Key points from the full video interview (below) include:

• What exactly is “data-driven” publishing? — It goes beyond simple sales stats and review information to understanding how the product is used; where readers spend the most time; and even though we don’t like to think about it, how far they get before they abandon a book. [Discussed at the 0:43 mark.]
• Where sharing happens — The majority of content sharing with friends takes place in either the first 10 pages or the last 10 pages of the book. [Discussed at 3:00.]
• Why the first 50 pages matter — Almost a third of readers won’t return to the book by page 50. 85% of readers who get to page 50 are likely to read the next 50 pages. Think about that the next time you release an ebook sample with only 10 or 12 pages. [Discussed at 3:15.]
• Low conversion of samples — Not only are there loads of unread samples sitting on most devices, but only 4% of all samples downloaded are ever read at all. [Discussed at 4:46.]
• Like “Google Analytics for ebooks” — That’s probably the best analogy for Hiptype and, prior to Hiptype, the benefits analytics have provided websites haven’t been available for ebooks. [Discussed at 5:50.]
• Will readers revolt against Big Brother? — Readers can opt out, and the data Hiptype gathers is all anonymized. [Discussed at 6:45.]
• New revenue streams — Subscription models, similar to what we’re seeing with gaming and apps, as well as more promoted content are likely to become very common; reader data for these models will be extremely valuable to publishers and advertisers. [Discussed at 8:20.]
• “Make something that people want” — Hiptype is a startup that went through the Y Combinator incubator program, providing seed money and mentor advice as well as access to the alumni network. [Discussed at 13:37.]

You can view the entire interview in the following video.

Data is an area everyone in publishing needs to learn more about. That’s one of the many reasons O’Reilly launched the Strata conference. I highly recommend you follow all the data space news and developments on our Strata home page. Be sure to sign up for the free newsletter offered there as well.

This post is part of the TOC podcast series. You can also subscribe to the free TOC podcast through iTunes.

Related:

• Practical applications of data in publishing
• For publishing, sales info is the tip of the data iceberg
• Direct sales uncover hidden trends for publishers
• Book marketing is broken. Big data can fix it
• More TOC Podcasts

In a recent TOC newsletter we asked readers “What do you wish your ereader could do?” We received quite a few replies, but one of the more interesting ones came from a person who said they’d like to have apps like Flipboard, Zite and Pulse on their E Ink device. I found that interesting because those are the apps (along with News360) I use almost every day on my tablet. If there were Nook E Ink versions, that 10:1 ratio noted earlier would probably become 50:1 as there would be less reason for me to switch to my tablet for reading.

So why aren’t there apps like this on E Ink devices? One reason is tied to E Ink’s capabilities. Apps like Flipboard, Zite, et al, offer nice graphics and even a bit of animation. E Ink is limited to grayscale and no animation, of course. So why not create those apps without the animation and just show the images in black and white? That leads to reason No. 2: Amazon, B&N and the other E Ink device vendors aren’t encouraging third-party app development. That’s probably because they want those devices to have the highest walled gardens of all, which is a shame and a loss for consumers.

Is it too late for these vendors to reconsider and encourage third-party app development? Maybe. After all, the momentum has already swung toward tablets and away from E Ink readers. Nevertheless, as long as tablets weigh more than E Ink readers, their displays aren’t as easy on the eyes and they don’t offer significantly longer battery life, I’ll remain a two-device reading consumer. I suspect I’m not alone, so I hope an E Ink app ecosystem takes root at some point.

This post originally appeared on Joe Wikert’s Publishing 2020 Blog (“Why Are Apps Only on Tablets?“). This version has been lightly edited.

