At the end of every year, everyplace you look there are recaps of the best of the year. Some do the ‘worst’ and others the ‘most interesting.’ I am going to discuss some of the issues that drove the narrative in book publishing in 2011. I may forget many, I may overstate some, but these are the issues that are top of mind.
- Amazon gets bolder than ever. 2011 was a year that Amazon turned up the pressure on the entire industry. In 2011, Amazon started the lending library with titles from publishers who said NO. Amazon was pushed back by Japanese publishers because of their terms of sale. Amazon refused to negotiate Agency terms of sale with publishers (other than the Big6). Amazon aggressively entered publishing by establishing numerous new imprints and a NYC office.
- Borders, after years of mis-management finally died. Industry watchers have been predicting the demise of Borders for five years. It was obvious then that the chain was not making the right moves to survive. 2011, they finally had to pull the plug. Once upon a time, Borders was a wonderful bookstore chain. But near the end they had lost the innovation and were quickly found obsolete.
- eBooks continued to dominate the discussion. Market share of eBooks for many publishers reached 20%. In 2010, it was 8%. In 2009, 3% and about 1% in 2008. The numbers continue to rise year over year, but there does seem to be some indications of a slow down.
- Dedicated reading devices are starting to become old news. This Fall, the Kindle Fire tablet was introduced and now the largest eBook retailer’s main device also plays games and music. The B&N NOOK and Apple iPad have already this capability. So, the beginning of the end for the dedicated eReader has begun. Look for 2012 to see less and less eroding-only devices.
- Publishers realized that Apps are NOT the answer. Only a handful of Book Apps worked. It is too expensive, the App store too vast, and the pressures to sell at 99 cents is high. Sure, some were successful, but publishers slowed the App development quite a bit.
- More authors started to look to self-publishing. Publishers of all sizes have started to review eBook royalty rates and wiling to pay more (some as much as 50%). But the move away from publishers and to self-publishing continued to roll along. Expect even more in 2012.
- STEVE JOBS biography was moved up in time to be ready for his death. The book is the biggest seller of 2011.
- eBooks and libraries continued to be an issue. Publishers are still working on terms for libraries. Some refuse to sell at all for it is seen as cannibalizing sales. Others jumped in and willing to see what happens. Penguin and Hachette were once in and now debating. HarperCollins instituted a ’26-check out rule’ and Overdrive signed a deal with Amazon that was not received well by publishers.
- Barnes & Noble grabbed a good chunk of digital market share. But the cost may have killed them for they lost records amount of money. But they have survived and are a bit of a balance to Amazon. B&N has the only national chain of stores. It will be interesting to see what happens in 2012.
2011 was a year of transition and turmoil. I expect 2012 to be the same. Just a few days ago, the first major lawsuit regarding eBook rights was filed. harperCollins is suing Open Road Integrated Media over an author. Amazon and B&N have made noises about wanted better terms and more co-op from publishers. It is a good time to be in publishing. But it is imperative to remain open and roll with the changes.
2011 was a fun year.
