Saturday, 16 February 2013

Amazon – Legalising Piracy of Our eBooks

As if authors retailers and publishers do not have enough to worry about, the news that Amazon has received a patent for a system for selling 'pre-owned' digital files may be the straw that breaks the camel's back. For a start it is a nonsense to believe that a digital file can be 'pre-owned'. What we are talking about here is an infringement on the license to sell the ebook, and who will monitor that files are not merely copied and sent on as pre-owned. Regardless of whether the 'original' digital files sits on the cloud or not, allowing sales of 'second hand' digital files is more worrying than piracy and in many respects it is difficult if not impossible to distinguish between the two. Both methods strip the publisher and author's legal right to obtain duly earned royalties from content they have the rights to.


This is clearly a case of Amazon being its usual savvy forward thinking self being at least 500 steps ahead of the current judicial system on digital content ownership. If this is allowed to go ahead we may as well send all of our content out for free because the idea of actually making money out of publishing will die. We will look back on the days where we could sell for 20p (This is another dreadful promotion accepted by the industry that is ultimately harmful) because returns to authors and publishers let alone retailers (except Amazon who will own the patent after all) will potentially be diminishing from the very first day of publication as books find their way immediately into the 'second hand' market. The only option left to publishers will be to dramatically raise the price of eBooks universally to protect the financial investment we put into books and authors.

Saturday, 9 February 2013

Open Letter to Mr. Daunt & Mr. Husain

 

Dear Sirs,

The world of publishing is listening to you but are you listening to publishers? Caffeine Nights Publishing has been one of the greatest supporters of Waterstones since we began selling books. We know the importance of it as an entity not only in the high street but in the community in general. The same cannot be said of Foyles but they do play an important part in the overall picture of book selling in the UK.

However, it is clear that you are both only transfixed with dealing with ‘the big five’. Your whole business model is suffering because you have become transfixed in a relationship which drives your business, offering you no flexibility to trade with smaller publishers.

Yes, Caffeine Nights is a small publisher and we only offer thousands of pounds to your turnover not millions. I do wonder though if a book for book or like for like study would show who actually gives you greater profit per title if you allowed us to play on a level playing field. By this I mean allowing us to trade directly with you. When we do manage to do this I know that you earn over £3.15 clear profit per copy on an £8.99 sale. This is a much great margin of profit than we as a publisher makes and even more so when we pay our authors 30% royalty on net sales. Yet still you refuse to trade direct on most occasions, preferring to use and pay for an unnecessary middleman (Gardners or Bertrams) to slow the ordering procedure and significantly cut your profit margin. Yet still we hear you bleat about the margins being offered by publishers. I honestly recommend you look at the arrangements you have with your distribution channel before playing the downtrodden retailer.

For over three years we have been trying to talk with Waterstones to get them to make an arrangement with Ingrams to allow direct distribution of our books to their stores rather than through Gardners who take over 20% of the margin for doing little but delaying the delivery of book from store to consumer.

Now Waterstones is closing the door to one of the few channels small publishers have to actually get our books and our authors in their stores by banning book signings from ‘unknown’ authors. Tell me Mr. Daunt how do you expect new talent to become known? Apparently, if we cannot guarantee selling 80 copies on a book event the stores won’t have ‘unknown’ authors. They will of course be delighted if we have an evening launch where we invite people to come and buy the books. Seriously, why would we do that and give you 35% when we could hold that sort of event anywhere and keep the profit margin or pass it on to the reader?

Waterstones and Foyles both need to seriously look at what they mean by being a store for the community if they are not prepared to work with small publishers whose authors work, live, play and buy books in that very community.

Mr. Daunt says he will have Waterstones in profit in two years. If he is not prepared to work with small publishers I say good luck with that and good luck with the future of community literacy and entertainment. Our response has been to actually cut the price of our books on our website (www.caffeine-nights.com) stripping out the margin we used to offer Waterstones and Foyles and passing the saving back to the reader. All this does is enhance the online offering taking more readers away from the high street. It is a move we have resisted for over three years because we wanted a level paying field between the web and the high street. 

Mr. Daunt’s response, effectively banning small publishers like Caffeine Nights from its stores, has left us no option which is why from today all of our paperback books are available from our website for £5.99 instead of £8.99. We know no other website or book store can offer our books at this price, so in effect it is a move which will have some impact on them (albeit very minimal). The future is clearly written on the wall Mr. Daunt and Mr. Husain, and its not a pretty one. The truth is, without your participation and forward thinking in working with small publishers, you are doing yourselves and your customers a major disservice. Online will survive and flourish but the days may be numbered for book shops in the high street, which I think is incredibly sad. However, if you are not prepared to listen to small publishers as well as the big five then no amount of oil or gas money will save you.

