Entries tagged with “news” from Tools of Change for Publishing

Content is a Service Business

Andrew Savikas
July 13, 2009 | Permalink | Comments (25) | Listen

I've been a fan of Trent Reznor's music since first hearing Pretty Hate Machine in junior high school, but in the past few years I've been increasingly impressed by his attitude and approach to the economics of the modern digital media business. His release of Ghosts I-IV is a case study in how to do exactly what Kevin Kelly outlines in Better than Free : "When copies are free, you need to sell things which cannot be copied." Notice that even though the Free Download option is right there at the top, the $300 "ultra-deluxe" version is sold out (and was sold out within 24 hours of being released).

On his forum a few days ago, Reznor posted advice to aspiring young musicians eager to make it in the music business, and the advice is just as applicable to writers and other artists working in almost any digital medium and attempting to compete with the vast content available on the Web:

[W]hat you NEED to do is this - give your music away as high-quality DRM-free MP3s. Collect people's email info in exchange (which means having the infrastructure to do so) and start building your database of potential customers. Then, offer a variety of premium packages for sale and make them limited editions / scarce goods. Base the price and amount available on what you think you can sell. Make the packages special - make them by hand, sign them, make them unique, make them something YOU would want to have as a fan. Make a premium download available that includes high-resolution versions (for sale at a reasonable price) and include the download as something immediately available with any physical purchase. Sell T-shirts. Sell buttons, posters... whatever. [emphasis added]

This is not just about using free digital content to sell physical goods. It's an acknowledgment that what you're selling as an artist (or an author, or a publisher for that matter) is not content. What you sell is providing something that the customer/reader/fan wants. That may be entertainment, it may be information, it may be a souvenir of an event or of who they were at a particular moment in their life (Kelly describes something similar as his eight "qualities that can't be copied": Immediacy, Personalization, Interpretation, Authenticity, Accessibility, Embodiment, Patronage, and Findability). Note that that list doesn't include "content." The thing that most publishers (and authors) spend most of their time fretting about (making it, selling it, distributing it, "protecting" it) isn't the thing that their customers are actually buying.

Whether they realize it or not, media companies are in the service business, not the content business. Look at iTunes: if people paid for content, then it would follow that better content would cost more money. But every song costs the same. Why would people pay the same price for goods of (often vastly) different quality? Because they're not paying for the goods they're paying Apple for the service of providing a selection of convenient options easy to pay for and easy to download.

This is not new to digital content. Why would the price of admission to see a given year's Razzie Award winner be equivalent to the price of admission to see the year's Best Picture? Because the price of admission is not for the content. It's for the privilege of seeing it early, and doing so on a big screen in a social environment -- movie patrons pay for the service provided by the theater, not for the movies themselves (here's a counterpoint on movie pricing). That's the point that Reznor and Kelly are making: think long and hard about what your customers want, and provide the service of giving that to them.[1]

"But people are still buying content when they buy a book or an album," the argument goes. Yes, they are. The same way that you're buying food when you go to a restaurant. You are purchasing calories that your body will convert to energy. But few restaurants (especially those you visit frequently) have ingredients any different from those you can get yourself at the corner store, for much less money. So it can't be true that your primary goal is to purchase food; you're purchasing a meal, prepared so you don't have to, cleaned up so you don't have to, and done so in a pleasing and convenient atmosphere. You are paying for the preparation of the food and the experience of eating it in the restaurant, not the food itself [2] (beyond the raw cost of the physical ingredients, which in the case of digital content is effectively zero).