Related:

• Why I can’t shake my ereader
• Why I haven’t caught ereader fever

Key points from the full video interview (below) include:

• Agency model and ebook prices — Simon objects to the discount restrictions in the DOJ settlement terms, but he also believes the DOJ has “clearly misread the landscape of ebook pricing.” [Discussed at the 2:15 mark.]
• Did agency drive prices up? — Yes and no. Yes, prices increased for the small list of titles the DOJ cited, but no, prices did not go up across the board. Further, many other factors are forcing ebook prices lower, despite the presence of the agency model. [Discussed at 1:34.]
• Another small snapshot shows lower prices — Although arguably no more scientific than the DOJ’s approach, Simon compared ebook prices on the Amazon best-seller list to pre-agency levels and arrived at a different conclusion. [Discussed at 5:10.]
• The role of “market power” — In reality, the “big six” publishers don’t have the same market power in the ebook world that they have enjoyed in the print world. [Discussed at 10:28.]
• Competition is driving prices down — The “explosion” of ebooks is having more of an impact on pricing than the agency model. [Discussed at 15:40.]
• Is price-setting by publishers a good thing? — It’s unusual in the physical product world, but that aspect of the agency model makes plenty of sense in the digital world. [Discussed at 22:55.]
• “Distributed sales” is the future — Simon believes the underlying assumptions we have about how ebooks are sold will be changed as we move away from destination sites dedicated to ebooks. [Discussed at 33:03.]

You can view the entire interview in the following video.

This post is part of the TOC podcast series. You can also subscribe to the free TOC podcast through iTunes.

Related:

• DoJ lawsuit is great news for Amazon
• The state of ebook pricing
• Ebook pricing power is undermined by perceived value
• The anchor on ebook prices is gone. Now we’ll see where they float
• More TOC Podcasts

I’ve got quite a few ebooks in two different accounts that I’ve read and will never read again. I’ll bet you do, too. In the print world, we’d pass those along to friends, resell them or donate them to the local library. Good luck doing any of those things with an ebook.

Once you buy an ebook, you’re pretty much stuck with it. That’s yet another reason why consumers want low ebook prices. Ebooks are lacking some of the basic features of a print book, so of course they should be lower-priced. I realize that’s not the only reason consumers want low ebook prices, but it’s definitely a contributing factor. I’d be willing to pay more for an ebook if I knew I could pass it along to someone else when I’m finished with it.

The opportunity in the used ebook market isn’t about higher prices, though. It’s about expanding the ebook ecosystem.

The used print book market helps with discovery and affordability. The publisher and author already got their share on the initial sale of that book. Although they may feel they’re losing the next sale, I’d argue that the content is reaching an audience that probably wouldn’t have paid for the original work anyway, even if the used book market didn’t exist.

Rather than looking at the used book world as an annoyance, it’s time for publishers to think about the opportunities it could present for ebooks. I’ve written and spoken before about how used ebooks could have more functionality than the original edition. You could take this in the other direction as well and have the original ebook with more rich content than the version the customer is able to either resell or pass along to a friend; if the used ebook recipient wants to add the rich content back in they could come back to the publisher and buy it.

As long as we look at the used market through the lens of print products, we’ll never realize all the options it has to offer in the econtent world. That’s why we should be willing to experiment. In fact, I’m certain one or more creative individuals will come up with new ways to think about (and distribute) used ebooks that we’ve never even considered.

Publishers Weekly recently featured an article about ReDigi, a startup that “lets you store, stream, buy and sell pre-owned digital music.” As the article points out, ebooks are next on ReDigi’s priority list. Capitol Records is suing to shut down ReDigi; I suspect the publishing industry will react the same way. Regardless of whether ReDigi is operating within copyright law, I think there’s quite a bit we can learn from their efforts. That’s why I plan to reach out to them this week to see if we can include them in an upcoming TOC event.

By the way, even if ReDigi disappears, you can bet this topic won’t. Amazon makes loads of money in the used book market and Jeff Bezos is a smart man. If there’s an opportunity in the used ebook space, you can bet he’ll be working on it to further reinforce Amazon’s dominant position.

Photo: Used Books by -Tripp-, on Flickr

Related:

• The state of ebook pricing
• Amazon, ebooks and advertising
• The reinvention of the bookseller
• The sorry state of ebook samples, and four ways to improve them
• It’s time for a unified ebook format and the end of DRM

We’ve been talking about pricing in July, and how could the conversation be complete without coverage of the free content model? Wattpad is a fairly new company that’s built completely upon free content. In the following interview, I talk with Wattpad CEO and co-founder Allen Lau about how they’re leveraging free content and how you might be able to as well.

