Google Publishing Lawsuits Miss Key Point

It is interesting to watch the opposition authors and their agents are having to the Google settlement. There are lawsuits and threats of lawsuits despite this being a much vetted agreement by several leading industry groups representing nearly all interests.

Most don’t understand it, as they have not read the agreement’s hundreds of pages and then they still may not understand it. Frankly, many of us publishers in the industry don’t get it 100% either. We are all a bit ignorant and perhaps even a little scared at least with one aspect of Google, as I indicated in an earlier post.

Regardless of the ignorance, there seems to be one major point that all of these folks talking lawsuits seem to forget….books are becoming less relevant and content on the Internet is becoming more relevant every single day.

You would have to be wacko crazy to not want your books present on Google today. Tim O'Reilly said, “The enemy of authors isn't piracy, it's obscurity.” Google is one of the best ways for authors and their important messages to avoid obscurity and have an impact.

Oh…and authors will sell far more books with a presence on Google, which is what this is really all about any way…$$$$$.

The bottom line is that less people want their content in books. The model is changing and the old guard hates it; this is NOT what they signed up for. Most of them will not be the content creators, representatives, producers and distributors of the future.

What say you?

Wanted: Content Producers

Bob Edington and I spent several days this week in San Jose, California (aka The Silicon Valley) and Seattle, Washington. We met with some very smart people that have access to the people and companies driving the newest technologies and how those devices will impact content. The implications to Thomas Nelson will be substantial over time.

While there were many insights learned, two really stood out: Three Screens and Media Rich Content.

Three Screens
Many device and software makers are focused on the same thing - maximizing a media rich content experience on the three screens that are/will be wired to the web 24/7:

1. Computer
2. Smart Phone
3. Television

Content in the future must be portable and presentable on any device 24/7; in whatever format the consumer wants it. There will be a major proliferation of these devices in the next 18 months and we can expect to see prices drop tremendously. Compared to the new devices in development, the Kindle will seem like those large cream-colored cell phones of the 80s.

Media Rich Content
What does media rich content mean? - Content presentation formats seamlessly integrated appropriately for the three screens. These are some of the content presentation formats:

1. Text
2. Video
3. Audio
4. Web links (Blogs, communities, author sites)

Text will seem so boring; already is to our kids. Combining these content formats in different ways for different devices will allow the customer to consume the product the best way for them.

100% web enabled devices are going to have a huge impact on what we do. Content is quickly portable among the three screens. Oh, and wait till you see what Google can do with all of this in my next blog.

How many of our authors and publishers are thinking about making media rich products? We could continue to publish just text, but text-only will limit the audience and the message’s impact; especially with consumers under 30 years-old. I am not saying books will go away, but more and more there are more interesting ways to present the content.

As one very smart person said, book publishers need to start thinking more like content producers and less like book editors. What do you think?

Why XML Is Important

This blog is probably most interesting to the editorial folks at Thomas Nelson, because it will affect their jobs more than others’ jobs. Marketing will be the next most affected; XML will be an important tool to help them market our books. Finally, sales will love it, because XML will drive greater volume across multiple formats.

But you ask, “What is XML?” It’s Extensible Markup Language, of course. And then you ask a bit more irritated, “What is Extensible Markup Language and why do I care?” Here is why you care: XML allows us to create content once, and then nearly simultaneously turn that content into many different formats. We are more consumer-friendly. By launching all those formats, we sell more of our content more quickly.

Yep, we will be able to “tag” the content once, and then make a printed book, e-book, Iphone app, Ijournals and other formats that might be interesting to our changing consumer much more quickly. While there are many advantages to XML, here are three big advantages:

Multi-formats - Ability to produce multiple formats quickly, as indicated above.

Marketing – As online marketing continues to drive book awareness, XML allows for fast retrieval and delivery of relevant content to promote the book in a variety on online communities and marketing tools.

