Surviving and Thriving the Changes in Book Publishing

The New Lay of the Land -


Jerry D. Simmonsby Jerry Simmons
On April 3, 2010 book publishing changed forever. Apple launched the iPad, a digital reading device that officially heralds the beginning of the dismantling of the big publisher model that has been dominant for more than sixty years. A new benchmark has been created and a universal platform is now established that allows every writer, publisher and business to profit without having to rely on a major publisher.

Jerry D. Simmons, a 32 year veteran of publishing, offers some very telling insights into the changes that are in store for the publishing industry.

Welcome to the new world of electronic publishing! There are three important trends in publishing today.

The first is that you no longer need a major publisher to be successful. You can be small and independent. You, the author, can retain all rights, ownership and control over your content and make a conscious choice to publish on your own.

The second is digital publishing is coming of age. Electronic books (eBooks) are here to stay and their numbers and proliferation growing exponentially.  Writers, publishers and businesses finally have an open and level marketplace for their content.

Finally, the days of traditional publishing are numbered. Another giant industry that dominated the 20th century is about to bite the dust.

From the day the first mass-market paperback rolled off the presses in the early 1950s, book publishing has followed a very simple path: print and ship. The business evolved from paperbacks in supermarkets, to hardcovers in mega-bookstores. Nothing really changed in the way the publishers conducted business for almost 50 years. Terms of sale, discounts and distribution remained fairly static and print on paper for mass consumption and entertainment was the cornerstone of traditional book publishing.

The first inkling of change came with the introduction of computers in the workplace in the early 1970s.  This was when people first started reading electronic files on computer screens and the first electronic books were produced. By the 1990, people were sending email and file attachments with tens and even hundreds of pages in length. And along came the Internet and graphical interfaces. By the year 2000, millions of people became adept and ever more reliant on computers and the Internet and document transmittal got easier and faster.

In 2006, eBooks broke on the scene when Sony introduced the Reader for eBook content. Amazon launched the Kindle in 2007 and the market for eBooks began to take shape as more and more independent publishers made significant inroads and achieved sales and financial success.  In 2008 and 2009, the major publishers started paying attention and getting concerned in earnest as electronic publishing and eBooks began to occupy a significantly greater role in the publishing picture–so significant that they even began to pose a perceived threat to the traditional publishing business model.

The tectonic shift in the marketplace occurred when Apple released the iPad, a remarkable and elegant book-sized machine that allows people to see electronic text in color with ease and crystal clarity.

Suddenly the publishing world turned upside down. With the Internet, marketing can be readily done by anyone. Big publishers and bookstores are no longer the only way for authors to reach the masses. In fact, they may no longer even be needed at all.

What will publishing look like in the next ten to twenty years?

Will bookstores disappear? Are the days of traditional publishing with paper books being sold in bookstores numbered?

Digital book publishing is going to change the dynamics of the industry forever in five major ways. The big publishing companies may not survive because the new technologies allow little people–the writers, the small publishers and the individual creative businesses to create value packed products, communicate and market directly to their target audiences, and profit handsomely from the change.

1.      The marketplace for distributing and selling eBooks is wide open and not restricted by the largest players in the world. Distribution to large numbers of eBook buyers and sellers online is accessible to everyone and is not currently limited or restrained by a dominant group of traditional big publishers.

2.      The cost of entry into the digital marketplace is a fraction of the cost of print and is affordable by just about anyone who owns a computer. Converting content to an eBook format compatible with all the leading eBook readers is a tiny investment considering the possible return. While global distribution may require translation into foreign languages, there is no cost associated with printing, warehousing, shipping and handling of paper books.

3.      Author royalties and publisher products are substantially higher than is possible if a writer were under contract to a large publisher and significantly more than what is possible as an independent author with a distributed print book. The return-on-investment for any eBook is a fraction of what it costs compared to print. The potential profit margin for digital content makes this an exceptional investment for the creator and provider of content.

4.      eBooks can be created with rich interactive multimedia content. This expands the entertainment potential and possible enjoyment people can experience and opens up the realm of publishing in ways that have yet to be defined or imagined. The same technology will support a 60,000 or 70,000 word text as readily as a 100 word children’s book filled with pictures and illustrations. Animations, video or dynamic entertainment of any type can be designed to be published, marketed and delivered on wireless communications systems anywhere in the world.

5.      Pricing for digital content is more dependent on volume than margin. Print books must maintain viability as a single unit for sale and be priced to cover all fixed and future expenses. The pricing for eBooks and digital content is simple and basically just focuses on the upfront creativity and production costs. There are no future reprint, shipping or handling costs associated with the production of eBooks and digital content.

