Bad news for publishers: You created the problem
To understand how we got here, it’s important to keep in mind that publishers created the “giant” they now fear and revile. They made two major strategic mistakes:
- Mistake #1: They ceded the customer relationship to retailers. Readers/customers had a relationship with bookstores, but not the publisher.
- Mistake #2: Publishers used Amazon as leverage in their war against powerful retailers. Now there’s one retailer in the book world. Oops.
The Shift to Digital has two advantages: bi-directional relationships at scale, and a long-tail sales model. Savvy authors are using the former, and Amazon is using the latter. Publishers are using neither. Most are stuck in a an industrial-era philosophy rooted in the economics of physical products.
The issue with this, for publishers, is that two big things that they used to control are now gone. It used to be incredibly costly and difficult to 1) get a book produced, and 2) to get it distributed. Digital destroyed both difficulties. But publishers still act as if they own both, charging authors for services they don’t really provide anymore. This will rebalance in time, because authors will have more power as they each build their own “platform.”
Amazon has already amassed a huge amount of leverage, and authors are the next to make their claim in the power shift. There’s about to be a massive land grab by authors who think like entrepreneurs. These authors are running their own businesses, finding their own customers, and then keeping them feeling happy and connected.
This arrangement with entrepreneurial authors could be great for publishers. What publisher wouldn’t want a well-connected author with a ready-made audience? As a publisher, there’s still a lot of value that you can add along the way, and a lot of money to be made from the curation and propagation of creative works. You just can’t keep wishing for things to stay the same, because they won’t. Stand up, take a position, and make some hard decisions. It will be better for the whole ecosystem.
Good news for publishers: You have the power to fix it
It’s time for publishers to truly embrace digital, and I don’t mean in the simple ways they are using it now. I mean a complete rethinking from top to bottom. With a 17-year background in publishing, I don’t underestimate this task. It’s incredibly difficult—like changing the tires on a moving vehicle. But “too difficult” is not a good enough excuse. Characterizing Amazon as evil is too simple, and misses the point. Same with characterizing publishers as the victims. In reality, what we have is a fundamental difference in philosophy. Truly a clash of new vs. old:
- Amazon: Long-Tail Strategy
- Publishers: Tentpole Tendency.
One of the largest advantages of the Shift to Digital is the long tail. Content lasts longer. With the exception of some non-fiction genres (e.g. journalistic, timely works), the content doesn’t know that it’s old. Why don’t publishers embrace this more? They have a wealth of content in the backlist, but they think that they can’t sell it to readers once it’s off the front list. This is a fundamental flaw in their thinking. What’s worse is that the answer is right under their nose. They each have plenty of in-house examples of books that enjoy a really long half-life. There’s no reason they couldn’t get more out of each property, even after the first 6-12 months post-publication.
Why don’t they do it, then? It’s a matter of resources, right? We don’t have the time. We can’t reach an audience. Excuses, all inexcusable.
In the void created, authors have stepped up and are starting to learn how to do their own marketing. Not traditional, spray-and-pray awareness campaigns, but creating real connections with real people over real content. Directly, no middleman. It’s great to see.
This is what I care about—how it affects authors. When authors do well, publishers do well, too. Authors need to get better at using the New Rules, and so do publishers. They can each get better at supporting one another in learning how to embrace the New Rules. Making connections is about the “how,” not the “what.” The nuances count. Getting a Twitter account and spraying “buy my book” messages all over the Internet is a 20th century advertising mindset—and it’s not going to work. Anyone can learn how to “do” marketing in the new world. And no, it doesn’t have to take over your life. But there’s no question that it’s your responsibility—you can’t leave it to anyone else.
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For more about Content Strategy for Authors, please see the “For Authors” section of this site.
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Sources: Amazon, a Friendly Giant as Long as It’s Fed by David Streitfeld, published 7/12/14 on NYTimes.com
and Why Amazon Terrifies Publishers: Let’s Look At Royalty Statements by George Anders, published 7/21/14 on Forbes.com
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Photo credit: “amazon danbo” by Zhao ! is licensed under CC BY 2.0.