On Sunday, the Los Angeles Times printed a story about the future of reading entitled "Book publishers see their role as gatekeepers shrink." The article covers most of the story fairly well, but leaves out some fundamental pieces of the business ...
The article covers most of the story fairly well, but leaves out some fundamental pieces of the business picture. It discusses a few particular cases of some very well known authors in the publishing world including the likes of Stephen King, Seth Godin, Paulo Coehlo, Greg Bear, and Neal Stephenson and how new digital publishing platforms are slowly changing the publishing business.
Indeed, many authors are bypassing traditional publishing routes and self-publishing their works directly online, and many are taking a much larger slice of the financial rewards in doing so.
The article, however, completely fails to mention or address how new online methods will be handling editorial and publicity functions differently than they’re handled now, and the future of the publishing business both now and in the future relies on both significantly.
It is interesting, and not somewhat ironic to note that, even in the case of this particular article, as the newspaper business in which it finds its outlet, has changed possibly more drastically than the book publishing business. If reading the article online, one is forced to click through four different pages on which a minimum of five different (and in my opinion, terrifically) intrusive ads appear per page. Without getting into the details of the subject of advertising, even more interesting, is that many of these ads are served up by Google Ads based on keywords, so three just on the first page were specifically publishing related.
Two of the ads were soliciting people to self-publish their own work. One touts how easy it is to publish, while the other glosses over the publicity portion with a glib statement offering an additional “555 Book Promotion Tips”! (I’m personally wondering if there can possibly be so many book promotion tips?)
Following the link in the third ad on the first page to its advertised site one discovers it states:
Although I find the portion about “baby steps” particularly entertaining, the first thing I’ll note is that the typical person is likely more readily equipped with the ability to distribute and market a children’s book than they might be at crafting one. Sadly however, there are very few who are capable of any of these tasks at a particularly high level, which is why there are relatively few new childrens’ books on the market each year and the majority of sales are older tried-and-true titles.
I hope the average reader sees the above come-on as the twenty-first century equivalent of the snake oil salesman who is tempting the typical wanna-be-author to call about their so-called “Free” Children’s Book Publishing Guide. I’m sure recipients of the guide end up paying the publisher to get their book out the door and more likely than not, it doesn’t end up in main stream brick-and-mortar establishments like Barnes & Noble or Borders, but only sells a handful of copies in easy to reach online venues like Amazon. I might suggest that the majority of sales will come directly from the author and his or her friends and family. I would further argue that neither now nor in the immediate or even distant future that many aspiring authors will be self-publishing much of anything and managing to make even a modest living by doing so.
Now of course all of the above begs the question of why exactly is it that people need/want a traditional publisher? What role or function do publishers actually perform for the business and why might they be around in the coming future?
The typical publishing houses perform three primary functions: filtering/editing material, distributing material, and promoting material. The current significant threat to the publishing business from online retailers like Amazon.com, Barnes & Noble, Borders, and even the recently launched Google Books is the distribution platforms themselves. It certainly doesn’t take much to strike low cost deals with online retailers to distribute books, and even less so when they’re distributing them as e-books which cuts out the most significant cost in the business — that of the paper to print them on. This leaves traditional publishing houses with two remaining functions: filtering/editing material and the promotion/publicity function.
The Los Angeles Times article certainly doesn’t state it, but everyone you meet on the street could tell you that writers like Stephen King don’t really need any more publicity than what they’ve got already. Their fan followings are so significantly large that they only need to tell two people online that they’ve got a new book and they’ll sell thousands of copies of any book they release. In fact, I might wager that Stephen King could release ten horrific (don’t mistake this for horror) novels before their low quality would likely begin to significantly erode his sales numbers. If he’s releasing them on Amazon.com and keeping 70% of the income compared to the average 6-18% most writers are receiving, he’s in phenomenally good shape. (I’m sure given his status and track record in the publishing business, he’s receiving a much larger portion of his book sales from his publisher than 18% by the way; I’d also be willing to bet if he approached Amazon directly, he could get a better distribution deal than the currently offered 70/30 split.)
