The document outlines a 5-stage typology of book publishing and discusses key properties at each stage. Stage 1 is traditional print book publishing and selling. Stage 2 sees the advent of online bookselling in addition to traditional methods. Stage 3 marks the tipping point of ebooks and increased importance of online discovery. Stage 4 involves direct marketing, no print books, and collecting user data. Stage 5, just emerging, involves selling books by subscription to reduce customer acquisition costs.

1. Stage Five Book Publishing AAUP Presentation Joseph J. Esposito CEO GiantChair June 18, 2010

2. Hope is the thing with feathers --Emily Dickinson

3. Topics What is sustainability? The place of innovation Tracking four key properties The 5-stage typology Red herrings

4. What is Sustainability, Anyway? Is the current situation worth sustaining? Sustainability and the status quo Where is scholarly publishing going? Create a picture of the future, and paint yourself in

5. The Place of Innovation Looks to the future Aligns a publisher with trends in the industry Permits a publisher to get in on the ground floor The “inevitability factor”

6. Tracking 4 Key Properties Venue (where are books sold?) Medium (is the book in print or digital?) Sales channels (is the book sold through middlemen or directly to consumers?) Nature of offering (is the book sold by itself or as part of a broader marketing program?)

7. Stage 1 Book Publishing The traditional model Sold in bricks-and-mortar bookshops and to libraries Print books Sold through various resellers Each book is a discrete entity For virtually all publishers, whether scholarly or commercial, this is still the primary way books are published and sold

8. Stage 1 Properties

9. Stage 2 Advent of online bookselling (Amazon et al) Most of the traditional model remains: discrete products in print sold through resellers Perhaps 25% or more of the scholarly book business today Most publishers view online stores as they do physical stores Important aspect of online bookselling is the new priority given to metadata to aid in the discovery of books

10. Stage 2 Properties

11. Stage 3 Advent--or the tipping point--of the ebook Sold online; no meaningful bricks-and-mortar role Still sold through intermediaries Highly disruptive Role of online discovery soars, increasing pressure on high-quality metadata and search-engine optimization This is where the industry is now, but note that Stages 1 and 2 are still active and comprise the bulk of revenue

12. Stage 3 Properties

13. Stage 4 Emergence of direct marketing Linked to SEO Higher margins, better control of marketing Dispenses with print, bricks and mortar, and resellers Collection of data about end-users

14. Stage 4 Properties

15. Stage 5 Just now on the horizon Selling books by subscription Reduces the cost of acquiring customers Likely to take many different forms The leaders for this stage have not yet emerged

16. Some Reflections on Stage 5 The music business is moving toward subscriptions Multi-publisher aggregations are a short-term tactic Likely to result in restructuring of presses

17. Stages and Properties (summary)

18. And that has made all the difference --Robert Frost