Perseus Books Announces “Constellation” to Level the Digital Playing Field

Yesterday, Perseus Books, one of the largest independent publishers of general interest books, announced a new service this week which will open the digital universe to smaller book publishers. As reported in yesterday’s New York Times:

The new service, called Constellation, will allow independent publishers to make use of electronic readers, digital book search, print-on-demand and other digital formats at rates negotiated by Perseus on their behalf. Unlike large publishers, small ones typically lack the resources to use digital technology and as a result often bypass it altogether.

The company’s website describes their new offering as follows:

  • Constellation is a set of digital services intended to enable Client publishers to participate widely in the emerging digital landscape at a cost balanced with the revenue potential of those digital opportunities.
  • It currently includes digital print services—both short print run (SPR) and print on demand (POD)—online content sampling services, e-Book sales and distribution, and a number of online marketing tools.

This development is good news for independent publishers, who often find it hard to get decent distribution deals with the large, national booksellers. This is becoming less of a problem as fewer book buyers even shop in stores, but it forces the smaller players to fight for space on virtual bookshelves.  At first glance it seems to fly in the face of the tenet, “Any party that comes between the author and the reader is simply an intermediary that adds unnecessary cost and will eventually be driven out of the value chain.” This argument becomes more compelling in the digital age, when there are seemingly fewer links in that chain. After all, if the author creates the work on a computer then it already exists in a digital format, right? Can’t one just click the send button and then reach millions of eager readers effortlessly? It’s not that simple, if you are to believe the information in the company’s FAQs about the new Constellation service offering:

Logistically, you will need to be able to supply digital files of your titles, order ISBNs for the digital edition(s), establish a Digital List Price for the digital edition, and have a means of disseminating the PDF to the digital marketplace (in this case, Constellation). Each digital partner with which we work has differing metadata requirements (i.e., requisite fields that must be supplied). These include everything from Title, Author, Publisher, etc., to territorial rights.

In addition to providing support for e-book conversion (including to Amazon’s Kindle and Sony’s E-Reader), the new service also helps its customers take advantage of POD and SRP (Short-Run Print) technology, as well as conversions to Online Content Sampling programs (such as Amazon’s “Search Inside the Book” option).

The emergence of a service like Constellation is an indication of the relative immaturity of the e-book business. Just as the availability of consumer-friendly desktop publishing software eventually drove many specialized graphics shops out of business, as digital publishing formats and standards become more widely adopted and accessible to non-professionals, the need for an intermediary offering such as Constellation will decline over time. This will most likely occur when the term “e-pub” is no longer only familiar to members of the IDPF. But in the meantime, it will most likely contribute to an increase in the selection of digital books.

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When Irish Eyes Are Smiling: Schoolkids Get Free E-Readers

The country that gave the world U2, Guiness beer, and the shamrock also seems to be on the cutting edge of educational technology, according to a story in Thursday’s Irish Times:

A GROUP of 18 secondary school pupils yesterday became the first students worldwide to replace their academic books with electronic devices. The first year students of Caritas College girls’ school in Ballyfermot, Dublin, each received an electronic book, pre-loaded with the required textbooks, as well as 50 classic novels including Moby Dick, Pride and Prejudice and Oliver Twist . The use of the electronic devices will mean a dramatic reduction in the weight of the pupils schoolbags, replacing more than 6kg (13.2lbs) of textbooks, workbooks, an English dictionary and a novel with a 400g (0.9lbs) e-book.  In addition, the students will no longer need copybooks to take notes, as they can write and doodle on the electronic pages, similar to a regular copybook.

The pilot program has apparently been launched by Dublin based educational publishers Gill & Macmillan. Their director of sales is quoted as saying: “Although we believe that the widespread adoption of e-readers is some time off, this project allows us to determine how well they work in the classroom, how the pupils interact with them and to examine their potential.”

The device being used for the pilot program is the Iliad, by iRex Technologies. It list for $599 U.S. and is generally regarded as the Mercedes of e-book readers. In addition to handling e-books (including PDFs), this device incorporates Wacom’s pen writing technology, allowing the user to write directly on the screen with a stylus. The mind boggles when imagining the scenario in which a student can carry all her books and notes in a 15 oz package that fits in her purse.