Productivity – Productivity gains come in several ways. For traditional books, Debbie Eicholtz finds that she cuts her department’s processing time on a typical trade book. It is too early to tell how much productivity can be gained, but it could be as much as 40-50% in some functions. Most companies consider an annual 4% productivity gain a good year, so even if the savings is a fraction of the 40-50% throughout the process it’s a good thing. That, however, is just the start. With XML, it is also much less expensive to create other formats.

So, how does XML provide all of these benefits? XML identifies all the content components in a manuscript. XML is “format agnostic”. That means it identifies the content’s components, and then can feed those components to the various tools that create other formats much more easily. Or, maybe we want to publish a custom or new book on Christian parenting. If our books are in XML, we could quickly create a new product based on searching the exsiting titles in Thomas Nelson's catalog for related content. There will be much we can do with XML. If you want to learn even more click on this blog for additional information.

Note that we have to “tag” the content to gain the advantages of XML. And, this is where there is some extra work for our editorial folks. Editors have to spend more time initially to prepare a title’s content. This is accomplished by simply working in the editor’s currently preferred native format of Microsoft Word. The editors apply more structure to the document. The additional structure allows the publishing process to easily separate the content from its presentation. This separation is important for simultaneously accommodating the different displays, for example, for various e-book formats.

We have had several successful pilots preparing our content in format-agnostic XML. Bryan Norman, Michael Stephens, Jennifer McNeil and McKenzie Howard have all participated in pilots for the company. It is additional work for them, but we are beginning to see the benefits. Many thanks to these pioneers for leading this important initiative.

The day is coming when we will be 100% XML on new titles. In addition, we have a company in India converting many of our backlist titles to XML as well. Why do this? Because more and more our consumers want our content in other formats besides the 600 year-old book. The consumer is always right.

Two Publishing Companies

“You have to run two publishing companies today; what publishing was and what publishing will be.”

That came from Dominique Raccah, CEO of Sourcebooks. I think she was quoting someone else; wish I knew so I could given them due credit. Others also discussed how their publishing companies are changing:

Marcus Leaver - President, Sterling Publishers
Josh Marwell - President of Sales, Harper Collins
Dave Thompson - VP of Sales Analysis, Random House

A key take-a-way from the publishers and Mike Shatzkin: Publishing’s future is about owning very distinct narrow verticals, which can be described as very specific BISACs. If you do craft books, for example, you may be able to own the crochet vertical but someone else may own the beaded jewelry vertical.

To “own” the vertical you must own the community; the place where the crochet community can meet to share ideas, interact with the crochet leaders and acquire the leaders’ content in what ever format the consumer wants it: e-book, iapps, online, audio, software, podcast and books.

The successful “authors” will be those that can relate to the community, regardless of format. In many cases, it will be the authors that know how and have the desire to utilize social networking.

If you stop and think about that for a moment, the implications of “going vertical” are huge relative to today’s business model. I think, however, Thomas Nelson is already starting to adapt in some ways to this emerging business model.

To make it most relevant to my Nelson colleagues, consider how the presenters outlined how this might change your “traditional” publishing jobs.

Editorial

1. Product development cycles are going from 12-18 months to 2-6 months. In today’s world, it’s much easier to become irrelevant quickly; can’t wait 12 months for a book.


2. Acquisition editors need to look for authors that not only have great content, but an affinity for building a community with their audience; especially online.


3. Editors are not making books; but building content in format neutral XML. Sourcebooks has gone 100% XML.


4. More data analysis on what to publish; balancing it with the art of publishing.


5. Publishing fewer books; about 25% seems to be the reduction this year.


6. Editors are more engaged in the social networking aspect of the content, blurring the lines between marketing and editorial.

Marketing & Sales
I suspect marketing and sales becomes much more vertical specific. Nelson has already started to do that by grouping publishing, marketing and sales around groups of BISACs.

Marketing and sales are adjusting resource allocation. The change in focus can be seen in where these publishers say they are and are not spending their money.

