Addressing Industry Wide Problems with Solutions

 

The publishing industry functions the same way any system does, by relying on the contribution of specific roles. Traditionally authors and writers pitch ideas to editors and publishers. If those ideas are approved the editor will amend the piece, publishers will then release the final copy, and distributors will put the book in the hands of consumers.

 

It seems a pretty clear-cut process, but somewhere along the lines there’s trouble and the industry is struggling to stay afloat. Just like university presses, if publishers want to move forward out of this rut and find their place in the future market then change is a necessity. But before finding a solution, we must first identify the problems.

 

 

Technology

 

Could the industry’s declining productivity and profit be mostly due to the fact that the traditional system cannot keep up with the technologically advancing society? Traditional publishing methods seemed to be of issue with University Press, so can we assume that this is a problem with the industry as a whole? According to some experts, yes!

 

George Scotti, Global Marketing Director of academic publisher Springer said, “Publishers seem to be focused on protecting their print base instead of embracing new models in the electronic environment. You see that with the newspaper business, but it is also true with trade, professional and scholarly publishers. Revenue is there, but part of the publishing industry is a bit behind the eight ball making revenue on electronic business…”

 

Not all companies are passing the eight ball as Scotti said. “Springer has been investing heavily in the electronic environment… As an industry we need to be open, to new devices, distribution strategies, marketing strategies, etc. Our content needs to be where the user wants it at the time of need. That includes print and electronic. Print is not dead, but it is only a part of the mix. We also need to set the content free.”

 

Technology is a huge tool in the production of all publications, and it is true that technology makes both the accessing and displaying of information easier on the readers and publishers. It seems as though both authors, and publishers would benefit from the use of technology, more specifically collaboration between technological outlets and the publishing industry. But according to the experts, other problems exist as well. 

 

Author Incentives and Marketing

 

Problems also exist in the way products are marketed and produced and these problems are weighing heavily in the industry’s low financial state. Shel Horowitz, a publishing/marketing consultant, commented on some problems being created by the publishers. “When publishers invest $30K or so to bring out a new book, it's absurd to have only a couple of month’s window. Publishers need to think more in terms of backlist and less about the immediate instant hit that's gone in three months. Most books have far more potential than is realized, but it takes time.” 

 

Horrowitz also blamed publishers for their premature advances saying, “ Advances are too extreme... A writer can't be motivated to do much marketing to earn out a $2-5000 advance, and a publisher is going to be hard-pressed to earn back an advance in the seven or high-six figures.” 

 

However, we cannot blame publishers for unrealistic investments and say this is the only problem. According to expert advice, writers, editors and publishers need be narrow-minded on what is published and look for ways to promote and market the silenced voices. “Acquisitions people need to pay attention to both quality AND platform; its swung way too far toward platform lately, and a lot of important voices are not being heard,” said Horrowitz.

 

Francine L. Trevens, Chair emeritus Greater New York Independent Publishers Association said “…Authors should be given freedom to write with fewer demands…There are creative ways to sell books of interest to special niches and if the publishers spent more time on that, they could publish a wider variety of books that would make a decent profit and keep the book industry alive and exciting.”

 

Trevens also claims that writers are cutting out publishers because it is more beneficial for them to do the work themselves. “Because publishers have ceased to do the full range of work for books they publish, there is this vast migration to self-publishing.  If author must do so much of work, why take so little in way of recompense from traditional publisher?”

 

Maybe a bit of redirection and revising to cut costs is exactly what’s needed in the publishing industry. Perhaps it is beneficial to skip the steps that are only proving to be most costly rather than beneficial.

 

Distribution

 

As in most industries, a product is made, taken through the chain of distribution, everyone takes their piece of the pie, the consumer buys the product and voila, that’s it (yes, some companies do follow up to reduce cognitive dissonance, but we’re not counting that here).

 

However, publishing is not the only industry that realizes a need for change to restore profit and for some companies this means tightening up the chain of distribution and taking matters into your own hands. It’s a pretty simple concept: if you can cut out middlemen in certain transactions, then do so, and that’s more money in your pocket. Some companies are already taking charge and changing the face of distribution. Case in point: Anheuser Beer Company.

 

In a recent Wall Street Journal article we read that Anheuser is looking for ways to cut costs – and squeezing the most out of their distribution is a high priority on their agenda. The possibility of eliminating distribution services from product sales, and directly delivering the beer to the stores would put a lot more money back into the company. The plan is for about 50% of Anheuser’s sales to come from direct to retailer. This seems like a logical idea, considering the potential savings once the ‘middle man’ is gone. This idea accepts that middle men are necessary for certain transactions, and they do have benefits, but are not always needed.

 

Remember last month’s article about finding out who is buying your product? This certainly would help, or at least spur middle-men to divulge that information! Perhaps we should watch and learn, or perhaps we should start implementing.

 

There’s a lot of talk about what’s next, and the future of the publishing industry. What we know is that we have all been given the opportunity to step back and take a good look at the industry; new technology, marketing opportunities, printing, distribution, and so on. Collectively, we should decide how to move forward.