

The ebook pricing and channel consolidation issues have been front and center for the past year, ever since Dominique Raccah of Sourcebooks put “windowing”, which had been tried before for ebooks, in the spotlight as her solution to the perceived damage deeply discounted ebooks could do to print book sales, particularly of the hardcover edition. After she announced that she was holding back the ebook for Bran Hambric, similar announcements came from other publishing houses. At that time, only a year ago, Amazon was the dominant ebook vendor with Kindle sales amounting to 80% or more of the ebook sales for narrative trade books.

But the introduction of Barnes & Noble’s Nook device began to eat into Amazon’s hegemony last winter as 700 B&N stores started pushing a Kindle-type experience on their millions of customers. Then, in April, Apple introduced the iPad and changed the game two ways.

First of all, their tablet computing device, which can serve as a larger-than-a-cellphone screen for an ebook reader, started adding tens of thousands of new device-equipped potential book customers every day!

But along with the device competition, the iPad and its iBooks platform added a new business model called Agency. And, under Agency, the pricing of ebooks at retail theoretically becomes standardized across the web, not subject to discounting by individual retailers. This visibly upset Amazon, which appeared to pick a fight with Macmillan over the terms. It looked to those of us with no inside knowledge of their conversations to be an attempt to bully publishers to give up the Agency idea. In retrospect, this was perhaps a bad fight to have picked. Amazon’s threat was to stop selling the print editions of titles from those publishers who sold ebooks on Agency terms. Since five of the top six publishers were moving in that direction, and none of them blinked, Amazon had to, in their own words, “capitulate.” (On the other hand, we are not aware of any other publisher, beyond the Big Five, to whom they also capitulated, so the final score on this fight isn’t in yet.)

So it would seem that the big publishers have solidified two of the major components of their ebook margin. With their help, consolidation in the ebook channel has been reversed and they’ve taken critical steps to control prices to the consumer, while ebook sales have continued to rise at an accelerating pace.

But there remains this tricky question of royalties.

Read the rest of the post on the Idea Logical Blog.

In a previous post I wrote about a review I requested from Charlie Courtland for A Promise Is A Promise from my Nurse Hal series. Charlie is the author of Dandelions In The Garden and has a book review website http://www.bitsybling.wordpress.com. I appreciated her good review and the fact that she put it on Amazon and www.goodreads.com where it could be seen by people.

According to Steve Weber in his book Plug Your Book, Amazon has some regular customers that offer reviews on every book they read. One negative view can hurt sales. He says keep asking for reviews. The more often your book is reviewed, the likely a minority opinion can dominate. Numerous authentic reviews lessen the chance that a single review can overtake and monopolize the Spotlight position.

Think about it. Reviewers have likes and dislikes when they pick a book to read. That may play a factor in their review. Plus, their intention is to review the book so they’re naturally watching as they read for what they want to say. What would be great is to see more positive customer reviews on Amazon, but how do we go about getting buyers to respond. I want to know what people who buy my books think of them. Most book readers aren’t reading a book to find mistakes but to be entertained. Those are the buyers most likely to leave a good review. Anyone that has bought an item from Amazon knows if you don’t leave a review in a certain amount of time, you get an emailed reminder. That means the book buyers don’t just forget. It’s always possible they didn’t like some of the books well enough to make a positive review so they decided not to make one at all.

As far as my books are concerned, I’ve gotten good reviews from ebay buyers and private sales. These are the buyers I was referring to that read my books for the entertainment value. I always make a point to ask buyers for a review so I’d know how they liked my books. Most of them are glad to comply and all the reviews have been good. I know they aren’t just saying that. They like my books well enough that they want to buy another one.

I thought about how well my ebay buyers respond, and I had to wonder what was the difference between ebay and Amazon buyers. Maybe it has something to do with the reviews left by the experienced reviewers. Most book buyers couldn’t measure up to those detailed critiqued reviews with one of their own. Maybe buyers don’t know how to write a review they think would be all right. I can tell you from first hand experience I’m not good at giving a constructive review. When I was active on http://www.authonony.com I submitted Christmas Traditions and A Promise Is A Promise to get the opinion of other authors. Their reviews and thoughts were very complimentary and detailed, but I found it hard to review their books as well as they did mine. What I know for sure is I either like the books or don’t, and that’s based on the genre and the story in the books I like to read.

I write books that I hope are stories people will like to read. These books make you laugh out loud sometimes, describe characters that remind you of someone, and you miss them when the story ends. Those are not my words but words my customers have used to describe my books. So why is it so much easier to get ebay and private customers to give me positive reviews than it is to get them on Amazon?

