Showing posts with label ebook. Show all posts
Showing posts with label ebook. Show all posts

Monday, November 11, 2013

Should eBooks Be Resold Like Used Paper Books?


The Department of Commerce is asking for comments about Digital First Sale and the possible changes to copyright law that would allow an ebook to be resold.  


If you’d like to comment, hurry because the deadline is November 13th.

Here’s my letter.

The biggest problem with the resale of “used” e-books is e-book piracy.  Some think that cheaper books mean less reason to pirate books and that’s true to a certain extent, but used e-books also mean that authors and publishers will no longer be able to prove that an online copy has been stolen.

Right now, publishers and authors license their books to specific resellers/distributors like Amazon Kindle, B&N’s Nook, and Smashwords.  If a book is available at any other site, the publisher and author know instantly that that book is pirated, and they help the authorities take these sites down.  

These sites are fairly common, and some look like legitimate book-selling sites so the consumer is no wiser that they are buying stolen books.  Some of these sites actually sell the books, others are scams which steal credit card information and install viruses on the victim’s computer.  

If e-books are sold used, the scam sites will be able to fly under the legal radar.

Pirate sites will claim that their books are being given away for free by legal owners so they can continue their dispersal of illegal copies.  

If e-books are sold used and a site or individual can sell thousands of copies of the same ebook by saying that they are selling one used, there will be no way for the author/publisher to prove this.  This will essentially make book theft a crime that can’t be punished.

Even readers who want to do the right things by buying legally won’t be able to tell who is a legitimate reseller and who isn’t.  

Readers looking for bargains will buy illegal books instead of legal ones, the profit margin for authors and publishers which is small now will plummet to the point that publishing will no longer be profitable for anyone, and those who make the money will have done nothing to create books.  

Allowing the sale of used e-books will destroy all value to copyright.

Marilynn Byerly, Author

Tuesday, February 12, 2013

Used Kindle eBooks?


Amazon has patented a means to sell used ebooks within the Kindle system.  A book will be branded within the system when it is bought, then when the buyer puts it up for resale at the Kindle store, it will be removed from his account and transferred to the buyer’s account.  Amazon will receive a small fee for each sale.  A limited number of sales of each book may or may not be included in the system.

According to copyright law, specifically “The Doctrine of First Sale,” this is illegal because digital goods aren’t physical things so they can’t be resold.  (See my article on “The First Sale Doctrine and eBooks” for more details.  http://mbyerly.blogspot.com/2009/04/first-sale-doctrine-and-ebooks.html  )

But a legal battle is currently being fought between ReDigi, a used digital music store, and the various groups in the music industry over a similar system.  If ReDigi is able to win this, Amazon will probably move forward with their own system of resale.  

At first glance, it appears Amazon would be cutting into its own Kindle profits with this system, but Amazon isn’t known for its poor business practices.    Here’s what it will gain from the system.  

Buyers go for the cheapest prices.  If a used Kindle ebook is cheaper than any other version of the book, buyers will start using the Kindle system and its hardware.  iTunes, Nook, and other sites won’t be able to match these lower prices unless they start selling new ebooks for next to nothing or they put into place their own reselling system.  Such a complex system would take some time, perhaps years, so Amazon would gain the advantage in the market for many years to come.  

Some in the industry believe that Amazon is intent on killing off publishers so authors will have to go the self-publishing route, and authors as individuals have no real bargaining power when it comes to the terms Amazon will set.  (See “Used eBooks: The Ridiculous Idea that Could Also Destroy Publishing”  http://motherboard.vice.com/blog/used-ebooks-is-a-ridiculous-idea-that-could-ruin-authors-publishers  )

What will all this mean if Amazon’s used ebook system becomes available?  Readers may be happy with this system, but authors and publishers will not.  Publishing has a very low profit margin, as is, and anything that will cut into that profit will hurt, sometimes to the point of putting authors and publishers out of business.  

