Distribution Goes Digital

Since we last checked in with distributors, in June 2007, there are positive changes for the little guys. This year, micropress distribution experienced turbulence: The Sarasota, Florida–based BookWorld closed in late September 2007 without notifying its 104 clients. In January 2008, National Book Network (NBN) put its micropress sister company Biblio Distribution up for sale.

But AtlasBooks, the distribution arm of parent company BookMasters, took on 70 of BookWorld’s former publishers and about 500 more clients from Biblio. Atlas now represents over 1,000 publishers. “We continue to expand our title offerings in the small- to mid-press area,” says Dave Wurster, COO of BookMasters. “Other distributors have chosen to stay out of this particular niche, but we find it quite exciting.”

Atlas’s strategy of offering “a fully integrated [distribution] model, all in-house” seems to be a good one. “Distributors as consolidators of services beyond distribution and sales of products is becoming more critical in the eyes of independent publishers,” says Richard Freese, distribution consultant. Jane Graf, Director of International Publishers Marketing (IPM), agrees: “Publishers are looking for the greatest ‘bang’ for the fees they pay, and they want as many services as possible under one roof. They are willing to shop around every few years. So distributors have to work hard not only to sign new clients, but to make them profitable as quickly as possible in order to keep them.”

Clients are increasingly interested in digital services, says Random House President of Publisher Services Jeff Abraham. Along with e-ooks and downloadable audio, RH offers clients “digital marketing services, such as the RH widget [Insight], and [has] plans to expand these services over the coming months.”

Publishers Group West (PGW) will launch a new digital services division called Constellation this summer. “Publishers decide and control which titles to include in these digital programs,” says Susan Reich, President of PGW. “By providing just one book file per title, Constellation makes it possible to generate new revenues through multiple digital channels,” including “look inside” initiatives on Amazon and BN.com, eBooks, POD, and other digital services.

As clients request new services, distributors are also looking for clients in new places. Though it left the world of micropresses, “we’re continuing to expand our reach outside the book trade,” says Marianne Bohr, SVP of NBN, “including the mass merchandisers and specialty, gift, and niche markets.” She adds, “Publisher clients are depending on their distributors more and more for consultation on the changing book markets and advice on ways to reach their markets without having to spend much money.”