Key points from the full video interview (below) include:

• Sharing and discovery — The numbers are impressive, as Wattpad serves almost 10 million unique visitors every month who post their own content as well as read submissions from other community members. [Discussed at the 0:48 mark.]
• Connecting readers and writers — Publishers need to establish a direct relationship with their customers, and this is something Wattpad excels at. [Discussed at 1:34.]
• Paid content is not on the horizon — Allen doesn’t want to rule anything out, but at this point, Wattpad is more focused on creating reader/writer connections, not charging for content. [Discussed at 2:10.]
• How can “free” benefit authors? Visibility and discoverability on Wattpad lead to a number of other benefits, including monetization elsewhere. [Discussed at 2:58.]
• How can a sustainable company be built on “free”? — Allen is a bit coy with his answer to this one, but it’s clear Wattpad’s goal is to build an enormous content platform first and the revenue will follow. [Discussed at 6:43.]
• The Margaret Atwood deal — Ms. Atwood clearly understands the rules of publishing are changing, and she appreciates the community benefits Wattpad has to offer. [Discussed at 8:30.]
• Wattpad’s customer base is evolving — Like many new online services, Wattpad has its roots in the teen market, but that is rapidly changing. [Discussed at 10:12.]
• Don’t fear “free” — Wattpad isn’t some outlier the publishing industry can ignore. There are plenty of opportunities for any publisher to experiment with free and freemium content. Don’t forget that we’re competing for people’s time, and much of that time is currently spent reading free content. [Discussed at 11:19.]

You can view the entire interview in the following video.

The future of publishing has a busy schedule.
Stay up to date with Tools of Change for Publishing events, publications, research and resources. Visit us at oreilly.com/toc.

Related:

• Kevin Kelly on how to sell free
• How Do Publishers and Authors Get Paid in a “Free” World?
• Want to succeed in online content? Get small, be open, go free
• Getting the content out there isn’t enough anymore
• More TOC Podcasts

July’s TOC theme is “pricing,” but we didn’t want to limit the focus to ebook pricing. It’s also important to consider the pricing models of the tools we use to create those ebooks. And what better way to cover that topic than by looking at it through the lens of a startup? In the following interview, Demibooks CEO and co-founder Rafiq Ahmed (@mendicantraf) talks about the challenges of playing in the ebook tools space and how a startup handles pricing.

Key points from the full video interview (below) include:

• Book production, no coding required — Demibooks’ Composer tool was built for anyone who wants to create a rich, interactive ebook but doesn’t want to become a propeller-head. Unlike most ebook creation tools, Composer runs right on the iPad. [Discussed at the 1:20 mark.] — And by the way, Composer Pro is releasing soon. If you’re curious to learn more about what features will be added to the Pro version be sure to watch this short video.
• Pricing is an art … — … especially for a startup in a space that’s rapidly evolving. Flexibility is key here, though, especially as you learn more about your customers. [Discussed at 3:46.]
• The irony of rich content pricing — $4.99 is an important consumer pricing threshold, despite the fact that many of Demibooks products offer a much richer experience than your typical $9.99 ebook. Part of this is driven by the fact that many Demibooks titles are aimed at children, of course. [Discussed at 6:16.]
• The temptation of “free” — Offering the Composer tool for free would mean Demibooks would have to earn revenue exclusively from sales of the ebooks; that’s not a model Rafiq is interested in pursuing. [Discussed at 7:40.]
• Analytics helps with the value proposition — As Demibooks enhances the Composer tool, analytics functionality will be offered so content creators can better understand reader preferences. [Discussed at 10:51.]

You can view the entire interview in the following video.

The future of publishing has a busy schedule.
Stay up to date with Tools of Change for Publishing events, publications, research and resources. Visit us at oreilly.com/toc.

Related:

• How to improve ebook marginalia
• Three reasons why we’re in a golden age of publishing entrepreneurship
• What investors are looking for in publishing companies
• What publishing can learn from tech startups
• More TOC Podcasts

June’s TOC theme was “retailing,” and we wrapped things up with a discussion about the biggest retailer of them all: Amazon. Clint Greenleaf (@clintgreenleaf), founder and CEO of Greenleaf Book Group, offers a unique perspective, as his company is both a publisher and a distributor. He opened up about the challenges of both working with and competing against Amazon.