Perhaps, there is another simple answer besides knowing how to write a review. On Amazon, customers don’t have contact with the author of the books. Sales are impersonal business transactions. On ebay and private sales I can reach out to customers to add the personal touches to my sales so they get to know me. I sign my books for buyers. I have their email addresses so I can let them know the book had been sent so they can watch for it, and I tell them I appreciate their business. I ask for a review, if they have time to contact me, after they read the books. I think they respond back, because I reached out to them. Many of these buyers have become my email pen pals. They email me to find out how soon another book will be published. I have email addresses on a mailing list so I can notify buyers when a book is for sale. I’ve never been a fan of mass emails. That to me is very impersonal. I know the process takes time, but I email each buyer one at a time. Besides, that way I can visit with many of them. Some of these buyers email me once in awhile to just to say hi. Makes me feel blessed to get to know so many wonderful people in the United States.

With this all in mind, I started two new discussions under Christmas Traditions in Kindle. The first one explains that I have decided to put my books on Kindle and hope the buyers like this book. There’s a short explanation about the use of Old English pronouns, because my book is a historical fiction. The second discussion is Reviews Needed For Christmas Traditions. Since I have sold many of these books on Amazon, I asked if the buyers could give my book a review. I explained I didn’t want or need a detailed review like the experienced reviewers give. It would be great if they could click one to five on the stars and just say they liked the book. That would be enough to encourage other buyers to give my books a try. Now I’m hoping that the customers find the discussion and read it.

I added three sample reviews for Christmas Traditions-An Amish Love Story from other buyers to give them an idea what I’m looking for.

I had a hard time putting the story down. It has some interesting twists and turns as we follow the customs and false pride of the characters.

You are so descriptive. I felt the little thread of hope Margaret felt, but she didn’t see.

I enjoyed this book very much. You sure made the characters come to life and what a sweet love story you have told. I wondered if you may be thinking about writing a sequel to this book.

What more could any author ask for when the book is already published and in the bookstores. By then it’s too late for a detailed, constructive review if it’s not positive. Reviews as simple as the reviews above show other buyers the books are worth reading for the entertainment value of each one. So book customers on Amazon or other sites speak up and let your favorite authors know how you feel about their work. Your opinion not only counts with other consumers, but it matters to the author.

I’ve already had my say in the three posts linked [at the end of this post] on last week’s big news, but there are plenty of other intelligent points of view to choose from. Two of the smartest people with fresh things to say about changes in the world of books and publishing are author J.A. Konrath and publishing industry consultant Mike Shatzkin. I don’t agree with them on every word, but their most recent posts on this topic are well worth the time it takes to read them if you have an interest in these matters.

• Konrath’s is entitled Konrath on Wylie
• Shatzkin’s considerably longer inquiry is called It isn’t wise to draw lines in the sand that ultimately can’t be defended

Wylie is an agent. His job is to sell his clients’ work. If he is also the publisher of his clients, there is a HUGE conflict of interest there, as well as some ethical considerations. 

But once you get beyond that problem, Shatzkin provides the brilliant if obvious solution to the whole mess.
 

There’s a very simple, clear policy they could declare that would make this whole issue go away. Maybe there are one or two already acting this way, but it would be nice if even one publisher would just say this:

“Our policy for all new titles we sign up in the context of all our other standard terms is that we pay 25% royalty on ebooks. But for those books on our backlist which a) have earned out their advance and b) have ambiguity in their original contracts making it unclear what the royalty rate for an ebook should be, we will negotiate a higher royalty in recognition that a contractual element is being negotiated after the value of the copyright has been demonstrated in the marketplace and the risk profile has changed.”

Life is very complicated here. Every deal is different. There are costs and risks for authors and publishers trying to set up these separate ebook deals while a print backlist remains with a legacy publisher. The publisher might sue (although that opens up, for them, the danger that they’d lose, and the consequences of that could be dire.) At the very least, the author annoys the guys with the big checkbooks who are still the custodians of their print sales.

Although it is certainly possible that some authors or estates would want a publisher as talented as Jane Friedman remarketing their backlist, I still believe that if Open Road and others are offering 50%, publishers would find many authors receptive to avoiding the conflict if the publishers were offering 40%. But even if they had to pay 50% to some authors, the publishers would be doing themselves a favor by stating the position articulated above.

Related Posts:

This is a cross-posting from Stephen Windwalker’s Kindle Nation Daily.

Should a writer convert a novel they’ve written into a screenplay?
That really depends on the novel and the writer. A novel written in the first person where much of the plot is explored inside the main character’s mind might not translate well to the screen without some serious rewrites.

Also, if you’re the type of writer who cannot look at your work objectively and rip it to pieces, then you’re probably not the best choice to write the screenplay for it. Being an author myself, I know that a little piece of my heart and soul gets put into everything I write. It can be difficult to look past that but you have to when you’re writing a screenplay. You have a very limited amount of time to convey your entire novel in. If you’re not prepared to cut out chunks of it, you’re not prepared to turn it into a screenplay.

What is the absolute first thing a writer should do when converting a novel into a screenplay?
Make sure you have the film rights for it. This is an absolute must. No legitimate production company will even think about looking at your screenplay without them.

