Finance

At the BISG ninth annual Making Information Pay Conference, held at the McGraw Hill auditorium on May 3, seven expert presenters took the assembled 200 industry professionals through a fast-paced three-and-a-half-hour session slicing Big Data down to manageable bites.

Not for the faint of heart, the event was focused on the message that Angela Bole, BISG Deputy Executive Director opened with. Citing a McKinsey Institute study’s warning of a critical shortage of expert analytical information workers she said that “It’s our belief that, as an industry, we need to harness the awesomeness of ‘deep analytical expertise’ in order to create the kind of book industry that’s truly capable of the innovation necessary to stay relevant over the coming years.”

Big Data, she said, “refers to the act of ‘taming’ the volume, variety and velocity of massive datasets.” It is what takes us to a place where we’re now able to develop holistic approaches to full-scale strategies that are analytical in the deepest sense of the term.”

The legal controversy over Apple's efforts to use the agency model when selling books directly to its consumers offers a good opportunity to examine the benefits and costs of adopting that approach, both for online retailers and their customers. Does the agency model of selling online harm consumers — and society in general — by raising prices for numerous products, not just for e-books? Or might the agency model offer significant, if often overlooked, economic and social benefits over the wholesale model for manufacturers, retailers and the general public?

Zondervan has announced plans to honor Chuck Colson’s legacy by donating a portion of the proceeds from Colson’s titles published with Zondervan to Prison Fellowship Ministries. These contributions are above and beyond author royalties that already go to the Colson estate. Through all his accomplishments as an author and Christian leader, Colson never lost focus on his passion for helping inmates. He founded Prison Fellowship Ministries in 1976, and today the ministry reaches prisoners, ex-prisoners and families of prisoners throughout the United States and, through Prison Fellowship International (PFI), in 115 countries worldwide.

On PaidContent, Laura Hazard Owen has followed up with the Salon reporter who broke the story yesterday that the Big Six publishers may be refusing to sign Amazon’s newest contract. Owen contacted the Salon reporter, Alexander Zaitchik, for further details, and was told one source was “within the publishing journalism industry” and another was a contact at a major New York publishing house.

The terms causing the publishers to balk are “co-op fees,” which were traditionally fees publishers paid to bookstores to get them to plug their books in the store.

Recently, the leadership of the American Library Association (ALA) met with senior management from several large publishing houses. Some of them allow libraries to purchase and own their e‑books (Random House; Perseus). Some of them are not making their e‑books available to libraries (Macmillan; Simon and Schuster). And some are somewhere in the middle (Penguin, until recently; and Harper–Collins with its "26 circulations" loan cap model). In all of our meetings with the publishing executives (all of the aforementioned except HarperCollins), we found that for those not making their e‑books available through libraries, the sticking point was identifying a business model that protected their digital editions from piracy and loss of sales. These are understandable concerns.

Indian service providers for typesetting, e-book, copy-editing and other production services are an established fact and part of virtually every major publisher's workflow.

To be sure, the business process outsourcing (BPO) of publishing services is a growth business, forecast to reach $1.2 billion in 2012 (according to a report by research and intelligence organization ValueNotes, "Offshoring in the Publishing Vertical: 2009"), including outsourcing for book, magazine and newspaper publishing—with 60 percent of these revenues being directed to Indian providers.

That said, it appears that we may be on the verge of a new addition to the existing Indian business model—an initiative that the Indian book manufacturing community has named Book City—Vision 2017.

In 1455 Johannes Gutenberg produced his famous "Bible"—the first book printed with moveable type—launching what would become in subsequent centuries the modern publishing industry. In 1995, Jeff Bezos sold the first book through Amazon.com, launching what would produce in less than 20 years the end of the modern publishing industry.

Hyperbole? Perhaps not, when the earth-shaking influence of the e‑commerce giant's recent moves in publishing are taken into account.

The Educational Development Corp., which announced today that it is pulling all of its titles from Amazon, plans to increase its sales by abandoning the major online retailer, according to the company’s CEO.

Amazon accounted for about 13% of EDC’s sales in 2011, estimated Randall White, CEO of the publicly traded Tulsa, Okla.-based children’s book publisher. The exact number is uncertain because EDC sells to Amazon through distributors who also sell through other channels and do not provide EDC an exact breakdown of sales.

Edwards Brothers, Inc. and Malloy Incorporated, two leading book manufacturers, announced today that they would merge effective February 6, 2012, forming a new company called Edwards Brothers Malloy. The new company will have combined sales of $115 million and will be the sixth largest book manufacturing firm in the United States, offering publishers a global distributed print program and fulfillment services that combine to form a single print supply chain solution.

1 in 5: The estimated number of illegal book downloads in 2011. With the surge of 
the e-book industry comes 
a nefarious side effect: 
piracy. Illegal downloads have doubled in the past year, despite publishers' attempts to combat the trend.