Key points from the full video interview (below) include:

• Amazon as friend and foe — Bezos & Co. represent about half of Greenleaf’s sales. Clint reminisces about the good old days when Amazon was an exciting startup and how they’ve evolved into a behemoth that exerts a lot of control. [Discussed at 1:08.]
• Odd that Amazon isn’t on DOJ’s radar — Clint doesn’t see anyone who’s able to challenge Amazon’s position today or in the near future, and wonders why the DOJ is so focused on other players who have helped level the playing field. [Discussed at 2:05.]
• Apple’s role — It’s ironic that ebooks are such a small part of the iTunes ecosystem and that a number of reports have shown how prices actually declined after Apple entered the ebook market. [Discussed at 2:46.]
• Amazon’s Kindle Owner’s Lending Library — Clint isn’t a fan of the flat fee Amazon pays publishers, but he does see the promotional and visibility benefits of it. [Discussed at 3:40.]
• Will ebooks represent half of publisher sales by 2016? — A recent PwC report projects ebooks will represent the majority of trade publishers’ sales in four years, but Clint feels it will happen even sooner. [Discussed at 4:50.]
• Future of eInk devices — Hybrid or dual-surface displays are the future. eInk isn’t likely to go away, as it’s superior to the backlit experience outdoors. [Discussed at 6:03.]

You can view the entire interview in the following video.

The future of publishing has a busy schedule.
Stay up to date with Tools of Change for Publishing events, publications, research and resources. Visit us at oreilly.com/toc.

Related:

• DOJ lawsuit is great news for Amazon
• “Hating Amazon is not a strategy”
• Coming soon to a location near you: The Amazon Store?
• Ereader ownership doubles, again
• More TOC Podcasts

We’re focusing on retailing topics this month at TOC, and when it comes to digital sales, one of a publisher’s highest priorities should be building a strong direct channel. The shift from print to digital means publishers can be less reliant on retailers. Retailers are still an important partner, of course, but the direct channel brings many additional benefits. For example, establishing a direct sales channel is the best way to learn what your customers really want, and Logos Bible Software has done a terrific job on that front. I recently spoke with Logos president & CEO Bob Pritchett (@BobPritchett) about his company’s strategy of placing so much emphasis on their direct channel.

Key points from the full video interview (below) include:

• Direct doesn’t just mean “online” — In addition to their highly successful e-commerce site Logos direct channel includes in-person sales at conferences as well as via a good old-fashioned phone sales team. [Discussed at 00:50.]
• Selling the network, not the book — This is an innovative approach Logos has pioneered where they take a more holistic approach to their sales efforts and help customers understand the benefit of the entire Logos library, not just an individual title. [Discussed at 1:55.]
• Customer engagement is the key — Don’t assume that if you simply put up an e-commerce site customers will start buying from you. Logos has made significant investments to establish customer dialog and build community. Direct sales are great but sometimes just getting insightful customer feedback is even more valuable. [Discussed at 4:30.]
• Logos made the shift from retailers to direct — And so can you! Retail represented about 80% of Logos sales initially but Bob realized the changing landscape meant he needed to focus more on the direct channel. As physical bookstores diversify their product mix with gifts and other goods it’s time for publishers to diversify their channel mix as well. [Discussed at 5:50.]
• Can anyone beat Amazon now? — Bob says “absolutely”, and he’s an Amazon Prime member. He points out the advantage of the in-person experience and focusing on more specialty merchandising. He also notes the Ancestry example, where their content is offered as an online service rather than a book through a retailer. [Discussed at 6:52.]
• Downward pricing pressure — In many ways, publishers are their own worst enemy when it comes to the race to zero. One answer is to look at selling in different ways. [Discussed at 9:17.]
• Subscription models — Monthly access to a broad library of digital content is likely to be a much more attractive for many publishers and consumers going forward. The sampling and discovery options with this approach are enticing. The cable TV model, where you get basic channels and pay more for certain packages, is also one we can learn from. [Discussed at 15:09.]

You can view the entire interview in the following video.

The future of publishing has a busy schedule.
Stay up to date with Tools of Change for Publishing events, publications, research and resources. Visit us at oreilly.com/toc.

