BISG WEBCAST - Distribution in a Digital World (06.01.11)

BISG WEBCASTwww.bisg.orgBISG WEBCASTwww.bisg.org © 2011, the Book Industry Study Group, Inc.

This BISG WEBCAST took placeWednesday, June 1, 2011 at 1:00 p.m. Eastern

To register for future BISG Webcasts, please visit:http://www.bisg.org/event-cat-6-webcasts.php

BISG WEBCASTwww.bisg.orgBISG WEBCASTwww.bisg.org 2© 2011, the Book Industry Study Group, Inc.

BISG WEBCASTwww.bisg.orgBISG WEBCASTwww.bisg.org

Creating a more informed, empowered and efficient book industry supply chain for both physical and digital products.

BISG is committed to the development of effective industry-wide standards, best practices, research and events that

enhance relationships between trading partners.www.bisg.org

3© 2011, the Book Industry Study Group, Inc.

BISG WEBCASTwww.bisg.orgBISG WEBCASTwww.bisg.org

ANGELA BOLEDeputy Executive DirectorBook Industry Study [email protected]

JAMES LICHTENBERGPresidentLightspeed [email protected]

4© 2011, the Book Industry Study Group, Inc.

RICK JOYCEChief Marketing OfficerPerseus Books [email protected]

MARCELLA SMITHMarcella Smith [email protected]

BISG WEBCASTwww.bisg.orgBISG WEBCASTwww.bisg.org © 2010, the Book Industry Study Group, Inc. 5

BISG WEBCASTwww.bisg.orgBISG WEBCASTwww.bisg.org 6© 2011, the Book Industry Study Group, Inc.

BISG WEBCASTwww.bisg.org

Assessing the impact of digital products and digital technology

7© 2011, the Book Industry Study Group, Inc.

BISG WEBCASTwww.bisg.orgBISG WEBCASTwww.bisg.org

Authors ReadersPrinters

DistributorsRetailers

8© 2011, the Book Industry Study Group, Inc.

BISG WEBCASTwww.bisg.orgBISG WEBCASTwww.bisg.org

Authors ReadersUp forgrabs!

9© 2011, the Book Industry Study Group, Inc.

BISG WEBCASTwww.bisg.orgBISG WEBCASTwww.bisg.org

Understand where things stand Willing to experiment Accept change for what it is … neither more nor less

1010© 2011, the Book Industry Study Group, Inc.

BISG WEBCASTwww.bisg.orgBISG WEBCASTwww.bisg.org

Publishers outsourcing most of the processes after editorial

Publishers going direct to retailers and readers In any case, JIT printing and smaller inventories

spell the reduction, if not the end, of warehousing

1111© 2011, the Book Industry Study Group, Inc.

BISG WEBCASTwww.bisg.orgBISG WEBCASTwww.bisg.org

Opportunity for publishers to tailor distribution to their customer verticals and business needs

Opportunity for distributors to become aggregators of digital product as well as physical

12© 2011, the Book Industry Study Group, Inc.

BISG WEBCASTwww.bisg.orgBISG WEBCASTwww.bisg.org 13© 2011, the Book Industry Study Group, Inc.

BISG WEBCASTwww.bisg.org

Changes and Challenges

14© 2011, the Book Industry Study Group, Inc.

BISG WEBCASTwww.bisg.orgBISG WEBCASTwww.bisg.org

Key Publisher Tasks: Digitizing all “easy” frontlist Digitizing productive “easy”

backlist

Marketplace Changes Rise of eRetailing of pBooks Rise of internet marketing and

publicity Decline of traditional,

professional book review media

Implications for Distribution

Add Conversion partner Ask more of current distributor Path to Kindle, kindle, kindle

15© 2011, the Book Industry Study Group, Inc.

BISG WEBCASTwww.bisg.orgBISG WEBCASTwww.bisg.org

Key Publisher Tasks Digital Strategy Partner Selection

Marketplace Changes Decline of physical book retailers Amazon kindle drives the true start

of the eBook era Amazon’s run at the iTunes strategy

(unsuccessful) Proliferation of successful eReaders

(kindle, nook, ipad, android to come) Rise of the cross platform reader app SPR & POD Agency model

Implications for Distribution

Sourcing broad eDistributioncapabilities/partner

Paths to nook, iBookstore, android eMerchandising Consider integrated distribution

partner Digital Dating beyond distribution for

online discovery Opening up of international markets

for niche content

16© 2011, the Book Industry Study Group, Inc.

