distribution

The Ditchwalk Print-On-Demand Roadmap

August 25, 2010 By Mark 14 Comments

As regular readers know, I put a collection of short stories on Smashwords four months ago, where it can be sampled, purchased and downloaded in various e-book formats. I now want to make a print-on-demand (POD) version of that content available, so people can order a physical copy of the book. (This post rejoins a conversation I had with myself — and many helpful commenters — shortly after making the e-book available. More here and here.)

Paranoid Overview
There are a lot of companies offering print-on-demand publishing to independent authors. I also know there are a lot of disreputable companies — known variously as vanity or subsidy publishers — whose business model is predicated on charging abusive up-front fees for middling or nonexistent services. Industry propaganda against fee-for-service publishing says that money should flow to the author, not from the author, but as I noted late last year that propaganda has always been a self-serving fraud. Authors can be ripped off by anyone.

For any independent author, controlling costs and maximizing each dollar spent is critical. Philosophically I don’t care whether costs are up-front, fee-for-service charges or back-end participation. What matters is getting the most service or product for my money. As a practical matter, however, minimizing out-of-pocket costs is important because it preserves operating capital. The longer I can keep my head above water the longer I can write, and the longer I can write the more chance I have of seeing a profit. [ Read more ]

Format Freaking

November 18, 2009 By Mark Leave a Comment

Whether you know a little or a lot about the interactive entertainment industry, it’s worth reading this (short) article if only to see how pervasive the current uncertainty is in all content-driven mediums. You might think the software business would be less at-risk of the internet as a distribution mechanism, or to concerns about formats, but you’d be wrong.

The article is also hilarious in demonstrating the kind of outdated reference that suggests key executives in all content-driven industries are missing the bigger picture:

For example, [Yoichi Wada, CEO of Square Enix] said, films are generally two hours long or less; television is a half hour or an hour, and runs in a series regularly for several months; and a newspaper is delivered in roughly similar size every morning.

Those mediums could have evolved in very different ways, but at a certain point, they standardized, and consumers know roughly what to expect when they experience one.

Newspapers? Delivered? Wha….?

Note, too, the complete omission of reference to the book industry, which is going through its own format freakout. Each industry will evolve in its own way, but if you believe that form(at) follows function (and I do), then all of these format issues are really just an(other) result of the inevitable move to internet distribution.

— Mark Barrett

EA Pounds the Nail

November 12, 2009 By Mark Leave a Comment

Yesterday I noted that Electronic Arts joined the ranks of publishers across all industries trying to embrace the internet and decrease exposure to retail. Today EA addressed the timing of its announced layoffs and acquisition of PlayFish by emphasizing the point:

“It’s no coincidence that we simultaneously announced a cost reduction in connection with the acquisition of PlayFish, because that represents, in our mind, a very important shift to digital direct,” said EA SVP and CFO Eric Brown, speaking at the BMO Capital Markets 2009 Annual Digital Entertainment Conference in New York Thursday.

The parallels here between interactive and publishing (and other industries), even including emphasis on free-to-play and freemium models, are unmistakable:

Like other publishers, EA is becoming increasingly focused on downloadable games and extra content. Brown said that the download-only PlayStation 3 and Xbox 360 title Battlefield 1943 has sold 1.2 million units to date across both platforms. Half of those sales were in the game’s first week.

DLC trends at EA will continue to snowball. Dragon Age, a packaged and digital game developed by EA subsidiary BioWare, is selling “very well” and will receive regular DLC through the next “12 months-plus,” Brown said. Giving consumers the option to spend more than the $50 or $60 can be advantageous for game makers. “You can find extra demand customer by customer,” he said. And that goes for microtransactions too in free-to-play games.

And of course distribution plays a key part in this move (despite the soft-selling in the quote, which was probably added to keep partners and suppliers from freaking out):

“What you build sells through. There’s no physical good that has to be handled, printed, transported, et cetera, so you pick up this real efficiency gain in terms of the sales return allowance. So overall it’s slightly more beneficial to us as the publisher.”

You could map this to any content-driven industry:

For EA going forward, the four key principles of its business are to drive hits, expand digital services, “aggressively manage costs,” and continue focusing on the Nintendo Wii. But digital services — DLC, subscriptions, free-to-play, PC browser gaming, advertising — is clearly where EA sees its future.

“I think it’s important that everyone understands that the definition of the interactive sector needs to include online. It can’t be associated with the more limited definition of packaged goods through retail. Online is indeed a high-gross segment,” he said.

The internet is killing the retail content-distribution channel. Everything else is a variation on that truth. Whatever industry you are in, whatever content you create or sell, you are going to be affected by this truth.

— Mark Barrett

The Last Nail

November 11, 2009 By Mark 3 Comments

You know all there is to know about the disintegration of music publishing, in part because you’ve lived it, and in part because you’ve done your homework. You know the newspaper-publishing business is getting killed because you can hear Rupert Murdoch squealing. You know the movie business is hurting. And of course you know the book-publishing industry is coming apart at the spine.

But even as all this is happening in concert, and even as the internet looms large in every instance, there are still people explaining how what’s happening in one industry has nothing to do with what’s happening in another industry. Or how it’s the recession that’s causing these problems. (It’s not.)

To this litany of carnage now add the computer gaming industry. On Monday Electronic Arts (EA), one of the the largest developers and publishers of interactive titles, announced that it was cutting 1,500 jobs. If that was the end of the story we could chalk up the layoffs to the recession, but that’s not the end of the story. [ Read more ]

Parallel Publishing

September 29, 2009 By Mark 1 Comment

There is word today that e-book publisher Smashwords is partnering with Sony to make Smashwords-published titles available on Sony’s e-book portal (and, by obvious extension, to Sony’s line of e-book readers). With Smashwords’ earlier announcement of a distribution deal making e-book titles available through Barnes & Nobles’ retail stores, it’s clear that the barriers to entry for independent authors in every market are falling by the wayside.

As a writer who wants to reach as many readers as I possibly can, and do so on their terms by supporting the format and technology that each individual is most comfortable with, it seems to me that I am very close to being able to do just that. I understand that there are a lot of issues to be worked out including compatibility problems, standards issues, proprietary attempts to own markets, etc., etc., etc., but from my point of view as a writer I don’t think I need to worry about these issues except to the extent that I need to understand the current offerings in order to exploit them. [ Read more ]