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Mike Shatzkin at IfBookThen 2012
- 1. THE BIG DIGITAL
CHANGE ISSUES IN US
PUBLISHING FOR 2012
Mike Shatzkin
IfBookThen, Milan
February 2012
The
Idea Logical
Company
© 2012 The Idea Logical Company, Inc.
- 2. AMAZON'S SHARE OF PUBLISHERS'
REVENUES (PRINT AND DIGITAL)
• Over 30% of large pub volume and growing
(67% of e, 20-25% of p)
• Threats of shelf space reductions
(bookstores and mass merchants)
• Proven impact of Amazon's onsite
promotions
(i.e. Sunshine Deals, Kindle Daily Deal)
• Publishers' challenge: Grow non-Amazon
revenues wherever they can
The
Idea Logical
Company
© 2012 The Idea Logical Company, Inc.
- 3. AMAZON'S SHARE OF PUBLISHERS'
REVENUES (PRINT AND DIGITAL)
• Over 30% of large pub volume and growing
(67% of e, 20-25% of p)
• Threats of shelf space reductions
(bookstores and mass merchants)
• Proven impact of Amazon's onsite
promotions
(i.e. Sunshine Deals, Kindle Daily Deal)
• Publishers' challenge: Grow non-Amazon
revenues wherever they can
The
Idea Logical
Company
© 2012 The Idea Logical Company, Inc.
- 4. AMAZON'S SHARE OF PUBLISHERS'
REVENUES (PRINT AND DIGITAL)
• Over 30% of large pub volume and growing
(67% of e, 20-25% of p)
• Threats of shelf space reductions
(bookstores and mass merchants)
• Proven impact of Amazon's onsite
promotions
(i.e. Sunshine Deals, Kindle Daily Deal)
• Publishers' challenge: Grow non-Amazon
revenues wherever they can
The
Idea Logical
Company
© 2012 The Idea Logical Company, Inc.
- 5. AMAZON'S SHARE OF PUBLISHERS'
REVENUES (PRINT AND DIGITAL)
• Over 30% of large pub volume and growing
(67% of e, 20-25% of p)
• Threats of shelf space reductions
(bookstores and mass merchants)
• Proven impact of Amazon's onsite
promotions
(i.e. Sunshine Deals, Kindle Daily Deal)
• Publishers' challenge: Grow non-Amazon
revenues wherever they can
The
Idea Logical
Company
© 2012 The Idea Logical Company, Inc.
- 6. AMAZON'S POTENTIAL TO CORNER
KEY BOOKS OR AUTHORS
• They know reading patterns
• Ability to offer authors higher royalties,
onsite promotion
• Can build some reach to other channels
(i.e. libraries, other retailers)
• Can offer advances; take authors or push
up what publishers pay
The
Idea Logical
Company
© 2012 The Idea Logical Company, Inc.
- 7. AMAZON'S POTENTIAL TO CORNER
KEY BOOKS OR AUTHORS
• They know reading patterns
• Ability to offer authors higher royalties,
onsite promotion
• Can build some reach to other channels
(i.e. libraries, other retailers)
• Can offer advances; take authors or push
up what publishers pay
The
Idea Logical
Company
© 2012 The Idea Logical Company, Inc.
- 8. AMAZON'S POTENTIAL TO CORNER
KEY BOOKS OR AUTHORS
• They know reading patterns
• Ability to offer authors higher royalties,
onsite promotion
• Can build some reach to other channels
(i.e. libraries, other retailers)
• Can offer advances; take authors or push
up what publishers pay
The
Idea Logical
Company
© 2012 The Idea Logical Company, Inc.
- 9. AMAZON'S POTENTIAL TO CORNER
KEY BOOKS OR AUTHORS
• They know reading patterns
• Ability to offer authors higher royalties,
onsite promotion
• Can build some reach to other channels
(i.e. libraries, other retailers)
• Can offer advances; take authors or push
up what publishers pay
The
Idea Logical
Company
© 2012 The Idea Logical Company, Inc.
- 10. SPEED OF EBOOK ADOPTION
(DOES IT SLOW DOWN? SOME SIGNS IT MIGHT...)