This came up during a discussion on Peter Brantley's email list recently, in the context of what someone is paying for when they buy one of our Cookbooks (which contain "Recipes" for how to accomplish specific tasks with a particular computer language or technology, often culled and curated from material and techniques previously published in blog posts, mailing lists, or help forums). I asserted that rather than the content itself, people are paying for the preparation of that content, to the extent that it helps them solve their problems more quickly and conveniently. When you think about what we do as a service business, then it makes perfect sense: readers are paying us for the service of finding a bunch of great and interesting stuff, and putting it together in a convenient package. It's the convenience of not having to find it themself, and the concise package that saves them from having to dig through a bunch of web bookmarks or search results. I didn't buy "Home Buying for Dummies" last year because I wanted a book on home buying; I bought it because I didn't want to screw up something really important (buying a house) and was willing to pay someone to spell out all of the stuff I needed to worry about in one place. People don't buy Jim Cramer's books because they want Jim Cramer's content -- they buy his books because they think it will help them get rich, and they think paying him is a great shortcut alternative to acquiring his knowledge (knowledge, not "content") themselves. These are services, not products.

The recent (and absurd) notion put forward by European publishers to "strengthen copyright protection as a way to lay the groundwork for new ways to generate revenue online" is intimately tied up with this issue of the value of content (and therefore the value of various players in the content value chain, like authors, publishers and the latest bogeyman, aggregators and search engines). Arguing that you need to beef up copyright protection to make sure there are ways to generate revenue online incorrectly assumes that what people are paying for is the copyrighted content itself. People do not care about content, they care about themselves and their problems.

You don't get an "A" for effort just by spending time and money creating content (and you are not entitled to your business model -- you have to earn that money every day by doing something that people find worth paying for -- and they decide it's worth paying for, not you). Content only has value to the extent that someone will pay for it because it accomplishes something they'd rather exchange money for than do themselves -- and when was the last time you said "Gee, I really need some content. I could write some of it for myself to read today, but I'd rather pay someone else to do it." [3] Google and other aggregators haven't stolen any value from the creators of the content they are aggregating -- they have done what intermediaries have always done, which is create new value based on doing for customers what those customers cannot or do not want to do themselves -- the service of sorting through all that content to find the thing that solves their problem. (I use "problem" loosely -- it may be boredom, loneliness, a tax audit, an idea for a first date,...) Again I'll return to Kevin Kelly, who elucidated the role of aggregators in relation to content creators far more eloquently than I ever could:

The giant aggregators such as Amazon and Netflix make their living in part by helping the audience find works they love. They bring out the good news of the "long tail" phenomenon, which we all know, connects niche audiences with niche productions. But sadly, the long tail is only good news for the giant aggregators, and larger mid-level aggregators such as publishers, studios, and labels. The "long tail" is only lukewarm news to creators themselves. But since findability can really only happen at the systems level, creators need aggregators. This is why publishers, studios, and labels (PSL) will never disappear. They are not needed for distribution of the copies (the internet machine does that). Rather the PSL are needed for the distribution of the users' attention back to the works. From an ocean of possibilities the PSL find, nurture and refine the work of creators that they believe fans will connect with. Other intermediates such as critics and reviewers also channel attention. Fans rely on this multi-level apparatus of findability to discover the works of worth out of the zillions produced. There is money to be made (indirectly for the creatives) by finding talent. For many years the paper publication TV Guide made more money than all of the 3 major TV networks it "guided" combined. The magazine guided and pointed viewers to the good stuff on the tube that week. Stuff, it is worth noting, that was free to the viewers. There is little doubt that besides the mega-aggregators, in the world of the free many PDLs will make money selling findability -- in addition to the other generative qualities.

I love his metaphor of the internet machine ("a very large device that copies promiscuously and constantly"), and it's one worth keeping in mind if you think you're in the business of selling "content," because you are probably wrong.

Update: Jim Lichtenberg kindly reminded me he gave a presentation [PPT] on the same topic at the 2008 TOC Conference. Worth a read.

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1. Many publishers have actually been doing the same thing for years with hardcover, trade, and mass-market editions of the exact same content at different prices.

2. This is why celebrity chefs aren't particularly worried that doing TV shows and selling cookbooks describing exactly how to make the food they serve in their restaurants will harm business.

3. There are people who do in fact want to pay someone to write content for them as a service. They're called publishers.