To date, the major publishers have argued that the economics have not been right for a major shift to the digital world. In fact, the fear of lost print sales has stymied the widespread introduction of older titles for release as eBooks. This fear is important and real. The big publishers are worried. And well they should be.

eBooks and digital publishing threaten traditional publishing and the survival of the

the six largest world-wide publishing concerns like nothing they have ever seen before. How will they survive?  Time will tell.

Going Digital

The digital market offers tremendous opportunities for independent writers, publishers and businesses large and small to profit from a digital publishing model that in effect becomes an extension of their own marketing.

However, to succeed in the new world is not simply a matter of throwing content together and converting it to an eBook. Quality matters. Content matters. Value and the customer’s experience matters.  There is a right way and a wrong way to proceed.

Until April 2010, few businesses had any opportunity to utilize publishing as a mechanism for marketing. But now, the digital world has provided a new and exciting way to market the product or service of any company, publisher and writer. The shift in the marketplace and technology makes quality eBooks and quality digital content by quality people and organizations the most sought-after commodity in the industry today.

A quality reading, entertainment or knowledge experience is what will attract customers and solidify the brands of the publishing companies in the next decade and beyond.

Publishers who shortchange the quality element are the ones who will fail. Those who focus on creating and delivering superb quality are the ones who will distinguish themselves, attract the public interest and the sales that go with it.

For any individual or company to survive and thrive in the new digital marketplace they will need to utilize the skills of book publishers and work to create eBook and digital content that delivers notable satisfaction and personal enjoyment. Nothing less will survive the scrutiny and instant communication that exists in the world of today.

The changing landscape poses big problems for the print-on-demand publishing companies that are proliferating across the landscape.

Paper is getting to expensive to offer and deliver. The writing is on the wall.  Book printing costs are reaching levels that people will not accept. Environmental impacts and waste disposal costs will eventually be deemed unacceptable. The days of unrestricted book printing are numbered.

The Apple iPad offers a suite of standardized formats for eBooks and rich multimedia content. The barriers to creation are diminishing with the relative ease with which eBooks and digital content can be created. The marketplace allows for such a quick and easy dissemination of ideas among people that quality creative works can be shared and delivered to the masses virtually overnight.

With the ever increasing sales of iPads and devices like it, the flow of electronic content will increase. The possibilities are endless and while the electronic reading devices continue to improve and drop in price, the more widespread the market and potential for success. A critical tipping point is coming soon. The market potential is enormous.

The opportunity that exists for widespread market penetration via eBooks and digital publishing has never been greater. Some writers recognize this fact, few publishers and virtually no businesses understand the market in a way that easily indentifies the possibilities. For a small investment a company has the potential to reach hundreds of thousands even millions of customers.

There is phenomenal opportunity for individuals as well as business and companies to take advantage of digital publishing as long as they start soon and make it a part of an overall marketing strategy.  Those who seize the moment will be able to take part in the future.

For more information visit www.WritersReaders.com

Background Facts to Validate the Ideas in this Article:

(1)               Published author J.A. Konrath was under contract with a large New York publishing company when he decided to publish his own eBooks. His Jack Daniel series are mass-market paperbacks that are fast-paced suspense novels. His first book, Whiskey Sour has sold approx. 2,500 copies total since 2004. He has earned about $2,500 in royalties. Currently his five self-published eBooks that are selling on average 180 copies a day are priced at $2.99. He earns $2.04 on each sale which means he earned more in 45 days of selling eBooks than he did in five years under contract with his paperback series.

(2)               Karen McQuestion was an unknown writer who spent almost 10 years searching for an agent and publisher for her novel A Scattered Life. After years without luck she self-published an eBook and sold more than 36,000 since April. This mother of three now has a film option with a Hollywood producer. She has since published two more eBooks.

(3)               In the first quarter of 2010, eBook sales have increased 252 percent according to the American Association of Publishers.

(4)               Apple has sold over 3 million iPads since April, 2010 and expects to sell more than 10 million around the world this year.

(5)               Retail prices of electronic readers for eBooks have dropped below the $200 dollar level making them more affordable to the mass market. Barnes & Noble is selling their Nook for $199 while Amazon is now selling their Kindle for $189. It debuted in 2007 at $399.

(6)               The latest bestselling author to convert to eBooks is John Grisham who gave his publisher permission to convert his older backlist titles to eBooks.

(7)               Bestselling children’s author Mary Pope Osborne, whose series Magic Tree House has sold over 70 million copies world-wide, has just announced her entire series will be available in eBook.

