Category: Big 6 publishers

Every Silver Lining Has a Cloud

Posted on by Marlene Harris | Author : | Big 6 publishers> ebooks> ebooks in libraries> libraries

And now libraries know that Random House is planning to use real silver for that lining.

The problem with Random House’s plan is that libraries don’t have all that much silver to give them  in this era of shrinking budgets.

On February 2, Random House, the only one of the “Big 6” publishers to provide ebooks to libraries without restrictions, made an announcement that they would continue their generous policy, but that there would be a price hike to deal with some of the issues surrounding permanent access to ebooks.

Most libraries probably expected the price to rise somewhere in the neighborhood of 50%. Maybe double.

The hammer fell March 1. Hammer as in auction hammer. Or the hammer of doom.

Yesterday, Random House tripled the prices of their ebooks. You read that right. An ebook that cost a library $15 on Monday, costs $45 today. The libraries are reeling from the sticker shock.

But what will this mean?

Library budgets are not growing, they are flat or shrinking. Public libraries are creatures of local government, and tax revenues at the local government level are still sucky. Let’s be blunt here.

If the per-title price rises significantly, as it has just done. and the budget stays flat, what will happen? In most cases, libraries will buy fewer titles with the same dollars. Some will rearrange their budgets as much as they can, but very, very few will be able to triple their ebook budgets.

What gets purchased in this scenario? High-demand titles get purchased, so the hold queues get filled. Or at least stay tamed. John Grisham does not lose many library sales out of this.

What doesn’t get purchased? Mid-list authors and debut authors, because there is very little money left in the budget with which to take a chance. And the next John Grisham and Nora Roberts and James Patterson have to come from somewhere. Some of them will come from self-publication Cinderella stories like Amanda Hocking, but some will still come from the mid-list. If they get the chance.

Unlike V.C. Andrews, most authors do not write from beyond the grave. What are the publishers planning to do when the current crop of bestselling juggernauts decide to retire?  The number one way that readers decide to purchase a book is because they liked the author’s last book. The trick seems to be to get people to read an author the first time. And with the demise of more and more bricks-and-mortar bookstores, that trick is getting harder all the time.

But protecting their authors is not what this move is about. Revenue numbers from 2011 are starting to come in from the major publishers, and the picture that emerges is very interesting. Sales of print are down, digital is up and profitability is up. Think about it for a minute. Digital books have no inventory, no print costs, and very low distribution costs. Most of the infrastructure to produce them already exists. For the publisher, they are almost pure profit.

Profitability is in no way a bad thing. It’s required for a business to remain in business. But let’s not pretend. Random House is charging more for their ebooks to libraries because Random House believes:

that pricing to libraries must account for the higher value of this institutional model, which permits e-books to be repeatedly circulated without limitation. The library e-book and the lending privileges it allows enables many more readers to enjoy that copy than a typical consumer copy. Therefore, Random House believes it has greater value, and should be priced accordingly.

In other words, because they can.

9 Rings, 8 Planets, 7 Dwarfs, 6 Publishers

Posted on by Marlene Harris | Author : | Big 6 publishers

List the names of the Seven Dwarfs. Go ahead, do it.

If you’re like most people, you have to tick the names off on your fingers, and you’ll forget one or two, usually either Bashful or Doc, because they don’t fit the “-py” naming convention the rest of them do.

What about those “Big 6” publishers everyone is talking about? Can you name them?

Even in the library world, in spite of all the recent discussion about how the Big 6 are deciding whether and how to lend ebooks to libraries, most people can’t. Not because they’re not important, but because the names aren’t the way we know them. We don’t think of the publisher all that much until one of them withdraws their ebooks from the library market, as Penguin did late last week.

What we know are their books. When there is a title that patrons want, and we can’t buy it, that’s when we are reminded who the “Big 6” are.

This is one librarian’s guide to the “Big 6” publishers, based on the titles they publish.

1. Hachette Book Group

We never see the name Hachette. The names we see are the names of their imprints, particularly Grand Central Publishing and Little, Brown and Company.

Hachette dropped out of the library market in 2009, so their backlist is still in library ebook catalogs, but not their new books.

Current titles on the New York Times bestseller list from Hachette that are not available:

 

 

 

 

 

2. HarperCollins

HarperCollins is the publisher with the famous, or infamous “Rule of 26”. Every copy purchased after they changed their licensing terms to libraries last year is only available for 26 checkouts, then the library needs to purchase another copy. But some availability is perhaps better than no availability.

In addition to the publishing imprints with the name “Harper” in the title, HarperCollins also includes the publisers William Morrow and Avon.

Here are a few examples of current NYT bestsellers that are affected by the 26-checkout limit:

 

 

 

 

 

3. Macmillan

Macmillan has always just said “no” to libraries.

But it isn’t just the name Macmillan, because the name Macmillan covers St. Martin’s Press. And Henry Holt, Farrar Straus & Giroux and Minotaur. Also Tor, a highly respected science fiction and fantasy publisher, as well as Feiwel & Friends, a children’s publisher.

There have been many, many Macmillan titles that libraries have never been able to purchase, including these current titles:

 

 

 

 

 

4. Penguin Group

Penguin has just exited the library ebook marketplace. As of this writing, any titles licensed by libraries before Penguin’s departure on February 10, 2012 will remain available, but no new content will be added.

Penguin Group includes Penguin, Putnam, Prentice-Hall and Puffin, a childrens’ publisher. But also Viking Press and Dutton, as well as Ace and Berkley, two well-known mass-market paperback publishers.

Because Penguin stopped licensing new content to libraries in November 2011, the impact of their departure has already been felt with the unavailability of these titles:

 

 

 

 

 

5. Random House

Random House represents the “good guys” in the library ebook market. They have recently reconfirmed their commitment to license ebooks to libraries, although they have stated that there will be a rise in the price. This is possibly the first time that a price increase has been treated as good news, but we live in interesting times.

Update 3/3/12: That price rise turned out to be 300%. Not so good. In fact, very bad. Very, very bad. See Every Silver Lining Has a Cloud for more details)

Random House is a not just Random House, but also Knopf Doubleday, Delacorte, Bantam, and Crown.

Because Random House has stuck with libraries, these are titles that we have been able to offer:

 

 

 

 

 

6. Simon and Schuster is the last of the “Big 6”. They have remained a steadfast naysayer when it comes to libraries.

This is unfortunate. Not only is the Simon and Schuster imprint big, but Scribner is one of their major imprints. Atheneum and Aladdin are among their Childrens’ houses, and Pocket is one of the big paperback presses.

These represent some of the current S&S titles that libraries would love to offer, but cannot:

 

 

 

 

 

The notion of the “Big 6” publishers is a somewhat abstract concept, but the books they publish are not. However, these types of designations are subject to change.

Once upon a time business used to refer to the “Big 8” accounting firms. Now it’s the “Big 4”.

There used to be nine planets, then Pluto got demoted. Now there are eight.

In Tolkien’s Lord of the Rings, the One Ring ruled them all, but nine rings were given to mortal men. Those men were once proud kings, but they tried to seize more power than they were capable of holding.

Those kings ignored the warnings they were given about the danger represented by the rings.

Just like the publishers are ignoring the statistics that “50% of all library users report purchasing books by an author they were introduced to in the library”.  Those publishers also cast aside warnings that compare the current state of the publishing industry to the state of Kodak during the rise of digital photography, as well as those that compare how much better new authors can do for themselves than with a “traditional publisher”. Traditional, read “big 6” publishers, are increasingly being cut out of the equation and their purpose in the supply chain is being questioned.

Those kings who picked up the nine rings–no one remembers their names.