How will books be pro­duced in the future, and who will pro­duce them?

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In considering how books will be produced in the future, we decided to approach publishing as a complex ecosystem with many stakeholders, instead of an assembly line process or a simple, unproblematic transaction between and author and a monolithic corporate entity:

Look out for our next set of pieces on the future of writing and editing, and contribute your own thoughts about the future of publishing today and tomorrow!

always the same story

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Books will always be written by people. Whether by single authors, or by the contributing effort of many. I don’t think that a book can be like a video clip: an accumulation of small parts only related by the visual story it tells. A book has a direct link with the reader and need to tell a story. Even if edited by many – as you are now doing – the reader still needs to follow a story line.

reading or dreaming?

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in the future, the reading space will be wherever you will want it to be. By looking at a spot in the corner of your eye you will start the possibility  to incrust text on your normal vision. Imagine sitting back in a comfortable armchair, looking outside your window at your garden. By focussing or relaxing, you could change the focus on either the garden outside, or the text overlaying on top.

 

An Author-Centric Ecosystem

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A new production and financial ecosystem is emerging in book publishing, and it’s no longer centered on the publisher. The new ecosystem, more than ever, is author-centric.

Consider the people and institutions involved in a nonfiction author’s career. They include a literary agent, editor, publisher, publicist, speaking agent and more. They work to help create and promote various products that derive from the author’s ideas and writing: books, speaking/consulting gigs, websites and consulting, among other things. These produce different revenue streams, in distinct silos, and they oblige the author to make a variety of separate deals.

Graph of financial deals between authors and a variety of others

Graph of financial deals between authors and a variety of others

The relationships get complicated fast.

A graph depicting relationships between authors and other publishing stakeholders

It’s an inefficient system, and needs updating to reflect today’s realities.

What realities? For one thing, most authors should regard their books as elements of a larger career. For me, books are at least as much about promoting ideas that have made me more interesting, hence more valuable, as a speaker, teacher and short-form writer. Speaking/consulting agents and managers regard books as excellent calling cards for their clients.

How can we align these interests more efficiently? Other creative businesses have tried, with varying success. The music industry’s “360″ deals of recent years have been one of the more notable attempts. In this model, a company (usually a record label) provides all management – including booking and promoting tours, not just recording and selling music – in return for percentage of all revenues the artist generates in record sales, live shows and ancillary sales. As The New York Times reported in 2007:

Like many innovations, these deals were born of desperation; after experiencing the financial havoc unleashed by years of slipping CD sales, music companies started viewing the ancillary income from artists as a potential new source of cash. After all, the thinking went, labels invest the most in the risky and expensive process of developing talent, so why shouldn’t they get a bigger share of the talent’s success?

Critics of this approach called the advantages for musicians dubious at best. Why cede even more control to an industry that has demonstrated vastly more concern for its own bottom line than its artists?

What should the new ecosystem look like? It’s not this:

Graph depicting a situation in which authors' books do not relate to their other activities

It’s this:

A graph depicting how ideas authors develop in books feed into their other activities

The publishing industry has made forays into this field in small ways. Many publishers have in-house speakers bureaus for their authors, but this isn’t the publishers’ specialty, raising questions about the value of the exercise.

I’m proposing new kinds of business arrangements where everyone involved in this collaborates and takes risks. Everyone needs an incentive to make the overall project a success. Each party should get a cut of all revenues, but at a lower percentage than they do today for their single slice. Done right, if everyone’s helping to promote the author’s career, there should be a bigger pie.

Authors may decide to take more control themselves. They may farm out the overall management to a single person or firm. Among others in the current system, agents (literary and speaking) will have to rethink their roles.

We’ll see new kinds of business arrangements and contracts, where all participants see value in helping the other parts of the project. (If some of them say, “Aha, free money,” this won’t work.) We’ll need to see lots of experiments, many different kinds of deals. Some will fail despite the best efforts of all concerned, but that’s the nature of trying new things.

Above all, changing the ecosystem will require a willingness to experiment – and a decision by authors to take more control of their own lives.

The Atomization of Publishing

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What gets published in 2013 can be divided into three broad categories:

  1. Traditional publisher output: represented by all the publishers that exhibit at events such as Frankfurt Book Fair, Book Expo America, etc.
  2. Self-publishing output: represented by the many distribution and publishing services available to authors, such as Amazon KDP, Smashwords, Lulu, CreateSpace, etc.
  3. Custom publishing output: represented by the vast number of businesses and institutions outside the traditional publishing industry who might produce one or many titles per year.

