Book Distribution

With no government bailout in sight to rescue their ailing industries, more than 1,200 book- and magazine-publishing executives convened at the 2009 Publishing Business Conference & Expo in New York City, March 23-25, in search of strategies to help them weather the worsening storm. And while much of the discussion centered around cost-cutting, the topic of innovation took center stage throughout the event, which featured nearly 60 educational sessions and more than 125 speakers.

Publishers’ “green” efforts took center stage at the 3rd Annual SustainPrint Awards Dinner, held March 23 at New York City’s Marriott Marquis Times Square, during the Publishing Business Conference & Expo. Two book publishers were recognized for their significant achievements in environmental sustainability: Melcher Media—winner of the Newcomer of the Year Award in Book Publishing (awarded to a company that recently implemented significant environmental sustainability efforts)—and the University of California Press—winner of the Longtime Leader Award in Book Publishing (awarded to a company with a significant history of environmental sustainability). Boho magazine and Ogden Publications received this year’s SustainPrint Awards in magazine publishing.

Two decades ago, as an entry-level editorial assistant, I was asked to sign form rejection letters with the name “Edith D. Wilson.” Edith was a fictional creation whose name my then-employer used exclusively to reject manuscripts. When “rejected” writers sent angry mail, phoned or worse—visited the publisher’s office—the use of Edith’s name at the reception desk would alert all to draw the shades or reach for the security buzzer. The message was clear: Editors, and the publishers they work for, need to be as hard to get to as possible. Publishing authority and position demanded “reclusivity.” Don’t call us, we’ll call you.

Profound, technology-driven changes in the content marketplace have presented publishers with a mandate for transformation, to change the manner in which value is delivered, how it is monetized, and the tools and skills necessary to do so. At present, this is seen most strikingly in the world of print. Seismic events are regularly occurring that herald the dawn of new models of content distribution and the twilight of the old.

The preliminary settlement agreement between the Association of American Publishers, the Authors Guild and Google regarding Google’s Book Search project and its alleged copyright violation has been heralded by the parties involved as a victory. Other publishers and industry analysts also have voiced optimism over the settlement’s impact on the industry. But as the date of the final settlement review (the Fairness Hearing) approaches (June 11), many still are investigating the agreement’s details. Others have voiced concern and suggest the settlement demands some significant changes.

On his “Publishing 2020” blog, Joe Wikert, general manager of O’Reilly Media’s Technology Exchange Division, mused recently about the long-term viability of the closely watched deal between Borders and HarperStudio, whereby the bookstore chain will purchase HarperStudio titles at a 10-percent to 15-percent discount in exchange for accepting a no-returns agreement. As a result, Wikert wrote, Borders will probably be less aggressive with initial buys and could find itself out of stock in the face of a hit—not a good situation for either party. On the other hand, having to sell all of the books it purchases most likely means Borders will more aggressively market HarperStudio titles—just the sort of incentive lacking in the current system.

It can’t have escaped the attention of anyone in the book business that we’re working through the toughest trading conditions that any of us have experienced. In the course of just a few months, we have become accustomed to a flood of bad news from our industry—declining book sales in most outlets, significant job losses, traditional sales channels shrinking and consolidating, and consumer confidence at an all-time low. If you add into the picture declining literacy skills and the apparently irresistible attraction of other types of media, it’s tempting to succumb to persistent pessimism and certainly to abandon the view that comforted many for so long—that we work in a recession-proof industry.

It has been several months since Google’s preliminary out-of-court settlement with the Association of American Publishers (AAP) and the Authors Guild regarding Google Book Search, and the dust has yet to settle. The agreement’s true impact will only become apparent over time, as its terms are put into practice. The devil will be in the details of execution. This is a watershed event nonetheless and marks the beginning of a new era in content distribution. A few themes have emerged that will characterize this next phase.

When espresso was first popularized in America, in the 1950s, it had all the qualities of a fad—commanding a lot of attention, then quickly fading out. The drink roared back into popularity in the ’90s on the back of a killer app called Starbucks, proving itself indispensable among a digital generation partial to need-it-now energy solutions. Who today can imagine life without it?

There is no doubt that the industry is in a period of significant transition. What can we expect 10 to 15 years from now?