Yes, education is quite different as nothing, to date in the world of ebooks or electronic content delivery has come close to being successful. Textbooks still reign as there isn’t a direct to consumer pathway as is found in consumer (trade) oriented publishing. Textbooks are selected (adopted) by faculty and/or administrators who in turn require the purchase by students or local schools. There are too many competing interests for this to work now – but watch Amazon as they will supposedly be announcing a unique experiment in Higher Education for a new Kindle.

First of all, thanks for posting all these interesting perspectives on the publishing industry. As a student I started a project about ebooks and I need to do some research for it. So I contacted several publishers but nobody gave me clear answers or possible solutions on how to (r)evolutionize the industry for the new way of reading. But your blog is very helpfull and I’m really looking forward for your other posts. There’s only one big question that rose when I read all your posts: what about the educational market? In your posts you’re only talking about the trade book market… I guess there is a big difference in the educational segment because of lower risks in that segment.

What do you think?

Since when do American trade publishers – light years behind the cutting edge of the eBook phenomenon – get to pick their “business model” and impose it on the retailers who’ve dictated their terms to publishers for more than two decades? Who really cares that publishers can’t meet their cash flow needs without bloating their monthly revenue numbers with money they know they will have to credit back to retailers as returns come in? Where is the model in which inefficiencies are eliminated?

Sure, these models may look nice to publishers (though it’s hard to see a retailer jumping at the chance to share more of the risk), but it’s just another manifestation of publishing’s myopia that people of influence are wasting their time on this nonsense while the important work is done elsewhere, and while even their most crippled competitors are eclipsing them.

I’m sure newspapers would like it if subscribers would pay for content, too, but they abandoned that idea in, oh, 2002…

Publishers cannot band together to negotiate with resellers as that would be collusion. Each publisher must negotiate on their own and set their own rates.

The big question is why would retailers accept this change? My answer is that it will take some work, some cooperation, and some experimentation. I am not sure the specific plan outlined here will work – though I am convinced that publishers and resellers need to find smarter ways to work out risk management in publishing. Payment terms and discounts are one obvious place to start – but there are others – profit sharing by authors is certainly one route, as you mention.

-bowerbird

Ebook pricing, reseller discounts, author royalty share and publisher profit is a very perplexing equation; traditional book selling models are not an effective guide. Most trade publishers do not yet embrace ebooks as an intrinsic part of their business…they continue to consider ebook sales as incremental to “core” (hardcover, paperback, audio) formats.
eBook sales are growing but not as fast from trade publishers points of view to cause an extreme makeover of business models, discounts, author agreements or even book production processes. Until ebooks make a greater contribution to revenues most publishers will continue to apply or tweak the old print rules to handle ebook sales, reseller discounts, and authors royalties.