Generally, this is where they are not spending money or spending much less:

1. Catalogs – Going to web-based e-catalogs with much more functionality and flexibility. This makes sense when the product development cycle is now just a few months. Print catalogs have been error-filled for decades, and it will only be worse with a shorter product development cycle time. It is interesting what HarperCollins is doing with e-catalogs to help buyers.
   
2. Trade shows – You just don’t need them with today’s consolidated, shrinking market and communication possibilities. Only foreign rights may need them, and most publishers are even questioning that.


3. Sales Conferences – Most going to Web Ex. Just too costly to fly everyone in from the far reaches. If publishers are flying reps in, they are only doing it once per year.


4. Author tours – Biggest waste of money. We all knew it, and now the community is online any way. Author tours are being replaced with webinars that can be measured to a direct sales impact. Webinars work, especially when the vertical community knows about them.


5. Traditional print, radio and TV media – These are dead. Random House’s survey confirmed other organizations’ surveys that these are ineffective medias for creating book awareness.


6. Print galleys

So, where is money being spent?

1. Holistic TITLE/CONTENT SPECIFIC vertical marketing plans that focus on social networks, community building and store placement. Sterling increased per title marketing spend by 66% in the past two years by doing away with so much stuff that no longer matters.
2. Digital and online medias
3. Increasing travel budgets in two ways: (a) Editors spending more time out with consumers, again blurring the marketing line. Editors have been too insular for two long and their historical format is becoming less relevant. (b) Sales people visiting accounts more often.
4. Strategically providing more free content
5. Partnering with related vertical sites and online communities
6. Lot’s of young people tweeting on key brands
7. e-galleys

Will all of this change happen over night? Nope. As Dominique Raccah said, we will be running two different companies at the same time. My hunch is that owning narrow verticals will change how publishers are structured; some employees will adapt and others will have a much harder time. Perhaps more on that in a future blog.

What do you think?

Dear fellow Thomas Nelson employees,

I need your help. First, however, I have a confession.

I’ve been a digital arm chair quarterback with a flurry of ideas about what we need to do digitally as a company. It’s nice being an arm chair quarterback. You only have 10% of the information, but in your mind make the right call nearly every time. There are no stats to prove you wrong.

Then, I was yanked out of my very comfortable Lazy Boy and placed on the field. I have 300 pound tackles and jumpy linebackers starring me down and no remote control to change the channel. I need your help!!

Thomas Nelson recently provided me with a new responsibility for our company’s digital strategy. Along with Bob Edington, his digital team, Mike Hyatt and my colleagues at Thomas Nelson, we will define and execute our digital strategy going forward. What an important and exciting challenge. I am honored to be a part of it.

So, how can you help? I want to hear your thoughts on digital.

I know that there are a lot of ideas out there from experienced quarterbacks and maybe even other arm chair quarterbacks like myself. If you want to share your thoughts or ideas with me, please send an e-mail to my assistant, Janet Sanders, at jsanders@thomasnelson.com.

Janet will set up a time for us to meet. All I ask is that you outline your thoughts and send them in an e-mail to Janet and me prior to our meeting. I will listen.

This is how our digital strategy will unfold:

Step 1: Listen to the digital team. My first step was to hear the digital team’s thoughts and learn from them. I will be spending much more time with them. This is a very dedicated team that has tremendous passion for their work and contribution they are making to Nelson’s mission. It is amazing to see all they do; they inspire me.

Step 2: Listen to others internally. That’s where you come in and why I am writing this.

Step 3: Listen to the world class leaders and companies outside of Nelson. We will find the best thinkers and build on their knowledge for our strategy.

Step 4: Build an executable strategy.

Step 5: Execute the strategy and continually experiment and tweak the strategy. Change will be constant. We will celebrate and build on the successes. We will learn from the failures.

I will be blogging on what I learn and the strategy as it forms. This will clarify my thinking, communicate what is being learned and provide a forum for others’ feedback. Feel free to challenge my learnings and thinkings.

I invite you to be a part of the conversation.