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E-books spark crisisThis has been a week of dramatic developments in the publishing world, as publishers scramble to work out how to navigate a completely new playing field. The debate centres around four crucial issues: who controls e-book rights, the timing of e-book editions and what the prices and royalty rates for e-books should be. Lest you should think that none of this seems particularly important to you as a writer or reader, here’s the way the latest news was reported by Robert McCrum on the Guardian website: ‘They say the fluttering of a butterfly's wing in the Amazon rainforest can cause a hurricane in the northern hemisphere. Stephen Covey's decision to move from his traditional, conventional publisher, Simon and Schuster, to Rosetta Books, an electronic book publisher working in association with Amazon, may turn out to be one of those moments in the history of book publishing when everything changed and wild forces were released into the creative environment.’ McCrum may well be right and it’s an interesting footnote, which long-term readers of News Review may remember, that on 26 March 2001 under the heading Who owns e-book rights? Random House sues Rosetta Books News Review reported that: ‘Random House, the Bertelsmann-owned largest publisher in the world, is suing the Internet start-up Rosetta Books for copyright infringement. Rosetta Books was set up recently to sell e-book versions of modern classics through its website. The basic premise of Random’s suit is that its existing contracts with the authors give it the exclusive right to publish in book form, which the publisher maintains includes e-book formats. ‘Titles by major authors, including William Styron, Kurt Vonnegut and Robert Parker, are involved. Rosetta made deals direct with the authors through their agents. The case revolves around the question of whether or not Random’s original purchase of rights covers e-books. Since the contracts for the books involved are all pre-1995, they contain no specific mention of e-books or e-book rights. The authors’ agents therefore claim that these rights are reserved by the author and that the authors are not infringing their contracts with Random House by selling them to Rosetta Books.’ Well, it seems that Random House US, which lost its case in 2002, has decided to use the same argument again in an effort to protect their rights, in what looks like a straight repeat of history. But that’s not quite right, as the book world has shifted, and e-book rights are now not just a theoretical threat or opportunity but something for which there is a means of delivery, with the development of e-readers, and also a market which will yield immediate and possibly huge sales. Random House chief executive Marcus Dohle’s letter last week to literary agents claimed that older contracts granting rights to publish "in all editions" grant electronic rights to the publisher. The US Authors’ Guild has been quick to respond, saying that: ‘It's regrettable and unhelpful that Random House has chosen to try to intimidate authors and agents over these old book contracts. With such a weak legal hand, it would be well advised to stick to its strength—the advantages that its marketing muscle can provide owners of e-book rights. It should also start offering a fair royalty for those rights.’ The royalty rate to be paid on e-books is also a hot topic for debate, with Random House and other publishers saying it should be 25%, while others are pushing for 50% and the UK Society of Authors has said it should be as much as 75%. These aren’t the only controversies relating to e-books though. Amazon appears to be trying to use its near-monopoly position with the Kindle to force low prices. It has made $9.95 standard and has just been experimenting with $7.95 for certain major authors. But these low price points threaten not only the book trade but the existing structure of publishing, because if the e-book comes out at the same time as the hardback but at a much lower price then it threatens both the sales of the higher-priced hardback edition and also the paperback which would normally follow later. As the year ends it looks like an annus horribilis for publishers, with worse perhaps to follow in the New Year. Back to Top
Is this a revival of the short story?Is it possible that the short story is at last getting a new lease of life? The form, long beloved of writers, seems to be reaching new audiences through the Internet and benefiting from new opportunities in the form of prizes. There used to be a good market for short stories in a wide range of magazines, which provided continuous demand, but this is no longer the case and there are very few remaining magazine outlets. Even the women’s magazines, for long a bastion of short stories, hardly publish them now, as they’ve been abandoned in favour of true-life stories, mostly written by journalists. The short story remains, but it’s a truism of publishing that short stories don’t sell and you have to be an emerging talent of major proportions to get your first book published if it is a short story collection. Ian McEwan’s first book, First Love, Last Rites, was the exception that proved the rule. Even later in an established career, publishers groan at the thought of a short story collection, even from big authors such as Maeve Binchy. Readers mostly don’t like them either, for the simple reason that they prefer a full-length novel in which they can get to know the characters, immerse themselves in the plot and generally lose themselves. Escapism is a major reason why readers go for fiction. So, what’s been happening? First there was Story, the campaign for the short story: ‘We believe that the short story is one of the most exciting and important literary forms, that can and should reach the widest possible readership. We believe that the short story matters,’ says its website. The latest news is that Kate Clanchy has emerged ahead of a strong shortlist to win the £15,000 ($24,399) BBC National Short Story Award. Best known as a poet, Clanchy received the award for The Not-Dead and The Saved, about a mother and her terminally ill son. It is only her third attempt at the genre. Di Speirs, judge and editor of readings, BBC Radio 4, said: ‘Judging this award on behalf of the BBC since its inception, I have been keenly aware of the growing strength of entries - not just in volume but in range and depth and poise. Year on year, acclaimed writers from other disciplines have been drawn to try their hand at it and I am delighted to see this broader appeal paying such dividends now.’ It’s very good to see public recognition of the short story form and the BBC award will certainly encourage writers and also give readers a good opportunity to encounter some really good short stories on the BBC website (although this is only sadly through podcasts, rather than in written form). Which is of course the other great reason why short stories are back in the news – their short length makes them perfect for the Internet. Something as short as a story can be read on screen without discomfort and this means that writers have a whole new online market for short fiction. This week Amazon announced that it will sell two stories, one by Christopher Buckley and the other by Edna O’Brien, exclusively through its Kindle store. The stories have been selected and edited by the staff at The Atlantic, the venerable magazine that once published short fiction in its print pages monthly. Priced at $3.99 (£2.50) each, the stories are only available on the Kindle, Amazon’s electronic reader, and will not appear in the print version of the magazine. The Atlantic’s editors plan to offer about two Kindle stories every month. The magazine now only has an annual fiction issue and stopped publishing monthly fiction in 2005, so it is interesting to see its traditional role being revived in this way. Including a number of articles Podcasts of this year’s shortlist Back to Top
No country for old typewritersIt didn’t seem a slow news week, but the amount of coverage which has been given to the sale of Cormac McCarthy’s typewriter in the last few days has been truly astonishing. The American writer bought the machine, an Olivetti Lettera 31, from a pawnshop for $50 (£30) in 1963. Since then he has used it to type 12 novels (plus three as-yet unpublished ones), two plays, several screenplays and untold numbers of letters (no email here), a total of some 5 million words over 50 years. In the meantime the rest of us, writers included, have migrated, first to the electric typewriter and then to the computer, changing the act of writing radically. No longer is it a matter of messy corrections, Tippex and re-typing. Modern writers don’t have to get it right first time but can edit and rewrite on screen, something which has become second nature to us all. The mind boggles to think of McCarthy producing his novels and getting them ‘right first time’, but, who knows, maybe those writers of the typewriter generation were just dab hands at re-typing, and very fast at doing it to boot. ‘When I grasped that some of the most complex, almost otherworldly fiction of the postwar era was composed on such a simple, functional, frail-looking machine, it conferred a sort of talismanic quality to Cormac's typewriter,’ said Glenn Horowitz, a rare-book dealer who arranged the auction on McCarthy's behalf. ‘It's as if Mount Rushmore was carved with a Swiss Army knife.’ The typewriter was expected to sell for $20,000 (£13,200) but eventually, because of all the publicity the auction had received, it went for $254,500 (£154,475), much to everyone’s surprise. McCarthy has spent most of his writing life in extreme poverty, but in recent years his Pulitzer Prize, the success of his books starting with All the Pretty Horses, and the four Oscars award-winning film of No Country for Old Men have all made him into a celebrity whose typewriter is news. As The Times said last week: ‘Until the publication of All the Pretty Horses in 1992, Cormac McCarthy was considered the best unknown novelist in America. None of his previous novels, which included Suttree (1979) and Blood Meridian (1985), had sold more than 2,500 copies in hard cover. There was good reason for his obscurity: McCarthy’s books were, and are, implacably grim and violent. They are also stylistically challenging, often plotless, lacking traditional punctuation and arcane in their vocabulary.’ So, is McCarthy seizing the opportunity to discover the marvels of word processing on a computer? He is not. A friend has already found him another portable Olivetti. This time it cost him only $11. Back to Top
Borders UK goes into administrationThe troubled British book chain Borders went into administration last week. The chain, which had been the subject of a management buyout in July, proved unable to trade its way through the recession. It was already in the process of closing down its Book Etc stores when the end came. A loss of £10.3m ($17m) in 2007 was followed by a loss of £13.6m ($22.45m) in 2008 and eventually the firm ended up with problems getting credit insurance. The big publishers stopped supplying the chain and efforts to sell at least some of the shops to W H Smith proved unsuccessful, although it may be a different picture if the high street giant can now cherry-pick the stores it wants at a bargain price from the administrator. Borders is thought to be holding £10-15m ($16.5m-$24.7m) of stock and it is currently continuing to trade, although it can only get new stock through wholesalers. The future of its 45 stores and 1,150 staff seems uncertain at best. For publishers, the timing could not be worse, as the trade goes into the key final few weeks of Christmas trading. Last year the collapse of Woolworths in the same period wreaked havoc with book supply with the loss of the Woolworths stores and suspension of supply from linked company, the wholesaler Bertrams. It was only because of persistent and cool work by the Publishers’ Association that Bertrams survived. This year it looks as if there will be no such happy outcome. Neill Denny, editor-in-chief of the Bookseller, said: ‘Borders' essential problem has always been trying to make a big box US retail format work here, where on average retail square footage costs about twice as much. They expanded fast in the late 1990s and the early part of this decade and may well have overpaid for leases. It may be that in a tightening book market, there just isn't room for three national chains, particularly when you consider the continuing growth of the supermarkets and the web.’ It is generally thought that the accelerating percentage of sales through the web has been the main factor in Borders’ demise, but the company’s severe cash flow problems became worse as sales fell. Verdict retail analyst Neil Saunders says: ‘The books industry is still a very difficult market to trade in. Margins are very thin in books, and a lot of people are increasingly focused on price. But there's still a place for the bookshop on the High Street because people do like to browse, and a lots of people go into bookstores for reading inspiration - that wasn't really the case with the music industry, and it's a key differential.’ He added: ‘Local bookshops with extensive back catalogues and specialist areas are carving out a niche, and they can still do well.’ And perhaps this is the encouraging message we should take from Borders’ collapse. Many will miss Borders’ breezy superstores, with a mix of music and magazines but also a surprising amount of book stock, which seemed to offer something different and attract a younger market. But for all that it’s a sad day when 45 bookshops seem likely to be lost and there is a further narrowing of competition in book retail on the high street. Back to Top
So what's the Google Settlement all about?You may be thoroughly bored with the Google Settlement (see last week’s News Review) but it has a significant impact on authors’ rights so it’s worth making the effort to understand what it’s all about. Last week’s agreement has met with very different responses. Paul Aiken, Executive Director of the Authors’ Guild in the States says that: ‘The Google Settlement will not give the internet giant a significant hold over the publishing industry, because it has zero market share in books right now, and we don’t see that them being able to offer online versions of out of print books will change that in any way.’ Aiken said it would increase online competition: ‘We think it’s a good thing for authors, publishers and readers – and we think their opposition is more about, at least in Amazon's case, protecting their position as the dominant player online.’ The UK Publishers Association also backs the Settlement, although the Booksellers’ Association doesn’t. PA Chief Executive Simon Juden said that it was ‘a difficult and controversial matter with plenty of devil in the detail. As in any negotiation, no side has achieved everything it wanted and there are certainly aspects of the new Settlement that would bear improvement. The deal originated from Google taking actions that we think broke the rules (digitising 10 million "orphan" and out of print works without the rights-holders’ permission). I don’t think anyone feels comfortable about that.’ The Open Book Alliance, of which Amazon is a member, is still expected to lodge a formal appeal against the revised settlement. A more negative view has been expressed by Gary Reback, its Co-chair: ‘The proposed changes fail to address this deal’s fundamental flaws. Despite Google’s effort to spin this deal, it does nothing to promote competition nor does it reform Google’s exclusive access and monopoly hold on this digital database of books’. So where do things stand? In withdrawing its attempt to make the Settlement effective internationally, Google has dismantled much of the opposition, particularly from Europe. Now books published only in the US, UK, Canada and Australia will be part of Google Books. The beneficiaries are the authors and publishers, known as the ‘rights-holders’ of out-of-print and ‘orphan’ books. Google defines a book that is ‘not commercially available’ as being out of print, ie, if you can’t buy it online, or if it’s not stocked in traditional booksellers. An orphan work is an out-of-print work where normal copyright laws apply, but whose rights owner is unknown. Authors stand to gain at least $60 (£36), if their book has been scanned, is out of print and they choose not to opt out of the system. After that, they will get revenues from any sales of their works on Google Books. These are books which were previously not generating any revenue. About two thirds of proceeds will go to copyright owners, while Google will receive about a third. Unless, you say otherwise, you’re presumed to have opted into the project. With that comes the loss of rights. You can’t sue Google for copyright infringement, and many lawyers think that that makes the deal questionable, if not illegal. Also, it gives Google extraordinary power. From having zero market share in publishing, suddenly they stock ten million books, seven million of which you’re not likely to find anywhere else. Which makes you realise why Amazon in particular, with its near- monopoly of the online book business, is not at all comfortable with the deal. Back to Top