No doubt some critics will say that at this price, why not buy them all laptops, but you’d be hard pressed to find a laptop with handwriting recognition and touch screen technology incoroporated for $600. Besides, the electronic paper display is unbeatable for reading long passages of text. The iliad comes with built in wi-fi for downloading content wirelessly, as well as an optional ethernet hook-up, in contrast to the built in “Whispernet” feature of Amazon’s Kindle, which is based on Sprint’s high-speed mobile phone network.

This is a bold step for a publisher to take, assuming they are underwriting the full cost of the program. If this assumption is correct, this begs the question, (or several questions): Does Gill & Macmillan plan to migrate all its textbooks to an electronic medium? How is their economic model different from that of North American textbook publishers, who so far have shown little interest in adapting their content to an electronic format? And finally, could they please open a U.S. branch?

We will be following the progress of this experiment in digital publishing closely over the coming months. Stay tuned.

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PIRG claims e-textbooks are due for “Course Correction”

In a stinging critique of its recent foray into the field of digital textbooks, the publishing industry was taken to task in a report released this week  by the Student Public Interest Research Group. The study, entitled, “Course Correction: How Digital Textbooks Are Off Track, and How to Set Them Straight”, outlines the findings of a survey conducted on two different college campuses last spring, and presents the following findings:

1. Digital textbooks must meet three criteria – affordable, printable and accessible:

In order to be a solution to high costs, digital textbooks must cost less than traditional books. That means digital textbooks must be priced lower than the net cost of buying a textbook – the purchase price minus the amount the student can expect to receive for selling it back to the bookstore.

2. Digital textbooks done wrong: e-textbooks fail to meet the criteria:

The first type of digital text we reviewed was e-textbooks, the digital book format offered by the major publishers through CourseSmart.  We found that they fall short on each of the three criteria we found digital textbooks must meet.

E-textbooks are too expensive
* The e-textbooks we surveyed cost on average exactly the same as a new hard copy of the same title bought and sold back to the bookstore.
* The e-textbooks we surveyed cost on average 39% more than a used hard copy of the same title bought and sold back online.

Printing is costly and difficult
* Printing was limited to 10 pages per session for each of the e-textbooks we surveyed.
* Buying and printing half of an e-textbook was three times the cost of buying a used hard copy and selling it back to the bookstore, for the books we surveyed.

E-textbooks are difficult to access
* Students have to choose between using the book online or using it offline – they cannot do both.
* Most (75%) of the e-textbooks we surveyed expired after 180 days, so students do not have the option to access their books in the future.

3. Digital textbooks done right: open textbooks meet all of the criteria

Open textbooks are textbooks distributed free digitally under an open license.  The key feature of an open license is that it permits users to make copies of the textbook and translate it into different formats.  So, open textbooks start as digital textbooks but can be printed in a variety of formats. We found that open textbooks accomplish what e-textbooks do not: low prices, printing options and accessibility.

Open textbooks are affordable. Open textbooks are free digitally, and students can purchase other formats at a low cost.

Open textbooks are easy and inexpensive to print. Students can print digital textbooks anytime, anywhere and in a variety of formats.  They can print individual pages at home, order a print-on-demand bound copy, or anything in between.

Open textbooks are accessible. Students can access open textbooks anytime, from any computer, without the book expiring.

The authors of the study urge faculty and institutions to do everything they can to encourage adoption of open textbooks:

For faculty, this means giving preference to open textbooks whenever pedagogically appropriate.  For institutions, this means providing incentives to faculty authors and pooling resources to develop a viable infrastructure to support open textbooks.

This report seems to be getting noticed, as it’s been quoted by most of the major tech and publishing blogs. If nothing else, it will most likely lead to a spike in hits on a couple of sites: Coursesmart (which PIRG ranks slightly below the IRS in its contribution to society), and on Flatworld Knowledge, which receives high praise for its approach to open textbooks. (Another site Connexions, offers open source educational content as well.) There will also quite possibly be a lot more traffic to file sharing sites like Textbook Torrents, which didn’t let pesky conventions such as copyright laws interfere with its users’ access to every textbook that has been scanned and uploaded by disgruntled students. (Although the site is currently not accepting any more registrations, which suggests that their legal bills may be exceeding their server costs.)