In the future – assuming the container or attention unit of the book has not disappeared or become anachronistic – I believe we’re going to see vast expansion in the third category, given that the function of publishing is now far less difficult and specialized, and book distribution and production pose less of a challenge and expense than ever before. Any business or institution can feasibly start their own press or imprint and publish works that are in line with their mission and values, and distribute or sell them to a target audience they likely know better than a traditional publisher. This doesn’t preclude the possibility and likelihood of partnerships between traditional publishers and institutions (as there are now) – nearly a necessity for widespread bricks-and-mortar distribution – but certainly it’s not a requirement for success to have such a partnership, particularly if the content works best in a digital environment. Industry expert Mike Shatzkin has called the trend “atomization”:

Publishing will become a function of many entities, not a capability reserved to a few insiders who can call themselves an industry. […] This is the atomization of publishing, the dispersal of publishing decisions and the origination of published material from far and wide. In a pretty short time, we will see an industry with a completely different profile than it has had for the past couple of hundred years. […] Atomization is verticalization taken to a newly conceivable logical extreme. The self-publishing of authors is already affecting the marketplace. But the introduction of self-publishing by entities will be much more disruptive.

If the publishing function does in fact disperse across many entities, then what will the so-called traditional houses focus on? One imagines the realm of fiction will remain a mainstay and focus, but I’d also like to propose that publishers will turn increasingly to analytics, data, and consumer research to make publishing decisions – for both fiction and nonfiction – since this would produce more profitable publishing decisions and might not be pursued by other, new competitors.

Research-driven publishing decisions aren’t exactly new. During my tenure at F+W Media, we had a very strong consumer research component to every acquisition because we were (in part) publishing to satisfy our homegrown book clubs, where consumers were automatically sent a new book every month unless they proactively declined it. Of course, the book-club model has all but died, but F+W, as well as other direct-to-consumer publishers, often use research to ground their acquisition decisions.

Now that research often takes the form of SEO and keyword analysis, publishers can identify what people are searching for and quantify demand for a particular book concept or title. Online publications and magazines already use SEO and keyword analysis to determine what gets published, and as such analytics become more rich and detailed. And as purchasing continues to move online, we can expect that trade publishers focused on profit will be gathering all the data they can to make the best acquisitions decisions. (F+W now keeps an SEO specialist on staff who assists with book titling decisions, to ensure discoverability.)

In other media industries, consumer research has long been part of the process, whether for good or ill. Movies, TV and music are all extensively market tested and modified based on consumer reaction. It has become a widespread cliché in the movie business how little creative control a director retains if the test audience reacts negatively. There has even been software development to help predict blockbusters, which Malcolm Gladwell wrote about in The New Yorker in 2006.

Such a proposition likely sounds deadening and offensive to anyone who works in publishing, which is seen as an aesthetic pursuit (even an elitist or snobbish one, if compared to movies or TV) focused on producing important work or creative work, without concern for demand. Yet because the function of publishing is now more like pushing a button and less like a specialized process, there is less and less reason for publishers to dominate the playing field. We can already see how both new and established authors (especially when they band together) can successfully self-publish and produce their books with as much sophistication as their publisher. And for any institution that reaches its audience directly, the value a publisher provides is fairly minimal; it would make more sense to hire a consultant or freelancer, or hire someone away from the publishing industry if a long-term program is envisioned. This is happening already, in fact.

Will traditional publishers lose their “best” books and authors? Perhaps some can hang onto their business if they retain a brand or prestige that remains desirable to authors. This seems an unreliable strategy, and publishers certainly can’t depend on distribution and production services to provide value. To survive in an era of atomization, general trade publishers will likely have to focus on other ways they add value to the process, which probably involve their editorial function and their marketing function. One thing the mainstream publishers can do beautifully, if they put the money behind it and fire on all cylinders, is launch, package and place a book with impeccable presentation, so that no one can possibly not know about its existence – a marketing and promotion campaign of global proportions. That’s something you won’t find a self-published author or most institutions capable of pulling off.

Our Friend the Book D.J.

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In the future, book producers will not produce books. They will manage brands.

Authors are already told they have to behave like brands. They need to run their own web sites, have a presence on popular social media sites, cultivate reader communities and market their own books (publishers won’t bother). Under such conditions, who needs publishers? Aren’t they little more than parasites on the reputation and income stream of authors? Won’t publishers wither away?

