Sealing Up Digital Rights

Now that a flock of formerly high-flying technology vendors has gone down in flames (Reciprocal and Digital Goods: remember them?), it may seem odd that a 50-person business based in London should be winging toward the publishing sector. But that’s just what SealedMedia is doing, having scored $16.5 million in a third round of funding last fall to plunge into that black hole called digital rights management. As Martin Lambert, SealedMedia’s founder and CTO, made clear in a recent conversation, part of the firm’s current success may lie in an unsentimental view of where digital rights are heading. If anyone needs any hints: it’s not just toward ebooks anymore.

“I don’t think it’s very good news for the electronic version of trade books at the moment,” he says, “because it’s a high-volume, low-value market, and the technologies applied in this space are extraordinarily immature.” So much, perhaps, is obvious. But Lambert thinks the first generation of consumer ebooks took a giant step backwards, because of rights technology that locked a book to a particular computer. You could only access your ebook at work or at home (or on a dedicated device that you lugged with you), but not in both places. SealedMedia’s solution, which they’ve been developing since 1996, gets around this problem by storing user rights on a central server, meaning you can open a locked file from anywhere, as long as you have the password. (Password-swapping is discouraged, because you can’t read a file in more than one place at one time.) This technology can also protect a whole range of file types, including Adobe PDFs, HTML documents, and the whole suite of Microsoft Office formats, including PowerPoint presentations, plus audio and video files. All users need to do is download a small “unsealer” program to their computer, and they’re ready to roll. Support for mobile devices is coming soon.

Among the company’s 40 customers is Cavendish Publishing, a legal publisher in the UK which was losing sales when students couldn’t reliably find its expensive law textbooks stocked at stores. With electronic rights already covered in all its author contracts, the publisher rolled out 400 backlist ebook titles (and the first electronic customer turned out to be in Portugal). Ebooks are priced at up to 50% off the hardcover edition, and individual chapters are offered for sale. Purchasing a full license allows unlimited viewing and one-time printing, as well as access from any computer, and offline use for a specified length of time.

Other customers include Time Warner’s, which is offering a Shrek “enhanced animated storybook”; Harcourt, which is enabling downloads of electronic reprints through aggregator sites; Pearson Education, which is making York Notes study guides available online; and Congressional Quarterly, which has launched e-delivery of its daily digest (and upped revenues by over $200,000). Now, Lambert says, he’s aiming to sign up the McGraw-Hills and Reeds of the world, which can offer DRM for trade applications. “At the end of the day, if you put yourself in the shoes of a consumer, you have zero interest in DRM,” he says. “All you want is the content at a fair price. More accurately, you can already get the content at a fair price: you can buy a printed book. Ebooks will only work when someone says, this is miles better than the printed book.”

Spring Sales

The drumbeat of optimism was heard on the floor of the London Book Fair, and it is echoing in the corridors of New York publishers, as well: Sales, it appears, are improving. The AAP came out with stats that chart a “meager” growth rate in 2001 of 0.1% overall, with trade sales actually dropping 2.6%. But 2002 has started with a nice bump in sales in many categories, according to the latest Bookscan figures. The overall figures show an increase in unit sales of approximately 10% for the first eleven weeks of 2002, compared with the same period in 2001. History continues to show strength, even surpassing the jump in sales that began in the aftermath of September 11. Romance, which was very soft in the fall, has jumped up 14% over last spring’s sales. The cooking and entertaining category has softened since the fall, but is still up over last spring’s numbers by almost 12%, while gardening is down somewhat. Travel is still down, but the post-September freefall is over. The same cannot be said for computer books: the stagnating sales of PCs have taken their toll on manuals, which are down 20%.

London Times

The London Book Fair has, like its sister Reed-sponsored show, BEA, extended its dates in recent years. This year’s expo was two-and-a-half days long, but with the accompanying ebook and subrights conferences, ended up sprawling from March 14th to the 19th. The conferences had a tough time pulling the crowds that LBF continues to pack in (“over 20,000 publishing professionals from more than 100 countries,” says the press office), but given the price (£880) and topic (epublishing), ePub London still managed to fill a room for two days at Olympia.