Authors like me have been busy educating readers on “The First Sale Doctrine” so they will know that ebooks can’t be resold, loaned, or put online for free, but a system like this will make readers believe that, if Amazon can do this, so can they. Piracy will spread.

If Amazon gains total supremacy in the distribution market, then they will be able to dictate the terms in contracts with authors and publishers, and those terms will shift even more of the profit into Amazon’s pockets.

If the other distribution markets fail and Amazon is the only source of ebooks, it can close down the used market place, and readers will have to pay much more for the surviving content.  After all, Amazon is in it for Amazon as they have proven over and over again.  

This system may not be the eBook Zombie Apocalypse as a universal removal of “First Sale Doctrine” on digital goods would be, but it may very well be the beginning of the end of publishing as a profitable venture.  

UPDATE: On March 30, 2013, a federal court ruled in the Capitol Records versus ReDigi case that it is illegal to sell "used" digital files.  No word yet if ReDigi will continue to fight this battle.  


Monday, February 11, 2013

Used eBooks: The eBook Zombie Apocalypse


Digital products like ebooks are licensed, not sold, to a buyer so they can’t be legally resold, shared, or loaned.  (See my article on “The First Sale Doctrine and eBooks” for more details.  http://mbyerly.blogspot.com/2009/04/first-sale-doctrine-and-ebooks.html  )

A group called the Owners‘ Rights Initiative ( http://ownersrightsinitiative.org/  ) wants to change that.  They believe that the owner of a digital book should be allowed to sell it used.  Members of this group include some library trade groups, used resellers of paper books, and eBay.  

Some readers consider this a good thing because they can get back cash on books they read in the same way as they do with paper books.

But is it a good idea?  

The answer is a resounding no.

The biggest problem with used ebooks is ebook piracy.  Some think that cheaper books mean less reason to pirate books and that’s true to a certain extent, but used ebooks mean that authors and publishers will no longer be able to prove that an online copy has been stolen.

Right now, publishers and authors license their books to specific resellers/distributors like Amazon Kindle, B&N’s Nook, and Smashwords.  If a book is available at any other site, the publisher and author know instantly that that book is pirated, and they help the police take these sites down.  These sites are fairly common, and some look like legitimate bookselling sites so the consumer is no wiser that they are buying stolen books.  Some of these sites actually sell the books, others are scams which steal credit card information and install viruses on the victim’s computer.  

If ebooks are sold used, the scam site will be able to fly under the legal radar.

Pirate sites will claim that their books are being given away for free by legal owners so they can continue their dispersal of illegal copies.  

If ebooks are sold used and a site or individual can sell thousands of copies of the same ebook by saying that they are selling one used, there will be no way for the author/publisher to prove this.  This will essentially make book theft a crime that can’t be punished.

Even readers who want to do the right things by buying legally won’t be able to tell who is a legitimate reseller and who isn’t.  

Readers looking for bargains will buy illegal books instead of legal ones, the profit margin for authors and publishers which is small now will plummet to the point that publishing will no longer be profitable for anyone, and those who make the money will have done nothing to create books.  

Publishing will be dead, and the ebook zombie apocalypse will be here.

Ironically, the ORI library trade association members who are angry that some publishers are making it harder for them to buy and loan ebooks will be just as devastated by these events.  With ebooks available for next to nothing or for free online, libraries will have even less value for users and tax payers so they disappear or lose major funding.  These library groups may find their members  lurching around with the rest of us in publishing in the ebook zombie apocalypse.  

MORE INFORMATION ON THIS SUBJECT:

“THE RIGHT TO RESELL, A TICKING TIME BOMB OVER DIGITAL GOODS:”

TOMORROW:  Amazon’s scheme to sell used ebooks within the Kindle system.