As the report indicates, the textbook publishing industry is overdue for change. But for some insight into some factors that might keep the business from changing as quickly as the technology is, it’s worth reading a column posted by a writer with impressive credentials, as an author, college professor, and a publishing executive. His post is called Why the Kindle Won’t Have a Dramatic Impact on College Course Materials for at least Five Years and although it focuses largely on the barriers to the adoption of the Kindle in the college market, it provides a cogent and laconic account of the economics of the textbook publishing industry. Among his observations:

  • Within this context, e-books are budgeted as a small percentage of the overall budget. From the textbook publisher’s perspective the development costs are identical whether the content is being flowed into a print textbook or an e-book. This is because textbook publishers make most of their revenue of print textbooks and, consequently, most of the content development strategy is formulated around those print textbooks. E-books are simply “add-ons” or extra products that can be viewed as a by product of the core print development process.
  • Within the current content development workflow for textbook publishers, the plant investment remains the same regardless of whether the product is a print textbook or an e-book. And, since publishers sell far more print textbooks than e-books, there is no incentive to change production workflows to favor the creation of minimized or lower-cost e-books from which print textbooks could be created. This means that publishing e-books, without significant changes to current design and production workflow, does not reduce the publishers’ costs significantly. This is important because it means all current e-book solutions for textbook publishers take into consideration the print book production process and derives cost efficiencies from that process. There are neither sales incentive or cost efficiencies in the current workflow that would cause publishers to get excited about the Kindle.

One could surmise that the same might be said for ebooks in general, not only Kindle versions. Until the design and workflow process undergoes a radical transformation, thus reducing the cost curve by an order of magnitude, traditional publishers will not be in a position to offer their content in an open (free or nearly so) model. This is a clear symptom of an industry about to undergo a stage of disintermediation, which is usually accompanied by major sell-offs of assets, restructuring and layoffs of thousands of managers and editors. It may take a decade or so, but eventually the textbook industry may consist of hundreds of small, specialized content producers, and a handful of POD providers. Instead of going to Barnes & Noble to buy their textbooks, the freshmen of 2015 may be stopping by Kinko’s.

The new social: reading a book

It has been noted by some observers that Amazon has not really taken advantage of the Social Web in building a community of Kindle lovers and ebook readers. This failing was described in a particularly succinct post, in which the blogger describes a scenario in which she has just finished reading a great book, and feels compelled to share it with her friend on the west coast. She could call or email her friend about it, but since it’s 2 a.m, she just wants to go to sleep. She may or may not remember to tell her friend about the book.

Now imagine it’s 2am and I’ve read this book on my second-generation networked digital reader, maybe the Kindle 2.0.  As soon as I’ve finished the book, the device prompts me to rate it (4 stars!).  It also knows about my social connections.  It asks me if I’d recommend it to my friend, who has enjoyed similar books, and I say yes.
The next morning my friend wakes up and picks up his e-reader.  There’s a recommendation from me — and a 20% discount to purchase this book immediately. This $5 digital book is now just four bucks, and it’s instantly on his device.

This eloquent writer has just described the evolution of the book from a solitary, isolated pastime to the foundation of a social framework. Many voracious readers enjoy the solitude and isolation while lost in a great novel. Many others take an equal amount of pleasure in sharing their thoughts and reactions to a book they’ve just read with other readers. This need to share is what gave rise to book clubs in the 1950s. Fast forward a half century and you have virtual social networks for everything from  Andean beekeepers to computer aided Origami creators. Why not for book lovers too? In fact, you don’t have to look beyond Facebook to find them. Two of the most popular are Visual Bookshelf and Shelfari. They allow members of the network to post recommendations, write reviews, and check out what others in their network are reading. What a perfect marriage of old and new technology!

So why hasn’t Amazon, the king of books on the Internet, embraced this aspect of Web 2.0? What better way to promote the viral nature of a great book than to let avid readers send it to their friends? Well, it probably has something to do with these three letters: AZW, which is Amazon’s proprietary DRM format for e-books. This format can only be read by the Kindle, and that’s what keeps us all shopping at the Kindle store. But it’s not a huge leap to envision the capability of sending a file from one Kindle owner to another, in AZW format, to leverage the instant gratification and impulse purchase trends common among digital consumers.

The blogger quoted above suggests that DRM’d books hinder this adoption process:

And let’s suppose that people did send around free digital books.  If I didn’t have an e-ink reader, what would I do with them?  After I got a few freebies from friends I’d probably go buy a Kindle, and then that seductive “share this book” button would take hold.  The existence of some free books is an incentive to move up to a specialized device.  They create the necessary ecosystem and will ultimately motivate, not destroy, publishing sales.

