Digital Disruption: Change Keeps Happening

[fjtorres]

Hugh Howey reflects on further effects of digital disruption on publishing. In this case, on print:

http://www.hughhowey.com/change-keeps-happening/

The revolution in the publishing industry has barely begun. That’s the takeaway this week, as a print-on-demand book becomes a #1 bestseller and the Big 5 move into Kindle Unlimited.

First, the children’s book that should be waking up major publishers in a major way. It’s called The Rabbit Who Wants to Fall Asleep, and it was written and self-published by Carl-Johan Ehrlin. If you have kids, you should stop reading this and shoot over to Amazon right now to buy a copy. Using the psychology of suggestion and sleep-inducing language patterns, parents all over the world are discovering the book’s seemingly magical ability to zonk their kids out. No wonder the book has taken off.

When I toured the CreateSpace printing facility in 2011, I knew something crazy was happening. It wasn’t just the print process, which had been around a while. It was the way this printing facility was integrated into the Amazon retail machine, and the way CreateSpace maintained the startup vibe, able to pivot on a dime. Things were changing at the facility every day, even as freshly printed books zipped by on steel rollers. The paper stock was improving; the trim size options expanding; matte covers were being introduced; the ink used for the covers was improving; and even the way the books were packaged and handled was being tweaked. In the year it might take for a Big 5 print book to get to market, the POD industry will have revolutionized a dozen important techniques.
The main facility in Charleston, South Carolina is only one small piece of the puzzle. Those large Amazon distribution centers all across the United States (and in the UK) have similar print networks. And Amazon can call on its partnership with Ingram to handle some of the printing load as well. This means book production, which had moved to China, has been brought home by Ingram and Amazon. The major publishers and the New York Times do not like this one bit. The Big 5 have shunned POD as a backup solution, refusing to give Amazon and Ingram PDFs so that these two companies can handle supply when that supply is outstripped by demand. This has been shameful when books attempt to go viral but can’t because of how slowly the Big 5 print and ship their wares.

... we took the dream deal because we were getting the terms we’d asked for back before we thought POD could break out. Four years later, my POD sales blow away my trad-pubbed print sales. I could live off of self-pubbed print. That’s the reality that’s around the corner. Publishers thought they had their trenches dug in, and now here comes a volley from their flanks.

Much more at the source.

As to the book that is highlighting the power of POD:

http://www.publishersweekly.com/pw/b...b030-304479065

The Stockholm-based Salomonsson Agency signed Forssén Ehrlin last week and world English rights to the book (along with two sequels) are rumored to have be bought by Random House in a seven-figure deal. A spokesperson for the publisher would not comment on the acquisition.

No one associated with the book has explained why sales of Rabbit skyrocketed so suddenly, sending the book to the top of Amazon's U.K. print list. The author has largely avoided media requests since speaking with the Daily Mail, which first reported on the book on August 14.

It also highlights some of the other ways indie author/publishers can succeed.

[Cinisajoy]

You made me read this. I am allergic to Hugh Howey. Now I am itchy.
Seriously, great article. I just cannot get into Hugh's books.

[eschwartz]

Wow. Just wow.
Simon and Schuster joined Kindle Unlimited!!!!!

http://www.amazon.com/Transfer-Power.../dp/B002C7Z56I
Nice find, Mr. Howey.
I guess it was inevitable after all.


Also, nice to hear that POD has overtaken tradpub printing in at least one (or two) cases. Hopefully we will see a lot more growth.

[Fbone]

Originally Posted by eschwartz

Wow. Just wow.
Simon and Schuster joined Kindle Unlimited!!!!!

http://www.amazon.com/Transfer-Power.../dp/B002C7Z56I
Nice find, Mr. Howey.
I guess it was inevitable after all.

With a page count listed as 673, Flynn's book probably has a KENPC of 1300 which would net the publisher about $7.50. This is more than a sale (70% of $8.99 is $6.29) plus it seems to be non-exclusive. I see it's still for sale at Google.

Edit: It's also possible the rights were returned to Flynn's estate and they are re-releasing the books themselves.

[fjtorres]

I wouldn't (ahem) read too much into two S&S titles in KU just yet.
S&S might be testing the payout model compared to...other subscription services that might be...fading.
Or Amazon might be testing the performance of tradpub titles vs indies in KU.

Remember, KU launched with a handful of non-exclusive tradpub titles.

The bigger story to me is POD coming of age even in a relatively small category.
And the trajectory the author and project took: in the time other projects were riding the query-go-round he was raking in sales and word of mouth until the book hit critical mass and went viral.

Instead of going tradpub the old-fashioned way, he went tradpub on his own term$$$$$$$.

[fjtorres]

BTW, in the comments, Howey dropped this little nugget:

I wouldn’t sign with a publisher for the next few years, not until royalties on digital are 50% of net and terms of license are a hard 5-7 years.
Those changes are coming.
That’s why anyone doing a deal during this transition is making a huge mistake.
It’s also why publishers are gleefully doing 10+ book deals with any big name they can, so they can lock down the 25% of net and terms of copyright.
Those authors are getting screwed today by tomorrow’s standards.

Noting that Howey has an agent--and one of the best in the business--and is plugged in to the winds of change, that is well.... very interesting.

[eschwartz]

Originally Posted by Fbone

With a page count listed as 673, Flynn's book probably has a KENPC of 1300 which would net the publisher about $7.50. This is more than a sale (70% of $8.99 is $6.29) plus it seems to be non-exclusive. I see it's still for sale at Google.