Tuesday, August 3, 2010

A New Exception to eBook Copyright

On July 26th, The Librarian of Congress announced new exceptions to copyright laws. These exceptions involved, among others, allowing fair use, access for the blind, and other exceptions with motion pictures on DVD, iPhones, computer programs, video games, and ebooks.
Here is what the press statement said about ebooks:
  1. Literary works distributed in ebook format when all existing ebook editions of the work (including digital text editions made available by authorized entities) contain access controls that prevent the enabling either of the book’s read-aloud function or of screen readers that render the text into a specialized format.
The complete statement specifies that this may only be done for access for the blind, not for those with normal vision.
What this means is that publishers must offer one version of an ebook that allows text-to-speech (TTS) to read the book aloud, or the blind user can legally remove the security software (DRM) from the ebook in order to use TTS.
On the surface, this ruling seems harmless, and it is the same ruling made three years ago, but it begs a major question.
As I mentioned in my article on TTS and the Kindle 2 controversy, (link below), TTS hasn't been defined as a right or a part of a right through a lawsuit or some other legal means. Right now, no one can say with legal certainty that TTS is a right on its own, a part of the audio rights, or part of the ebook rights.
This exception to copyright infers that TTS is part of the ebook rights since the publisher must allow TTS or allow DRM be broken, but does an inference define TTS as an ebook right?
I doubt the publishing industry or The Library of Congress will be in any hurry to clarify matters since TTS has little value at the moment.
The inference also gives publishers some justification for claiming TTS as part of the ebook rights they have acquired with the real possibility that TTS may prove to be a valuable right when TTS technology improves to the point that it sounds like a human reading. Writers of older contracts will have given away this valuable right for free because it wasn't included in ebook rights negotiations.
The only possible opponent I see to preventing TTS from becoming a part of ebook rights is a group like the Authors Guild who fought with Amazon over this issue with the Kindle 2.
This may prove interesting.

To read the complete Librarian of Congress press release, go here:
To read his complete statement, go here:
My article on TTS and the Kindle 2 controversy:

Sunday, May 30, 2010

Joe Konrath and the Fallacy of Victimless Book Piracy

Mystery writer Joe Konrath has become another major writer who doesn't fear ebook piracy and who thinks pirates help more than hurt. .A Newbie's Guide to Publishing: Piracy... Again


I just adore very successful writers who come out in favor of piracy or make it a victimless crime because it hasn't hurt them. Of course, it's not hurt them enough to notice because they have so many other ways to sell their books, unlike most other authors.

Think of it this way. Someone steals $1000 from a wealthy person. It doesn't really hurt them. Someone steals $1000 from someone on welfare. The poor person will probably end up homeless.

Think of it this way. Very successful authors who publish through the large conglomerates (New York based publishers owned by conglomerates, i.e. most of the publishers of books you see in bookstores) have diversified risk. That means lots of book titles in many formats-- paper (hard cover, trade, and massmarket), ebook, audio, and possibly media rights (TV, movies, graphic novels, etc.). Those paper books are available in most brick and mortar stores. The new book title as well as the backlist is available in paper on those bookstore shelves.

Most other authors with the conglomerate publishers are very lucky to have one book on those shelves for a very short time, and with the possible exception of the ebook, there are no other media rights sold. Other authors have no paper books on those shelves and must rely on online sales for their paper books, if they have a paper version, and their ebook version.

Most newer authors with the conglomerate presses get a very small advance, unlike the $100,000+ for a three-book deal Konrath has talked about for his books. Depending on the genre, etc., the advance runs from under $3,000 to $10,000 with his agent taking a 15% chunk. It will probably be the only money the author will ever see on that book. The author will be expected to use at least 10 to 25% for promotion.

If the first book doesn't sell well enough, the publisher will not buy the next book of that author. End of career or a major restart with a new name for the author.

Those authors with indie press and ebook publishers get no advance. Their books are only available online, usually as ebooks or more expensive trade paperbacks. They must bear the promotion expenses as well as the incredible amount of time needed to get their names out to the reading public since they don't have the platform of a major publisher.