Google Settlement agreedThe New Google Settlement (see News Review 7 September) looks like a reasonable resolution of a thorny set of problems. Bowing to pressure from foreign governments and the US Department of Justice, the revised Settlement presented to the district Court in New York shortly before midnight on Friday limits the scope of the scheme to works registered with the US Copyright Office and books published in the UK, Canada and Australia. The named plaintiffs have been expanded to include authors and publishers from those countries, and British, Australian and Canadian right-holders will gain representation on the Book Rights Registry board which will be set up. The plaintiffs say that ‘after hearing feedback from foreign rightsholders, [they] decided to narrow the class to include countries with a common legal heritage and similar book industry practices’. Richard Sarnoff of Bertelsmann, speaking for the Association of American Publishers, said that: ‘The settlement is not about setting up the digital future of publishing; it's about not leaving old books behind’. The eventual form of the Settlement means that, as expressed by Paul Aiken, Executive Director of the Authors’ Guild: ‘95% per cent of foreign languages works are out’ of the agreement, meaning ‘the lion's share of the potential unclaimed works are now out of the settlement’. Google Books engineering director Dan Clancy noted in the company's blog: ‘We're disappointed that we won't be able to provide access to as many books from as many countries through the settlement as a result of our modifications, but we look forward to continuing to work with rightsholders from around the world to fulfill our longstanding mission of increasing access to all the world's books’. The now much smaller body of orphan works will have an independent, court-approved fiduciary, who will represent rightsholders of unclaimed books and the Book Rights Registry is also now specifically required to actually ‘search for rightsholders who have not yet come forward’. Google will allow third parties to sell access to all Settlement works,
although the terms for the retailer are still not clear. The potential new
revenue models to be negotiated at a later date have been narrowed in scope in
the new agreement, limited to print on demand, file download and consumer
subscriptions. It remains to be seen what effect all this will have on authors’ control of their work, but the final Settlement agreed appears to have dealt with many of the anxieties of the parties involved. Google can proceed but under tighter controls than were originally proposed. Back to Top
The tragic saga of a bestselling authorStieg Larsson has been continually in the news ever since publication of his first book, The Girl with the Dragon Tattoo. The third part of the Milennium trilogy, The Girl Who Kicked the Hornet’s Nest, has recently been published in the UK and the US. It has a unique place in both countries, for in both of them it is extremely rare for a translated novel to have any kind of major success. Larsson has also been very successful across Europe and last month his books were high in the bestseller lists in France, Germany, Italy and Denmark. An amazing one in three Swedes has read him and 20 million of his books have already been sold across Europe alone. What is unique about these books is the author’s clear moral purpose and the immensely complicated plots. Larsson, very unusually for a male writer, is extremely concerned about misogyny and male violence directed at women. His characters, Mikael Blomkvist and Lisbeth Salander, are not off any stock shelf and, moral purpose or not, the books are genuinely page-turning. It’s very sad that Larsson’s novelist career had hardly begun before it was over, when the author was struck down by a sudden heart attack at the age of 50 after climbing seven flights of stairs. The irony is not just that he did not live to see the fantastic success of his books or to have a long career as a bestselling writer. His unexpected death has also meant that his girlfriend, 54 year-old architectural historian Eva Gabrielsson, has not inherited any rights to the books, even though she helped research them. The couple had not married, although they had lived together for over 30 years and Larsson did not make a will in her favour. Gabrielsson says she and Larsson never married because he had believed his anti-fascist work could have put her at risk if there was a paper trail linking them legally or financially, but that he would have been dismayed to see anyone other than her in control of the estate. 'It would have been beyond Stieg's worst nightmares to know that someone other than me was handling the rights to his books and to know that the money we planned to invest is gone' she has said. Stieg Larsson’s father and brother have inherited the whole estate and don’t intend to share it with Eva Gabrielson, although they have recently offered her £1.75m ($2.93m) to relinquish all rights . There are rumours that there are 200 words of a new novel and sketched-out ideas for six more in Larsson’s laptop, which Gabrielson isn’t about to hand over anytime soon. But could they be completed by someone else? It’s difficult to see how anyone could step fully into Larsson’s shoes but for his fans it’s an intriguing thought. In the meantime the current situation seems like an episode out of one of Larsson’s own books, as her father and brother seek to sweep aside the woman who has been legally disinherited, but who morally surely seems entitled to her share, and to the all-important control of Larsson's work. Back to Top
Too much, too fastThese are nervous times in the book world. Too much seems to be happening too fast and no-one is sure what it means or where we’re all going to end up. Having said that, it’s worth remembering that readers want the same things out of books whether they get those books in traditional print form or through an e-reader, mobile phone or some other device yet to be invented. Those two things are information and stories, and we should think separately about these two very different areas of publishing. Broadly speaking, information publishing, which encompasses non-fiction trade (or general) publishing as well as enormous areas such as specialist, professional, academic and educational publishing, can benefit from delivering information online. The devastation of the encyclopedia and reference business in print form shows an extreme form of this, even though many of us will continue to reach for our print dictionary for many years to come. But for fiction and narrative non-fiction, or ‘reading’ books, the story is the point, and that will continue to be delivered in print form because there are many book-buyers who like to access their books in that way and will continue to do so. However the figures for e-book sales for The Lost Symbol in the US are truly amazing - it has been outselling the hardback - and more readers may be ready to switch to e-books more rapidly than anyone might have forecast a year or two back. So people in the book world have to think through what this means for books in print form. A figure just released last week shows that only 4% of British readers have so far read an e-book, but Americans are two years ahead on this and many of them seem happy to adopt the new e-readers. This shows that there is potentially a very much bigger market for e-books than many observers had expected. At the same time it’s clear that the second great change in the process of buying and reading books is accelerating. Amazon showed a growth of net income in the third quarter of 68%, as compared to last year, with a 28% increase in net sales. The latter increased by 33% in the international division during the same period. Of course the Internet giant is now successfully selling many items other than books, largely because it offers both range and convenience (the same things which attract book buyers), so books make up just a part of these figures. They do show the trend towards online retail and the price comparison that makes possible. And at this moment a price war has broken out in the States and Wallmart.com is experimenting with the use of books as loss-leaders, in exactly the same way as UK supermarkets have done, with the very same book, The Lost Symbol. So the future looks as if it will involve far greater sales of e-books and even more online and supermarket sales than has been the case in the past - both trends which will continue to have a massive impact on the whole book business. Back to Top
UK versus US readersA recent study from Book Marketing Limited, which runs the Books & Consumers survey, and Bowker, which runs the US equivalent, PubTrack, has highlighted some interesting differences between British and American readers. A higher percentage of the British than of the US population bought books in 2008. Fifty-seven per cent of British consumers bought one or more books last year, whereas only 50% of Americans did. Romance and mystery (or crime) fiction was a more important part of the US fiction market (57%, by comparison with 31% in Britain). This shows that Americans are reading more genre fiction than British readers. Men accounted for only 29% of the US fiction market, a surprisingly low figure, but 40% of the British fiction market. This is partly because men are generally reckoned not to buy romance, which is almost totally a female market, and accounts for big sales in the US, but also probably indicates that more American women buy mysteries. It also seems to suggest that male American readers are more focused on non-fiction than their UK counterparts. Kelly Gallagher, Vice President of Publisher Services for Bowker, pointed
out: ‘In addition to the noteworthy differences, there are also interesting
similarities, such as the data indicating that both markets are reliant on older
buyers, with adults over the age of 42 accounting for two-thirds of all book
purchases in both the US and Great Britain.’ There are however big differences in the bookselling environment. Price discounting has been nothing like as ferocious in the US as in the UK, where recent loss-leading sales of the latest Dan Brown book by some supermarkets and Internet booksellers have received much adverse comment. There is however currently a price war developing between Amazon.com and Wallmart.com. The Internet is the primary channel for book sales in the US, whereas retail bookshop chains are still ahead in Britain. This may however be just a matter of timing, as Internet sales are still increasing rapidly as a proportion of all book sales in the UK. This may not happen though, as the UK, being a small, relatively densely populated country, does provide book buyers with easier access to bookselling outlets of one kind or another. It’s good to be able to report that on both sides of the Atlantic independent booksellers seem to be standing their ground. It’s been tough for them during the recession and many have closed, but it is heartening to see new shops opening up. The survivors have managed to keep going by cultivating a loyal customer base, with events in the stores, a focus on local books, cafes and often strong additional business through the internet and local schools or colleges. One other significant difference in the market is that books are much
hotter news in the UK than they are in the US, with considerable feature space
devoted to them in the press, on radio and TV. The recent BBC Poetry Season,
which caused a spike in poetry sales, would be unthinkable in the States. This
strong media focus has a significant impact on book sales – long may it last! Back to Top
A sober FrankfurtNo-one expected Frankfurt to be a ball this year. Everyone knew that the big parties were cancelled – no more trying to crash the big Bertelsmann extravaganza and none of the other opulent parties of old. It’s still a shock to find that it was so very subdued. The American contingent was considerably slimmed down. Neither Random House nor Simon & Schuster sent any editors, a sign of belt-tightening which may have sent an even starker message of cut-backs than was really intended. Some British houses cut back on editors too, with the general effect that there were plenty of people selling rights, including a great many subsidiary rights people and agents, but not many people to sell to. But perhaps this is to have an exaggeratedly Anglo-Saxon view of the publishing world. For the many publishing people from countries other than the US and the UK, business went on much as usual. It’s always been difficult to sell books from these countries to the Brits and Americans because English language publishers are not much interested in what is going on elsewhere. There’s no shortage of books being written in English and these don't carry the high cost of translation. And it was these cutbacks which were causing the change. Publishers didn’t want their editors to buy books, so why send them to Frankfurt? Deals could be concluded by email before and after the Fair and no publishing management wanted to get into the kind of bidding war over ‘the book of the Fair’ which used to characterise Frankfurt in the old days. Having trimmed their lists and spread out the books they have under contract into future years, publishers want to sit tight, contain costs and wait out the recession. Much depends on Christmas, that annual orgy of book-buying which drives a large proportion of sales in the West. Last Christmas was devastated in the UK by the fallout from Woolworths closing-down, and in the US there has been a steeper decline in book purchasing. But a good Christmas, in which gift purchasers turned back to books as good but not-too-expensive gifts, could make a big difference. Many consumers do feel that the end of the recession is in sight, but that they’d still better be careful, so books could do well as relatively inexpensive gifts. But even when the book business comes out of this recession it’s still going to be a different world. Publishers will rebuild their lists cautiously, with an emphasis on the tried and tested, and what is already bestselling. Unpublished authors will continue to think hard about self-publishing. And digitisation and the growth in e-books may yet change the market so radically that we are really talking about a whole new ball-game. Back to Top
The Kindle goes globalThis was the week when, in the middle of an unsurprising Booker and an unremarkable Nobel Prize for Literature, Amazon launched its much-heralded Kindle 2 international edition. Clearly the Internet giant has found it impossible to knot together wireless availability in the territories where it runs Internet bookshops and has opted instead – for the moment anyway - for an international version supplied by A T & T. It is two years since the device was launched in the US and during that time the e-reader scene has changed hugely, so Amazon must have begun to worry that it would lose its first mover advantage. The Kindle 2 will be available from 19 October in 100 countries at a cost of $279. The 200,000 e-books available for purchase directly from Amazon.com’s Kindle Store using the wireless connection will be supplied from the States at an extra cost of $1.99 each. Most publishers have agreed to this, with Random House a slightly surprising holdout, so the e-books will be supplied according to existing territorial rights agreements. Amazon said a safeguard has been put in place to respect territorial rights: ‘When a customer first buys Kindle content, they identify their region or country. In order to simplify their browsing experience, we then display the appropriate catalogue for the customer. When they travel, the content available to a customer is determined by their home country, not by the country they are travelling in.’ The Amazon.com website says: ‘New York Times® Best Sellers and New Releases are $11.99 to $13.99 (prices include VAT), unless marked otherwise. You'll also find many books for less - over 70,000 titles are priced under $5.99.’ Readers can use the wireless connection to buy from the Kindle Store, download books in less than 60 seconds, automatically receive newspaper and magazine subscriptions, and receive personal documents. Jeff Bezos now claims that for books available in both print and ebook
form, Kindle comprises 48 percent of Amazon's sale on average, an astonishing
figure which indicates that the demand for e-books has grown very much faster in
the US than anyone other than the biggest e-book enthusiasts might have
foretold. So what is the competition for the Kindle 2? The Sony Reader is clearly currently the strongest and the most established in a number of markets, including the UK. Consumers who opt for one of its devices will be able to buy e-books from anywhere they like. The iRex is one of a number of other contenders but there’s also a rumoured launch from Apple of a new revolutionary device which might change the whole scene. The Kindle’s whole business model is predicated on what is known as a "walled
garden"; to buy e-books from its website, you need a Kindle and to read
e-books on the Kindle, you need to buy them from its site. But Sony, which
will next year bring out an updated version of its own e-reader, is doing away
with its proprietary model and adopting the more common ePub format.
