Showing posts with label Publishing. Show all posts
Showing posts with label Publishing. Show all posts

Thursday, January 3, 2013

Bits: Publishing Without Perishing

In the old days, life for small publishers was a hassle. The economics were such that copies got dramatically cheaper when printed in bulk, but then the books had to be stored, which was expensive. Finding an audience was the hardest part; some independent presses took years or even decades to sell out a modest print run.

Now books can be efficiently printed in small quantities, like one copy. Amazon, meanwhile, is happy to do the job of fulfilling orders. The stage is set to allow everyone to become his own Alfred Knopf.

James Morrison, a 36-year-old editor and graphic designer in Adelaide, Australia, is an old-fashioned book enthusiast, with around 10,000 books in his personal library. In 2007 he began a blog, Caustic Cover Critic: One Man’s Endless Ranting About Book Design, which showcases and evaluates new jackets. Like any inveterate reader, Mr. Morrison would stumble across obscure books practically begging to be reprinted. For instance, he read an account by the historian David S. Reynolds of “the largest monster in antebellum literature,” which was “the kraken depicted in Eugene Batchelder’s ‘Romance of the Sea-Serpent, or The Ichthyosaurus,’ a bizarre narrative poem about a sea serpent that terrorizes the coast of Massachusetts, destroys a huge ship in mid-ocean, repasts on human remains gruesomely with sharks and whales, attends a Harvard commencement (where he has been asked to speak), [and] shocks partygoers by appearing at a Newport ball.”

Mr. Morrison concluded that “the audience for an 1850 book-length Monty Python-style doggerel poem about a socially aspirant sea serpent is probably just me,” but how could he be sure? The Internet is all about weaving people together with even stranger tastes.

The critic has published about a dozen out-of-copyright volumes using Lulu, which does the printing, and Amazon, which does the selling and shipping. He dubbed his venture Whisky Priest in homage to Graham Greene, himself an enthusiast of uncommon and unjustly forgotten literary efforts. On the Whisky Priest list are the Batchelder book; a collection by Edith Wharton; “Artists’ Wives,” Alphonse Daudet’s stories about the war between the sexes; and Storm Jameson’s “In the Second Year,” a prophetic look at fascism.

At a moment when predictions of the demise of print are omnipresent, Whisky Priest seemed an indication that the future might be more complex than anticipated. Mr. Morrison answered some questions by email. What follows is an edited extract.

Q. Will the ultimate pleasure for lovers of the printed book be your own editions of your favorite out-of-copyright books?

A. For me it was a matter of there being books in the public domain that I wanted to read which were either not available as physical books, or were available only in staggeringly ugly and expensive editions. I originally intended to just design a cover I liked and then print a copy for myself to read, but it turned out to be an almost negligible amount of extra effort to make them available for others to buy as well, so I thought I might as well do so. It would be as easy to produce editions of things like “Moby-Dick” or “Pride and Prejudice,” but there are already hundreds of versions of those, some with fantastic cover designs, so it would be a bit pointless.

Q. How easy would it be for others to become a publisher the way you did?

A. It’s very easy indeed, assuming you have some basic layout or design skills. Even without those you could still do it, though the book would probably not be so appealing. I’d certainly recommend it for people who, unsatisfied with the available editions, wanted a book they enjoyed having around the house. I wouldn’t recommend it as a way of making money. I’ve spent slightly more on proof copies, etc., than I’ve earned through royalties. Partly this is because I try to set the book prices as low as possible (I make about $1 a book through Amazon, and a little more if someone buys the books direct from Lulu), since they’re: a) books usually available free or cheaply in electronic form, and b) Print on Demand books, which are not quite as nice to hold and handle as conventionally published books, so it seems unfair to charge more for them.

Q. I was struck by how little capital you needed.

A. Lulu and Amazon take a cut of each copy sold but require no up-front listing fees or anything like that. The only money I spend is on ordering proof copies for myself, which is the production cost without anything else added on — about $8 for one recent title. To make a book available on Amazon, you need to order at least one physical copy yourself, check it, and then let Lulu know it’s OK to go ahead and list it. If you just wanted to list on Lulu’s own site, you don’t even need to do that — you could upload a thousand different books and make them available for sale via the Lulu site without ever spending a cent (though you’d never know what they looked like as physical books, of course).

Q. How have the books done?

A. Not vast numbers. The most popular has sold 27 copies. That, a little surprisingly, is A. P. Herbert’s “The Secret Battle”: it’s a very good novel by a once-popular and now nearly forgotten English writer, based on his World War I experiences, and about the way the English army would execute its own men for cowardice. Close behind are “Transfiguration,” a pair of novellas and some nonfiction by the great Austrian writer and suicide Stefan Zweig, and “The Dangerous Age,” a classic feminist Danish novella by Karin MichaƎlis. But then there are some which have done surprisingly poorly. F. Scott Fitzgerald’s play “The Vegetable,” the only edition currently in print, has sold only two copies. But then I can’t sell that in the U.S., where it’s still in copyright, and that’s probably where the main market for a parody on Warren Harding’s presidency is likely to be found. Thinking over that sentence, maybe it’s a surprise I’ve sold any copies at all.