Some have done quite well because they produce numerous books a year, those books are high quality and similar in kind, and the book is a popular genre like erotica. Everyone else struggles to come out even after the expenses of the website, etc.
Few will make minimum wage for their time, not including the years it took to develop publishable craft and the months it took to write the book. They continue on with the hope that they will be able to make a good living eventually. Most never will.

Most authors cannot continue to write if there is no profit after a period of time. The only exception is the hobby writer who has a second income through a financially successful spouse or who is able to hold down a full-time job as well as writing two or three novels a year and spending many hours promoting them in their "spare" time.

With their diversified list of books, types of media, and sales sites, the average conglomerate publisher can take a loss, perceived or real, on ebook sales. The average small press or ebook publisher goes out of business because they aren't so diversified and ebook sales plummet.

It's hard to believe that piracy doesn't hurt when an epublishers' entire list is available for free all over the Internet, there's no income from any other source because the books are only available as ebooks, and the money isn't coming in.

It's hard to say piracy doesn't hurt when an ebook has thousands of pirated downloads all over the web, and the author can't take her family out to McD's with her quarterly royalty check, and the only thing the author gets from all that "free" promotion of pirated earlier books is that her next new book will hit the pirate lists even faster than the last did.

Some of the most successful indie ebook published authors of the last years are some of the biggest foes of pirates because they are watching their own profits dropping while the market is expanding.

I belong to lots of lists where some of these small publishers and authors hang out, and many are hemorrhaging to death. Authors are becoming dispirited that their "fans" show so little respect for them by stealing their work, and their income continues to fall. It's getting harder and harder to justify spending hundreds of hours of their lives in a profession they are losing money at. Publishers are watching the steady march toward bankruptcy and are fighting to stay in business.

What does this mean to the reader? Those authors who are making lots of money will continue to publish. You will continue to see the big names in the bookstores and online. The conglomerate publishers will continue to publish lots of books for much fewer authors. That means fewer choices of the types of paper books available.

The small presses and epublishers where future conglomerate stars are developing a following and the types of books that aren't mainstream are being published will disappear so you'd better develop a taste for the authors on the bestseller lists, and only those authors, because everyone else will disappear.

Ebook piracy a victimless crime? Maybe for a few authors like Konrath, but not for the rest of us.

For information on authors who are being hurt by piracy, I suggest the group Authors Without Yachts, http://www.goodreads.com/group/show/30255.Authors_Without_Yachts_AWaY_ .

For information on copyright and epublishing, I suggest my blog articles on the subject. Click on the "copyright" label to the left to find them.

Monday, December 28, 2009

The Year in Publishing, 2009

This last year has been, in many ways, a watershed year for publishing as both the failing economy and the drastic changes in distribution have stressed the major publishers' bottom line and the way they have always done business.

However, probably the most important news has been the war for control over content, for without content, none of the other news matters. Here are some of the things that have happened this year.

Amazon's attempt at a closed Kindle system failed, and they are opening up the Kindle to other sources of ebooks in both format and distribution sites.

Other ebook readers and distributors have fought back against Amazon's dominance of the market.

Amazon's Kindle's text-to-speech feature raised an uproar because Amazon was grabbing a right they hadn't contracted for, and they were forced to drop TTS.

Amazon has controlled ebook prices by imposing the $9.99 price point on most ebooks, and other distributors are following along. They also started a price war on paper bestsellers.

Google attempted to control content by trying to make all books, no matter what the copyright status, available for free on the web. Publishers and authors have fought them back on this issue.

Google declared "dibs" on books out of copyright and orphaned copyright books, but publishers, other distributors, and author organizations have screamed foul and are fighting it.

Many of the epublishers who have been around for years are being acquired by other epublishers. The latest acquisition is Hard Shell Word Factory by Mundania.

A number of the large conglomerate publishers, including Simon & Schuster, are making drastic reductions in ebook royalty rates.