In the go-go ’90s, and even as recently as last year, electronic publishing conferences were cropping up like crocuses, but the seminar business has been battered by the economy, the dot-com bust, and more recently, fear of flying. And now, instead of talking about a wired, paperless utopia where content is zapped to hungry hordes of eager readers, bread-and-butter issues like copyright and creating standards for metadata are the focus. Yes, epeople from HarperCollins, Bloomsbury, and Penguin each discussed how these companies are using the web, but there was an earnest attempt to address the yin and yang of epublishing — consumer ebooks versus professional subscription models; the opportunities for online promotion versus the difficulties of actually making money; and the euphoria of free downloads (when it’s Napster) versus the nightmare of piracy (when it’s books). All in all, it made for a useful update on the somewhat sorry state of this yet-emerging industry.

Meanwhile, back at the convention. . .
Alas, the same could not be said for the panel discussion assembled by the Institute of Publishing for the LBF, entitled “Who Needs Publishing,” a rehash of the whole debate over the disintermediation of publishers, which caused a lot of defensive navel-gazing in the early days of the aforementioned yet-emerging digital revolution. The star-studded lineup, which included Macmillan’s Richard Charkin, Cambridge UP’s Michael Holdsworth, Jill Patton Walsh (whose self-published book, Knowledge of Angels, has now sold close to 300,000 copies in the Transworld edition), and Curtis Brown’s Jonathan Lloyd, represented their interests: the publishers thought everyone needed publishers, while the self-published author wasn’t so sure, even as she admitted that luck played a role in her success. Still, she questioned whether conglomerates were dampening publishers’ risk-taking. Charkin disagreed, though he admitted there were too many publishers. Holdsworth put it more succinctly when he argued that the real question is: “Do we need all the publishers we’ve got? Didn’t we need some of the publishers we’ve lost?”

The same question was asked by Hrvoje Bozicevic, publisher and editor of Edicije Bozicevic Publishers in Croatia, in a post-Fair email to PT. Reflecting on Harvill’s sale to Random House, he writes, “The story of Harvill shadowed very much my impressions of the London Book Fair. If there is no place for such a publisher, what can other, even smaller European continental publishers do there?”

Meanwhile, others at the Fair had more pragmatic concerns. Efrat Lev, Foreign Rights Director at The Harris/Elon Agency in Israel, reported complaints about restrictions on entry into the rights center. “Some clerks at the desk were zealously guarding the entrance and preventing some colleagues from entering to meet other colleagues,” causing meetings to be late, or cancelled. Still, as a first-time attendee, she was surprised at the small size of the Fair (“although I was surprised that there were so many tables at the rights center!”), and that, unlike Frankfurt, “it ends just at the right time, when one gets tired and ready to stop.”

Speaking of Frankfurt, publishing consultant Bill Black questions whether Frankfurt is still necessary for trade publishers focused on English language and major translation rights, as increasingly London attracts the same players. Walker’s George Gibson agrees that the fair has become “much more continental” than in previous years, citing a greater number of meetings with non-UK publishers and agents. There were also more books that were of interest, in part because of a plethora of history titles, a subject which is “exploding.” But Gibson agreed with the concerns of several UK editors, who worry that the category will be overpublished, resulting in worthy books being lost in the avalanche.

On the floor
Regarding lost books, if anyone doubted that Abrams was now a mere imprint in a mini-conglomerate, trying to locate it on the floor of the Fair put the question to rest: it sat under the banner of its new owner — the La Martinière Group. Near it PGW and AMS had what looked like a hastily constructed sign on their booth. At the other end of the spectrum — and other end of the hall — Rodale had a larger booth (introduced last year at Frankfurt) right near the entrance to the Fair. But surely the best touch was Microsoft Press’s booth, which sported a vending machine. Slide in your credit card, push the right button, and out pops a fat technical manual. Better than a Snickers.

Publishing Trends was a co-sponsor of ePub London.

International Fiction Bestsellers

Duck and Cover
Fowl Play in Argentina, Penelope Unbound in Spain, And Birdsell’s Back in Canada

Argentina’s “official historians” are quacking away over the latest provocation from historical novelist María Esther de Miguel, titled The Palace of the Ducks. The book carries forward the author’s “generally transgressive” history of Buenos Aires and adapts a detective novel’s suspenseful structure to explore a “dark network of complicities” that unfurls behind the majestic 19th-century palace façade. The plot follows a succession of families who inhabit the structure over the course of a century, among them an alcoholic writer who angles for inspiration in the life stories he finds among the city’s watering holes, while a whole rogues’ gallery of suspects prowls the palace in the wake of a murder. The author’s Planeta-winning work of 1996, The General, The Painter and the Lady, has now sold over 150,000 copies in 21 editions, and delves into a love triangle forged amid Argentina’s wars of state formation, ultimately wringing from the tale a roiling mix of “flesh, blood, incertitude, and the doubts that are part of life.” As for the new book, publisher Alfaguara printed a first run of over 12,000 copies in November, and all rights outside of Latin America are available. See agent Mónica Herrero at the Guillermo Schavelzon agency.