I think she has a point: Making it easier to share ultimately results in higher sales. This vision may be taking a step closer to reality with the announcement yesterday that Amazon is acquiring Shelfari:
Shelfari joins the Amazon.com family

It’s an exciting day here at Shelfari. The rain has stopped, the birds are chirping and the biggest news of all – we are being acquired by Amazon.com.

So maybe we’ll see Kindle 2.0 with recommendations and sharing capabilities…

E-books in education: One publisher’s perspective

The Association of Educational Publishers sponsors a blog called: Publishing for the Digital Future, which is a collection of essays, articles and opinion pieces that analyze the impact of the digital age on the field of educational publishing. In a recent post, the CEO of Evan Moor Educational Publishers offers up a number of questions that are often asked by publishers thinking about moving into the digital realm. His answers to these questions provide some valuable insight into the thought process of publishing executives. The writer, Bill Evans, takes a decidedly optimistic view of the future of digital publishing, and its effect on the industry. Here are some excerpts  of the questions and answers he addresses:

1. How secure is the e-book format? How can I be sure that my intellectual property isn’t going to be e-mailed to 150 of my customer’s closest friends?

Before answering this question, we first have to ask: How safe is a paper and ink book? The truth is that with better and better scanning techniques and better and better character recognition, any paper and ink book can be made into a digital book in a matter of minutes. Whether it’s a paper and ink book or a digital book, publishers will have to be vigilant about protecting their copyrights.

2. Will digital books cut into my other sales?

That has certainly not been our experience at Evan-Moor. It has been our experience that it actually grows the sales of a book. We believe this is because we are serving a different customer–a customer who has not previously been served. However, if the format did replace the sales of a paper and ink book, it would still mean greater profits for your company. Without any costs of goods sold or the costs of incoming and outgoing shipping, more money drops to the bottom line.

3. How should I price an e-book?

I’ve always taken the position that I’m not selling paper and ink. Rather, I’m selling content. The publisher may be saving on the cost of goods sold, but the customer is also saving the cost of shipping. In addition, the customer gets immediate delivery of the product. At Evan-Moor an e-book and a paper and ink book cost the same.

6. What’s the future of the digital book?

Right now, most publishers (including Evan-Moor) are simply taking the production files we have for our books and transforming them into PDFs for distribution. To a certain extent this is a lot like putting radio shows on television. It really doesn’t take advantage of all the possibilities of this new electronic medium. There are lots of ways we could think about enhancing our e-books, including:

  • Providing a clickable table of contents to immediately get to the part of the book that you want to go to;
  • Giving the ability to annotate the pages with the teacher’s notes;
  • Allowing the teacher to customize the content for his/her class;
  • Adding elements to an activity or deleting them or perhaps even changing the spelling for territories outside the United States;
  • Selling chapters or even a few pages of a book rather than the entire book;
  • Selling compilations and collections of e-books in a bundle; and
  • Making the book whiteboard friendly so that the book is truly interactive. This might also include providing worksheets that now become self-correcting in the digital context.

8. What are the benefits to the ultimate consumer?

There are many reasons that teachers are going to want to buy supplemental materials in this manner:

  • Get the book immediately;
  • Do electronic word searching within the document;
  • Store the book so it doesn’t get lost, and even back it up;
  • Print exactly what you need when you need it;
  • Avoid shipping costs;
  • The teacher may have the ability to customize content for his or her individual classroom; and
  • Use the book on a whiteboard, as well as printing it out.

Now you might be a bit confused if you read the answer to Q 3 (“At Evan-Moor an e-book and a paper and ink book cost the same”) and attempted to reconcile it with the rest of the piece. This statement might be paraphrased as “Let’s not change our pricing one iota, despite taking 30-40% out of our cost base and not adding any value to the content”. It is symptomatic of the antediluvian philosophy of the publishing industry. This assertion is all the more ironic in view of the other promises of e-books that the writer refers to. If they took the extra step and converted to a reflowable text standard such as e-pub, then one might see the justification for charging the same price, because of the value added to the digital content. Clickable ToC, highlighting and annotating text, electronic word searching – now those are features that changing the nature of the book (and education) as we know it.  Simply converting files to PDF misses out on the ability to deliver on the prediction he makes in his conclusion:

E-books and digital content are not just a new way of distribution–this is a whole new way to think about educational publishing.