Random House is again saying that old publishing contracts signed before ebooks existed give them ebook rights to books by authors such as William Styron. They have fought this battle once before and capitulated when they sued Rosetta Books for copyright infringement.

Many of these events and issues will be still in contention in the next few years so we're in for some interesting times.

Monday, April 27, 2009

The First Sale Doctrine and Ebooks

This is a very general overview for readers and authors, not an exhaustive legal discussion on the subject. If you want an exhaustive overview complete with all the legalese and laws, I suggest the articles I have links to at the bottom.



The First Sale Doctrine Defined:

“First Sale Doctrine refers to the right of a buyer of a material object in which a copyrighted work is embodied to resell or transfer the object itself. Ownership of copyright is distinct from ownership of the material object. Section 109 of the Copyright Act permits the owner of a particular copy or phonorecord lawfully made under the Copyright Law to sell or otherwise dispose of possession of that copy or phonorecord without the authority of the copyright owner.

Commonly referred to as the "first sale doctrine," this provision permits such activities as the sale of used books. The first sale doctrine is subject to limitations that permit a copyright owner to prevent the unauthorized commercial rental of computer programs and sound recordings.” US Government Publication 04-8copyright.
http://www.cendi.gov/publications/04-8copyright.html


One of the ongoing discussions about copyrighted ebooks is whether the “first sale doctrine” can be applied to a digital book. Can a person sell a used copyrighted ebook?

Right now, the US Government as well as most other governments say no. (see iTunes White Paper link below)

Look at the US Government definition above to see one of the reasons why. First sale doctrine only applies to a “material object” like a paper book. A copyrighted digital book isn’t an object, it’s content, and content can’t be copied and, therefore, can’t be resold.

Also, copyrighted digital content like music, computer software, and ebooks aren’t technically sold, they are leased according to the licensing terms a person agrees to when they put their money down for the song, etc.

At ebook distributor sites like Fictionwise.com, the terminology “sell” and “buy” are used, but in their FAQs, they say you are only leasing an ebook, not buying the content, so you can’t resell it, etc.

The difference between “lease” and “buy” is also used as a justification of why an ebook can’t be resold.

All those who say that “first sale doctrine” applies to copyrighted ebooks are wrong from a legal perspective.

Only lawsuits, the courts, or Congress can change this, but most of the money is on the side of the copyright leasers -- the publishers, music and movie companies, etc., so I doubt “first sale doctrine” will ever apply to copyrighted ebooks.




RECOMMENDED RESOURCES

Amazon Kindle and Sony Reader Locked Up: Why Your Books Are No Longer Yours, Columbia Science and Technology Law Review.

http://www.stlr.org/2008/03/amazon-kindle-and-sony-reader-locked-up-why-your-books-are-no-longer-yours/

Explores the various issues of sale versus license, first sale doctrine, etc.

iTunes White Paper

http://cyber.law.harvard.edu/media/uploads/81/iTunesWhitePaper0604.pdf

The last sections explain various governments’ stances on first sale doctrine issues.

US Government Publication 04-8copyright.

http://www.cendi.gov/publications/04-8copyright.html

Copyright, as well as “first sale” and “fair use,” defined and explained.

{NOTE: A blog entry is copyrighted material, but for this blog entry, I give you my permission to copy it, pass it around, post it on your blog, or whatever. I’d appreciate a link back, but that isn’t necessary. You are also free to remove my name.

If you change any of the content, you must remove my name.}


Saturday, January 3, 2009

Part Six

WHAT ABOUT EPUBLISHING?

Right now, few authors can make a living at epublishing. Even erotica, the growth industry of epublishing, no longer pays the bills as it once did.

The market has become glutted with books from other small publishers, and the major publishers have moved into the market in ebook and paper formats.

Venues for ebooks like Fictionwise are currently being glutted with backlist from major publishers so that unknown authors can sink in a sea of books quite fast. Romance is particularly prone to this.