Consumers who opt for one of its devices will be able to buy e-books from
anywhere they like. For everyone in the book business, there’s a lot riding on the new Kindle. Back to Top
It's Frankfurt time againThe annual Frankfurt Book Fair starts on 14 October and already publishers from around the globe are gearing up for the many meetings, arranged weeks ago, which they will be packing in with publishers from all over the world. At the moment the Fair looks as if it will shrink again this year. Less than 7,000 exhibitors have signed up, according to preliminary figures from the organisers, which could mark a decline for the second year in a row. Figures from 10 September show 6,936 exhibitors have booked stand space at the fair. Last year's event saw numbers drop to 7,373 from 7,448 in 2007. However, Bridget Shine, executive director of the UK’s Independent Publishers’ Guild, said it would have more than 40 exhibitors on its stand, which was more than in previous years. Exhibitors are trying to get better value out of the Fair by sending less people and having them stay for a shorter time. American publishers are widely expected to be even thinner on the ground than last year, as the recession has bitten hard in the US. But for many publishers from all over the world, large and small, Frankfurt is an essential event in the publishing calendar. Where else will they get the chance to meet, present their lists and sell both rights and books? There’s already the usual talk about what will be ‘the book’ of the Fair. In spite of the fact that book rights are sold throughout the year, using email for cheap and fast communication, this does not take away from the fact that it pays to have something ‘noisy’ to sell at the Fair. In the meantime the ambitious, relatively new director of the Fair, Juergen Boos, is doing everything to make sure that Frankfurt remains the premier gathering for the world’s book trade. China has been made the guest of honour for this year and prior to the Fair there will be a two-day symposium addressing the subject of China; the Tools of Change conference, which has looked at digital opportunities and threats to the industry, has already taken place in New York; and this year’s International Rights Directors’ meeting will focus on the topic of making money out of digital. But Boos is has also been working on making the Frankfurt Book Fair an international brand and an organisation in its own right: ‘We want to establish our presence at the global level while remaining adapted to regional conditions.’ There is the Cape Town Book Fair, launched three years ago with the Publishers’ Association of South Africa, and also the partnership with the Abu Dhabi Book Fair, which it is hoped will open up the potentially lucrative Arab market to publishers from all over the world. Still, the important thing is to meet, talk and get on with doing business. Jamie Camplin, MD of Thames & Hudson said: ‘The great challenge of this year's Frankfurt is to get the book trade off knee-jerk, navel-gazing responses to the recession.’ Inside Publishing on the Frankfurt Book Fair
Authors' advances slashedAuthors’ advances are being cut radically as a result of the recession. Together with the cancelling of contracts because a delivered manuscript is ‘not good enough’ or is late, this is all part of publishers’ attempts to cut their costs. The cutting of publishing lists to reduce investment in books has been the main feature of the recession to date, so far as far as authors are concerned, with a consequent devastation of the midlist. New authors are experiencing greater difficulty than ever before in getting their books taken on by a publisher. Now evidence is emerging that even big authors are having their advances cut. Author Iain Banks has spoken publicly about taking a pay cut, telling the Guardian: ‘I'm getting less money for my next book contract. But I've heard of writers having their advances cut by 80%, and others getting nothing.’ Agent Mic Cheetham, who represents Banks, commented: ‘The climate has changed. I think it's called "a haircut" - a little trim. You have to look to keep the haircut to an absolute minimum.’ The new chair of the Society of Authors (SoA), Tom Holland, told the Bookseller this week: ‘The Society of Authors is to explore options for urgent collective action against the cuts in author advances.’ He said authors were ‘becoming the whipping boys for the revolution going on in publishing’ and that the recession was being used ‘as an excuse’ by publishers to cut back on advances. ‘The increasingly monopolistic Amazon and the supermarkets are kicking the high street chains who are kicking the publishers who are kicking authors. The recession is being used as an excuse but the real reason for cutting advances is structural changes [in the industry]. We want to make sure that we are not at the bottom of the food chain.’ The acting president of the Association of Authors' Agents, Anthony Goff, confirmed that advances were being cut by as much as 70%.’For big brand authors their position is stronger than ever,’ he said. ‘Elsewhere the reductions range from 5% to 70% - if it is much below 70% they are just dropping the authors. Publishers are cutting lists and there is less competition out there in the market, so there is a natural economics going on.’ Goff said the question remained as to whether this shift was a "blip" in the market caused by recession, or a permanent shift. Holland said he would be canvassing ‘a broad range of opinion’ as to what action SoA could take, and that time was of the essence. ‘Such is the pace of change that any opportunity for action will be lost within two years,’ he said. ‘The SoA will never be a mass block trade union, and trying to organise authors is as easy as herding cats, but equally there is no point in having the Society if it does not respond at a time of unprecedented change.’
Has Dan Brown hastened the tipping-point?Dan Brown’s The Lost Symbol has dominated the press headlines this week. The big numbers hog the airwaves, but there are plenty of other reasons why this story makes compelling reading. The Lost Symbol had a worldwide first print run of 6.5 million copies. In the UK the one million didn’t look like enough, and the book is already reprinting. The author’s track record is truly astounding, with The Da Vinci Code having sold more than 81 million copies worldwide. Not only was it the UK’s biggest-selling paperback novel of all time, but Brown’s backlist titles dominated the top spots in the same list, with Angels and Demons 2nd, Deception Point 3rd and Digital Fortress 4th in line. The US publishers announced that the new book had broken one-day sales records, selling more than a million copies in the first day in the US, UK and Canada. Bestselling children’s author Philip Pulllman, who has sold 15 million of his own books, says that his rival author populates his books with ‘completely flat and two-dimensional’ characters. ‘His basic ignorance about the way people behave is astonishing, talking in utterly implausible ways to one another’, but Brown does know how to tell a story in a way that ‘makes people want to keep turning pages’. This has to be the secret of his immense popularity The Lost Symbol has also been very heavily discounted, so it seems like most big retailers are not making any money out of it. Amazon brought their price in the UK down from £18.99 to £4.99 to undercut the competition. In the US the company is selling at a massive 44% off the cover price. Writing in the Independent, D J Taylor said: ‘Hardly anyone in the British book trade, apart from Dan Brown, his agent and his publisher, will make any money out of The Lost Symbol. The big chains are using it as a loss-leader to coax in trade. Many independent booksellers will find themselves in the absurd position of buying their copies not from the wholesaler with whom they usually deal but the Asda down the road... At a rough calculation, several million pounds that could have been used to irrigate an industry struggling to emerge from recession is simply being thrown away in defiance of fiscal logic. Here, after all, is a product that hundreds and thousands of people want to buy. Why not make them pay a proper price for it?’ Agent Jonny Geller commented: ‘If the most popular book on earth is a fiver, what does it tell the punter? Books are worthless. Retailers are just throwing away their industry.’ There’s more bad news though. Pirated copies found their way onto the Internet within one day of the book being published, and could be found on The Pirate Bay and Scrib.com. On these versions not even the author will make a penny. Amazon has also announced that the Kindle e-book version has been outselling the hardback edition in the US. Commentators were not slow to seize on this, with one blogger writing: ‘The electronic book age is really about to burst upon us.’ So, it this Malcolm Gladwell’s ‘tipping-point’? Well, it just might be.
Strong Booker shortlist - does Wolf Hall lead the pack?So why is it that the Man Booker Prize manages to generate so much interest across the world? Entries are limited to novels written in English and American writers’ work is excluded, but in spite of all this the Prize seems to generate considerable interest year after year. It’s by no means the most valuable literary prize to be announced during the year, although offering £50,000 to the winner. Others, such as the Nobel Prize for Literature, offer both more money and more kudos, as well as being infinitely more international. Clever marketing and publicity must be part of the story, but cannot be the only factor. Having said that, the publicity is very good and it’s a clever wheeze to annex any news relating to previous winners and shortlisted - and even longlisted - writers, so that there is a constant flow of news available on the Prize’s website. The Booker is now of course embedded into the literary year, with a lot riding on being shortlisted and even more, of course, on winning. In 2009 there were 312 submissions from publishers. Ion Trewin, Literary Director of the Prize, said: ‘This year, since the longlist was announced, the total extra sales generated by the 13 titles was over 50,000. That’s according to Nielsen BookScan figures rather than what publishers say they’ve sold.’ A very considerable uplift in sales can confidently be expected for the winner and often for the shortlisted titles as well, as well as those which get to the longlist but fail to be shortlisted. The publicity for the winner makes a significant difference to his or her writing career, often, but not always, lifting them into the literary stratosphere and transforming their subsequent titles into significant sellers. Stanley Middleton continued in obscurity after his win, whereas Yann Martel has become an international megaseller. Be that as it may, what has made the Booker so influential is a steady diet of controversy. This started with John Berger’s win in 1972, which was followed by an attack in his acceptance speech on Booker McConnell, then the sponsors of the Prize, for the way they had garnered much of their wealth in the Caribbean, and his decision to give the money to the Black Panthers. Graham Swift, 1996 winner, says: ’Prizes don't make writers and writers don't write to win prizes, but in the near-glut of literary awards now on offer, the Booker remains special. It's the one which, if we're completely honest, we most covet.’ This year’s shortlist was interesting because the Chair of the Judges, broadcaster James Naughtie said: ‘There were some terrible novels in the 132 submissions this year. There were also some good novels which didn’t quite have what it took to make the leap onto the shortlist.’ But, he added: ‘This is one of the best shortlists in the last couple of decades’. This year’s controversy so far is the extraordinary odds being offered by bookmakers William Hill for Hilary Mantel's Henry VIII-themed Wolf Hall, which has been installed as the first ever odds-on favourite to win the literary award. Graham Sharpe of William Hill said: 'Since it appeared on the long-list, 95% of the Booker bets we have taken have been on Wolf Hall, originally offered at 8/1 - and which now seems certain to be the worst ever result for bookies if it goes on to win, costing us well into six figures. So I have made it the hottest favourite ever' - a 4/5 favourite (win £4 for every £5 staked).’ So, what can we read into this if Wolf Hall does win?
Google goes for brokeAfter a slow start, objectors have finally been getting their arguments against Google’s plans in before the closing date of last Friday, 4 September. It’s ended up being a powerful coalition of authors’ organisations, lawyers and now some governments, all of which are opposing Google’s plan to digitise vast numbers of titles unless authors object individually. For those of you who have lost the plot – and no wonder, it’s extremely complicated and in some ways quite incredible – here’s where we’re at. The Google Book Search Settlement is an attempt by Google to set itself up so that it can digitise vast numbers of books and in due course sell the digitised versions. Authors and other rights-holders would have to object and withdraw their books individually if those titles are to be excluded. At first it looked as it the reaction was rather muted, prompting the fear that Google might even get away with what seems to many just a terrifically audacious rights grab which would put the company into a dominant position globally as regards book material. But now Amazon, Microsoft and Yahoo are planning to join a coalition of non-profit groups, individuals and library associations, tentatively called the Open Book Alliance, to oppose the Settlement. Scott Gant, a US antitrust lawyer who is an author, filed a 50-page objection claiming that the proposed deal is an illegal expansion of class-action law. The Alliance plans to make a case that the arrangement is anti-competitive. Their lawyer, Gary L Reback, said: ‘This deal has enormous, far-reaching anti-competitive consequences that people are just beginning to wake up to.’ It’s claimed that it would vest Google with significant market power which it could not acquire without the Settlement and that it raises serious antitrust issues that must be considered as part of the Court’s review of the Proposed Settlement. Gant’s most damaging argument, however, is that the settlement fails to safeguard the due process rights of absent class members as required by law—a potentially fatal blow to the settlement, because if upheld by the court, it would remove a critical foundation of the deal, under which Google would essentially obtain a license to works without the specific consent of the copyright holder. He will be involved as a class action member. Publishers’ Weekly carried out a survey which showed general indifference to the threat of the Google Settlement and concluded: ‘For us, the survey highlights a fundamental question: for all the good and bad scenarios raised by the deal, was it ever reasonable to think that such a revolutionary, unprecedented pact, negotiated in secret over three years by people with loose claims of representation, concerning a wide range of stakeholders, both foreign and domestic, involving murky issues of copyright and the rapidly unfolding digital future, could be pushed through as a class action settlement within a period of months, in the teeth of a historic media industry transition?’ Objections have come from all over the world. A group representing approximately 100 Japanese publishers objected earlier in the summer but this week there was a wave of similarly-reasoned filings from a variety of publishers and publishers' associations in other parts of the world: Sweden's Norstedts (with potentially 20,000 out of print titles), Studentlitteratur, and Leopard; Germany's Harrassowitz; and South African holding company Media24 (with approximately 15,000 out of print titles) filed in opposition, as did the Booksellers’ Association in the UK, and the publishers' associations in Germany, Austria, France, Switzerland, and Sweden. US attorneys for the Federal Republic of Germany filed a long challenge to the agreement, saying it ‘cannot adequately and fairly represent’ German authors and publishers (neither of whom are allowed to join the Authors Guild or the AAP in the States. So it looks as if the Settlement will be thrown out and Google will have to rein back on its plans. Or maybe not? The Chronicle of Higher Education has an article by Geoffrey Nunberg of the University of California at Berkeley. He demonstrates how Google’s poor use of metadata for its scanned books will make work extremely difficult for scholars who need to search the book database: ‘it’s so disappointing that the book search’s metadata are a train wreck: a mishmash wrapped in a muddle wrapped in a mess’.
Dan Brown frenzy in SeptemberYou can’t have missed the news that Dan Brown’s latest thriller, The Lost Symbol, will be released worldwide on 15 September. As readers queue up to place advance orders for one of the most eagerly anticipated books in history, there are also anxieties about how this one book will distort the performance of the book trade. The excitement is easy to understand. The Da Vinci Code sold 80 million copies worldwide, 11.7 million of them in the UK. Leaving no stone unturned, his publishers will be mounting a huge publicity campaign just before publication. No-one knows the subject of this book, which is being kept under tight security, with no review copies sent out in advance. On his website, Brown says the novel, based on five years of research, is ‘set deep within the oldest fraternity in history… the enigmatic brotherhood of the Masons’ and will explore ‘the hidden history of our nation's capital’. A film of The Lost Symbol will surely follow and once again it is likely to star Tom Hanks as the symbologist Robert Langdon, and to be a heart-stopping thriller of action and suspense. While the book trade celebrates the arrival of the kind of a really blockbusting book which will attract a mass audience, there’s no doubt that a very large proportion of the sales will come through supermarkets and the Internet, with the book likely to be heavily discounted. It will provide a fillip to the trade, but the discounts may mean that the book may not make much money for bookshops. And how much will Brown’s megaseller affect the sales of other fiction? There are mixed views about this, and some publishers, whilst not admitting any anxiety, have quietly rescheduled big books in their own autumn publishing programmes to avoid 15 September. The Bookseller has shown that the effect of the Dan Brown phenomenon on other fiction sales is difficult to pin down. The figures appear to suggest that a big blockbuster like this really does affect sales of other fiction titles. Until, that is, you get to last year, when fiction sales fell 1.3%, instead of rising, in spite of the fact that Dan Brown sales, with no new book for five years, were a low 0.1% of the market. It looks as if the recession was an even stronger factor. It’s widely thought that Dan Brown achieves such huge sales because his books reach people who are not normally regular readers or book purchasers. This is difficult to prove, but the numbers sold suggest that Brown’s books do reach outside the normal book market. So whatever the effect on other books, perhaps we should just hope that the beleagured book trade does get the hoped-for sales bonanza to counteract the continuing gloom in the book trade.