This is a cross-posting from Bob Spear’s Book Trends blog.

The Wylie Agency has launched an e-book imprint, Odyssey Editions, which will initially publish twenty titles of literature’s most influential authors exclusively through Amazon’s Kindle Store. This is potentially one of the most significant pieces of news this year in the publishing world, and perhaps for some time to come if Wylie continues to expand and utilize the availability of their authors’ e-book rights.

Andrew Wylie pulled no punches last month when he was interviewed by Harvard Magazine. In the interview he said that the time had come to circumvent publishers and monetize unassigned digital book rights.

 

 

 

“We will take our 700 clients, see what rights are not allocated to publishers, and establish a company on their behalf to license those e-book rights directly to someone like Google, Amazon.com, or Apple.”

Today’s announcement by the Wylie Agency and Amazon delivers on that threat to publishers with the launch of Odyssey Editions for the Kindle. (see update from PW on Random House suggestion that the move by Wylie may be illegal)

Amazon.com, Inc. today announced that The Wylie Agency is publishing 20 books from some of literature’s most influential authors through its new Odyssey Editions imprint (http://www.odysseyeditions.com/) and making them available for sale exclusively in the Kindle Store (www.amazon.com/kindlestore). This is the first time any of the titles–which include Norman Mailer’s "The Naked and the Dead," Philip Roth’s "Portnoy’s Complaint" and Ralph Ellison’s "Invisible Man"–have been available electronically, and all of the books are exclusive to the Kindle Store for two years. Starting today, customers can download these books for $9.99 from the Kindle Store and read them everywhere–on their Kindle, Kindle DX, iPhone, iPod touch, BlackBerry, PC, Mac, iPad and Android devices.

"Our goal with Kindle is to make every book, ever published, in print or out of print, available in less than 60 seconds," said Russ Grandinetti, Vice President of Kindle Content. "Having these prominent and important books available through The Wylie Agency’s Odyssey Editions is another great step toward this goal. We’re excited to let our customers read books like ‘Rabbit Run’ for the first time ever electronically."

"As the market for e-books grows, it will be important for readers to have access in e-book format to the best contemporary literature the world has to offer," said Andrew Wylie, President of Odyssey Editions. "This publishing program is designed to address that need, and to help e-book readers build a digital library of classic contemporary literature."

The Wylie Agency operates internationally from offices in New York and London. In business for more than 30 years, it has built a reputation for consistently high standards. The writers and estates it represents include many of the greatest names in 20th and 21st century literature. Odyssey Editions is the first digitally native literary imprint launch of its kind.

Books available in the Kindle Store through Odyssey Editions include modern classics such as Hunter S. Thompson’s "Fear and Loathing in Las Vegas," Salman Rushdie’s "Midnight’s Children," Oliver Sacks’ "The Man Who Mistook His Wife for a Hat," Vladimir Nabokov’s "Lolita," John Cheever’s "The Stories of John Cheever" and four novels from John Updike’s Rabbit series.

The 20 e-books published by Odyssey Editions carry an elegant and unified new look designed in collaboration with Enhanced Editions (http://www.enhanced-editions.com/). Features include:

• Newly-designed jackets

• Interior typography adhering to best conventions of book design and reading on Kindle

The 20 books being published by Odyssey Editions and made available exclusively on Kindle are:

• "London Fields" by Martin Amis

The Kindle editions of these books are now available for sale exclusively in the Kindle Store (www.amazon.com/kindlestore). Kindle offers the largest selection of the most popular books people want to read. The U.S. Kindle Store now has more than 630,000 books, including New Releases and 106 of 110 New York TimesBestsellers. Over 510,000 of these books are $9.99 or less, including 75 New York Times Bestsellers. Over 1.8 million free, out-of-copyright, pre-1923 books are also available to read on Kindle.

For more information about these books, visit www.amazon.com/odyssey or http://www.odysseyeditions.com/. Eleven of these books will be available globally. Kindle is in stock and available for immediate shipment today at www.amazon.com/kindle.

This is a cross-posting from Mick Rooney‘s POD, Self-Publishing and Independent Publishing.

Publetariat is pleased to present Part 2 of Upcoming E-publishing revolution, entitled "E-Magination: What’s Now and What’s Next in Ebooks", a podcast, webcast and transcript from Copyright Clearance Center’s Beyond The Book site.

The podcast and transcript originated from a panel discussion for the Independent Book Publishers Association at their annual “Publishing University” program. More information about Part 1, along with links to the Part 1 podcast and transcript, can be found here.

In this episode, featured guests Mark Coker of Smashwords, Jack Sallay of Vook and O Magazine Books Editor Sara Nelson explain the ongoing e-publishing revolution.

The podcast, webcast and transcript (in pdf format) are available now.

Editor’s Note: the webcast link is not available as a permalink, and therefore the webcast to which it points may not be available indefinitely.