The authors who are successful in epublishing are prolific, produce quality books of one kind so they build their sales through backlist and loyal readers, and they market constantly to sell that first book to new readers.

Of course, this is the primary survival means in paper book publishing for most authors right now.

~*~

Tomorrow, I'll suggest ways that readers and writers can fight to save the books they love.

Monday, November 17, 2008

What Publishing Should Do, PUBLISHING

Last week on his blog, agent Nathan Bransford asked his readers what they'd like to see the big publishers do to help the ailing publishing industry.

Not being shy, I offered these solutions.

EBOOKS

Publishers have failed to look toward the future of book distribution which is ebooks.

Like it or not, ebooks are the future. They are simply too efficient a delivery system, and with the price of paper and transportation skyrocketing as well as the slow death of the bookstore industry, they will soon be the only way many books will reach readers' hands.

Already, they are the growth industry within publishing. In September according to the AAP, they rose 77.8% in sales. To see the kind of growth ebooks are experiencing, go to the International Digital Publishing Forum ( idpf.org) and click on the industry statistics.

The publishers need to rethink their distribution deals with ebook providers, particularly Amazon which demands 66% of the cover price. This is utterly ridiculous since this covers computer storage and automated sales, not warehouses, human labor, and shipping.

Agents and authors with clout need to fight back against the 15% ebook royalty which in an insult, particularly for books that are going into paper where a vast majority of the book costs -- acquisition, editing, and cover -- are factored into the book's costs. If authors can't make a living in the system, the system will fail.

Ebooks may also be the solution to the shrinking midlist. The surviving bookstores and box stores are increasingly focusing on the bestsellers and list leaders, and the midlist has very few sales outlets.

The midlist is where the new authors and the next superstars come from so the publishers simply can't abandon it. They should move many of these books into ebooks or use the small ebook publishers as a farm system similar to what professional baseball teams use. This method has already been used by wily romance editors when they saw the immense success of erotica.

I cover this topic as well as the POD situation in more detail and give an overview of the current state of publishing in an article available on my website, marilynnbyerly.com . Click on the short story and article icon to find it.

POD

Amazon is in the process of trying to take over the POD market. Currently, they are only going after the small publishers, but, as its history shows, the major publishers will be next.

Right now, a few small publishers are fighting back with lawsuits, but the conglomerates are ignoring the situation. They are fools not to become involved.

Sure, Amazon is only a small percentage of the POD market right now, but with bookstores disappearing, Amazon is setting itself up to be the major player in this form of distribution, as well.

COSTS

The conglomerates need to move their offices out of NYC to cut costs. Baen Books moved to Wake Forest, NC, a tiny town outside of Raleigh, and they are doing just fine courtesy of the Internet, etc.

The money saved should be invested in better pay for editors and for reinvigorating the midlist by finding new talent.

***
PUBLISHING AND MARKET NEWS

CONTEST: Amazon and Penguin are holding a second annual Amazon Breakthrough Novel Award in early February. For more information, go here:

http://amazon.com/abna .

MARKET NEWS: Agent Kristin Nelson blogs about what some NY editors are looking for in Young Adult fiction on November the 11th.

http://pubrants.blogspot.com/

AGENT: Emmanuelle Alspaugh is interviewed at Novelists, Inc. blog

http://www.ninc.com/blog/index.php/archives/meet-agent-emmanuelle-alspaugh

Be sure to check out the related post section for links to other agents interviewed.

QUESTIONS? I take writing and publishing questions. Contact me via this blog or at marilynnbyerly at aol.com .

Monday, November 10, 2008

Ebook Prices, PUBLISHING

In an interview, (link below), nonfiction author Seth Godin talks about ebooks and publishing. He's a proponent of free ebooks to sell paper books, but in this interview he suggests that ebooks be priced between one and two dollars each.

As someone who's watched the ebook industry for a number of years, here's my reply to his impractical suggestion.

Cheap ebooks are a lovely thought, but if a publisher wants to sell their books through the major book venues like Fictionwise and Amazon/Kindle, they must price the book with that in mind.