Related:

• Why publishers should build direct sales channels
• Direct sales uncover hidden trends for publishers
• The anchor on ebook prices is gone. Now we’ll see where they float
• Business models to monetize publishing in the digital era
• More TOC Podcasts

The world doesn’t need another DRM platform, regardless of whether it’s called “lightweight.” DRM is annoying for customers and provides a false sense of security for publishers. As author Charlie Stross wisely stated, publishing’s “pig-headed insistence on DRM on ebooks is handing Amazon a stick with which to beat them harder.”

I realize your proposed solution is intended to become an industry standard and prevent the type of lock-in Stross describes. Let’s face facts though. Amazon doesn’t use the EPUB format and their current market dominance means they’re the least likely player to advocate an open, interoperable solution like this. And since Amazon owns approximately 60-70% of the ebook market, your proposed standard would only apply to the remaining 30-40%.

Why would anyone want to develop yet another DRM option for, at best, 30-40% of the market?

More importantly, why do you want to give the publishing industry another distraction and reinforce that false sense of security when we’re finally seeing movement towards a DRM-free world?

We’ve been very open about the success of our DRM-free approach at O’Reilly Media. One simple guiding principle led us to being DRM-free: We trust our customers. We get plenty of compliments from those customers throughout the year and it’s clear our trust has created goodwill with them. After spending years touting the benefits of being DRM-free it’s encouraging to see others adopting the same approach, including Tor, a Big Six imprint. O’Reilly has long maintained that the costs of DRM — even lightweight DRM — far outweigh any potential benefits. Our position has not changed since Tim wrote “Piracy is Progressive Taxation, and Other Thoughts on the Evolution of Online Distribution” back in 2002.

If the IDPF really wants to make an impact on this issue I suggest you forget about creating another form of DRM and instead spend time educating publishers and retailers on the virtues of going DRM-free. Besides the obvious benefits to customers this could also lead to the end of Amazon’s big stick that Charlie Stross says we’re all getting hit with.

Once we’ve completely eradicated DRM perhaps the IDPF could offer their own mobi-to-EPUB conversion and sideloading tools for consumers to further level the ebook playing field. That would be a much better use of IDPF resources than any DRM project could ever be.

Related:

• It’s time for a unified ebook format and the end of DRM
• There’s no such thing as degrees of DRM
• Book piracy: Less DRM, more data

Today’s ebook landscape is mostly filled with nothing more than quick-and-dirty conversions of print to digital. There’s not a lot of imagination, and we’re certainly not taking full advantage of all the capabilities of our digital devices. This includes not only the text and how it’s presented, but also the images that accompany the text. We have an incredible opportunity to take those static images from print and bring them to life in digital format.

Laura Maaske, a medical illustrator I met earlier this year at TOC NY, is someone who understands this opportunity and is creating digital imagery like you’ve never seen before. I recently reconnected with her to discuss the move from print to digital and how publishers need to adjust their thinking.

Key points from the full video interview (below) include:

• Imagery begins with a metaphor — Laura has used layering techniques so that users can easily explore the depths of the object, in this case, a human hand. It’s the first step toward a 3D rendering that lends itself to even more immersion. [Discussed at 1:58.]
• It’s not just about medical imaging — Look at all the static images in your own products and consider the option of adding depth or immersion to them. The possibilities are endless and can be applied to pretty much any topic. [Discussed at 3:38.]
• Is “digital first” the best approach? — Perhaps, but publishers should also consider how they might utilize their vast libraries of existing images that weren’t originally created with layering in mind. “Before” and “after” images are excellent candidates, for example. [Discussed at 4:32.]
• New skills are required … including programming — The core illustration skills are critical, of course, but digital imaging professionals need to go further. Knowledge of HTML and even a good foundation in scripting or programming is very important as well. [Discussed at 7:12.]
• Choose your tools wisely — Laura carefully chooses her tools by avoiding proprietary software and using license-free options. [Discussed at 8:10.]

You can view the entire interview in the following video.

The future of publishing has a busy schedule.
Stay up to date with Tools of Change for Publishing events, publications, research and resources. Visit us at oreilly.com/toc.

Related:

• Pictures that propel prose
• Keeping images and text in sync
• Images and text need to get together
• To page or to scroll?
• More TOC Podcasts