Action Plan for Publishers

(1)               EXAMINE - compare the cost of creating an eBook to a print edition and the opportunities of digital publishing in your return-on-investment.

(2)               DECIDE - plan the publication of your writing and make certain all of your personal and business goals are being met in the formats you feel are important.

(3)               CONVERT - going from manuscript to eBook is a simple process and provides writers with potential for greater sales.

(4)               MARKET - let readers know you exist and your writing is available for sale, market yourself and your writing.

(5)               WRITE - successful publishing equates to prolific writers who can produce quality content on a consistent basis for their readers.

Jerry Simmons is a 32-year veteran of publishing, 25 in New York with Random House and the former Time Warner Book Group as Vice President, Director Field Sales.His book, What Writers Need To Know About Publishing is described by the #1 New York Times Bestselling author Sandra Brown as “The good, the bad, and the ugly aspects of book publishing, told in a straight-from-the hip manner. New writers take note.” New York Times bestselling author Allison Brennan said, “The information was absolutely incredible! I would recommend your book to all aspiring and new authors.”

You can email Jerry questions at
jerry [at] writersreaders [dot] com.  For more information visit www.WritersReaders.com

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7 Responses to “Surviving and Thriving the Changes in Book Publishing”

  1. Ryan Says:

    Every time a new digital pad or reader comes on the market, I wonder what the fate of the publishing business will be – even beyond traditional media. Does it make sense that we look at ways to publish our own content for these devices?

    http://bit.ly/cPtTgg

  2. kindle3gwifi-lover Says:

    By remaking the buttons and moving the prev-next buttons to both sides makes is easy for everyone. The 3G is absolutely worth the money. Still no support for library books. Everyone wants that feature. Looks like they are being shady not allowing EPub.

  3. shelly-kindle3gwifi Says:

    Can’t really make up my mind about these things. Look’s like a lot of good e-readers out there. I could see myself having trouble reading at night. Don’t you get glare with LCD screens? I tried to buy a Kindle yesterday but seems they didn’t have any. Thanks for showing us these issues.

  4. Al Philipson Says:

    A lot of people are self-publishing eBooks these days. But a lot of people are self-publishing trash.

    Unless you’re exceptionally good at self-editing and setting up your conversions just right, your stuff will fall into the “trash” category. Don’t let this happen to you. Your name is your brand. If you publish something that’s not up to top quality standards, your “brand” will suck and the odor will kill your writing career.

    In situations like this, there’s not substitute for a good publisher, if you can find one that will do a good job of editing and converting your manuscript into something that’s salable.

    If you find yourself being rejected by “legitimate publishers” (that means the ones that insist on only good stuff), maybe you should spend your time honing your writing skills instead of self-publishing yet another piece of trash.

    The best way to find a good publisher is to look around. Look for a digital (eBook) publisher that doesn’t advertise they’ll take your book no matter what. Look for one that’s fussy up front. Then buy one or two of their books to see what quality is or isn’t there. Check out their contract to make sure you can live with it. And perhaps ask one or two of their authors about the firm.

    Also do a search to see if anyone has posted good or bad opinions about the publisher.

  5. Al Philipson Says:

    By the way, Ryan. I wouldn’t hold a funeral for the paper publishing business just yet. eBooks may cut into their sales some — and there’s evidence that total books sales (eBooks and paper) are increasing. But too many people just can’t “cotton” up to reading on a small tablet.

    So for now, paper isn’t going away.

  6. PMoore Says:

    I dont think that this ebook with survive all the long, i believe that paper back book is always is the past and the future the reason i believe this, is because every one will enjoy the feeling of opening a book and reading it, how is ebook consider a book when u can’t enjoy the decades of tradition?.

  7. Al Kalar Says:

    PMoore: eBooks will survive and increase in market share.

    Economics drive things in the long run along with convenience. Home computers were poor stepchildren to paper, pencil, and typewriters in the ’70s and no one thought they’d amount to anything. Today, the average laptop can run rings around any giant mainframe produced in the ’70s and the average household has more than one computer in it (and so does your car — under the hood).

    eReaders can hold a library of over 1000 books. Classics are available free at Project Gutenberg. eBooks are generally less expensive than their paper counterparts and can be read within minutes of purchase, rather than paying freight and waiting days for your ordered book to arrive. And you don’t have to travel to the nearest bookstore to find them.

    Still, some (especially older readers) will continue to prefer paper books, but the technical generation (the ones who can walk, text, and chew gum at the same time) will prefer eBooks. No more heavy backpack full of school books. You can make notes on your e-version without destroying the underlying book. And their college texts should cost less (some sell for around $100 these days).