The vast majority of buyers only buy through the big venues instead of through the publisher website so most publishers can't break even if they don't have their books at places like Fictionwise.

I know that for every book I sell through one of my publishers' sites, I sell 50 or more at the big venues.

Here's why books have to be priced more expensively if they are to be sold through the big venues.

Fictionwise makes 50% on each ebook sold so even if the publisher prices the book near cost, he would have to increase the price by 50% just to break even. Amazon/Kindle takes 66% of the cover price. The same problem.

What's left is usually divided evenly between the publisher and the writer if it's an epublisher, 15% for the author for major publishers.

And if the publisher doesn't put the book's price high enough, the middleman venues where a majority of ebooks are sold aren't interested in the product because they can't come out even after they do their usual price markdown.

If the publisher wishes to keep his books at the big venues, he can't undersell the books at his own site so he can't lower the price there, either.

In the best of all possible worlds, the reader would pay a few bucks, but readers want the simplicity of buying at one site, not many, so the prices go up. Sad, but true.

LINK TO GOLDIN'S INTERVIEW:
http://www.26thstory.com/blog/2008/11/1-we-have-a-fresh-slate-at-harperstudio-whats-your-advice---the-huge-opportunity-for-book-publishers-is-to-get-unstuck-yo.html

EDITOR INTERVIEWED: On November 6th, Novelists, Inc., interviewed Peter Senftleben, an editorial assistant at Kensington. He talks about what he's looking for.

http://www.ninc.com/blog/

NETWORKING SITES PROMOTIONAL VALUE: Author Courtney Summers discusses the value of various networking sites for book promotion.

http://theswivet.blogspot.com/2008/11/guest-blogger-courtney-summers-on.html

Monday, November 3, 2008

Ebook Royalties, PUBLISHING

Random House has just announced that it is lowering its ebook royalty rate from 25 percent of the retail price of the ebook to 25 percent of the net price (book price minus the distributor's percentage equals net) . Since most distributors take 50% or more as their distributor percentage, this is a hefty cut.

Other major publishers give a 15 percent royalty on the book price.

In comparison, most epublishers give between 35 to 50 percent of the book price. They must also pay for the cost of editing, covers, Internet infrastructure, etc., which the major publishers have already paid for when they create the paper books.

Is there anything wrong with this picture?

The big publishers keep saying that ebooks are expensive to produce, but most epublishers will tell you that all that is needed is a digital copy of the book in a specific format like PDF which the distributors will format themselves for a fee.

The big publishers, so far, have been no more willing to sell ebooks on their sites than they will sell paper copies of their books so all their talk about expenses is smoke and mirrors to hide their grab for a cheap royalty on what will become the major method of book distribution in the years to come.

Some agents have said that the publishers promise to raise the royalty rates when ebooks become more profitable, but that's a lie that has been used a number of times.

For example, during the paper shortages and rapid rise in price of paper, some years back, the publishers asked for a rate cut from authors and promised that the rate would go back up after the crisis. As you can guess, the rates have never risen.

All of this gives me such a glorious, yet painful, sense of irony about the situation. When ebook publishers started becoming successful, many traditionally published authors screamed like virgins at an orgy because they thought epublishing would harm their careers and incomes. By accepting 15% as "standard," they may be harming the epublished if epublishers follow suite and accept this new standard.


BLOGS OF INTEREST
MJ Rose talked about book promotion at agent Nathan Bransford's blog on Thursday, October 23rd. She's a genius at marketing so it's more than worth the read. http://nathanbransford.blogspot.com/

She also continues on the subject at http://mjroseblog.typepad.com/buzz_balls_hype/2008/03/which-brings-us.html .

On Tuesday and Wednesday the 22nd and 23rd, on Nathan's blog, Michelle Moran also discussed promotion.