Saturday, 12 January 2013

All in All, Another Brick in the Wall…

How does a publisher fight against the inequalities of favourism levied toward the big publishers on Amazon’s platform. It seems to me that the marketing opportunities available to the larger publishers present a very uneven playing field. For example, MIRA books are able to place free chapter samples of its authors: www.amazon.co.uk/Crime-Thriller-preview-Ellison-ebook/dp/B008472Y7S/ref=zg_bst_362247031_46 and benefit greatly from providing free content for readers to download. Its something we would love to do yet the only route to providing free content for smaller publishers is to use Amazon’s Kindle Select programme, and then you only have the option to do this five times over a period of 100 days. What sucks about Select is that you have to make your books exclusively available for a period of at least 100 days to Amazon. Even though Amazon is the market leader I have no desire to give them an even greater advantage over Waterstones, Kobo, Apple,Barnes & Noble and all the other platforms which sell our eBooks. Amazon’s desire for exclusivity is nothing more than a spoiler aimed at hurting its competitors and from a business point of view understandable but from a publisher and author point of view restrictive. However, the larger publishers don’t have to worry about the drawbacks of Select as they have a managed publisher account. So how do you get one of those if you are a small publisher? The answer is you don’t, you have to wait for Amazon to contact you…so, don’t hold your breath.

Publishers with managed accounts can post free books, sample chapter books and a host of other marketing ploys which give them the edge and always will do. The rest of us have to be tied into restrictive promotional tools which hand tie them and their authors. The advantages already enjoyed by larger publishers are brought about through their financial clout and it would be foolish of me to believe they haven’t earned their position of favouritism. They have.

The big publishers have huge marketing budgets and can populate online and traditional media with marketing campaigns for their books and run large print runs to ensure you are tripping over the latest blockbuster the next time you visit Waterstones. Ebooks provided an area we could take them on at least at a more even level, based on how good a book is, how gripping a story is, how excellent an author writes. We shouldn’t however fool ourselves into believing this will last much longer. I think 2013 will see a distancing of the the gap between small publishers and large with eBooks. It will be a year where small publishers will have to look at the market and see what they can use to ensure that the gap doesn’t become so large that we cannot compete at all. So Amazon, please find a way of helping small publishers maintain the competition, as it is healthy for the industry, beneficial for readers to discover fresh new talent and great for small business and an economy that has shrinking opportunities outside of the Internet.

Friday, 4 January 2013

Sunday, 16 December 2012

DRM – The Great Misnomer

There is a lot of rubbish written about DRM and to be frank, we all know it doesn’t work for those who are determined to hack it. However for the majority of readers who are legal, law abiding citizens, they don’t care and probably don’t even know or care what DRM is or does let alone if it is DRM free. Why don’t they care, because unlike music, games and movies most readers keep their book collection on a single machine to read and for those that don’t, five machines is ample enough to move a book between. The great misnomer is believing all the hype about DRM, how it affects the poor reader. This is total crap. The average reader consumes his or her books without anything inhibiting their enjoyment of their books. So we then have to address the other issue; are some publishers lofting themselves on white chargers and slapping themselves on their own pious backs as champions of DRM free titles. The answer to this is sadly, yes.

In reality DRM doesn’t actually do anything except maybe stop kids who are too lazy or too untech savvy to crack it, so it does offer some protection from exploitation at a basic level. As mentioned, those who wish to crack it can do so easily. The average reader who now outnumbers the early and vocal adopters of ebooks (These are the people who believe that all eBooks should be free) is willing to actually pay for their books and read them (generally) on the machine they purchased them on.

As the eBook market has matured with the number of readers increasing (These are now the people willing to pay for books and keep a library in the cloud) the issue of DRM either pro or anti will diminish. This is because the majority of people are honest and feel that the content they purchase belongs to them regardless. How many machines does the average reader want his/her content on? What has happened here is that the industry has become so fixated on the argument of piracy by comparing it with the music industry that no one has stopped to compare what is two distinctly different sets of consumers. The music industry is mostly driven by a much younger audience who have little interest in paying for content. Lets examine how they perceive this. They hear music on the radio for free, they tune into MTV and a host of other TV music channels for free, music is short and relies on repetitive plays/listens for it to become popular and many artists/record labels release their content to platforms such as YouTube to be consumed for free. So this audience has been educated to believe that they shouldn’t have to pay for music. Therefore it is perfectly reasonable (their view not mine) to upload/download, swap, share and generally pass around for free.

The book industry seems to have got so caught up with not making the same mistakes as the music industry that it has assumed the audience is the same. The fact is that it is no longer the same audience. It was at first, when the early adopter was kids looking for more free content (regardless of whether they would actually read it) but now the uptake is a more mature market where the thought of sharing files the way music files are shared is not part of their psyche.