• Doubled or more for four straight years
(2007-2010 inclusive)
• New research suggests slowdown of
growth
(BISG/Bowker consumer study, 2nd half of 2011)
• Verso research shows increase of ebook
resistance
• New devices that enable other activities
could mean less reading
The
Idea Logical
Company
© 2012 The Idea Logical Company, Inc.
- 11. SPEED OF EBOOK ADOPTION
(DOES IT SLOW DOWN? SOME SIGNS IT MIGHT...)
• Doubled or more for four straight years
(2007-2010 inclusive)
• New research suggests slowdown of
growth
(BISG/Bowker consumer study, 2nd half of 2011)
• Verso research shows increase of ebook
resistance
• New devices that enable other activities
could mean less reading
The
Idea Logical
Company
© 2012 The Idea Logical Company, Inc.
- 12. SPEED OF EBOOK ADOPTION
(DOES IT SLOW DOWN? SOME SIGNS IT MIGHT...)
• Doubled or more for four straight years
(2007-2010 inclusive)
• New research suggests slowdown of
growth
(BISG/Bowker consumer study, 2nd half of 2011)
• Verso research shows increase of ebook
resistance
• New devices that enable other activities
could mean less reading
The
Idea Logical
Company
© 2012 The Idea Logical Company, Inc.
- 13. SPEED OF EBOOK ADOPTION
(DOES IT SLOW DOWN? SOME SIGNS IT MIGHT...)
• Doubled or more for four straight years
(2007-2010 inclusive)
• New research suggests slowdown of
growth
(BISG/Bowker consumer study, 2nd half of 2011)
• Verso research shows increase of ebook
resistance
• New devices that enable other activities
could mean less reading
The
Idea Logical
Company
© 2012 The Idea Logical Company, Inc.
- 14. VOLATILITY AND EXPERIMENTATION
IN PRICING
• Agency model has enabled big publishers to
maintain frontlist US prices at $9.99-$14.99
• Impact of self-pubs and indies on pricing
(could they make it harder for pubs to get higher prices?)
– Big action at bargain tiers $0.99-$4.99
– Increase of selection and awareness at lower price points
– Increase in bestseller representation of lower-priced
books
• Reduction in pricing influence of print
The
Idea Logical
Company
© 2012 The Idea Logical Company, Inc.
- 15. VOLATILITY AND EXPERIMENTATION
IN PRICING
• Agency model has enabled big publishers to
maintain frontlist US prices at $9.99-$14.99
• Impact of self-pubs and indies on pricing
(could they make it harder for pubs to get higher prices?)
– Big action at bargain tiers $0.99-$4.99
– Increase of selection and awareness at lower price points
– Increase in bestseller representation of lower-priced
books
• Reduction in pricing influence of print
The
Idea Logical
Company
© 2012 The Idea Logical Company, Inc.
- 16. VOLATILITY AND EXPERIMENTATION
IN PRICING
• Agency model has enabled big publishers to
maintain frontlist US prices at $9.99-$14.99
• Impact of self-pubs and indies on pricing
(could they make it harder for pubs to get higher prices?)
– Big action at bargain tiers $0.99-$4.99
– Increase of selection and awareness at lower price points
– Increase in bestseller representation of lower-priced
books
• Reduction in pricing influence of print
The
Idea Logical
Company
© 2012 The Idea Logical Company, Inc.
- 17. WILL ANYTHING BUT IMMERSIVE
READING SELL RELIABLY AS EBOOKS?
(SO FAR, NOTHING HAS...)
• All consistent success is immersive
reading
• Different investment-return scenarios
(additional costs for less-likely-to-sell ebooks)
• App market pricing discouraging
• Potential to change with HTML5 apps and
new ePub 3 specifications
The
Idea Logical
Company
© 2012 The Idea Logical Company, Inc.
- 18. WILL ANYTHING BUT IMMERSIVE
READING SELL RELIABLY AS EBOOKS?
(SO FAR, NOTHING HAS...)
• All consistent success is immersive
reading
• Different investment-return scenarios
(additional costs for less-likely-to-sell ebooks)
• App market pricing discouraging
• Potential to change with HTML5 apps and
new ePub 3 specifications
The
Idea Logical
Company
© 2012 The Idea Logical Company, Inc.
- 19. WILL ANYTHING BUT IMMERSIVE
READING SELL RELIABLY AS EBOOKS?
(SO FAR, NOTHING HAS...)