Q. Who sets the prices?

A. The pricing is under my control, to a point. Basically, Lulu tells you the absolute minimum you can charge, which covers the production costs and their profit, and then you add to that whatever you want. For example, the Stefan Zweig production cost is $8.10 and then Lulu add a little to that to create the absolute lowest price, which is the lowest I could charge and still make them a little profit (they take 20 percent of any profit on physical books, or 10 percent for ebooks) — in this case around $9. I sell it for $11.95, from which Amazon then takes a little over $3 (some of this may also go to Lulu or some other third party — Amazon doesn’t disclose that), and I get 69 cents. If someone decided to buy the book from Lulu, which is less likely since they have to pay for postage and so on, I make $3.08 (and Lulu gets 77 cents); however, almost every sale comes via Amazon. But I could set the price at anything above that base cost of $8.10, like $25 or even $250, if I thought anyone was mad enough to pay it, and most of that inflated cost would come to me.

Q. How much have you invested in this overall and how much has it brought you?

A. I’ve only earned a few hundred dollars over two years, and have probably spent about $200 to do that, so I’m slightly ahead, but it’s no way to make a living. Partly this is my own fault — I have no interest in marketing or networking, so I just publish the books and let them do their thing.

Q. Are others doing this?

A. To my surprise, I don’t know of anyone doing things in quite the same way as I am. Most publishers of Print on Demand classics seem to operate on a different scale: they make thousands of titles available, usually with identical covers and at eye-watering prices, or else they just sell them as ebooks. I suspect it’s a matter of poor timing, technologically: the ability to print a whole physical book cheaply but at a decent quality has become available to everyone just at the same time as ebooks have started wreaking havoc with the market. It’s a niche thing, I suspect, but I’m happy enough in that niche.

Q. I think this is just beginning. I envision a future where we will all have competing Stefan Zweig lines.

A. I hope this is the way it pans out.

Sunday, December 23, 2012

Media Decoder Blog: Murdoch Publishing Wing Shows Loss of $2.1 Billion

Potential investors got a glimpse of the financial challenges that Rupert Murdoch’s soon-to-be spun-off publishing company could face. In a regulatory filing, News Corporation said its publishing businesses lost $2.1 billion in the fiscal year that ended June 30.

The disclosure was filed to the Securities and Exchange Commission on Friday, as the media conglomerate prepares to split its publishing assets from its more lucrative entertainment segments. The new, stand-alone company will retain the name News Corporation and include newspapers like The Wall Street Journal, The New York Post and The Times of London; the HarperCollins book publisher; and a handful of fast-growing Australian pay-television assets.

The entertainment company, which will be called the Fox Group, will include 20th Century Fox studios, Fox Broadcasting and cable channels like Fox News and FX. That company has annual revenue of more than $23 billion.

The losses in the publishing business came largely from $2.8 billion in impairment and restructuring charges, mostly related to the closure of the tabloid News of the World in Britain, which was shut in July 2011 after revelations of widespread phone-hacking. Revenue at the publishing business fell to $8.65 billion in fiscal year 2012, from $9.1 billion a year earlier.

The S.E.C. Form 10 filing moves the company closer toward the split and gives shareholders a better idea of what the stand-alone publishing company, called the “New News Corporation” in the report, will look like financially when the spinoff is completed in mid-2013.

The company warned investors that “newspaper and advertising circulation revenues have been declining, reflecting general trends in the newspaper industry.” In addition to industrywide headwinds, the company said illegal activity at its British newspapers “could damage the New News Corporation’s reputation and might impair its ability to conduct its business.”

As additional civil lawsuits related to phone hacking are filed in Britain, News Corporation said it “is not able to predict the ultimate outcome or cost associated with these investigations.”

The fallout from the phone-hacking scandal, and an investor base that increasingly expressed disapproval of the newspaper business, prompted Mr. Murdoch to announce the split of his $60 billion media conglomerate in June.

“The filing of the Form 10 is another important step forward in the evolution of our company and in the establishment of two independent global leaders in Fox Group and the new News Corporation,” said Mr. Murdoch, who serves as chairman and chief executive of the combined News Corporation.

Earlier this month Mr. Murdoch said Robert Thomson, a confidant and the former managing editor at The Wall Street Journal, would serve as chief executive of the new News Corporation. Mr. Murdoch will continue to serve as chairman of both companies and chief executive of the Fox Group.

