Author Solutions buys Trafford Publishing

I read yesterday in the regular Book2 Book newsletter that I receive that Author Solutions, the US based print on demand publisher had acquired Trafford Publishing for an undisclosed sum.

Trafford was a relatively small but well known operation, set up in 1995, with offices in both Canada and the UK, and accordingly to The Bookseller, the world's first print on demand provider. My own publisher, Authors OnLine Ltd was established not long after, since this is their 12th year of business. Trafford may have been the first POD provider in the world, but AOL were the first in the UK - the original, and in my opinion, still the best.

Author Solutions, who own several POD imprints including AuthorHouse and iUniverse, are rapidly becoming the MacDonalds of the print on demand world. This comes on the back of their acquisition, just a few months ago, of Xlibris.

During 2008, they claim to have published over 21,000 titles from over 90,000 authors. Look closely however and you will see that the average sales for one of their titles was hardly more than 200 copies. Although it is true that this is largely due to the efforts (or lack of) on the part of their authors, to me it is not exactly a glowing advertisement. I suppose it depends on what your motivations for publishing are in the first place.

The news of this acquisition is to me a very sad day for the POD world. When you look at the history of the traditional non POD sector, and see how the smaller independent presses have been gradually swallowed up by the big boys, you will see that the power is concentrated in the hands of four or five large companies, who effectively have control of close to 75 percent of the market. This means less choice all round, and provides no incentive for the companies to compete with each other by offering better or different products, leading to less choice and less innovation. This is where the smaller companies, like the aforementioned Authors OnLine come in, who offer a real alternative with different options to suit different budgets without the 'pile em high and sell em cheap mentality that seems to emanate from these larger, less personal companies.

US book sales down 2.8 percent

Spending on books in the UK may be down by an average of 6 percent in real terms, but the figure in the US seems even worse, for according to a report by the Association of American Publishers, some stateside are reporting a slump of up to 21 percent.

Publishers Weekly reports that total books sales in the US fell by 2.8 percent in 2008, with sales down in nine out of the 14 categories surveyed.

These totals are based on monthly reports supplied by 81 publishers, supplemented by Census Bureau data. The AAP applies the percentage change reported in each category by the reporting companies to the previous year's totals.

The largest increase for 2008 was perhaps not surprisingly, in the e-book sector, where sales rose a staggering 68.4 percent to $113.2 million. In comparison, the printed sector, particualarly hardbacks, had a very difficult year, with sales siginficantly down in for both children and adults.

Despite these apparently dismal findings, the AAP estimates that industry sales grew at a 1.6 percent compound annual growth rate during the period 2002–2008 period. During this time span, when averaged overall, the mass market paperback and the book club/mail order segments were the only ones to have a drop in sales. Excluding e-books, the religious book segment (good news for me, as my own work falls into this category) showed the strongest growth, at 4.5 percent.

The full report can be read here

Google's plan for "orphan" books is challenged

The Book 2 Book newsletter that I subscribe to today had an interesting link to an article regarding Google Books taken from the New York Times. It seems that Google are not content with scanning books that are still in print, but have now turned their attention to those out of print, whose copyright owners are either unknown, or for for various reasons, cannot be traced. Such books are known as "orphans" within the trade, and there are literally (no pun) thousands languishing in archives throughout the country - mostly in university and library archives.

These books may from the sound of it, have found a new guardian, since it seems that Google have begun scanning these books to form part of a huge and free digital library available to all. There is however a growing chorus of complaint within the industry at Google's plans and in my opinion, quite rightly so. This move to me seems foolish in the extreme, coming as it does, on the back of the settlement which was recently announced (subject to court approval) with regard to books whose copyright owners can be traced.

Critics say that while such "orphan" books are a valuable part of 20th century literature that should be preserved, no competitor will be able compile anywhere near as comprehensive a library as Google, giving the company a virtual monopoly on the realm of digital information. With no competition, Google will be able to charge universities and those requiring access to these works, whatever they like.

I cannot help but feel that these critics are missing the entire point. These books are still in copyright, and whether or not the copyright owners can be traced, makes not one iota of difference. The fact that the copyright owner cannot be traced cannot and should not be used as carte blance to make money from what is essentially someone else's work. Copyright doesn't end when the author dies; the right to publish remains with the author's estate (e.g., his/her family.) The time frame for this varies from country to country, but in most cases is at least 70 years after the authors death.