Peter Brantley Joins Internet Archive

Andrew Savikas
March 25, 2009 | Permalink | Comments (0) | Listen

Longtime "Foo" (Friend-of-O'Reilly) and TOC Conference adviser and blogger Peter Brantley has joined the Internet Archive as its Director. From the news release:

In this role, he will direct our efforts and help coordinate with partners in building an open library and distributed publishing system.

Congrats Peter!

O'Reilly Ebooks: 130 Top Titles Now Available, Plus an iPhone App and Head First PDFs

Andrew Savikas
December 19, 2008 | Permalink | Comments (27) | Listen

While there will always be a demand for printed books, few of those books will have a life entirely disconnected from the wider digital Web. In that sense, all publishing is becoming digital publishing, and all writing is writing for the Web. That's a big shift, and it will take time for the existing players to make the transition (and we'll almost certainly lose some along the way). For now, here's a roundup of where things stand for us at O'Reilly on the ebook front:

• David Pogue's iPhone: The Missing Manual is now available as an App in the iPhone App Store. It's available for a limited time at an introductory price of $4.99 (the regular price will be $9.99). The App was built by Lexcycle, creators of the popular Stanza App, so you get the same rich reading experience (including live linking and cross references) as when you read our other books on Stanza. More titles will follow in the coming weeks.
  
• More than 130 titles, including many of our best sellers, are now available as ebook bundles, which can be read on a variety of ebook devices and systems, including Stanza on the iPhone, Bookworm, Amazon Kindle, and the Sony Reader. A full list is available at oreilly.com/ebooks, and includes the following:
  • JavaScript: The Definitive Guide, 5ed
  • Learning Python, 3ed
  • High Performance Web Sites
  • Rails Cookbook
  • Beautiful Code
  We're working to release the bulk of our backlist as ebook bundles during the next 90 days.
• All of our in-print Head First books will be available for purchase as PDFs within the next 24 hours (two of them already are via the Rough Cuts program). Those of you familiar with our Head First titles know their layout would not translate well to reflowable formats like EPUB. We regularly evaluate alternatives, but in the interim, we're happy to finally deliver something a lot of customers have requested--the option to purchase Head First books in digital form.
• In total, more than 700 of our books are currently available for sale as DRM-free PDFs or Ebook bundles (and even more are available through Safari Books Online). As more Ebook bundles become available, those are included as free updates for anyone who's already purchased just the PDF from oreilly.com.
• Our "Media Management" account pages for customers who have purchased ebooks from oreilly.com are now much more mobile-device friendly, and are accessible from oreilly.com/e. A screenshot from my iPhone below:
  

In the coming months we'll be working to make more of our new book content mobile-friendly, better integrate our book content with the Web, and continue exploring how to deliver our content in ways that take advantage of all that being digital has to offer.

If you're a publisher trying to figure out how to deal with digital, registration is open for our 2009 Tools of Change for Publishing Conference. Lexcycle's Marc Prud'hommeaux and Neelan Choksi will both be speaking. New York area publishers should also check out StartWithXML, our one-day forum deep-diving into how and why to move to flexible formats for more nimble book content.

Questions? Comments? Drop us a line through Get Satisfaction

Validators: Asking for Donations to Pay for the News

Andy Oram
August 24, 2008 | Permalink | Comments (0) | Listen

How many ways can content (news, books, movies, etc.) be funded? There are really only a few ways throughout history. Unit sales (treating a movie or a book like a candy bar or a pair of shoes) are increasingly obsolete when information can travel the Internet. There are also subscriptions, advertising, and various kinds of subsidies (a category that also covers academic positions for people who do research).

The New York times has a short article on community-funded journalism, in which the public pays a journalist in advance to cover a topic. I'm blogging this because, in the first place, it suggests a way technical information could be developed, and in the second place I anticipated the idea a year ago in my short story Validators.

TOC Recommended Reading

Mac Slocum
August 21, 2008 | Permalink | Comments (0) | Listen

On Being Positive in August (Adam Hodgkin, Exact Editions)

Publishers need to consider the possibility that anything that can be published, will certainly be published digitally, and will, in principle, be available anywhere from many devices. That does not mean that it all will be free (why should it mean that?). But it does mean that it will either be available for free (sponsored by advertising) or because someone wants to buy, give, or rent it.