In his new role Mr. Thomson, 51, will have a base salary of $2 million with a performance-based $2 million bonus, according to the filing.

In addition to hundreds of newspapers on several continents, the publishing company will also include Australia’s RealEstate.com.au; Fox Sports in Australia; 50 percent of Foxtel, the No. 1 pay-TV provider in Australia; and 44 percent of Sky Network Television in New Zealand. Analysts expect those businesses to drive profits and support some of the weaker newspapers.

Fox Sports had revenue of $3.6 billion and Foxtel of $2.5 billion in 2012. Those results were not included in the publishing company’s 2012 earnings, but will contribute to the new company’s bottom line.

Thursday, December 6, 2012

Media Decoder Blog: Robert Thomson to Be Chief of News Corporation's New Publishing Company

Robert ThomsonMark Lennihan/Associated Press Robert Thomson

2:53 p.m. | Updated

Robert Thomson, the top editor at The Wall Street Journal and Dow Jones and a confidante of News Corporation’s chairman and chief executive, Rupert Murdoch, is expected to be named chief executive of the media conglomerate’s newly spun-off publishing company.

Mr. Thomson will run the separate, publicly traded company, which will include The Journal, The New York Post, HarperCollins and a suite of lucrative television assets in Australia. The announcement is expected as early as Monday, according to a person briefed on the company’s decision-making.

Mr. Thomson took over at The Journal in 2008, soon after News Corporation completed its $5.6 billion acquisition of Dow Jones. He serves as managing editor of The Journal and editor in chief of Dow Jones, which also publishes Barron’s and the Dow Jones Newswires.

Gerard Baker, a deputy managing editor at the Journal, will take over for Mr. Thomson at The Journal, said the person briefed on the decisions, who could not discuss private conversations publicly.

At The Journal, Mr. Baker has overseen Washington and political coverage, among other topics. He previously wrote a neoconservative column for The Times of London, also owned by News Corporation, and served as Washington bureau chief at The Financial Times, where Mr. Thomson was the top editor of the United States edition.

Mr. Thomson began his career at News Corporation in 1979 as a reporter at The Herald in Melbourne, Australia. He and Mr. Murdoch are both Australian, and have taken family vacations together. Mr. Murdoch is often seen in Mr. Thomson’s office in the Journal newsroom.

In his tenure at The Journal, Mr. Thomson increased circulation by broadening the newspaper’s focus beyond business to include more general-interest and lifestyle news. He oversaw an expansion of the newsroom budget, added photographs to go along with the paper’s signature dot drawings and introduced a local New York section.

Mr. Murdoch will serve as chairman of the publishing company and remain chief executive of the entertainment company, which will include News Corporation’s movie studio, Fox Broadcasting and cable channels like FX and Fox News.

News Corporation plans to complete its split, which was announced in June, in mid-2013. Additional announcements about the publishing company’s board and cash structure are expected before the end of the year.

A News Corporation spokeswoman declined to comment. Reuters was the first to report on the expected appointments.

Sunday, November 18, 2012

Media Decoder Blog: Publishing Loss Weighs on Martha Stewart Earnings

Martha Stewart Living Omnimedia announced a big third-quarter loss on Friday morning, driven largely by the poor performance of its publishing unit. The net loss was $50.8 million, or 85 cents a share, compared with $9.7 million, or 36 cents a share, in the same period the year before.

“Our performance in the quarter was in line with our expectations but not our ambitions for the company,” Lisa Gersh, the company’s president and chief executive, said in a statement.

The company’s three-pronged business, which depends on revenue from publishing, broadcasting and merchandising, benefited from a modest rise in revenue from its merchandising operation. But they were not enough to compensate for the losses incurred by its magazines. Revenue in the publishing division fell to $27.6 million, from $33.2 million in the same period last year, and operating losses totaled $51.3 million, including a $44.3 million noncash write-down.

The announcement capped a rough week for the company, which lost its power at its Manhattan offices and had to use phone and e-mail to inform the staff about layoffs and cutbacks at two of its four magazines. On Thursday afternoon, the company said it would lay off about 70 of its 600 employees. It also announced it would cut back publishing the magazine Everyday Food from 10 issues to five and no longer sell it as a standalone magazine. It is becoming a supplement that will be sold with Martha Stewart Living.

The company is also selling Whole Living Magazine. If it does not find a buyer, the company will stop printing Whole Living by the year’s end.

Michael Kupinski, director of research for Noble Financial Capital Markets, said he was more optimistic because he had a clearer perspective of the company since “they’ve gotten rid of so many money-losing assets.”

He added: “The loss came in a little bit better that I was anticipating. To me this is probably one of the best opportunities to take a good look at Martha Stewart.”