Copyright laws exist in order to protect the rights of the copyright holder - whether that be author or publisher. The fact that that person cannot be traced should not be used as a license to infringe those rights -which if Google goes ahead with this plan, and according to the New York Times, they have already begun work on this project, they will be guilty of. They appear to have learnt nothing from the proposed settlement and I cannot help but feel they are leaving themselves wide open to further court cases if and when some of these copyright owners (as they surely will be) are found.

The project will undoubtedly bring great benefits to the reading public, but what about the rights of the copyright holders, surely they should take precedence? Who was it after all that wrote these things and who was it that bore the cost of publication. Not Google, but the authors and publishers of these works. They should be the ones to benefit financially from these work while they remain in copyright and no one else.

The full article can be read here.

BML survey shows a sharp decline in book sales for 2008

According to a survey by Book Marketing Ltd (BML) presented at the Books and Consumer Annual Conference at the end of March, in terms of volume and value, sales of books for 2008, even allowing for Harry Potter, are down. Average price, average "real" spend, and the actual percentage of people buying were all down, as was the percentage of males who buy books and the average spend for those in consumer group ABC1. Adult hardback fiction sales fell by 20 percent in terms of both volume and value, and even paperback fiction, traditionally the best selling sector, fell by 5 percent.

A total of 330 million books were purchased in 2008, down from 342 million in 2007, but up from 322 million in 2006. This showed an average increase of 10 percent over the past five years, mostly due to 2007. Despite this, given that inflation increased by 11 percent between 2004 and 2008, the 4 percent increase in book spending over this same period, translates to a 6 percent decrease in real terms.

The survey showed that Britons aged between 12 and 79 spent 6 percent less on books in 2008 than in 2007. The average price paid for a book was £7.02 in 2008, 20p less than in 2007. Compared to other markets, the book trade has got off lightly, particularly DVD's and music, where average prices have declined by 23 percent and 34 percent respectively (with music, some of this may be attributed to an increase in downloads). The average spend on books per buyer was £83 in 2008 (up from £80 in 2004) but fewer people bought; just 57 percent of the population in 2008, compared to 61 percent in 2004.

This decline in the actual number of people buying books is the most sobering figure of all - the abolition of the Net Book Agreement was supposed to expand the market, but despite prices being lower than ever before, the opposite appears to be true. It worked for a few years, heightened no doubt by the Richard and Judy effect and the Internet revolution, but all it has really done in the eyes of the public has devalued the books that we write. Even before these figures were announced, the percentage of buyers was down; for women between 2004 and 2008, from 65 percent to 63 percent, and for men during the same period, from 57 percent to 51 percent.

In an effort to turn things around, and stop this slump (a bit like shutting the door after the horse has bolted), the industry has been hard at work devising a slogan that will encapsulate what book buying is about, to act as a generic marketing slogan that will pull people in. Tim Godfray, Booksellers Association CEO, said a number of options had been rejected but that the aim was to unveil a slogan at the Book Industry Conference in June. Jo Henry, BML MD, and Charlie King, Head of Creative Marketing at Little, Brown, suggested a wider consultation, involving the Book Marketing Society. In my opinion, the discussion should be broadened to include authors, those who actually write the books, and should after all, understand their market better than anyone.

Circumstances have forced the industry once again to come together to try and save its own skin, for the decline in book sales (and yes, I have been affected too) has not discriminated; it affects all genres and all groups of buyers.

ABC1 females were down from 73 percent to 70 percent, ABC1 males 65 percent to 59 percent; C2DE females down 58 percent to 57 percent, C2DE males 48 percent to 43 percent. In 2008, men and women aged between 35 and 54 bought fewer books, while younger women aged 12-34, and older men aged 55-59 bought more. Women aged 25-34 and both genders over 55 drove growth in volume and value purchases, both spending and buying more. These figures reflect a decline in self purchasing (buying books for your own use) - down from 52 percent of 12-79 year olds in 2004 to 46 percent in 2008, while the number of people buying books for others has increased by 4 percent to 40 percent of the population (I must be the exception, since I never buy books for others).

Taken over a five year period, there has been a 26 percent increase in the purchase of books as gifts, with spending up 17 percent. Overall, spending was down on both adults and children’s titles (5 percent and 11 percent respectively). Somewhat reassuringly given my own genre, hardback non fiction was the best performing category, up 25 percent in volume and 8 percent in value between 2004 and 2008. With regard to children's books, growth has been limited to books for the under 5's.