Romance - a rave for readersThe romance genre is doing very nicely, thank you, in spite of the recession. When conglomerate publishers such as HarperCollins and Simon and Schuster have been announcing sharp downturns in sales (see last week's News Review ), Harlequin/Mills & Boon (the US and UK companies respectively) just go from strength to strength. The publisher thinks that readers are actually turning to romance to escape the recession, which is why 2008 was its most successful year to date. Digby Halsby of Mills & Boon says the company: ‘is recession-proof, as people seek joyous relief from the gloomy news headlines. Everyone loves a happy ending and Mills & Boon always deliver that.’ The company, which was set up in 1908, has just celebrated its centenary in rude good health. By 1981 it was the world’s largest publisher of romance, with 80% of the global market, translations in 26 languages and sales of over 200 million a year in 100 countries. It has a UK readership of 1.3 million, which means one book is sold on average every 3 seconds. 120 titles a month are published worldwide each month and Harlequin/Mills & Boon have 1300 authors. The secret of their great success is that they know what their audience want and tailor what they offer to a specific market. Thus historical and medical romances have long been popular, but they are now joined by imprints such as Blaze and Desire, which introduce a sexier plot, opening up the rather bland romance category to younger readers. The Mira imprint is reserved for their bigger authors but all their numbers can get seriously large. Penny Halsall, a former shorthand typist who lives in Cheshire, has sold about 80 million books, meaning that she is in the same league in terms of numbers as Roald Dahl and Ian Fleming. Nora Roberts’ books have sold 280 million copies (although not all are romances). The company is not afraid to innovate. It has recently launched a social networking site and its well-tooled online sales approach means that books are exclusive to the Internet first, where you can get your monthly fix of new books in your favourite series. E-books are offered at the same price as print versions and there is a good and growing market for them. US research suggests that busy women – and the audience is overwhelmingly female – are prepared to read their romances on computer, with a suggestion that their families will interrupt them less readily if they think they are working, rather than reading a book. A recent competition in India to find Indian writers was won by Milan Vohra, a 44-year-old advertising executive who wrote her 2,000 word winning entry in one night. A big new market is expected to open up amongst India’s burgeoning middle classes. Mills & Boon/Harlequin are of special interest to writers. They actively look for new authors and provide full guidelines on their websites to help writers produce work for one of their series. Any writer in search of a category could do worse than studying their website carefully. Romance may not be fashionable but it is lucrative, backed by a well-organised publisher and of universal appeal. Writing Romance (part of WritesServices' series on different categories)
Publishers' operating profits plungeRecent results from two big international publishing companies show that the recession is hurting quite badly. Sales fell 2.5% at Simon & Schuster (S & S) and operating income was just $6.1.m (£3.65m), down from $14.6m (£8.75m) a year ago. HarperCollins’ worldwide business operating income - effectively its profit - has collapsed from $160m (£96m) to $17m (£10m) over the last year, its most recent financial results reveal. Both companies attributed this to the recession, but Simon and Schuster also thought that shifts in foreign exchange had also had a major effect. Publisher’ Weekly has just analysed publishers’ results and concluded that the two factors affecting the outcome were Stephenie Meyer’s sales and currency fluctuations. Thus Lagardere was 20.4% up at the half-way mark because of Meyer’s huge continuing international sales, S & S was 2.5% down and HarperCollins was down a massive 20.5%. Harlequin Mills and Boon seems to be surviving the recession quite nicely at 8.7% up, so perhaps romance is what readers are buying to provide escapism when times are hard. It’s noteworthy that Simon & Schuster took a $2.2m (£1.32m) hit because of
their redundancies. CEO Carolyn Reidy said: ‘Even though we had nice sales, a
lot of it is the mix of more frontlist and less backlist’. She added: ‘The
market is surprising us on a daily basis. The good news is it's not consistently
down; the bad news is it's not consistently up.’ Among the house's continuing
authors: ‘half of them are down 10 to 20 percent, but others are up 10 to 30
percent’. The worst may be over though as: ‘it looked to us like consumers
are finally going back to bookstores’ and ‘it does give us hope that
perhaps what has been a very dismal first half of the year will turn out to be
better going forward’. Against this background, publishers will continue to be cautious and further staff cuts are not ruled out. Another popular way of cutting costs has been to trim the publishing programme, although most publishers have, thankfully, done this by moving titles forward, rather than by cancelling them outright. Advances are down and it’s definitely a bad time to be late with delivering a contracted book. Even so, whichever way you look at it, this is not a good time in publishing, any more than it is in most other industries.
Hachette widens the gapRecent changes in the ranking of British publishers by market share show how vulnerable even big publishers are to the recession and the extraordinary effects of just one megaselling book. Hachette announced this week that it had managed to grow sales value in the first half of the year in spite of a declining market and it has therefore consolidated and increased its market-leading position. A year ago, just 0.2% separated Hachette from its nearest rival Random House UK. Now the gap has widened, Hachette has 16.1% of all book purchases and Random House has slipped back to 13.1%. All the other big British publishers recorded substantial drops - Random House 14.6%, HarperCollins 12% and Penguin 8.3% (see News Review 13 July). And what’s the main reason for Hachette’s surge in sales and the huge growth in the young adult category? Well, it’s the enormous sales garnered by Stephenie Meyer. Sales at Hachette-owned Little Brown, her UK publisher, were up more than £10m year on year and they have even offset a decline in sales at Little Brown itself. In the US Meyer was the top-selling author of last year and her sales have had a similar effect on the fortunes of her American publisher. Her books have sold 53 million copies around the world, where they have been translated into 37 different languages. A recent survey in Publishers’ Weekly showed that pay freezes, job insecurity and dissatisfaction characterise the US publishing industry. 35% of workers did not receive any raise last year, and 70% reported a pay freeze at their company, added to the large-scale redundancies made on last December’s ‘Black Wednesday’ and since. It’s certainly a time when the map is being re-drawn. The UK Independent Alliance has been doing so well that it has shown spectacular sales growth of 195.7% in the six months, fuelled by Atlantic’s Man Booker Prize winner and Canongate’s two Obama books. Faber itself, the leader of the Alliance, is up 46.7% in value, buoyed by its anniversary year. There are plenty of surprises and changes though, to raise publishers’ anxiety levels, already high because of the recession. Huge growth in print on demand may be one of them. The University of Michigan has announced that it is to make 400,000 public domain titles available through print on demand. Cornell University recently announced that they intend to ‘create 500,000 digitized books over the next six years’. The University of Pennsylvania library has a partnership with scanning company Kirtas to make 200,000 public domain books available in a ‘digitize-on-demand’ programme. They’re all piling in to what would in the past have been seen as publishers’ territory, with as yet unknown effects on the supply of books. As regards the UK publisher’ rankings though, Random House may have an ace up its sleeve in the form of their own megaseller. The book world on both sides of the Atlantic is keenly anticipating the arrival this autumn of Dan Brown’s new book and the huge sales which it’s expected to achieve.
Ebooks - still a hot topicSince News Review last reported on e-books and e-book readers in the spring (News Review 2 March) what’s happened to the ‘big story’ of the book world? Well, everyone’s been pretty preoccupied with what else is going on right now, with all eyes on the developing recession and how this is affecting booksellers and publishers. But ebooks and the effects of digitisation are still the hot topics of the moment. It’s surprising that a London Book Fair survey showed that only half of UK publishers have a digital plan. Mark Smith, MD of Quercus, said: ‘Everyone is realising that it's essential to get into the digital space - I don't think we completely understand how it will all play out in future, but I would have thought most people would realise they need to be there, because if they are not, someone else will be.’ In the UK ebooks are currently just 1.5% of the consumer book market, but they grew by 174% from January 2008 to January 2009. Random House US reported that ebook sales were up 400% in a year and the ebook market is much more developed in the US, partly at least because of Amazon’s Kindle. This is still not launched in the UK, although there are rumours that it may be coming soon. The Lexcycle Stanza, mostly used on iPhones, has acquired 1.7 million users in a year and for education, academic and professional publishers digital sales may already account for as much as half of their turnover. Two considerations are affecting the growth of the market. There are now more than 25 ebook file formats and the proliferation is harming the market. A cross-platform format is much needed and the open ePub standard looks like the format of choice. It is not however supported by Kindle. The Sony Reader and other ereader devices are fighting back. In the US Barnes and Noble are rumoured to be planning to launch a new piece of hardware to compete with the Kindle. Google has joined the fray by putting 500,000 titles in the hands of anyone with a Sony Reader. The other focus is pricing, with publishers realizing that they may have the opportunity to sell books in a whole other format (which is of course cheaper to produce) but they still need to make sure that that format does not destroy the book business. Prices currently are often around the prices of paperbacks. John Makinson of Penguin has claimed that publishers are ‘short-changing authors’ if they don’t price ebooks at the same prices as books, and Gail Rebuck of Random House UK agrees. Sourcebooks in the US recently delayed the ebook release of The Farfield Curse for at least 6 months, and CEO Dominique Raccah says: ‘Hardcover books have an audience, and we shouldn't cannibalize it, adding ‘it doesn't make sense for a new book to be valued at $9.99’, a reference to the price point Amazon are trying to establish a for bestselling ebooks. Future-watcher Mike Shatzkin, founder & CEO of the Idea Logical Company, says: ‘We’re now in a world where most people don’t want to read books on screens rather than paper. So for many of them, if they get a book on a screen and like it, they just become more likely to buy it in paper. This will not remain true forever. A world in which more and more people are reading books on screens will also be a world where freely distributed ebooks will cut into sales, not spur them.’See also our 2nd Report from the London Book Fair on ebooks
Penguin to cut 100 jobsThe London book world was shocked last week by Penguin’s announcement of 100 redundancies, 10% of the workforce. The company had seemed to be relatively unscathed by the recession and to lead a charmed life when other large companies in the UK, such as HarperCollins and Random House UK, were announcing 5% redundancies. In the States things have been much worse, with many redundancies stretching back into the autumn of last year. Penguin management have made much of the cuts positioning the company for the digital age and of their plans to promote a new generation of leaders to the top jobs. If you work there the strategy of making 100 redundancies may be less clear, especially at a time when many other employers are trying to devise ways of holding onto staff so that they are reasonably well-placed when the upturn comes. Penguin’s sales in the first half show that they were down by an alarming 8.3%, with their UK market share falling from 10% to 9.2%. The cuts are estimated to have taken at least £5 million out of the cost base, but they will fall unevenly across the various publishing divisions. When you look more closely the plan seems to be to cut divisions which are doing less well. This means that Lonely Planet will be cut, logical perhaps in view of travel book sales being under great pressure at the moment. For Penguin’s illustrated publisher Dorling Kindersley there will be a cut in output from 250 titles a year to under 200.The division will also be subject to staff cuts because many DK jobs are effectively being outsourced to India. Dorling Kindersley already have 140 staff in New Delhi and the change in emphasis means that in due course the illustrated publisher will be largely run from India. It’s extremely ironic that this is the very week when Penguin’s parent company Pearson has become the largest global publisher, according to a ranking of international publishers, Although Penguin is much better known in the trade (general) area, some clever purchases have built its parent Pearson into a giant in educational publishing. It has also embraced digitisation and is thought to be well-positioned for the state of California’s decision to replace school textbooks with e-books. So here’s a company that’s doing remarkably well overall, but that doesn’t mean that its trade division will escape the cuts.