• All consistent success is immersive
reading
• Different investment-return scenarios
(additional costs for less-likely-to-sell ebooks)
• App market pricing discouraging
• Potential to change with HTML5 apps and
new ePub 3 specifications
The
Idea Logical
Company
© 2012 The Idea Logical Company, Inc.
- 20. WILL ANYTHING BUT IMMERSIVE
READING SELL RELIABLY AS EBOOKS?
(SO FAR, NOTHING HAS...)
• All consistent success is immersive
reading
• Different investment-return scenarios
(additional costs for less-likely-to-sell ebooks)
• App market pricing discouraging
• Potential to change with HTML5 apps and
new ePub 3 specifications
The
Idea Logical
Company
© 2012 The Idea Logical Company, Inc.
- 21. WILL US PUBLISHERS MOVE ON
OPPORTUNITIES TO OWN NON-
ENGLISH TRANSLATIONS?
• Self-publishing authors doing it on their
own!
• Translators everywhere can sell their
services to publishers anywhere
• US publishers looking for ways to expand
• Promising translations at time of initial deal
could be appealing to authors
The
Idea Logical
Company
© 2012 The Idea Logical Company, Inc.
- 22. WILL US PUBLISHERS MOVE ON
OPPORTUNITIES TO OWN NON-
ENGLISH TRANSLATIONS?
• Self-publishing authors doing it on their
own!
• Translators everywhere can sell their
services to publishers anywhere
• US publishers looking for ways to expand
• Promising translations at time of initial deal
could be appealing to authors
The
Idea Logical
Company
© 2012 The Idea Logical Company, Inc.
- 23. WILL US PUBLISHERS MOVE ON
OPPORTUNITIES TO OWN NON-
ENGLISH TRANSLATIONS?
• Self-publishing authors doing it on their
own!
• Translators everywhere can sell their
services to publishers anywhere
• US publishers looking for ways to expand
• Promising translations at time of initial deal
could be appealing to authors
The
Idea Logical
Company
© 2012 The Idea Logical Company, Inc.
- 24. WILL US PUBLISHERS MOVE ON
OPPORTUNITIES TO OWN NON-
ENGLISH TRANSLATIONS?
• Self-publishing authors doing it on their
own!
• Translators everywhere can sell their
services to publishers anywhere
• US publishers looking for ways to expand
• Promising translations at time of initial deal
could be appealing to authors
The
Idea Logical
Company
© 2012 The Idea Logical Company, Inc.
- 25. WILL BARNES & NOBLE UNVEIL A
WORKABLE GLOBAL STRATEGY?
• Scale would seem to require it
• The challenge: economics of reading
devices require also selling the content
• B&N already has extensive relationships
with non-US sources of content
• B&N Nook at 1/2-Amazon in US has been
most successful competitor to Kindle
The
Idea Logical
Company
© 2012 The Idea Logical Company, Inc.
- 26. WILL BARNES & NOBLE UNVEIL A
WORKABLE GLOBAL STRATEGY?
• Scale would seem to require it
• The challenge: economics of reading
devices require also selling the content
• B&N already has extensive relationships
with non-US sources of content
• B&N Nook at 1/2-Amazon in US has been
most successful competitor to Kindle
The
Idea Logical
Company
© 2012 The Idea Logical Company, Inc.
- 27. WILL BARNES & NOBLE UNVEIL A
WORKABLE GLOBAL STRATEGY?
• Scale would seem to require it
• The challenge: economics of reading
devices require also selling the content
• B&N already has extensive relationships
with non-US sources of content
• B&N Nook at 1/2-Amazon in US has been
most successful competitor to Kindle
The
Idea Logical
Company
© 2012 The Idea Logical Company, Inc.
- 28. WILL BARNES & NOBLE UNVEIL A
WORKABLE GLOBAL STRATEGY?
• Scale would seem to require it
• The challenge: economics of reading
devices require also selling the content
• B&N already has extensive relationships
with non-US sources of content
• B&N Nook at 1/2-Amazon in US has been
most successful competitor to Kindle
The
Idea Logical
Company
© 2012 The Idea Logical Company, Inc.
- 29. CONTACT
Mike Shatzkin
The Idea Logical Company
info@idealog.com
@MikeShatzkin
The
Idea Logical
Company
© 2012 The Idea Logical Company, Inc.