As expected, sales from traditional bricks and mortar stores declined during 2008, with the Internet and supermarkets reporting a significant increase, in volume if not value (I wonder why that could be - is it something to do with aforementioned NBA and what can the industry learn from this?). Between 2004 and 2008, sales of books from these two types of outlets has more than doubled, leaving many of the smaller independents (and even some chains) struggling to compete.

More than half the books that we are buy are now bought as some kind some of special offer (i.e. heavily discounted). The industry is predicting a trend away from specialist retailers, towards the second hand trade. This may be good for Amazon (not to mention the environment), but it will be disastrous for authors and publishers, who will see their revenue drop accordingly. Most worrying of all, one quarter of consumers indicated that discounting meant that books were over priced to begin with. The majority of buyers (and why wouldn't they be) are very positive about two for three and other similar offers, although a significant number (47 percent) said they had trouble finding the extra books that made these offers worth their while.

The conference concluded with what I have been saying for years; that publishers and booksellers need to emphasise the true value of books, and the work that goes into them, and move away from this pile 'em high, sell 'em cheap mentality, which is costing jobs in the industry that we love. At long last, someone has actually shown some common sense. I just hope that it is not a case of too little, too late.

Amazon demands an extra 2 percent for early payment

As Amazon close 3 of their US based distribution centres, with the possible loss of over 200 jobs, in the UK they seem intent on introducing new terms that as usual, from where independent publishers are sitting, seem to benefit no one other than themselves.

Catherine Neilan reports that Amazon.co.uk is offering publishers who participate in the Advantage programme an "early payment" option of 15 days, in exchange for an extra 2 percent discount. (I must make a mental note to find the name of their bankers, since I am not aware of anyone who pays such a high rate of interest - my own bank certainly doesn't). The only alternative is for publishers to trade with Amazon on "standard terms" of payment within 60 days. What this effectively means is that a publisher who sells a book through Amazon for arguments sake today, will not be paid until the end of May, as opposed to on the revised 15 day terms, the middle of April.

Publishers have understandably hit out at these new terms. One said this early payment option, which becomes effective from 1st April (sadly this is not an April Fool), is "more or less what they pay us on now". He added: "At the moment, if you sell in February, you get the report at the start of March and payment at the end—which is in effect what they are saying will happen here (not quite, as it depends upon when in February you actually sell the books - if sold at the beginning of the month you are still waiting almost 60 days). If you don’t give the extra discount, payment would be sometime in April." He continued: "[Amazon is] trying to take an extra month . . . In these tough times, it’s absolutely outrageous picking on small guys." In business, this seems to be par for the course.

At the moment, Amazon Advantage Members pay Amazon.co.uk a yearly fee of £23.50 and offer a 60% discount in return for the retailer keeping copies of their books "in stock". They are in effect a retailer asking for wholesaler terms. No wonder the bricks and mortar stores cannot compete.

Predictably Amazon responded by stating that they are constantly looking at different ways in which they can lower prices and increase selection for the benefit of their customers.

The problem is that most bricks and mortar stores either cannot or will not stock many of the books published by the independent and small presses. It may be that they are niche titles with limited demand, it may be that they are local interest books, or it may be that the publishers are unable to offer the deep discounts and contribution for "marketing costs" and many of the chains at least demand. Either way, they have little option but to play ball and give in to Amazon's demands, if they want their books to be available in the market place.

According to one book seller whose comments can be seen on The Bookseller website, what the article doesn't state is that Amazon payments have been gradually getting later and later, so that in many cases, publishers are already on the "new" payment model. This seems to me a bit like the old British Rail. In the dim and distant past when I used to get the train to work, I observed it coming later and later each day until it settled into a routine of being 10 minutes late each day. BR then announced a new timetable ...

On the other hand, is 60 days unreasonable? Wholesaler terms are as far as I am aware, a standard 90 days, and I have been waiting well over 60 days to be paid by a certain "new age" shop in London, despite my making it clear to them that my own terms are 28 days. It is such a small amount that it does not seem worth making a big fuss over, but that is not the point, they have had my book since May of last year. Like I say though, it is par for the course. I won't be supplying them again, and in future, they can order from the aforementioned wholesaler.