Authors' copies and discountsAuthors should get better discounts on the books they buy direct from publishers, claims Philippa Milnes-Smith, the President of the UK Association of Authors: ‘If an author can make significant sales on his/her behalf should this not be actively facilitated?’ Over the years there’s been an interesting change in how publishers and authors view the ‘author’s copies’ clause in their contracts. In the old days 35%, which was the standard trade discount, was the norm. Most authors would buy a few copies to give to their friends and it was a rare author who actively promoted and sold their own book. There was a feeling that this might cut across booksellers’ efforts, but also it was assumed that authors would take a far more passive role, turning up to do the publicity the publisher had arranged, schmoozing the book trade and doing author signings, but otherwise concentrating on their writing. Now, many authors are much more active in promoting their own work. Some of them, such as non-fiction writers who give lectures or poets who give readings, may play a major part in selling their work. It’s good to know that a discount of 50% has become the norm, although there are plenty of publishers still offering only 35%. Mark le Fanu, General Secretary of the Society of Authors, says: ‘Of course one would like 80%,’ but this may be an unlikely outcome. Authors’ royalties are already under sustained pressure because the very high discounts given to bookshop chains and in particular supermarkets and online booksellers mean that publishers often pay royalties at a lower ‘high discount’ rate. You could argue that authors should share the pain, but whether this seems fair depends on where you stand. From an author’s point of view the royalty they earn on an individual copy sold in a supermarket may be only half that relating to a copy sold in a bookshop. If you are a bestselling author, this may make a significant difference to your royalty earnings, which is one of the reasons why agents push for large advances for their big clients. But for ordinary authors who are not writing bestsellers it’s tough to find that a large proportion of the royalties your book has earned, particularly if it’s sold well online or in the supermarkets, seem to disappear on their way to you. Inside Publishing on advances and royalties
Prizes, prizesNot a day seems to go by without a literary prize announcement. Even so the news that this week the author Siobhan Dowd has won the Highly-regarded CILIP Carnegie Prize was unusual, for Dowd died in 2007. Her book Bog Child is set in Northern Ireland in 1981, at the height of the troubles, and is about a teenager who discovers a child’s body which has lain undiscovered in the peat for 2,000 years. Her editor David Fickling accepted the prize on her behalf, using his speech to speak against library cuts: ‘Libraries are struggling to survive on less and less funding and children have access to fewer books. Children need stories. Siobhan believed that stories help children to think and if they can think, then they are free.’ Before she died the author set up the Siobhan Dowd Trust, which receives royalties from all her books and which helps disadvantaged children in care who do not have access to books. Fickling said: ‘It is about offering new possibilities, new life and excitement to children by making books accessible.’ Elsewhere, this week saw the announcement of the inaugural Michael Marks Awards for Poetry Pamphlets, set up by the British Library, working in partnership with the Poetry Book Society. These support poetry published in pamphlet form and the first winner of the Poetry Award was Elizabeth Burns with The Shortest Days. The innovative Pamphlet Publishers’ Award, intended to support the work of small presses, was won by newcomer Oystercatcher Press. The Awards are intended to bring poetry pamphlets to a wider audience, to support new work and to throw a spotlight on the work of small poetry presses. Ian McMillan, Chair of the Judges, said: ‘Elizabeth Burns is an outstanding winner from a very strong shortlist because of the maturity and completeness of the work, which fits the pamphlet form perfectly. Oystercatcher Press feels like a publisher taking risks with older and newer writers from outside the perceived centre of British poetry.’ Guardian story on Siobhan Dowd
US book-buyers are getting olderTwo-thirds of book-buyers in the US are 43 and older. This stark statistic was revealed in the recent Book Industry Study Group study. Book sales in the US are flat, with sales expected to stagnate for at least another year. The study’s analysis of the US book buying population by age revealed that Matures (born pre 1948) buy 32% of books, Boomers (born (1948-66) buy 35%, Generation X (1967-78) buy17%, Generation Y (born 1979-89) buy 10% and Generation Next (born after 1990) buy just 5%. You might think that life-stage plays a part in this and hope that these younger purchasers will become more avid readers and buyers as they get older, as they have done in the past, but the research suggests that this may no longer hold true. If you think about the competing calls on their time faced by Generations Y and Next as opposed to the Baby Boomers at the same age, it’s clear that a more pressurised work-place, plus the competing allure of the Internet, computer games and other forms of entertainment, have had a huge effect. Younger people are simply reading less than the previous generation used to at that age, and there’s no real reason to expect that this trend will reverse because fewer young people are becoming avid readers. A similar trend seems to be evident in the UK. As reported from the Books and Consumer study (News Review 13 April) Steve Bohme, Book Marketing Limited’s Research Director, pointed out: ‘The market has become increasingly reliant on a smaller pool of buyers buying more books each year’ and pointed out that it is also very dependent on older female buyers. The BISG study presents a stark picture in other ways too. It found that Americans are spending less time reading books and more time online. Perhaps surprisingly, 41% of all books were bought by people earning less than $35,000 (£21,594) ie those who can least afford them. There’s no doubt though that stereotypes about fewer older people going on the Internet less are rapidly being overturned. The 50 to 64-year-olds are leading the way in adopting the Kindle in the US, whilst in the in the UK a recent Age Concern survey found that 55% of 50 to 59-year-olds and 41% of 60 to 69-year-olds have purchased from the Internet. Silver surfers are turning to the web in increasing numbers. As a writer you may well feel that it doesn’t matter where people buy books from, as long as they do buy them. More web book sales will make things even more difficult for terrestrial booksellers and will threaten existing bookshops, but authors will still be able to reach readers through online book sales. The US study is alarming though because it suggests that there is a fundamental age-related change going on in reading habits - and that may mean fewer readers in the future.
Brilliant new Children's Laureate appointedThe announcement of the sixth UK children’s Laureate this week was greeted with great enthusiasm. Making the announcement to a packed audience from the children’s book world, Andrew Motion, soon to be Sir Andrew Motion, the Chair of the Children’s Laureate Panel, said: ‘Anthony Browne is an absolutely distinctive and extraordinarily skilled artist – someone whose work entrances children and has influenced an entire generation of illustrators.’ Browne has produced 39 much-loved picture books, amongst the best-known are the magical Gorilla, Willy the Wimp and Zoo. In 2000 he received the highest international honour for illustration, the Hans Christian Andersen Award, for his services to children’s literature, the first British illustrator ever to win the prize. Browne is a really charming author, modest and engaging. Questioned by children involved in the search for the new Laureate after the announcement, he admitted: ‘No, I never had a burning desire to do children’s books, I wanted to be an artist… My first picture-book wasn’t very good, but then I met my editor, Julia McRae at Walker Books, and she taught me everything I know. Now I’m paid for doing what I love. I’m very, very lucky.’ The new Children’s Laureate has announced that he will make picture books the main focus of his laureateship: ‘Picture books are special – they’re not like anything else. Sometimes I hear parents encouraging their children to read what they call proper books (books without pictures), at an earlier and earlier age. This makes me sad, as picture books are perfect for sharing.’ The Children’s Laureates have done a spectacular job of promoting children’s books and reading. Although it is a huge mark of distinction to be invited to take on the role, it’s also an enormous amount of work. Originally suggested by the poet Ted Hughes, the Children’s Laureates serve for two years and it’s a real roll of honour: Quentin Blake, Anne Fine, Michael Morpurgo, Jacqueline Wilson and Michael Rosen. Rosen, the outgoing Laureate, has campaigned tirelessly on behalf of children’s poetry and picture books. He was instrumental in setting up the new Roald Dahl Funny Prize and is currently heading a new campaign to get children reading, Just Read. This is a theme which was picked up by Toby Bourne of Waterstones, the sole sponsor of the Children’s Laureate, who said that all the laureates had ‘pushed the issue of reading up the agenda’. And that’s really the point of the appointment, to trumpet the fantastic array of children’s books which are available, and to focus adults and children on the life-changing joys of reading.
Salinger sues to protect his copyrightJ D Salinger is suing the pseudonymous author who is planning shortly to publish a sequel Salinger's famous novel Catcher in the Rye presents what looks like a strong case of invasion of copyright. Salinger is notoriously shy and for many years he has lived in the same small New Hampshire town, where the locals are said to protect his privacy by not telling outsiders where he lives. But Catcher in the Rye is a hugely successful novel, having sold some 65 million copies since it was first published, and the temptation to seize some of that fame seems to have been too much for J D California. Salinger also sued London-based Windupbird Publishing, Sweden-based Nicotext, and SCB Distributors, of Gardena, California. He calls the new book ‘a rip-off pure and simple’ and says the cover of the new book even has a strapline describing it as a ‘sequel to one of our most beloved classics’. Salinger has form as regards protecting his copyright. In 1987 he succeeded in blocking publication of a biography by the respected biographer Ian Hamilton, forcing Hamilton to rewrite the book without quoting from the author’s unpublished letters. The court’s decision set new rules for fair use of letters, complicating the task of biographers. Hamilton eventually published his book as In Search of J.D. Salinger. The complaint describes Salinger, accurately, as ‘fiercely protective of his intellectual property.’ It states that Salinger ‘has never allowed any derivative works to be made using either The Catcher in the Rye or his Holden Caulfield character, did not and would not approve of defendants' use of his intellectual property. The right to create a sequel to The Catcher in the Rye or to use the character of Holden Caulfield in any other work belongs to Salinger and Salinger alone, and he has decidedly chosen not to exercise that right.' The case is reminiscent of the battle fought in court by J K Rowling, who brought the charge of a massive case of plagiarism against by Vander Ark, a fan, who used large chunks of her Harry Potter books without her permission to put together a Harry Potter Lexicon (see News Review 5 May 2008). Rowling said: ‘I believe this book constitutes wholesale theft of 17 years
of my hard work. It adds little if anything by way of commentary; the quality of
that commentary is derisory; and it debases what I worked so hard to create.
What particularly galls me is the lack of quotation marks. If Mr Vander had put
quotation makes around everything he had lifted, most of the book would be in
quotation marks.’ She won her case.
'How many more BEAs?'This weekend the Javits Center in New York has been thronged with the thousands of people attending BookExpo, the biggest annual book show in North America. It’s clear from the coverage that a mass of interesting author events and the usual promotional round are making this BookExpo seem as busy as ever, and attendance figures are only slightly down. But behind the scenes questions are being asked about this huge and expensive show. Time was when the American Booksellers Association (ABA), as it was then called, was a major stop in the publishing year, with the huge American book fair attracting vast attendances as it made its stately progress around the country. It favoured different cities each year, although Chicago was often chosen, its geographical position and status as an airline hub meaning that it attracted both East and West coast booksellers. But that was before bookselling chains got bigger and many independent booksellers found themselves struggling to stay in business. The ABA in those days was about the big American publishers (who have also got larger and fewer) selling in their fall lists to American booksellers, with what seemed to outsiders like a lot of amazingly expensive but exciting razzmatazz. The ABA never really made it as a rights fair, although publishers from all over the world did make the trip, and it never had a chance of competing with Frankfurt. For American publishers the focus was always their own gigantic domestic market and in a time of recession it’s not surprising that this is still the case. For the rest of the world it’s often easier to get to the London Book Fair, which has supplanted BEA as the spring rights gathering for the book world, with Frankfurt still holding its position as the autumn biggie. There’s no doubt though that the American book world is suffering worse than the book trade elsewhere. With the US still in the grip of recession there have been large job losses and not much optimism about the future. The Brits still cling to the idea that books do well in times of recession and, although the ride has been bumpy, the overall picture is not so bad there or elsewhere as it is in the States. Veteran publishing commentator Mike Shatzkin, with 37 ABAs and BEAs to his credit, thinks that the fair is not going to last much longer. Although the end has been staved off by fixing it in a regular New York venue for the next few years (which saves the publishers huge bills for taking their staff to the fair), the real problem is that booksellers, who used to place orders at the convention, are no longer attending BookExpo in the way they used to do. His blog concludes: ‘The BEA of today isn’t the ABA of old. The booksellers are just about gone. The late-night hospitality suites don’t exist anymore. And hardly any publisher goes to the show expecting to write orders. It is time to organize a betting pool where the question is: how many more BEAs before, like its Canadian counterpart, it simply ceases? Three? Four? Hard to see more than that.’ Publishers Weekly BEA coverage International Books Fairs 2009
132% increase in US print on demandAstonishing new figures just released by Bowker in the States show that US book production declined by 3% in 2008 but print on demand publishing almost doubled. This means that a staggering 275,232 new titles and new editions were published, but this figure is actually down from the 284,370 that were published in 2007. Out of this number 285,394 print on demand books were produced last year, a huge 132% increase over last year's final total of 123,276 titles. This is the second consecutive year of triple-digit growth in this segment. This is largely due to the explosion in self-publishing, but is also affected by publishers gradually turning to print on demand to keep costs and inventory down. Kelly Gallagher, Vice-President of Publisher Services at Bowker, commented that: ‘Our statistics for 2008 benchmark an historic development in the U.S. book publishing industry as we crossed a point last year in which On Demand and short-run books exceeded the number of traditional books entering the marketplace. It remains to be seen how this trend will unfold in the coming years before we know if we just experienced a watershed year in the book publishing industry, fueled by the changing dynamics of the marketplace and the proliferation of sophisticated publishing technologies, or an anomaly that caused the major industry trade publishers to retrench.’ The travel category is down 15% and fiction down 11%, perhaps surprisingly as it is usually seen as fairly recession-proof. Fiction still amounts to 47,541 new titles, so American readers won’t be running out of reading-matter anytime soon. Perhaps this proliferation of titles is good news? Gallagher commented that: ‘The statistics from last year are not just an indicator that the industry had a decline in new titles coming to the market, but they're also a reflection of how publishers are getting smarter and more strategic about the specific kinds of books they're choosing to publish. If you look beyond the numbers, you begin to see that 2008 was a pivotal year that benchmarks the changing face of publishing’. The latest sales figures coming from the US show a pretty gloomy picture. Book sales fell 17% in March, as reported by 84 publishers to the Association of American Publishers. Adult paperback (which excludes mass market) dropped a staggering 35.8% and audiobooks were down 43.3%, as the recession continued to hit the American book trade. It’s not much comfort to know that e-books rose by 110.4% in the month, off a low base. The e-book revolution is not yet with us, so there’s no escaping the conclusion that the figures tell a truly dismal story.