BISG WEBCASTwww.bisg.orgBISG WEBCASTwww.bisg.org

New Business Models Library eReader and eBook lending

at scale Ad-supported devices Subscription models Functionality-rich reader apps Social Reading Freemotions Mashups & user configured

Market Structure r/evolution Author as publisher Agent as publisher Retailer as publisher Brand as publisher Blogger/eyeball aggregator as

retailer Affiliate commerce Author-access monetization Redefinition of self-publishing

17© 2011, the Book Industry Study Group, Inc.

BISG WEBCASTwww.bisg.orgBISG WEBCASTwww.bisg.org

Publishing Process Reinvention All jobs are digital Content for all platforms from the start Tagging and Metadata Social Media Monitoring/engagement Redesigned workflow Process transparency/marketplace

influence in-process Explosion of versions Author Platform Development

Territorial/Rights revolution End of reverted/out of print More world rights exploitation Global laydowns? Emergence of Global Networks and

Alliances

18© 2011, the Book Industry Study Group, Inc.

BISG WEBCASTwww.bisg.orgBISG WEBCASTwww.bisg.org

Define your core capability set, partner foreverything else

Partners should be option-creating, not option-limiting Waning Partner values: terms, pecking order,

“what else is in the bag” Emerging Partner Values: Continuous Learning,

Best Practices, Transparency, Control, Data, Clout, Reach, Efficiency

19© 2011, the Book Industry Study Group, Inc.

BISG WEBCASTwww.bisg.orgBISG WEBCASTwww.bisg.org 20© 2011, the Book Industry Study Group, Inc.

BISG WEBCASTwww.bisg.org

Data integrity

21© 2011, the Book Industry Study Group, Inc.

BISG WEBCASTwww.bisg.orgBISG WEBCASTwww.bisg.org

New formats and market expansion◦ Trade paperbacks (the 70s)◦ Bookstores move into malls (the 80s) Discounting Hardcover sales explode

Audio Books Cassettes, CDs, MP3

22© 2011, the Book Industry Study Group, Inc.

BISG WEBCASTwww.bisg.orgBISG WEBCASTwww.bisg.org

Desktop Publishing Print on Demand Bookselling on the internet E book◦ Affordable◦ Convenient◦ Invisible

23© 2011, the Book Industry Study Group, Inc.

BISG WEBCASTwww.bisg.orgBISG WEBCASTwww.bisg.org

Content in any format Digital content rights? Data, data, data

24© 2011, the Book Industry Study Group, Inc.

BISG WEBCASTwww.bisg.orgBISG WEBCASTwww.bisg.org

Data Product metadata◦ http://www.bisg.org/what-we-do-cat-21-product-

metadata.php Product on sale date◦ http://www.bisg.org/what-we-do-12-143-on-sale-date-

compliance-recommended-best-practices.php

25© 2011, the Book Industry Study Group, Inc.

BISG WEBCASTwww.bisg.orgBISG WEBCASTwww.bisg.org

Data◦ Distribution network is helpless w/out it Libraries Wholesalers Retailers Online Brick & Mortar

26© 2011, the Book Industry Study Group, Inc.

BISG WEBCASTwww.bisg.orgBISG WEBCASTwww.bisg.org

Data◦ Timing Availability of the data Delivery of the data◦ Impact on sales

27© 2011, the Book Industry Study Group, Inc.

BISG WEBCASTwww.bisg.orgBISG WEBCASTwww.bisg.org

Data◦ Discrete identifiers Essential for channel sales tracking http://www.bisg.org/what-we-do-18-79-the-identification-of-

digital-book-content.php

28© 2011, the Book Industry Study Group, Inc.

BISG WEBCASTwww.bisg.orgBISG WEBCASTwww.bisg.org 29© 2011, the Book Industry Study Group, Inc.

We’ll now take questionsThank you!

ANGELA BOLEDeputy Executive DirectorBook Industry Study [email protected]

JAMES LICHTENBERGPresidentLightspeed [email protected]

RICK JOYCEChief Marketing OfficerPerseus Books [email protected]

MARCELLA SMITHMarcella Smith [email protected]