It may be a new way to think about it but they’re stuck doing things the old way.

Getting kids to read: Take them to the movies

Yesterday the New York Times ran a story headlined: “To Reach Children, Publisher Tries Films”. It starts off:

When the children’s book series “The Spiderwick Chronicles” became a popular Hollywood film, its publisher, Simon & Schuster, enjoyed a subsequent lift in book sales — and little else. But under a new deal with the Gotham Group, a Los Angeles-based management firm, the next time Simon & Schuster Children’s Publishing owns the film rights to a book — and that book is eventually turned into a movie — the publisher will be promised its own piece of the pie.

The article actually devotes more ink to the increasing number of tie-in deals being struck between publishers and film studios than it does to the effect movies have on kids’ reading habits. Nevertheless, there is a direct relationship between the release of a movie based on a book and subsequent sales of that book. Some books had aleady reached commercial success, such as the Harry Potter series, and the films only boosted their sales further. Other titles, though, had languished in obscurity for years, only to be rejuvinated by the release of a movie based on them. Sales of Philip Pullman’s Golden Compass, first published in 1995, saw a 500% increase even before the film of the same name was released last December. Similarly, when the movie Polar Express was released a few years ago, sales of the original book jumped 50%, even though it was first published two decades earlier (and had received the Caldecott Medal).

This is not a recent phenomenon. Even sales of the best selling book of all time, the Holy Bible, saw an uptick after the release of The Ten Commandments fifty years ago. Publishers nearly always see a jump in sales of their backlist titles if the movie builds any kind of an audience. In the past however, authors and their agents typically negotiated film rights separately from the book deal. With the advent of the alliance such as that between Gotham and Simon & Schuster described in the article, the publisher will share in the revenue generated when its children’s books are turned into video games, comic books, or other properties. This type of tying arrangement is likely to help prevent the oft-foretold demise of literary pursuits by 21st century teens. Studies have shown that given exposure to interesting content, kids will in fact read. If their interest is piqued through exposure to a character or plotline, be it through a movie, video game, or website, chances are they will take a chance on the book of the same title. That has to be good news for both publishers and booksellers.

Blood, Guts and Books: WSJ says boys prefer ghoulish, not girlish, lit

Today’s Wall Street Journal has an interesting Page One article about the lengths publishers are going to in order to interest pre-teen boys in reading. Citing an academic study that:

tracked boys’ reading habits for five years ending in 2005 and found that schools failed to meet their “motivational needs.” Teachers assigned novels about relationships, such as marriage, that appealed to girls but bored boys. His survey of academic research found boys more likely to read nonfiction, especially about sports and other activities they enjoy, as well as funny, edgy fiction. Boys’ literary depth is an abiding concern in educational circles. Boys have persistently lagged behind girls in reading on the National Assessment of Educational Progress, an influential federal test for gauging achievement. The gap widens by the time they reach 12th grade.

So to meet this challenge, publishers have started a genre that might be called “Gore for Guys”, with titles such as “Vlad the Impaler”, “Help! What’s Eating My Flesh?” and “Sir Fartsalot”. The article goes on to say that last year, U.S. publishers released 261 new works of juvenile fiction aimed at boys, more than twice the number put out in 2003, according to Bowker’s Books in Print database. There were 20 nonfiction entries for boys, compared with just four in 2003.

This trend is a positive devlopment. It’s disturbing to learn that boys begin to lag girls in reading ability around the age of ten, and the gap continues to widen into adulthood. Anything that generates interest in a subject usually leads a young person to become absorbed (even obsessed) with that topic. So if a movie about Dracula sparks an interest in all things ghoulish then that may well lead to greater consumption of the printed word.

Another site serves the needs of boys searching for books that would interest them. Called GuysRead, it was created by children’s author Jon Scieszka as a web-based literacy program to get boys interested in reading. It could be a great social networking site for teens to post and share reviews of books they like, but at this point it appears to contain a list of books that kids might find interesting, with a link to Amazon if you want to buy the book. (A random check of a few of the books listed resulted in further links to third party sellers, as Amazon did not seem to stock them. And while the books cited in the WSJ article were all available on Amazon, none were offered in the Kindle format. Maybe they’re too graphics intensive to present well as an e-book.)