Agents in trouble?Agents are badly hit by the recession. There’s little hard evidence of this, but cutbacks in the number of books being published have had a serious impact on their ability to earn a reasonable living. Until quite recently successful agents were seen as inhabiting one of the most glamorous parts of the publishing business. A wave of new agents coasted to success during the 80s’ and 90s’ expansion in publishing, some of them becoming nearly as famous as their clients. The activities of well-connected socialite agents such as Ed Victor and Andrew ‘the Jackal’ Wylie were well documented in the book trade press – and even in the newspapers. But there’s also a generation of extremely successful but less famous agents who have built starry client lists over the years. Al Zuckerman and Mort Janklow in the States, and Carole Blake, Gill Coleridge, Darley Anderson, David Godwin and Luigi Bonomi in the UK, are names that spring to mind, but there are many others. So, how are these stars of the agency world faring now? Mostly pretty well, as they have strong lists of ongoing clients and their ability to find the big new authors and negotiate mega-deals is what gave them their success in the first place. Life may be trickier than it used to be, and even they have their disappointments in terms of authors they cannot sell, or can no longer sell, but they are relatively well-placed. Also still doing fairly well are the big agencies, where the legacy of the past continues to deliver a stream of cash. When authors move agency their backlist books do not go with them, as each book’s contract has an agency clause ensuring that the agency's percentage for that book will continue to be paid until the end of the contract. This means that successful agencies can have a lot of padding in terms of ongoing royalties to help them weather hard times. Older-established agencies such as A P Watt and Curtis Brown also manage a number of estates and these can be quite lucrative with a bit of luck and some hard work. PFD, which arose out of an amalgamation involving the long-established firm of A D Peters, has been much in the news because over eighty staff, virtually everyone on the payroll, left to establish a new agency, United Artists. This new venture has plenty of authors, but no backlist, although there has been talk of authors’ challenging their contracts and trying to move their backlist titles to it. But PFD of course now has very little frontlist, as most of the authors have decamped with their agents. Both agencies are thus exposed, but in a recession United Agents may have more of a problem, not least because of their substantial payroll. The agents who are most at risk are newer, smaller agents who do not have the income from past sales to sustain them through the downturn. For them this is proving really hard and something of a lottery too, as one or two big authors who hit the jackpot with giant deals can make a huge difference to a small agency’s fortunes. For the rest, it’s very hard to make a living. These agencies are affected by the fact that many midlist authors - who may even have published quite a large number of books - are proving harder to find a home for, once their publisher decides not to continue with them. Many agents are only in business still because their overheads are small and they are reluctant to give up their investment of time and energy. But in the future we should expect to see more news of agencies closing down or amalgamating to cut their overheads. Authors who have struggled to find an agent may not feel sympathetic to their plight, but this is the reason why it is so hard for unpublished writers to persuade an agent to take them on - the agents have to be convinced not only that the writers are producing good work but also that they can sell that work in an increasingly tough market.
New Poet LaureateThe announcement of the new UK Poet Laureate, combined with a series of BBC programmes on poets, has brought poetry into the headlines in the UK in the last couple of weeks. The appointment of Carol Ann Duffy, the first woman to hold the post, also means that the Laureate will be someone whose work is familiar to a very wide range of people, as her books have been very successful and her work has been part of the national curriculum for a number of years. Her poems are often accessible and can be enjoyed by a wide audience, which includes in particular many enthusiastic women readers and a great many children. Duffy succeeds Andrew Motion, who in his ten years as Laureate (he was the first to have a fixed tenure) has done a huge amount of work to promote poetry. His work on establishing the Poetry Archive, recording the voices of living poets, will be part of his legacy, but his untiring activities on behalf of poetry have had a significant impact and his Laureateship will be remembered for this. In the States the Poet Laureate serves for just one year and some have argued that this shorter tenure is fairer on the poet concerned. The current American Poet Laureate is Kay Ryan. Motion has made no secret of the effect that his public duties and particularly his public visibility have had on his writing. It is good to note that his new collection, The Cinder Path, sees him back on form with some excellent lyrical and rather personal poems. On both sides of the Atlantic poetry is flourishing in some ways and doing worse in others. In the UK most poetry publishing is subsidised and it’s therefore a relief to know that for the next two years at least there will be no substantial cuts to the Arts Council which provides the funding. In America things are very different and the subsidised poetry publishing sector does not exist in the same way, but there is still a lot of poetry coming from small presses – let’s hope they can survive the downturn. Poetry in both countries, and in many others, is flourishing in terms of live events and cities like London and New York offer continuous programmes of poetry events. London has amongst others the extremely successful Poet in the City, the Poetry Society and Apples & Snakes, which specialises in performance poetry, and in New York there are lively programmes from Poets’ House, Poets and Writers and the Academy of American Poets, amongst others. Outside these cities it is a more mixed picture and the availability of poetry in printed form is more important. Poets are said to outnumber poetry readers in the UK. Nobody knows whether this is just a joke or a reality but any observer of the scene can see that there are a very large number of people writing poetry and trying to get it published, and great pressure on the small number of publishing houses. Poetry is benefiting in a major way from self-publishing, which works well for the poets as they can sell their work after their readings and thus have a direct route to readers. Poetry Archive CDs – 60 minute recordings including Carol Ann Duffy
New Brown mega-seller coming this autumnThe surprise announcement of a new novel from Dan Brown to be published in the autumn has emphasised yet again the importance of big bestsellers to the book world. The sequel to The Da Vinci Code is to be called The Lost Symbol and features the same main character, symbiologist Robert Langdon. It takes place over a twelve-hour period. It is six years since The Da Vinci Code was published and Brown has reportedly suffered from writer’s block but also been distracted by a major court case relating to suspected plagiarism brought by the authors of The Holy Blood and the Holy Grail. Toby Bourne, Waterstone’s Head of Fiction, said: ‘The book is good news because not only is it a guaranteed bestseller, it is one of those books that will bring in people who are not regular bookshop customers.’ And it is this appeal to people who are not usually book-buyers which was the secret of Brown’s spectacular success with the earlier book. Dan Brown’s books have sold 11.7 million copes and racked up more than £61m ($91m) in sales in the UK alone since he was first published in 2003. The Da Vinci Code was the bestselling hardcover adult novel of all time with 81 million copies in print worldwide. It spent 144 weeks on the New York Times hardback bestseller list and has been translated into 51 languages. News of another recent big sale illustrates yet again the importance of bestsellers to the book world. Audrey Niffenegger, author of the mega-selling The Time Traveller’s Wife, has come up with a second novel which has caused huge excitement and sold for $5m (£3.35m) in the States. Her US editor, Nan Graham, said: ‘She really has defied custom and written a spectacular second novel, which is one of the hardest things to do in the universe.’ Rather surprisingly perhaps, Her Fearful Symmetry is set in and around Highgate Cemetery in north London and it involves elements of the supernatural rather than the time-travel element of her earlier book. The book world is immensely cheered by the thought of these two bestselling authors helping to bring customers into bookshops and creating excitement and word-of-mouth enthusiasm for books during the key autumn season.
Google grabs rights to digitised booksGoogle’s recent class action settlement in the US will award sweeping rights to manage and sell digitised versions of every work published or made available in the US. The settlement allows Google – which has already digitised more than seven million books – the non-exclusive right to digitise every book published before 5th January this year. Authors who wish to exclude their books from the settlement must inform Google by 5th May. But opting out of the settlement ‘does not exclude your books’. Authors will still have to go after Google to make sure they are removed. So how on earth have we reached this extraordinary situation where authors may find their books have been digitised without their knowledge or consent, just because copies of them are in US libraries? Google’s digitisation programme is nothing new, but just how has it managed to gain the initiative and what should authors do? The first thing is that if you want to opt out, you must do so by 5th May. It’s hard to read this extraordinary legal mess, but opting in may allow rights holders to have some say on the limitations placed on how their works might be accessed. Doing nothing automatically binds works to the settlement. Lynn Chu wrote In the Wall Street Journal that Google's Books Rights Registry is ‘a massive burden on everyone in the book industry, making us all, in effect, Google's data-entry slaves’. The Registry, which is being set up following Google's settlement with the Authors Guild and Association of American Publishers, threatens ‘to destroy the health in the system that individual bargaining preserves’. She said: ‘Say goodbye to your rights, forever, authors, if this mess goes through.’ The current edition of the UK Society of Authors’ magazine, The Author, shows how the US settlement affects writers elsewhere, too, if their works are held in the relevant US libraries. It says authors need to act. They should check details at the settlement website, and register titles there; if they want to opt out, they must do so by 5 May 2009. To receive payments, they have to create an account with the Registry by 5 January 2010. The UK Publishers Association has stressed that UK publishers who fail to respond to the US-based Google Settlement will still be bound by the agreement, but will receive no compensation for those books already digitised by the giant search engine. The PA said that Google could begin rolling out a consumer offer to its US search engine users as early as mid-July, though admitted that the agreement could yet become mired in a lengthy appeals process even after it is approved by a US judge in June. Under the terms of the settlement agreed between Google and the Association of American Publishers and US Authors' Guild in October last year, Google has agreed to pay $60 per title for 'in print' books it has already digitised with the overall bill expected to be around $45m (out of a total settlement cost to Google of $125m): but it is up to publishers, including UK presses, to make a claim. There are estimates that there are up to 1m 'in print' titles already digitized out of a total of 7m. Google has refused to provide publishers with a list of titles it has already digitised—the books could have been passed to Google by US libraries or even second-hand booksellers. Both the UK Publishers’ Association and the Association of American Publishers are advising non-US publishers to claim all of their titles, though compensation will only be paid on titles Google has digitised that were registered with the US Copyright Office by 5th January 2009. Even if compensation is not applicable, by registering with Google publishers will gain the right to "manage" how their books are used by the search engine. Under the terms of the agreement Google’s offer could include offering downloads of the full text to consumers and institutions, and selling advertising. Publishers who 'opt in' have the ability to turn off any or all of these revenue generators, and set a price for their books to be sold at by Google, which is otherwise determined by a Google algorithm.
Turning non-readers into readersRecent rather disturbing figures have revealed that there is a potential market of 20 million potential readers in the UK who do not read books. In the US a recent survey revealed that one in four Americans didn’t read a single book last year. So who are these huge potential markets and can anything be done to activate them? The UK figures came as part of some research conducted at the end of National Year of Reading by the project, HarperCollins and the Trade Publishers Council. The survey was conducted amongst the C2DE socio-economic group, characterised as lower income, non-professional families, or what used to be defined as working class and lower middle class. These families saw books as alien and unattractive. Crucially, reading is seen as an anti-social activity for loners and as such has little place in a culture centred around family, work and sporting groups. Bookshops are felt to be alien and intimidating. Honor Wilson, the National Year of Reading Director, said: ‘These are good solid families who don’t have literacy problems but who just don’t read. They are one step away from book-buying, they do consume lots of leisure products and may have up to 300 DVDs in the house. But intentionally or otherwise, a lot of people in the book world are conveying the impression that reading is associated with a particular area of society and lifestyle.’ The schools may bear some of the blame for this, as they are focused on literacy, rather than enjoyment of books, as the goal. Of course literacy is an essential prerequisite of reading books, but encouraging children to read for pleasure, not just for literacy, ought to be a crucial part of the schools’ role. The annual output of new titles in the US is soaring towards half a million at the same time as the survey quoted above revealed that one in four Americans didn’t read a single book last year. On both sides of the Atlantic, and in many other parts of the world, celebrity biographies are becoming increasingly popular and non-writers – pop stars, chefs, sports personalities – are increasingly dominating the bestseller lists. Lest we despair, another survey recently found some interesting growth in the UK book club, or reading group, numbers, which have doubled over the past year. This is however the converted, as people who join book groups can be assumed to be members of the heavy reader group. This survey also revealed that 44% of children claimed they would rather
be reading books than speaking to their friends on social networking sites,
reading magazines, using Twitter or blogging. Let’s hope this is a truthful
answer, as it gives hope that young people are becoming readers, but it has to
be said that it contradicts the evidence which seems all around us – which is
that children and young people are increasingly spending their leisure time on
many things other than books. But perhaps the non-readers are writing instead of reading? In another
survey for World Book Day undertaken by Sky Arts’ "The Book Show", it was
revealed that 56% of people would like to write a book, with most women (18%)
wanting to write crime/thriller or mystery and most men (20%) wanting to write
sci fi and fantasy.
Book sales - volume up, value downThis year’s Book Marketing Limited study Books and Consumers in 2008 showed some worrying trends in book purchasing in the UK, whilst demonstrating that books have fared comparatively well compared to music and DVDs. Volume purchases of both of the latter grew much faster than books, but both of them suffered from a huge drop in price – averages of 23% for DVDs and 34% for music. Price does however play a big part in the sales picture for books. The 330m figure for books bought by consumers in 2008, although less than 2007, was ahead of 2006 levels and 10% up over the last five years as a whole. With average prices falling in each of the last three years, the longer-term volume growth brought only a 4% increase in spending. This represents a 6% decrease in real terms, once inflation is taken into account. Steve Bohme, BML Research Director, pointed out: ‘The market has become increasingly reliant on a smaller pool of buyers buying more books each year.’ The book trade is very dependant on these heavy readers and will be disproportionately affected if they fare badly in the recession. The BML study also revealed a contrast between sales of adults’ and children’s books. Between 2004 and 2008 purchases of adult books increased by 9% in volume but only 2% in value, reflecting a 6% decline in average price paid. By contrast, children’s book sales were much more robust, with the average price paid up by 3% over this period, turning a 12% volume increase into 15% value growth. The Internet has doubled its volume market share of books to 14% last year from 7% in 2004. At the same time supermarkets grew their share to 14% from 8% five years ago. The market share of the independent sector dropped only 1% over the same period, but UK chains’ volume declined from 39% to 34% and direct mail slumped 5% to 11% over the same period. So, fewer consumers are buying more books at a bigger discount, often in supermarkets or on the Internet. It’s clear also that regular book purchasers are well aware of the cheapest places to buy books – and that that’s where they will go. The pressure to discount is not going to go away as we battle our way through the recession, and both publishers and retailers are going to have to take account of the now ingrained public expectation that that they will get their reading matter at a discount.