QUESTIONS, YOU HAVE QUESTIONS? Send me your questions about publishing and craft at marilynnbyerly @ aol.com. (Remove spaces in address.)

Thursday, June 12, 2008

Part Three

The Current State of Publishing and Bookselling, Part 3

Continuing my overview of what has happened in recent months.

EBOOKS

Ebooks are as much a part of the publishing scene these days as paper books. Most genre publishers offer the ebook version at the same time as the paper book, and backlist is being converted to ebooks at an incredible rate.

Ebooks continue to be the primary route of distribution for smaller publishers.

Most of the major book distributors have their own ebook distribution system, and Amazon is using its ebook reader, the Kindle, to make it as much a leader in ebook distribution as paper book distribution.

Ebooks are the primary growth area right now for most publishers, but the so-called "tipping point" in their popularity hasn't been reached according to most pundits.

USED BOOKS

Used book sales are a profit hemorrhage in the publishing industry.

The publisher and the author make nothing on used books so the industry is being starved by used book sales. This is a particular hardship for authors who don't have as diversified a number of titles as the publisher does.

This means that the author makes little money, the publisher loses sales on that author, and the author is less likely to sell another book to that publisher.

In other words, the big publisher and name authors with lots of backlist like Nora Roberts are hurt by used book sales, but the smaller authors and small publishers can be killed because they lose more than they gain.

Publishing is like investing, the more diversified you are, the better the chance for survival and profit.

The Internet has made used books an even greater problem because so many books can be found used.

The old belief that a buyer will choose new after discovering a new author through a used book is less true because it is so easy to find a used book within hours or less of the book hitting the physical shelves. Some books, courtesy of book clubs and advanced review copies, can be found used weeks or months before they hit the shelves.
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Tomorrow, I'll continue my overview by talking about Amazon's less than stellar behavior toward authors and publishers.

Friday, March 7, 2008

Is Epublishing Authors' Salvation

In 1995, I believed that electronic publishing and the Internet were salvation for authors, and they would finally break the stranglehold on authors and books held by the conglomerate publishers, the book distributors, and the book chains.

I took a brave or foolhardy leap into the market with one of the first epublishers. Since then, I've watched the market's changes, and I've talked to hundreds of authors, small publishers, and readers. Here's what I've learned.

Readers are creatures of habit. If it's a choice between a known factor like a bookstore/a paper book/a name author and an online source/ebook/unknown author, most readers will choose the known.

If they can't find what they want to read in paper, they may seek it in an ebook, but they will return to paper books if given the same selections. This is currently happening in the erotica market as the large publishers have entered the market. The readers are returning to the bookstore to buy many of the same authors they bought in ebooks.

At the same time, readers aren't willing to go directly to the source of the ebooks. They rarely buy from author sites or from publisher sites. Instead, they prefer the one-stop shopping of electronic distributors like Fictionwise. Most authors I know have, at the least, one hundred sales at places like Fictionwise to one publisher-site sale.

Most of these distribution sites only work with publishers, not individuals, so the major markets are closed to the self-published author.

The original works available at electronic distributors are being drowned under wave after wave of conglomerate publisher backlist.

Meanwhile, various conglomerates and companies like Amazon are fighting to control the distribution of ebooks through software formats, distributor sites, and devices like the Kindle.

Publishing has much smaller financial numbers and much fewer sales in the digital format than the music industry so neither the author nor the small publisher are seeing much profit or success, and the small publishers are a dying breed.

Without a platform or a reputation from conglomerate publishing, most authors struggle for profit.

Those authors who succeed strictly in epublishing do so by writing a large number of first-rate, consistent books in the same genre.

So, essentially, the great digital freedom for writers from conglomerate publishers, the book distributors, and the book chains that I envisioned hasn't happened in the last dozen years and probably will never happen because of reader habits and the current direction in the markets.

REQUEST: If you enjoy this blog, please share it with your friends and online writer groups.

I enjoy writing it, but I can't justify the time if I'm talking to a small group.