ArgentVine in administration

I was shocked and saddened the other day to read that ArgentVine, the parent company of Internet based retailer BookRabbit, which showed such potential, and Methvens stores has gone into administration. If a buyer cannot be found, then it will be a very sad day for the book world.

Methvens, who have just two branches in Chertsey and Worthing, are quite possibly the best most self publisher friendly company I have had the pleasure of dealing with. The Managers of both stores have been an absolute joy to work with, always there and willing to talk and not demanding ridiculous terms. When the chips were down for me and I was faced with the threat of a large batch of returns, both stores went out of their way to order extra copies when they didn't need to, in order to help me out. I have not forgotten that.

Reports began to circulate regarding the administration on Monday when Paul Appleton and Henry Lan of David Rubin and Partners were appointed as administrators. A spokesperson for ArgentVive said it had explored various refinancing opportunities over recent months, but having carefully considered the financial position and prospects of the company decided to bring in the administrators.

former employee at the Worthing store James Pearson, writes on the Bookseller that the staff were informed four days before payday that their wages for March would not be paid. It was then explained that they could not start redundancy proceedings or register as unemployed because officially they were still employees of Retail8, as a subsidiary of Argent Vine. The staff were effectively thrown into the street and left in financial limbo. As someone who has been in very similar situations myself, they have my deepest sympathy. This could not have come at a worse time, as James writes that several staff members have young families and one was about to start maternity leave.

While it is true that trouble had been brewing within the company for a while, nevertheless, when something like this happens, there is a sense of almost total disbelief. I cannot speak for Chertsey, but the Worthing branch is a viable business, which has always been profitable. Last year it was voted as number 11 in the Independent's UK Top 50 Bookshops. If a buyer cannot be found, it will be sad loss for the people of Worthing.

The problems seem to have begun because when the company began to concentrate on the Internet arm of the business, determined as James puts it, to become the new Amazon. That was never going to happen. Profits from the stores were diverted to Argent Vine and used to start BookRabbit which sadly was not the success it could have been.

It has since emerged that independent bookshop business Chenwick Ltd is negotiating with the administrators to buy the Worthing store. In the meantime, the former staff at the Worthing store have started a Facebook group "Save Methvens Worthing", which now has more than 202 members.

I wish them well.

Oddest Book Title of the Year

I am not sure what the oddest book title is in my own rapidly expanding collection, but The Bookseller reveals that the shortlist for the annual Diagram Prize for Oddest Book Title of the Year has today been announced. Six titles, with subjects ranging from fromage frais to strip knitting, make up the shortlist for this hotly contested award, now in its 31st year.

Horace Bent, The Bookseller magazine’s diarist and custodian of the prize commented (his finger on the pulse as ever), that that he was proud to report that the British publishing industry has remained as stubborn in the face of change as ever.

A huge number of nominations was received, and it was difficult to whittle it down to the remaining six. Titles such as Excrement in the Late Middle Ages and All Dogs Have ADHD were sadly rejected. Several titles were also rejected, due to the fact that they were published prior to 2008. These include Monumental Beginnings: Archaeology of the N4 Sligo Inner Relief Road and Sketches of Hull Authors. The latter I am reliably informed, was originally published in 1879, but is back in circulation due to that wonderful invention known as print on demand.

As Philip Stone, a sales analyst for The Bookseller commented: "The Diagram Prize this year has achieved a wonderful quadruple. It celebrates the diversity within book publishing today, the risks publishers are willing to take to support freedom of information, the beauty of print on
demand for fascinatingly niche titles [Amen to that], and perhaps most of all, complete and utter oddity."

The six nominations are as follows:

Baboon Metaphysics by Dorothy Dorothy L Cheney and Robert M Seyfarth (University of Chicago Press)

Curbside Consultation of the Colon by Brooks D Cash (SLACK Incorporated)

The Large Sieve and its Applications by Emmanuel Kowalski (Cambridge University Press)

Strip and Knit with Style by Mark Hordyszynski (C&T)

Techniques for Corrosion Monitoring by Lietai Yang (Woodhead)

The 2009-2014 World Outlook for 60-milligram Containers of Fromage Frais by Professor Philip M Parker (Icon Group International)

The winner of this 2008 award will be chosen by a public vote at http://www.thebookseller.com//, and will be announced on Friday 27th March, 2009. So what are you waiting for? Get voting!