Edit: It's also possible the rights were returned to Flynn's estate and they are re-releasing the books themselves.

I specifically checked the publisher, and unless Amazon is lying, it is being sold by Simon and Schuster.

[eschwartz]

Originally Posted by fjtorres

I wouldn't (ahem) read too much into two S&S titles in KU just yet.
S&S might be testing the payout model compared to...other subscription services that might be...fading.
Or Amazon might be testing the performance of tradpub titles vs indies in KU.

Remember, KU launched with a handful of non-exclusive tradpub titles.

The bigger story to me is POD coming of age even in a relatively small category.
And the trajectory the author and project took: in the time other projects were riding the query-go-round he was raking in sales and word of mouth until the book hit critical mass and went viral.

Instead of going tradpub the old-fashioned way, he went tradpub on his own term$$$$$$$.

Oh, I agree POD is the bigger news.

I just think a BWM publisher recognizing the value of KU is the more surprising news.



POD is exactly the kind of thing publishing needs, it works amazingly well, and the people who have grown it are the people who have always wanted to. It is a game changer.
The news aspect is the fact that the day has finally arrived.

As for S&S experimenting with KU, it has only one interesting thing about it, and that is the amusement value.
But it does pretty well on that, IMHO.

[Fbone]

Originally Posted by eschwartz

I specifically checked the publisher, and unless Amazon is lying, it is being sold by Simon and Schuster.

It was initially suggested by Howey and others. I only threw it out there as a possibility. It could also be a glitch or book info not updated. It wouldn't be the first time this kind of thing has happened.

I noticed that the next title in the series will be released in Oct 2015. Maybe it is part of a marketing campaign. If that's the case, then Amazon only has to pay the regular royalty ($8.99 minus commission) instead of the KENPC.

[Cinisajoy]

Originally Posted by Fbone

It was initially suggested by Howey and others. I only threw it out there as a possibility. It could also be a glitch or book info not updated. It wouldn't be the first time this kind of thing has happened.

I noticed that the next title in the series will be released in Oct 2015. Maybe it is part of a marketing campaign. If that's the case, then Amazon only has to pay the regular royalty ($8.99 minus commission) instead of the KENPC.

Actually on KU and big publishers, we don't know what the contract terms are. I would bet money that contract also has a non-disclosure clause.
We only know the clause for Kindle Direct Publishing Select. And even then, we don't know the cutoffs for the All-star bonuses.

[mitford13]

I did think the KU addition was a glitch, but now there's a rotating KU ad on the Kindle Book page touting "Best-selling Titles by Vince Flynn."

[bandorchod]

Originally Posted by Cinisajoy

You made me read this. I am allergic to Hugh Howey. Now I am itchy.
Seriously, great article. I just cannot get into Hugh's books.

Me too, a huge fan of Hugh. Thanks OP for sharing this with us

[gmw]

Originally Posted by fjtorres

[...] The bigger story to me is POD coming of age even in a relatively small category. [...]

I'm not sure it is news as such. I mean Hugh says his visit to CreateSpace was 2011. If anything, I find it surprising that POD is not simply taken for granted by all publishers already.

I started using POD in 2012. The quality of the output from the Lightning Source printers here in Australia has been at least as good as most I've seen coming from traditional publishing, and better than many. Of course I'm not in Hugh's league in terms of sales, but it was an easy choice; most of the people I know still read print books by preference, and it costs very little to make your book available for POD.

[fjtorres]

Originally Posted by gmw

I'm not sure it is news as such. I mean Hugh says his visit to CreateSpace was 2011. If anything, I find it surprising that POD is not simply taken for granted by all publishers already.

I started using POD in 2012. The quality of the output from the Lightning Source printers here in Australia has been at least as good as most I've seen coming from traditional publishing, and better than many. Of course I'm not in Hugh's league in terms of sales, but it was an easy choice; most of the people I know still read print books by preference, and it costs very little to make your book available for POD.

There are two sides to the pbook story: printing, which as you said has been good for years, and distribution, upon which tradpub has built their empires.
Createspace distribution through Amazon has been great but until last year, Ingram and B&T listings treated POD different from tradpub pbooks. This kept them out of most B&M bookstores. When they changed their listings last year, they opened the door for POD titles to compete on equal terms with tradpub titles and so when THE RABBIT... went viral, it had full access to the non-Amazon side of the market.
That is how it got to 29,000 copies a week without front table payola or tradpub "nurturing".

That is why it is significant.
There is still a ways to go before an indie POD title hits the top of the USA TODAY overall list but that day is coming.
Eventually it won't be news at all when it happens, but that day's not here yet.

[gmw]

I am not sure what you mean by "treated POD different" and "kept them out of most B&M bookstores", or how any change last year "opened the door for POD titles". You appear to be referring to something other than the articles referenced in the OP.

My POD titles have been available for ordering from B&M stores since they were first released, and have definitely been present in the online facet of those stores. But being available is different to actually being stocked on shelves for people to grab as they walk by. B&M will never stock everything that's available via POD, that's part of the point of POD. If there is a change happening now, it may simply be that more B&M stores are taking notice of the popularity of some POD titles and actively stocking them, where they had not bothered in the past. The publicised success of "The Rabbit ..." may help this to happen more often.