A New Model for News (pdf) (Associated Press Report)

A key question for news planning today is "How can this story be told?" Increasingly, the answer can be found outside traditional storytelling formats. In one popular example in the 2006 U.S. elections, an AP multimedia producer "mashed up" excerpts from political attack ads with a musical mix. The result garnered more than half a million hits after going viral and getting passed along from the customer sites that displayed the piece. (p.61)

Mygazines.com: The Magazine Industry's "Napster Moment"? (Joe Wikert, Publishing 2020)

This is a golden opportunity for the magazine industry to see how a Napster-like platform for periodicals could and should work effectively. Mygazines is essentially doing e-content R&D for the entire magazine industry; I just hope the industry takes the time to study and understand the results before they look to kill the service.

Related:

• TOC News
• TOC Analysis and Opinion

News Roundup: Google's Book Scanning, Kindle's Future Path, Authorship Increases Exponentially, Amazon Takes on "Amazon Tax," 5 DRM Messes

Mac Slocum
May 2, 2008 | Permalink | Comments (0) | Listen

A Glimpse into Google's Book Scanning

Google doesn't divulge specifics about its proprietary book scanning set-up, but the Associated Press offers a brief look into the manual scanning process used for old/fragile titles. (Continue reading)

Kindle's All-Encompassing Future Path

Jeff Nolan writes about the path of the Kindle:

It's clear that [Jeff] Bezos sees a day when any and all content can be delivered to a Kindle and not only won't Amazon have to store inventory, they also won't have to ship anything but the Kindle itself to support their book business. In that light, the Kindle totally fits and is an impressive disruptive strategy to boot. Having said that, we have 550 years of mechanical printing to overcome and in terms of simplicity and cost, it's hard to beat a hard copy book.

Book Reading Down, Book Writing Up

In a New York Times Sunday Book Review essay, Rachel Donadio notes the interesting discrepancy between book reading and book writing. Namely, people aren't reading, but they're certainly doing a lot of writing. (Continue reading)

Amazon Challenges New York's "Amazon Tax"

As expected, Amazon is challenging New York's recently passed sales tax statute. From Amazon's filed complaint (pdf):

Because some independently operated, New York-based websites post advertisements with links to Amazon and are compensated for these advertisements, Amazon is now presumed to have engaged in "solicitation" under this statue ... despite the fact that Amazon lacks any physical presence in New York and that no solicitation by Amazon actually exists. This presumption is effectively irrebuttable. Accordingly, Amazon seeks a declaratory judgment that the Statute is invalid ...

Charting the Pitfalls of DRM

In the wake of MSN Music's authorization decision, Steve O'Hear from last100 looks at five DRM-based businesses that left customers high and dry. (Continue reading)

Related:

• See more publishing news and insight in the TOC News section

News Roundup: Kindle 2.0 Speculation, Wikipedia: The Book, "Dilbert" Embraces User-Generated Content, Mobile Audiobook Downloads, Tracking Drafts and Revisions

Mac Slocum
April 25, 2008 | Permalink | Comments (0) | Listen

Speculation on Kindle 2.0

Ars Technica speculates on what the Kindle 2.0 might provide:

... the general hardware configuration appears to be here for a while. The fact that they're still selling the current version also suggests that they have committed to this design in all its white-plastic glory. In the long term, there's still the option of moving some of the awkwardly-placed controls and of improving the E Ink screen (color and improved contrast or faster response times, seem inevitable) ... All of this leaves changes to the software as the most likely candidates for 2.0 improvements. Realistically, we could only infer what Amazon considered to an acceptable interface based on what was released as 1.0. If this doesn't reflect what they "wanted to release in the first place," then all bets on what may change are off.