Large print breakthroughWorking with the Publishers’ Licensing Society, the Royal National Institute for the Blind in the UK has initiated and funded Focus, an £800,000 ($1,187) project to publish large print books. It is publishing the books in association with BBC Audiobooks, Penguin, Random House and HarperCollins. John Godber, Head of Products and Publications at RNIB, said that it was time
for people to stop apologising for their blindness and time for society at
large to recognise that blind people were neither ‘different’ nor ‘separate’ and
had as much right to the pleasures of life as the sighted. Equally, he said,
the blind and partially sighted must not expect charity: authors and
publishers had to be paid, whatever the format or type size. Author Karin Slaughter has said: ‘Reading is a gift that should not be denied anyone and books should be in large print if that helps more people enjoy their pastime’. In the UK there are around two million people suffering significant sight loss. It's estimated that around 100 people every day in the UK will start to lose their sight - and by no means in all cases is the loss age-related. US figures show that 1.3 million Americans are legally blind’ of which 55,200 are children, and a further ‘5.5 million are visually impaired’. All round the world, those whose sight is impaired include many keen readers who have lost access to something of immense importance to them, the ability to pick up a book and read it. Your sight doesn’t need to be significantly impaired for you to find print size a factor when you are buying a book, but for those who need large print to read comfortably it will be good news that large print books are becoming available in bookshops. Focus launches with seven new and recently published titles by big-name authors from HarperCollins, Random House and Penguin, including novels by Clive Cussler, Karin Slaughter, Cathy Kelly, Ruth Rendell and Barbara Taylor Bradford, in large print trade paperback versions. A further 46 titles will be available on a print-on-demand basis and they will all sell for £12.99 or £16.99. The scheme is backed by a £150,000 advertising campaign, including high street posters and national press advertising, and a PR drive handled by agency Colman Getty. If you are a self-publisher and want to make your work available in a large print edition, this is relatively easy and fairly inexpensive to do and you will find a ready market for your book in an area where there is little competition. Our article on books for the visually impaired WritersPrintShop, our self-publishing service
Bologna - steady business but fewer attendeesAlthough there were fears that the Bologna Children’s Book Fair was going to be less busy this year as a result of the recession, the most important annual rights fair for children’s publishers seems to have been business as usual. There were fewer delegates from some parts of the world, particularly the United States (notably neither Random House Inc nor Puffin US sent delegates), but there were still plenty of deals being made at the 46th Fair. The Bookseller reported that Oxford University Press's rights manager for the educational division, Philippa Payne, said: ‘We are literally back-to-back with meetings, if not more than ever. Everyone seems to be being a little bit more selective. The fact that publishers are being more selective is no bad thing. It forces them to be more selective after the fair.’ Payne said that this could mean deals are sewn up more quickly after Bologna. But she added the lighter US turnout might provide difficulties for some publishers. ‘The US contingent is really small this year but luckily we have travelled a lot during the year and are going to BEA (Book Expo in New York), so this cushions us.’ Publishers are being cautious about picture books and tend to have only a small list of big names or really outstanding newcomers. Novelty books have suffered from higher production prices. Fiction, especially for older children and teenagers, has been more in demand. Rights and co-edition sales have been focused on Europe, rather than the US, and relatively new markets such as Slovenia and Brazil. Cally Poplak, Director of Egmont Press in the UK, said that TV and film companies were still spending and were particularly interested in family-orientated stories. New figures from the US suggest that the children’s market is holding up well, but cynics might note that this is only because it includes teenage novels, particularly what is now being termed ‘bite-lit’ – vampire novels. A lot of this is down to Stephenie Meyer and last year, as the final volume in her Twilight series was published (six million copies sold) and the Twilight film was released (US domestic box office: $191 million), Little, Brown sold a massive 27.5 million copies of her four vampire novels. The third volume in Christopher Paolini’s Inheritance Cycle, Brisingr, sold 2.6 million copies (the series sold 3.2 million in total last year) and, although it was not a new Harry Potter novel, J.K. Rowling’s collection of Beedle the Bard tales sold 3.5 million copies. These figures show that there is still a lot of money being made out of children’s books, but that the market is reaching for big names and is cautious about areas such as picture books and novelties, where builidng up the international co-edition is a necessity. There is a view amongst publishers that adults who have to economise on books because money is tight will nonetheless prioritise the purchase of books for their children. Many parents see books as educational and have become convinced of the undoubted educational advantages to their children of developing the reading habit. Many writers are focusing on the children’s market, a challenging and demanding one but one which may deliver great rewards to successful writers. We shall shortly be offering excerpts from a new book on writing for children on the site.
Libraries - the fight-backOur libraries seem to have been facing inexorable decline. In the boom times people switched from libraries and started buying their books in greater numbers. The free internet access libraries provided proved attractive, particularly to younger library visitors, but became less of a draw as home internet access has become the norm. The latest news is of cash-strapped councils in the UK, most recently in the Wirral and Swindon, closing large numbers of libraries to make economies. The irony of this is that there is evidence from both the US and the UK that people are turning to libraries in this time of recession. That is when people remember what libraries stand for and what the wide range of free services can offer them. In the UK library campaigners Tim Coates and Desmond Clarke have fought a long-running battle to prevent the inexorable decline in the proportion of library budgets spent on books. Coates has proved that it is possible to make economies elsewhere and successfully run a library service which spends a much greater percentage of its money on books. Librarians feel under threat, not just because of the book budget cuts and library closures, but also because this once proud profession, which is full of people who genuinely believe in the importance of what they do, finds itself undergoing death by a thousand cuts, with shorter opening hours, fewer staff and less qualified ones the norm. But libraries are fighting back. Fiona Marriott at Luton Libraries calculated that the amount a regular borrower of books and CDs can save in a year by borrowing from the library rather than buying is, surprisingly, nearly £1,000 ($1,447) The slogan ‘Buy none, get eight free’ has been hitting home. Libraries have re-energised themselves and have done a great deal of excellent work to encourage people to use them. The Reading Agency (TRA), which works to promote libraries’ work in the UK, found in 2008 that the number of library reading groups had nearly trebled since 2004, with 100,000 people belonging to 10,000 groups. Last year’s National Year of Reading was successful in getting 2.3 million people to join their local library, 2 million more than more than the campaign had expected. Liz Dubber and Miranda McKearney of TRA write that: ‘On the face of it, the
latest Chartered Institute of Public Finance and Accountancy (CIPFA) statistics
about the use of public libraries do not make for very happy reading. Visits
to public libraries fell by 2.7% in 2007-08, while issues of books slipped by
2.3%. Loans of books have been declining steadily for well over a decade now.
There’s been a particular success story with children and libraries’ programmes for young people have been a notable success: ‘There has been an explosion of reading activities – author events, story times, reading groups, challenges, book awards, promotions… In last year’s Summer Reading Challenge 690,000 children took part in "Team Read", and 2.8 million books were borrowed as a result.’ So what we see is a mixed picture. Successful big promotions have shown that there is still plenty of life in libraries. People are flocking back to them in this time of recession. But libraries can only do their job if they are funded sufficiently to stay open (with sensible opening hours); have decent book buying budgets to keep their stock up to date and attractive to borrowers; and continue to be staffed by knowledgeable library professionals. A good public library system is a prerequisite of a civilised society and one to which many developing countries aspire. In this time of economic crisis and huge pressure on local resources, we need to say clearly to local and national government that libraries are a top priority.
Recession and the book tradeHow is the economic slowdown affecting books? We’ve managed to stay off the subject of the recession for over two months, so now is the time to have another look at how it is affecting the book business. The first thing to say is that things look bleaker in the US than they do in the UK, although no-one is having a particularly comfortable time. The big American publishing corporations acted sooner in the face of falling sales. On 3 December, a day christened ‘Black Wednesday’ by American publishing insiders, lay-offs were announced at Houghton Mifflin, Thomas Nelson and McGraw-Hill, with a reorganisation at Random House. Further rounds of job cuts have followed, with Simon and Schuster, Oxford University Press and McGraw-Hill in the forefront. In the UK sales have held up better, but Random House and HarperCollins have both recently announced job cuts of 5%. Both companies have taken the view that it would be prudent to act now, as the recession deepens and its end is not in sight, but their fundamental health is not in doubt. Large companies are particularly vulnerable to recession because of their high cost base, but small publishers are also vulnerable as they may not be able to borrow the money they need to invest and sustain their activities. Collateral damage from the recession may be anticipated falls in attendance at the big book fairs coming up soon, particularly the London Book Fair and Bologna Children’s Book Fair. BookExpo Canada has been cancelled for this year. The longstanding editor-in-chief of Publishers’ Weekly, Sara Nelson, and two of her colleagues lost their jobs, whilst in the UK the much-lamented Publishing News was closed down last year, due to lack of advertising revenue from publishers. A fundamental difference between the US and the UK is in the bookselling environment. In the US Borders is extremely exposed by its lack of liquidity and the biggest US bookselling chain Barnes and Noble made 100 redundancies in January, for the first time in its history. Its CEO said: ‘never in all my years as a bookseller have I seen a retail climate as poor as the one we are in, nothing even close.’ But according to Nielsen Bookscan figures US book sales fell only .02% in 2008, compared to 2007, so it is the anxiety about the future that is the big factor. In the UK, Waterstone’s chief Gerry Johnson admitted at last week’s Independent Publishers Group conference that: ‘the recession is affecting business’ and said that: ‘the first rule is to survive’. But on the publishing side both Penguin (buoyed by the high dollar exchange rate) and Hachette (helped on both sides of the Atlantic by Stephenie Mayer’s phenomenal sales) announced good results. Latest figures suggest that in the UK books are outperforming the wider economy. In the midst of a very tough retail environment the optimists who predicted that books would weather the recession better than other retail sectors may be proved right. It all depends how deep the recession becomes and how widely people are affected. In both countries, if you still have your job you may feel better off, as mortgage rates are at historic lows and inflation is down. Books are still a cheap form of entertainment, an inexpensive treat and for many heavy readers a necessity. But what about readers? A comforting statistic comes from the US, where the US Census Bureau reports that adult readers last year went over 50% of the population. It’s a loose definition of readers, but it’s good to know that male readers have increased from 37.6% to 41.9% since 2002, whilst female readers went up from 5.1% to 58%. We shouldn’t write off the book trade just yet.
A triumphant World Book Day 2009World Book Day 2009 has been a great success. Celebrated in 100 countries around the world, it’s especially strong in the UK, so it’s worth looking at it to see what can be achieved in having an annual day to promote the book. This year almost 3,000 UK bookshops took part and almost all public libraries, with events involving a whole host of children’s authors. £1 book tokens were given away to children across the country. Last year WBD increased traffic to its site by a whopping 71%. Michael Rosen, the UK Children’s Laureate, used WBD 2009 to highlight the initial success of Just Read, ten-week push to get children in a Cardiff school reading, followed in a BBC series which started on 6 February. Rosen argues that children need to read whole books, not just selected extracts or anthologies, if they are to get the reading habit and find out what enjoyment they can get from books. So far, he is claiming success for his programme. He also said that he had written to government ministers about his 20 point plan, and that the best plan of all for improving literacy was to read whole books (not "torn-up books, otherwise known as worksheets)’. Outside in launched its new Reading Around the World campaign, with input from an international cast of authors and illustrators from all over the world. Spread the Word had a very successful poll to find Books to Talk about, which had no less than 8,000 participants and encouraged everyone to think and talk about books. More frivolously, on the adult side, a survey carried out by World Book Day
found that two thirds of people have claimed to have read a book they haven't.
The most popular book to have lied about reading is
1984 by George Orwell, with 42% of
surveyed people saying they had said they had read it even if they hadn't. Finally, the new set of ten Quick Reads seems to have been a great success. Focusing on providing accessible and enjoyable books for emerging adult readers, this programme has already proved that the books can play a major part in helping adults who have difficulties with literacy. Figures show that 12 million adults in the UK struggle with literacy, while, in England alone, 5.2 million adults (aged 16-65 years old) have literacy levels below Level 1 and would be unable to pass an English GCSE. Data gathered from literacy tutors nationwide shows that the books are having a positive impact on improving the reading levels of adults, with 98% believing the books have been useful in helping their learners’ progress, and 76% reporting that more than half their learners go on to read other Quick Reads. A further 62% say that more than half of their learners then go on to read other books. Given the huge levels of illiteracy around the world, this programme shows a promising way of encouraging adults to read books. Just Books - Michael Rosen’s Guardian article Spread the Word’s Books to Talk about Bookbrunch Report on Quick Reads survey
Does the new Kindle herald the end of the book?It may seem like old news now, but News Review has been on holiday so it seems worth tracking back to Amazon’s announcement of its new version of the Kindle (see News Review 2 February), which became available last week, only in the US, although wider release is expected to follow soon. Publishers’ Lunch review went along these lines: ‘Thinner ("pencil
thin"--a third of an inch); a new five-way controller to improve navigation,
which particularly helps for newspaper reading; improved placement of the
page-turning buttons; a new E ink display…; 20 percent faster page turn; 25%
longer battery life; seven times more storage (though who knows why); USB-charge
capability and a more portable charger; and yes, still apparently designed by
Jeff Bezos's brother-in-law in his spare time and priced at $359. So the Kindle is better in a number of ways and Amazon’s Jeff Bezos still seems to be working on his original aims for the device: ‘We want to make Kindle a bookstore -- the largest e-bookstore in the world, with 230,000 titles and growing. We want to make those titles also available on a bunch of different devices and then synchronize them with Kindle.’ Two things about the announcement have caused furore in the book world. Publishers would clearly and understandably prefer that one retailer did not so totally dominate the bookselling world as Amazon has long been trying to do. A three-way tussle between Amazon’s Kindle, Sony’s E-reader and Google, which has 1.5 million books scanned and available through the iPhone, may be about to commence. Simon Juden, CEO of the UK Publishers’ Association, said: ‘Authors contribute £3.45bn to the UK’s economy and we look forward to working with Amazon to ensure authors’ rights continue to be fully respected.’ This is a reference to the other contentious thing about the Kindle’s relaunch, which is that the text to speech capacity, presented as just another feature, cuts across authors’ rights to license audio rights and receive income from them. Paul Aiken, executive director of the US Authors Guild said in the Wall Street Journal: ‘They don't have the right to read a book out loud. That's an audio right, which is derivative under copyright law.’ Behind all this is publishers’ anxiety that the Kindle will replace the physical book. Julian Rivers, a well-respected commentator in the UK, predicts: ‘I’m not sure when precisely books will meet their end but I am clear that the impact of e-books on their demise is accelerating. My research is extensive. Last Christmas, friends aged eighteen, 48 and 80 were given Sony Readers. They are all now evangelists.’ The scary example of the music business is influencing how people in the book world feel. In a recent article in the Bookseller Tom Tivnan concluded: ‘People engage with books and music in completely different ways. But if there is one lesson to be learned from the music industry it is that age-old practices and consumer behaviour can be altered in a flash.’ He quoted Danny Ryan, intellectual property expert at LECG: ‘The main thing the music business didn’t realise at first is that digitalisation isn’t about distributing the same content in another way. It changes the way people consume content and what is consumed.’ Tivnan’s conclusion is that the book trade needs to be ready for this.
