Finally an article on publishing's sure-to-fail business model!
This from Forbes:
It’s not just that books are going to Kindles and iPads. It’s that books are going away, and the publishers have no one but themselves to blame.
The traditional New York publishing business model — publish a ton of books, fail to market most of them, and hope that somebody buys something — worked well when publishers had a hammerlock on the distribution and marketing of books. Publishers essentially faced no competition and enjoyed complete control of what books people could publish and sell.
[...]
Publishers can also blame Amazon for the collapse of their industry. When you went into a bookstore, you typically browsed and bought a handful of books, each from a different department. Amazon killed browsing. You go on, you find the book you wanted, you pay, and you leave. So instead of buying five books, you buy just one.
But the real reason why books are going to vanish is the remarkably un-business-like business model of the publishers. Think of General Motors — decades of inefficiency, but without the federal bailouts.
In no other industry do producers actually wait passively to see what products are suggested to them, instead of doing market research to see what people really want to buy. Yet publishers seldom generate book ideas; instead they wait for literary agents to submit proposals. Houses decide which book to publish based on little more than a gut feeling that says, “I think we can make money selling this!”
[...]
At BEA next week, the attendees will solemnly discuss the latest trends, discuss how to get 70-year-old authors to use Twitter, and generally party like it’s 1989. But for traditional publishing, the party’s over. They just don’t want to realize that it’s time to turn out the lights.
Follow this link to read Michael Levin's full piece.
It’s not just that books are going to Kindles and iPads. It’s that books are going away, and the publishers have no one but themselves to blame.
The traditional New York publishing business model — publish a ton of books, fail to market most of them, and hope that somebody buys something — worked well when publishers had a hammerlock on the distribution and marketing of books. Publishers essentially faced no competition and enjoyed complete control of what books people could publish and sell.
[...]
Publishers can also blame Amazon for the collapse of their industry. When you went into a bookstore, you typically browsed and bought a handful of books, each from a different department. Amazon killed browsing. You go on, you find the book you wanted, you pay, and you leave. So instead of buying five books, you buy just one.
But the real reason why books are going to vanish is the remarkably un-business-like business model of the publishers. Think of General Motors — decades of inefficiency, but without the federal bailouts.
In no other industry do producers actually wait passively to see what products are suggested to them, instead of doing market research to see what people really want to buy. Yet publishers seldom generate book ideas; instead they wait for literary agents to submit proposals. Houses decide which book to publish based on little more than a gut feeling that says, “I think we can make money selling this!”
[...]
At BEA next week, the attendees will solemnly discuss the latest trends, discuss how to get 70-year-old authors to use Twitter, and generally party like it’s 1989. But for traditional publishing, the party’s over. They just don’t want to realize that it’s time to turn out the lights.
Follow this link to read Michael Levin's full piece.