Without generalising too much, the biggest threat to file sharing from the younger generation is going to be academic books. They are too busy watching movies, listening to music and playing online games to spend hours reading other than their school and university obligations. So the whole debate about DRM is a bit of a misnomer. Of course I am not discounting professional thieves, conmen and rogues who will exploit any loopholes in content security, these people are so determined they will crack whatever is placed in front of them. The fact is that with the book industry, the market is actually far more limited than the music, movies and games industry.

The book industry and its majority of consumers are happy purchasing their digital content and reading it on a single machine (Though even with DRM they have the ability to use this on 5 machines – how many do they do they need in reality?). The industry has indeed changed but I think publishers have so got caught up in a spurious argument that it has failed to see that its core audience has changed as it has grown and developed from the early adopters. Even this does a miss-service to younger consumers, many of whom are also prepared to pay for content. 

So the next time you see a publisher boldly shouting ‘Our titles are DRM free’ ask yourself a question as to what they are really saying or understand about the current market and if it is no more than an attempt to make themselves look good while not actually conceding anything. 

Friday, 23 November 2012

GOING INDIE: THE WRITER IN THE DIGITAL AGE

On Thursday 22nd November I was invited to sit on the panel of an event looking at publishing in the digital age. I was on the panel with one of our authors, Shelley Weiner, Rachel Ogden a director from publisher marketing company Inpress, and Justine Solomons from Byte the Book. The event was hosted by Rebecca Swift, director of The Literacy Consultancy in Farringdon where the event was held. A broad range of subjects was discussed and it was clear from opinions on the panel that there were areas of great contention especially the shifting tide of sway held by the voice of the reader now being one of the main influencers of a books popularity rather than the considered opinion of reviewers. Times are changing and there is a paradigm shift toward popularism over literature. All I mean by this is that digital has opened the door of democracy taking the opinion of a few select reviewers/judges and given that power to readers. This is the reason why it is important for publishers and authors to engage with their readers and equally important to know who their readers are.

Rebecca Swift did an excellent job in keeping the panel on topic and opening the conversation to the packed house of 50 who turned up on a cold November evening. Shelley Weiner gave a very thoughtful and considered talk on what going indie meant for her following a reading from her novel The Audacious Mendacity of Lily Green. This kicked off the evening adding plenty of strands of conversation.

It was clear from the audience response that Amazon is a big issue for many readers and writers alike, seen as both the bogeyman and the democratiser of publishing. Topics on the night ranged from royalty rates, self-publishing, hybrid publishing, editing, proofreading, the recent mergers of Penguin and Random House as well as the proposed Simon & Shuster rumblings.

My overall thoughts are that the passion for publishing out there is in a far more healthy position than many realise and although this is only a snapshot of 50 or so people, there is clearly a desire to accept change and find ways to exploit that change while still wanting to protect bricks and mortar book stores. Whether this can be achieved is doubtful as I fear for the long-term survival of book stores in the high street, especially independents who are had tied through finance and often by a mind set that is set in the good old days. Those days are gone and unless stores adapt they won’t survive.

Publishing equally has many obstacles and the same can be said for publishers, unless we adapt and learn then we too will become redundant. We have to work with the likes of Rachel from Inpress and listen to forward thinkers like Justine from Byte the Book while listening to our readers and being innovative in our own thought and ensuring we can make ideas turn into strategies.

Friday, 9 November 2012

GOING INDIE: THE WRITER IN THE DIGITAL AGE

Event Announcement

Smaller independent publishers are enjoying a renaissance in the internet age. For writers they can offer the kind of personal attention and access to digital services that may be hard to find in the mainstream. At what point, therefore, might a writer approach small presses rather than a large publisher? What, if any, is the role of the agent in this changing world? Can it be financially viable for a writer to be published by an indie press? And – most importantly of all – who can we trust (small press or large conglomerate) to ensure that the best quality writing finds the audience it deserves?
Join Rebecca Swift, Director of The Literary Consultancy to consider these questions with a highly qualified panel:
Shelley Weiner whose new novel ‘The Audacious Mendacity of Lily Green’ is published by the go-ahead indie, Caffeine Nights
Darren Laws, head of Caffeine Nights
Rachel Ogden, Director of Inpress, an organisation that seeks to ensure that small presses do not get lost in the marketplace
Justine Solomons, whose member organisation, Byte the Book, helps inform writers about how digital publishing really works.
Thursday 22nd November 2012
Free Word Centre
60 Farringdon Road
London EC1R 3GA
6.30pm – 8pm
Tickets: £10 (Glass of wine included)
To book call Free Word at: 020 7324 2570