Books published in English soar to 381,250HarperCollins’ worldwide sales have plunged 25% in the last quarter, with book publishing income falling 65 percent to $23 million. Partly this is in comparison to last year when the company had a trio of bestsellers, and HarperCollins UK CEO Victoria Barnsley insists that that the company’s UK sales increased by 13.5% in this period. News Corporation is having a difficult time because of the structural difficulties in the newspaper world. Rupert Murdoch said: ‘We are implementing rigorous cost-cutting across all operations and reducing head count where appropriate’ and added: ‘This is the worst global economics crisis we witnessed since NewsCorp was established more than 50 years ago.’ Against this gloomy backdrop it is surprising to report that the number of new books published in the UK increased by 4% last year to120,947, which, while it remains below the record 129,762 recorded in 2003, is still a huge number. This figure also includes ebooks, which are beginning to have some impact on the figures. Whilst the big publishers have been cutting their lists, as the HarperCollins
news suggests, there has been a surge in activity from very small publishers
and from self-publishers. In 2008, there were applications for ISBN
prefixes from 2,842 new publishers - slightly down on the 2007 figure, but 20%
ahead of 2001. This reflects the ease of entry into the publishing world,
now that print on demand is generally available and a small publisher can start
up without needing as much capital as in the past. Finally, it’s astounding to note that the 2007 figure for US title output (the latest available) was 276,649. In other words, the US, a country with five times the population of the UK, produces only just over twice as many books, so far less per head of population. But the big change internationally is that difficulties with finding a big publisher to take on your book no longer mean that you’re completely stuck – small presses and self-publishing offer other alternatives.
Amazon just gets bigger and biggerAmazon has just announced an increase in sales of 18% to $6.7 billion (£4.6bn) in the last quarter. Its net income rose 9% to $225 million (£155m), above analysts’ expectations, and it was a truly amazing result in relation to the sharp downturn shown by virtually every other retailer. The company’s ‘media’ sales from its US business are now $5.35 billion (£3.68bn)for the year, making it for the first time larger than the leading offline US booksellers Barnes and Noble by hundreds of millions of dollars. So, how does Amazon use its power? Its credo of delivering great service at a great price has won it millions of customers across the globe. It’s hard to remember what it was like when the only way you could find an out-of-the-way book was to search it out in a large bookshop and, if that failed, to get them to order it for you - a rather laborious process in those days, although potentially much faster now. Amazon drives a hard bargain with publishers. Its dispute with Headline in the UK over its demand for improved terms simmers on (News Review 10 November). There were rumours in the UK of Amazon driving its employees hard, and of temporary Christmas staff who got sick being punished. The business is very driven and the culture doesn’t have much time for those who can’t keep up. The company receives nearly one million orders a day from around the world and has successfully expanded its range out of books and music to make itself into the biggest global online retailer. There don’t seem to be detailed figures available yet, but it looks as if book-buyers switched to Amazon in even greater numbers this Christmas. Other factors may have played their part but there was really one simple reason for this – it was possible to buy just one book and get free delivery. Given the company’s income from delivery charges, this must have delivered a massive hit to their overall margins, but the big increase in volume made it worth it. The Kindle has always been the killer application and there are signs that Amazon may be about to announce Kindle 2 – slightly strangely given that it has still not launched the existing device outside the US. Comfortingly, CEO Jeff Bezos says: ‘We see that when people buy a Kindle, they actually continue to buy the same number of physical books going forward as they did before they owned a Kindle. And then incrementally, they buy about 1.6 to 1.7 electronic books, Kindle books, for every physical book that they buy.’ Now that there are 225,000 titles available from Amazon.com for download onto the Kindle, the moment may be right to launch it worldwide with a huge catalogue available – although to offer the same versions outside the US would run roughshod over considerations of territorial rights. Whichever way you look at it, Amazon is in an unassailable and hugely powerful position. Let’s hope it doesn’t use this power to act in ways that would be detrimental to the book business which has been the foundation of its success.
Book discounting - danger or opportunity?Book discounting has come back into the news with the announcement that, despite falling sales in 2008 and all the turbulence in the world economy, the level of discounting in book sales in the UK actually increased last year. The value of sales declined from £1.80bn ($2.48bn) to £1.78bn ($2.46bn). If all books had been sold at the recommended retail price, publishers would have earned £2.27bn ($3.13bn) in 2008. Simon Juden, CEO of the UK Publishers’ Association, condemned the level of discounting: ‘What we sell the most of we charge the least amount for. Books are a valuable and cultural good and should be sold as such.’ Lest you should think that heavy discounting is a problem affecting only the UK, it’s worth reflecting on the fact that across the world booksellers want to know if discounting in the UK has worked and whether it has led to a democratisation of reading. A benchmarking study published by the UK Booksellers’ Association last November looked at discounting in the UK, Ireland, the USA, Finland, Sweden and Holland, and concluded that UK bookshops are making fewer profits and seeing less growth than those in any of the other countries studied, although the United States had the lowest average selling price for books. Until the Net Book Agreement ended in 1997, the UK still had fixed prices. Many countries still have them, including France, where they are currently under attack. The argument in 1997 was that enabling booksellers to discount prices would free them to price promote and lead to more sales. So, has this worked? It’s hard to be clear on this, particularly since the two new kinds of booksellers most successfully using price as a selling tool did not do so or did not exist in the 1990s. It’s arguable that supermarkets would not have bothered to sell books on any scale unless they could discount them and in some famous cases, such as the Harry Potter titles, use them as loss leaders. The same is true of price warehouses in the States and big discounters who sell books everywhere. Amazon and other online book retailers would undoubtedly not have flourished and grown as they have without the ability to offer large discounts. Last week’s Bookseller editorial points out that that the £500m that UK publishers might have earned last year if there was no discounting is a totally notional figure, as fewer books would have been sold. The thing about discounting is to discover the right level for prices and to deal with the absurdity of the bestsellers – the books readers want the most – being the most highly discounted. Kate Mosse, bestselling author and founder of the Orange Prize, thinks that in the end discounted prices have benefited readers. Most importantly, her view is that that they have not adversely affected the perceived value of books. Speaking for writers she says: ‘For the most part writers do not need their novels to look special to be read. Most of us would rather our books were borrowed or loaned or shared than not read at all. It’s not the physical object itself that matters but the content of it.’
Bestsellers across the globeSo who are the most popular fiction writers across the globe? Rather surprisingly, a recent study shows that Khaled Hosseini and Ken Follett share that accolade. They are the only writers to have books in the top ten in seven out of the nine countries where data was available. Follett is a long-standing international favourite whose books have sold extremely well for a many years and his latest, World without End, is following that pattern. Hosseini is more of a surprise. The author of The Kite Runner and A Thousand Splendid Suns did benefit from selection by Richard and Judy in the UK but the novels’ international success seems to be based on their novelty, since they are highly original books from an interesting new writer. Hosseini’s writing has great narrative drive and his books open up Afghan society to western readers. They are generally regarded as rather ‘literary’ and their strong themes make them popular with reading groups. Coming behind these two writers on the list are the Swedish writer Stieg Larsson and the much better known John Grisham. Other more obvious names such as Stephenie Meyer, Carlos Ruiz Zafon, the European bestseller Henning Mankell and J K Rowling make it into the top 10 fiction lists of just four countries. There’s also Muriel Barbery, a French writer virtually unknown in the UK and US, who is in the same category. In total 387 writers featured in the top 10 lists of the nine countries where the lists were examined – which were France, Germany, Italy, Netherlands, China, Spain, Sweden, the UK and the US (so they do not encompass the whole world). But only 48 of these had top 10 hits in more than one country, suggesting that fiction bestsellerdom may vary more than we think from one place to another. The data is taken from book trade magazines in the countries listed above by the consultant Rudiger Wischenbart. Perhaps even in this era of globalisation these figures show that each market is unique. Some British and American writers have appeal across the globe, but there are not actually very many of them. Each country has its own favourites and translates and sells internationally bestselling authors according to the internal dictates of their own market. It could be argued that the strong appeal of each country’s own writers to their readers is a good thing and essential for the maintenance of a healthy local publishing industry and for continued cultural diversity across the globe.
Children's books still boomingChildren’s books are still doing well in spite of the recession. In the UK Christmas sales were up by 8.5% (£4 million - $6 million) on the previous year. The publication of J K Rowling’s The Tales of Beedle the Bard contributed handsomely to this, but sales of Stephenie Meyer’s Twlight series (see News Review 18 August 2008) made a major contribution to book sales across the world and continued the focus on successful teenage fiction. Prospects for the children’s book market may be rosier than those for books for adults. Francesca Dow, MD of Puffin in the UK, says: ‘Children’s books may be hit less hard than adult books because parents will still spend on their children.’ It is still going to be difficult though for publishers to find the marketing spend for kids’ books in a year when budgets will be tight. Gillian Laskier, Group Sales Director for Egmont, said: ‘Retailers will focus more on a smaller range of bestsellers – not just the frontlist books but the cream of the frontlist.’ Outside the arena of big publishing, there are clear signs that self-publishing may offer a particularly effective starting-point for children’s authors. Christopher Paolini’s Eragon (see News Review 1 December 2008) is a notable case of this, but a recent article in the US Publishers’ Weekly detailed a number of other successful children’s authors who had followed this route. An interesting trend in the UK market has been the impact of high-profile publicly funded campaigns to promote books and reading. The current Children’s Laureate, Michael Rosen, has like his predecessors done a terrific job in promoting children’s books, with in his case a special focus on picture books and children’s poetry. The recent Old Possum’s Children’s Poetry Competition, for which he was Chair of the Judges, tapped a vein of 7-11 year-old creativity across the world – for a cheering indication of what the children themselves can do just look at the wining poems on the Children’s Poetry Bookshelf website. The Big Picture campaign in 2007 drew attention to picture books and there has indeed been an improvement in this area, with a cautious number of new books and new authors being published. Booktrust’s many publicly-funded book-gifting schemes have proved that giving books to young children d can make a big difference to their reading and their education in general. The biggest promotion of the year in the UK has been the National Year of Reading. Amongst its many successes it has persuaded nearly two million people, many of them children, to join their local library. The campaign, which has been distinguished by a lively, ever-changing website and year-long parade of imaginative monthly promotions, is a model of its kind. It is reckoned to be such a success that it is going to morph into an ongoing promotion, Reading for Life. Publishers’ Weekly on children’s self-publishing WritersPrintShop - our self-publishing service Old Possum’s Children’s Poetry Competition
So what about the book business in 2009?No-one could call 2008 an easy year. As well as an unprecedented worldwide credit crisis it has ended with an abrupt slide into a severe global recession, which will affect every country in the world and all aspects of life. Publishing will not be immune and already there are signs of cutbacks, particularly in US publishing, where one of the big bookselling chains also looks unsteady. Early hopes that books, traditionally thought to do well in a recession, would escape unscathed, have proved to be unfounded. At the time of writing it is not clear how the all-important Christmas selling season panned out for booksellers, but as we enter the New Year it doesn’t look as if it saved the day. The holiday fell in such a way that Christmas present buyers could postpone their purchasing to the very last moment – and they did. In the UK there was the appalling timing of Woolworths going down, taking in its wake the EUK distribution business, which supplies most of the big supermarkets, and also affecting the wholesaler Bertrams, the supplier of many independent bookshops. Across the globe people are being forced to focus on basic essentials and for many these essentials do not include books. But we should all take heart from the fact that the international book trade rests very largely on the purchases of heavy book buyers -and for them books are a necessity. Even for lighter buyers, as has often been pointed out, books make good gifts, not too expensive but showing thought and discrimination. There’s no doubt though that publishers are going to be even more cautious than usual in 2009. American publishers have already started cutting staff and it’s possible that publishers in other countries will follow. At the very best they will reduce their risks by taking on fewer books. This means that agents will struggle to sell new authors in particular, unless they are thought to be bestseller material. And that of course means that agents in their turn will be extremely careful about taking on new authors. Before we come to an utterly depressing conclusion however we shouldn’t forget that readers will still be buying books, and they may even devote more time to reading and other home pursuits as these are infinitely cheaper than going out. Reading sits well with the new austerity, being thought rather improving as well as inexpensive. Publishers still have to publish something and there will of course be an ongoing market for new books in bookshops everywhere. It may however be a year when it makes more sense for writers to concentrate on improving their writing and getting it into good shape, rather than a scattergun approach to submitting it to an indifferent market. The Internet and the possibility of self-publishing also offer new ways for writers to reach their audience which have never existed in previous recessions. So self-help is the order of the day and writers can make the most of the opportunities that offer themselves to draft and redraft their work; research and inform themselves online; join online writing communities; promote their writing on the web; and to try out the new opportunities that self-publishing and selling online present. A happy New Year to all our visitors and we hope you will find it a good year for developing your writing!
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