No, they won’t. They’ll become more important than ever. Paradoxically, as it becomes easier for authors to establish direct relationships with readers, publishers will become more significant, not less. This will happen for two reasons, both related to their essential future function as brand managers. Because these likely future entities won’t resemble contemporary publishers, let’s stop calling them publishers. Let’s call them Autonomous Literary Imprints, or imprints for short.

Readers will want imprints. Imprints will help them navigate the confusing, effectively infinite digital graphosphere. In my previous essay, I evoked the farcical figure of the Book DJ. Well, he’s back, and he’s here to stay. In his function as an embodied imprint, he may even be the same person running your local pop-up book retailer. His job is to have good taste. His livelihood will depend on his reputation. He will make – and break – canons. His stock will rise and fall with literary history. His culture will be his capital. He may, of course, be part of a multi-person imprint. Imprints may consist of one person or one million. They may interlock or be nested within each other. The point is, you will have a relation with the imprint. You will trust it as much as you trust your friends on Facebook or the people you follow on Twitter. Imprints are people too, not only legally but also as vibrant presences on social media.

Writers, too, will need Autonomous Literary Imprints. In your role as a writer, you will look to imprints because they have the power to confer upon you a slice of their accumulated cultural capital. Earning the brand mark of the right imprint will shape your career. It will launch you toward fame or disrepute. It’ll determine whether you can get that university teaching gig that’ll pay your rent. Whether you’re invited to that posh writer’s retreat. Whether you can generate income streams from speaking engagements. Whether you’re invited to write essays for prestigious magazines and book collections. Whether readers will even (yes, it’ll still be possible) buy your books and (who knows) maybe even read them.

More importantly, in your role as a writer, you will need imprints because you won’t know who to believe in the shark-filled marketplace for author services. Do you trust that freelance editor? That book designer? In the future, the imprint will be a kingmaker and a node of trust for various literary actors. The imprint will be an orienting map in a confusing supply chain of authors, agents, editors, designers and academics.

In a field of production populated by a ragged surplus army of desperate, hungry, fame-seeking writers – in a world where more pretty good books will be published in one second than any reader can read in a lifetime dedicated to nothing other than reading – mediators will become more, not less important.

So a popular techno-utopian buzzword like disintermediation is deceptive. It suggests that we’re moving into a world of no limits or controls. Instead, we’re moving into a world of total branding. Whether this new world is desirable or not is another question. I’m ambivalent about this likely future, but I’m sure our friend the Book DJ is pretty stoked.

Publishers: What Are They Good For?

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I think it’s important, when discussing the future of the book and the future of publishing, to start with an understanding of what publishers do today.

The job of the publisher is to take a manuscript (a written text or collection of text and illustrations) supplied by an author, turn it into a book and distribute the book to readers.

The publisher and the author may be the same person or organization, or they may be a publishing house – a company or organization that publishes other people’s work. The publisher may be for-profit or non-profit. It may range from the author distributing their own work for free all the way to a multi-billion dollar turnover multinational with divisions that handle other kinds of media. But whatever the business model of the publisher, the job is what I outlined in the previous paragraph.

This sounds simple enough, but there are a lot of intermediate steps in publishing. Manuscripts aren’t usually publishable as delivered. In the old days they may well have been handwritten; these days they’re usually prepared on a computer, but they may contain typos, spelling mistakes, internal contradictions, libelous statements (which might get the publisher and/or author sued if they are published without alteration or fact-checking) and other flaws.

The general process of publishing a book resembles the old-school waterfall model of software development, with feedback loops between author and publishing specialist at each stage. The stages are, broadly speaking:

  • Substantive editing: An editor or reviewer reads the manuscript, and calls the author’s attention to errors, problems or high-level structural flaws in the book. The author then fixes these.
  • Copy editing: A copy editor checks the manuscript for grammatical and typographical consistency, correcting spelling mistakes and punctuation errors, preparing lists of names, titles and other uncommon terms for reference, and imposing the publishing house style on the book if appropriate. The author then reviews the copy edited manuscript and approves or rejects the CE’s changes.
  • Book design: Cover art is commissioned. A cover layout/design is prepared, using the cover art. Flap copy/advertising material is prepared. Review quotes are commissioned. The book package is then ready for typesetting.
  • Typesetting: A typesetter imports the copy-edited manuscript into a layout program – typically a DTP package such as Quark Publishing System or Adobe InDesign, but it may be a formatting command language such as LaTeX – then corrects obvious layout options: ladders, runs, orphans and widows, hyphenation. The typesetter also prepares front matter and back matter such as a table of contents.
  • Indexing: Optional – an indexer prepares a list of keywords and generates an index from the typeset file; this generally goes into the back matter. The author may provide feedback on the keywords to use, or even provide the initial list.
  • Proofreading: A proofreader checks the page proofs – typically PDF files these days – for errors introduced at the typesetting stage. The author may also check the page proofs. Corrections are collated and fed back to the typesetter.
  • Bluelining: Final page proofs are prepared and re-checked for errors. The author is not usually involved at this stage, which may be described as second-stage proofreading.
  • Registration and marketing: The publisher registers an ISBN for the book and a Library of Congress (or other national library of record) database entry. A copy will be lodged with the relevant libraries. Additionally, Advance Reader Copies may be laser-printed, manually bound and mailed to reviewers (or electronic copies may be distributed). Advertisements may be placed in the trade press. Other marketing promotional activities may be planned at this stage (if there’s a marketing budget for the title and advance orders from booksellers indicate that promotional activities will generate sufficient extra sales to justify the expense).
  • Manufacturing: The publisher arranges to have the book blocks printed, bound into covers, and guillotined and trimmed. A dust jacket may also be printed and wrapped around the hardcover book. Alternatively, paper covers may be printed and the book block perfect-bound (glued into the cover using thermoplastic glue). Alternatively, a master e-book is generated from the typeset file and, optionally, uploaded to the DRM server (or distributed as-is without DRM).
  • Distribution: Copies of the physical book are shipped to warehouses or retailers. The e-book is released to the various commercial e-book store databases.

This waterfall process generally operates on a 12 month time scale. That’s not because it has to take 12 months – in extremis a trade publisher can rush a topical current affairs title through in as little as 8 weeks from start to finish, including writing time (by editing and typesetting chapters as they are handed in by a team of authors) – but because publishers operate a production pipeline – essentially a conveyor belt that takes in a number of manuscripts and emits the same number of finished books on a monthly basis. Everything runs in lockstep at the speed of the slowest supplier, because to do otherwise risks the production line stalling due to lack of inputs.

As much of the process as possible is outsourced. Publishers do not own printing presses. Copy editors are freelance workers, paid a piece rate per book copy-edited. Typesetting is carried out by specialist agencies. Artwork and design may be outsourced. In some cases, sales are outsourced. The only core activities that are always kept in-house are editorial, marketing and accounting, and editorial is as much about workflow management and marketing is as much about product acquisition as they are about their official job titles.

A major commercial publisher’s genre imprint may be emitting a handful of books a month – but the volume may be considerably higher. Tor, the largest science fiction and fantasy publisher in the United States, publishes approximately 300 books per year. Ace, Daw, Del Rey, Orbit – other genre imprints – emit 50-150 titles per year. In-house staffing levels are low; Tor employs 50-60 people full-time, so the ratio of books published to workers is roughly one book per employee per 2 months (plus perhaps another two months’ work by external contractors).

The upshot is that major publishers today operate extremely streamlined production workflows, with a ratio of perhaps five authors (content creators) per production worker (or a 3:1 ratio if we include external contractors).

A handful of final notes bear repeating:

  • The cost of manufacturing a book is surprisingly low – around 50 US cents for a paperback, rising to $2-3 for a hardback.
  • The cost of manufacturing an e-book is surprisingly high – if a publisher requires DRM, the DRM provider may charge up to 10% of the suggested retail price of the e-book for the (dis)service.
  • Of the retail price of a book, the publisher receives roughly 30-50%. The lion’s share of the revenue – 40-70% of the gross price – goes to the retail supply chain.
  • In general, trade publishers aim to make a profit on each book published equal to the physical manufacturing costs plus the (fixed) production costs (i.e. the costs of editing, typesetting, marketing and so on).
  • If the author’s agent has done their job properly, the author’s profit (a royalty paid per copy sold) will be approximately the same as the publisher’s profit. (The publisher makes themselves useful to the author by organizing the production workflow, marketing and distributing the product, accounting for sales and giving the author an advance against royalties – a non-returnable loan secured against anticipated future sales – which they can notionally live on during the writing and production phase of the project.)

This is what publishers do. Topics I haven’t covered include: the contractual basis for licensing publication rights to a book, the sales channels and pricing structure through which trade books are sold, how this spatchcock mess of an industry evolved and what the prospects are for its future development.

Tactile reading?

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Will Louis Braille teach a new way of reading to the non-blind as well? What if we could read with our fingers? Read forms and shapes, feel temperature? What if words could be translated into impressions and understanding via a tactile experience? Will our fingers be able to change the direction of a story? Point it in another direction? Will we be ble to hold stries in ur hands, like small balls, and then watch them unravel?