What will eventually sway the majority of the industry is when completely unknown new writers can publish into these electronic platforms and receive the marketing push they need to become the next Stephen King or Neal Stephenson. At the moment, none of the major e-book publishing platforms are giving much, if any, of this type of publicity to any of their new authors, and many aren’t even giving it to the major writers. Thus, currently, even the major writers are relying primarily on their traditional publishers for publicity to push their sales.
I will admit that when 80% of all readers are online and consuming their reading material in e-book format and utilizing the full support of social media and cross-collateralization of the best portion of their word-of-mouth, that perhaps authors won’t need as much PR help. But until that day platforms will significantly need to ramp it up. Financially one wonders what a platform like Amazon.com will charge for a front and center advertisement for a new best-seller to push sales? Will they be looking for a 50/50 split on those sales? Exclusivity in their channel? This is where the business will become even more dicey. Suddenly authors who think they’re shedding the chains of their current publishers will be shackling themselves with newer and more significant manacles and leg irons.
The last piece of the business that needs to be subsumed is the editorial portion of the manufacturing process. Agents and editors serve a significant role in that they filter out thousands and thousands of terrifically unreadable books. In fact, one might argue that even now they’re letting far too many marginal books through the system and into the market.
If we consider the millions of books housed in the Library of Congress and their general circulation, one might realize that only one tenth of a percent or less of books are receiving all the attention. Certainly classics like William Shakespeare and Charles Dickens are more widely read than the millions of nearly unknown writers who take up just as much shelf space in that esteemed library.
Most houses publish on the order of ten to a hundred titles per year, but they rely heavily on only one or two of them being major hits to cover not only the cost of the total failures, but to provide the company with some semblance of profit. (This model is not unlike the same way that the feature film business works in Hollywood; if you throw enough spaghetti, something is bound to stick.)
The question then becomes: “how does the e-publishing business accomplish this editing and publicity in a better and less expensive way?” This question needs to be looked at from a pre-publication as well as a post-publication perspective.
From the pre-publication viewpoint the Los Angeles Times article interestingly mentions that many authors appreciate having a “conversation” with their readers and allowing it to inform their work. However, creators of the stature of Stephen King cannot possibly take in and consume criticism from their thousands of fans in any reasonable way not to mention the detriment to their output if they were forced to read and deal with all that criticism and feedback. Even smaller stature authors often find it overwhelming to take in criticism from their agents, editors, and even a small handful of close friends, family, and colleagues. Taking a quick look at the acknowledgement portions of a few dozen books generally reveals fewer than 10 people being thanked much less hundreds of names from their general reading public – people they neither know well, much less trust implicitly.
From the post-publication perspective, both printing on demand and e-book formats excise one of the largest costs of the supply chain management portions of the publishing world, but staff costs and salary are certainly very close in line after them. One might argue that social media is the answer here and we can rely on services like LibraryThing, GoodReads, and others to supply this editorial/publicity process and eventually broad sampling and positive and negative reviews will win the day to cross good, but unknown writers into the popular consciousness. This may sound reasonable on the surface, but take a look at similar large recommendation services in the social media space like Yelp. These services already have hundreds of thousands of users, but they’re not nearly as useful as they need to be from a recommendation perspective and they’re not terrifically reliable in that they’re very often easily gamed. (Consider the number of positive reviews that appear on Yelp that are most likely written by the proprietors of the establishments themselves.) This outlet for editorial certainly has the potential to improve in the coming years, but it will still be quite some time before it has the possibility of totally ousting the current editorial and filtering regime.
From a mathematical and game theoretical perspective one must also consider how many people are going to subject themselves (willingly and for free) to some really bad reading material and then bother to write either a good or bad review of their experience. This particularly when the vast majority of readers are more than content to ride the coattails of the “suckers” who do the majority of the review work.
There are certainly a number of other factors at play in the publishing business as it changes form, but those discussed above are certainly significant in its continuing evolution. Given the state of technology and its speed, if people feel that the tradition publishing world will collapse, then we should take its evolution to the nth degree. Using an argument like this, then even platforms like Amazon and Google Books will eventually need to narrow their financial split with authors down to infinitesimal margins as authors should be able to control every portion of their work without any interlopers taking any portion of their proceeds. We’ll leave the discussion of whether all of this might fit into the concept of the tragedy of the commons for a future date.