Meanwhile, historical revisionism gets sassy in Spain, where Ángela Vallvey has won this year’s Nadal Prize with State of Deprivation, a hilarious homage to The Odyssey that updates Homer while satirizing the nation’s booming self-help genre. In Vallvey’s version of the classic Greek tale, top fashion designer Penelope strikes out on the wandering journey, while her once philandering hubby Ulysses hangs up his painting career for the domestic thrills of diapers and baby food as he nurses two-year-old Telemachus. Throw in a Socratic dialogue or two, and you’ve got the literary equivalent of the lotus flower. Vallvey’s 1999 work Hunting the Last Wild Man was her first novel for adults, and has been sold to France (Lattès), Germany (Krüger), Italy (Feltrinelli), the UK (Penguin), and the US (Seven Stories), among others. About 50,000 copies of the new one are now in print following the book’s launch in February, with rights sold thus far to France (Lattès). Contact Anna Vilà at the MB agency in Barcelona.

Antiquity’s also on the plate in Spain this month with Terenci Moix’s The Blind Harpist, set in mythical Thebes and pondering the friendship of three young men during the reign of Tutankhamun. The book contrasts religious chastity with erotic fetishism as it shows how King Tut “returned the gods to their rightful place after the iron grip of Akhenaten’s monotheism.” Deemed “a splendid description” of ancient Egypt by reviewers, the book has been said to paint “a melancholic frieze of the extinction” of Akhenaten’s doomed dynasty. Journalist and essayist Moix won the Planeta Prize in 1986 with Don’t Say It Was a Dream, which has sold over a million copies in 40 editions. Rights in the US and UK are available for the new one from Carmen Pinilla at the Balcells agency in Barcelona. And finally in Spain, Antonio Muñoz Molina surveys “the enigma of passion” with his latest work, Missing Blanca. The book portrays the romantic travails of Mario and his vivacious love interest, Blanca, as Mario obsessively worries that he’ll lose his gal. The 46-year-old Molina won the Crítica Prize in 1987 for A Winter in Lisbon, and took home the Planeta in 1992 for The Polish Rider. Though the book has slipped off the list this month, some 30,000 copies of the new one were sold in two months, and rights have been sold to Germany, France, Portugal, and Italy, among other nations. See agent Raquel de la Concha for rights.

In France, literary darling Alexandre Jardin gets fresh with his latest novel, Miss Liberty, wherein the married college headmaster Horace meets up with the vixenish 18-year-old Liberty Byron, and leaps at the chance to indulge her “prodigious taste for pleasure.” Liberty quickly teaches the old dog a thing or two about romantic exaltation — “the infinite is her measure, the absolute is her oxygen” — and together they traipse off to forge a perfect love, a creation that will be “a masterpiece or nothing at all.” Jardin’s 1999 novel Autobiography of a Love looked at the troubled marriage of a teacher in New Hebrides whose twin brother gallantly steps in to save the day (indeed, marriage is “the bête noir of Alexandre Jardin,” one reviewer writes), and his work The Zebra won the Femina Prize in 1988. Critics declared the new book “a cry of revolt against numbness,” and, for what it’s worth, the thirtysomething author is said to be so devoted to joie de vivre that he putts around Paris on a scooter, so as to avoid the moping faces on the subway. All rights are available from Anne-Solange Noble at Gallimard.

We’re happy to bring you the list from Denmark this month, where well-known journalist Gretelise Holm has inspired Paranoia throughout the Nordic nation with her new crime novel. The story opens on a shocking note as ace reporter Karin Sommer discovers her dead cat hanging on her front door, and soon all hell breaks loose as a “self-proclaimed superman” wreaks havoc on a small Danish town. One charged-up reviewer called the book “an excellent run for one’s money,” while another said simply: “Crème de la crème.” In addition to her journalism, Holm has written several books for children. Her crime fiction, however, is speedily gaining notice, winning the Kriminalakademis prize for the turbocharged 1998 thriller, Mercedes-Benz Syndrome. Rights to Paranoia have been sold to Sweden (Piratförlaget), Germany (List), and Norway (Cappelen). Talk to Editor-in-Chief Charlotte Jorgensen at Aschehoug.