German Wikipedia Coming in Book Form

Bertelsmann is putting 25,000 German Wikipedia entries into The One-Volume Wikipedia Encyclopedia. From the New York Times:

Bertelsmann says the project should not be judged as a re-creation in book form of what appears online, but rather as an attempt to harness the collective wisdom of Wikipedia’s users. (Continue reading ...)

"Dilbert" Embraces User-Generated Content

"Dilbert" creator Scott Adams and his distributor, United Media, are supporting user-generated content through Dilbert.com. Visitors can rewrite captions and redistribute the results, and the full "Dilbert" archive will eventually be available for free. From Webware:

I asked Adams why he and United Media are opening up the Dilbert intellectual property like this, and he sent me a response by email: "We're accepting the realities of IP on the Internet, and trying to get ahead of the curve. People already alter Dilbert strips and distribute them. If we make it easy and legal to do so, and drive more traffic to Dilbert.com in the process, everyone wins. Plus it's a lot of fun to see what people come up with in the mashups."

UK Service Brings Audiobook Downloads to Mobile Phones

UK-based GoSpoken has partnered with Random House to make 50 audiobook titles available for purchase through the GoSpoken mobile download service. GoSpoken is currently aimed at early adopter UK residents who have broadband-capable cellphones (specifically, HSDPA-enabled) and mobile data plans. (Continue reading ...)

Writing and Tracking through Subversion

Programmers use version control systems to track and monitor code revisions. Writers can bring the same functionality to their drafts by following Rachel Greenham's Mac OS X Subversion tutorial. (Continue reading ...)

Related:

• See more publishing news and insight in the TOC News section

News Roundup: Online's Share Increases, New York's "Amazon" Tax, Open Source Textbooks, Edits Shown in Pan Macmillan Ebooks, Penguin UK's Simultaneous Print-Ebook Plan

Mac Slocum
April 18, 2008 | Permalink | Comments (0) | Listen

Amazon Growth Fuels Online's Book Market Share

Online retailers claim 21-30 percent of the consumer trade book market, according to two recent surveys. Publishers Weekly says much of this growth comes from Amazon. (Continue reading ...)

New York Eyes Amazon Affiliates in Tax Move

From the New York Times:

... people owe taxes on what they buy regardless of whom they buy it from. But the seller only has an obligation to collect those taxes (and thus the only time taxes are ever actually paid) when the seller has a physical presence in the state of the purchase. The state is proposing defining Amazon’s affiliates -- Web sites that earn commissions by referring customers to it -- as a physical presence. (Continue reading ...)

Open Source Textbook Adoption Grows

Inside Higher Ed notes the slowly growing open source textbook movement:

Colleges and individual faculty members continue to experiment with putting course information and material online, and "open textbooks" typically are licensed to allow users to download, share and alter the content as they see fit, so long as their purposes aren't commercial and they credit the author for the original material. This allows instructors to customize e-textbooks and offer them to students for free online or as low-cost printed versions.

Pan Macmillan Plans Ebooks Showing Edits and Changes

Pan Macmillan is releasing ebooks with extra sauce. From thedigitalist.net:

The idea that a special edition eBook can contain marginal material produced before, during, or after a print edition features in two other eBooks to be published by Picador this year. Sid Smith’s China Dreams, which we published in hardback in January 2007 and in paperback in January 2008, will be issued in a uniquely up-to-date edition, in the author’s latest version, with corrections, changes, and new material, and a foreword in which he considers the process of composition and revision. (Continue reading ...)

Penguin UK to Release Print and Ebook Editions Simultaneously

Beginning in September, print and ebook versions of Penguin UK's new titles will be available simultaneously for the same price. Digital editions will be made available in .epub format through Penguin's Web sites and via retailers. (Continue reading ...)

Related:

• See more publishing news and insight in the TOC News section

News You Can Use

Andrew Savikas
April 14, 2008 | Permalink | Comments (0) | Listen

We've launched a news channel on the TOC blog, where you can catch news items and insights related to business and technology innovation in publishing. It's even got its own RSS feed (you can also subscribe to a combined blog/news feed). Got news? Send your ideas to tocnews AT oreilly.com.