And in Canada, Sandra Birdsell is back with her long-awaited third novel The Rüsslander, about the life of a tightly-knit Mennonite community in pre-Revolution Russia, as seen through the eyes of the teenaged Katya. Said to be “decadent with detail but frugal with sentimentality,” the book was inspired by stories Birdsell had heard about her Russian grandparents, who along with thousands of other fleeing Russian Mennonites landed in the Canadian prairies. Now an old woman in Manitoba, Katya looks back on the anarchic time after the Revolution when the pacifist Mennonites were sitting ducks for roving bands of thieves. The book was nominated for Canada’s Giller Prize, and is currently on submission in a number of markets, with buzz said to be strong in Germany. We’re told film rights are a hot item, too. See agent Bruce Westwood at Westwood Creative Artists for rights.

Battle of the Brands

In the War Over Market Share, Focus Groups Are a Secret Weapon

If you wandered into the loo of London’s Grosvenor House Hotel last month, as did plenty of attendees at the British Book Awards, you’d have found one of the more literal-minded brand campaign “roll-outs” in recent years: stickers slapped on rolls of toilet tissue and pasted on hand towels, featuring none other than Penguin UK’s latest tongue-in-cheek tagline: “What a waste of paper.” Described by its creators as “a battle cry for the Penguin brand,” the latest salvo rocketed from the Grosvenor’s privies to some of the hugest roadside billboards in the UK, hitting Glasgow, Dublin, Manchester, Birmingham, and London with sly images from the series. One such image shows a grainy close-up of a man’s face, with a bit of tissue stuck on a shaving cut. The familiar Penguin logo sits in the lower left, and the text says simply: “Anything else is a waste of paper.”

While Penguin’s brand-building bonanzas have been widely noted in recent years, what may not be apparent is that the company’s latest campaign is the fruit of ongoing focus groups that Penguin has tapped for fresh brand insights. Long a trusted weapon for consumer marketeers and magazine publishers, the focus group, along with a variety of other market research tactics, has been quietly getting results in trade publishing houses. St. Martin’s, Reader’s Digest, and Bloomberg Press, for example, have all used consumer research in recent efforts to overhaul core brands, dive into new product areas, or just tune in to reader feedback. And it’s no surprise that these publishers are finding hard data vastly preferable to hindsight.

Road-Test Your Hunches

“There was something a bit safe and cozy about Penguin,” explains Joanna Prior, Penguin’s Publicity Director. “We wanted to challenge that.” Also goaded by increased competition from paperback rivals, last fall Penguin and partner Research Business International interviewed 400 book-buying consumers, and found that Penguin’s “spontaneous awareness” (that is, the number of people giving Penguin as their first answer when asked to name publishers) had grown to 59%, up from 39% in 1998. (HarperCollins was second, with 16%, and Mills & Boon came in third with 14%. Bloomsbury measured only 3%.) Once prompted by researchers, 98% of the panel said they were aware of Penguin, up from 92% in 1998. People loved the brand. But would they like the ad campaign? To find out, Penguin road-tested various ad concepts with “core readers” between the ages of 25 and 40 who buy at least one book per month. The “Anything else…” campaign prevailed with its wry sense of humor, and now, monthly focus groups are studying everything from cover design to how people choose books to read on vacation. It’s a flexible research regime, adaptable for any marketing contingency. “That’s the beauty of doing them every month,” says Damian Horner, Account Director at ad agency Mustoe Merriman Levy, which has worked with Penguin for four years. “You can tap into every little hunch you might have, and explore it.”

Meanwhile, hunches are easily road-tested at Bloomberg Press, owing to those ubiquitous Bloomberg financial information terminals (which are now, of course, available for photo-ops at Mayor Bloomberg’s City Hall bull-pen). In a unique twist on market research, John Crutcher, Co-founder and Marketing Director at Bloomberg Press, says that the terminals actually provide a rich stream of brand-building opportunities. Since editors and marketers at Bloomberg Press have access to terminal usage data for the entire Bloomberg system — and because those system users are presumably a core customer base for Bloomberg books — Crutcher and company are able to see, for example, if users are flocking to a particular type of financial chart, equity investment, or even a whole industry sector. Hence system data is used to evaluate book proposals, by checking a potential topic against what’s hot on the terminal. Bloomberg Press also reviews reader surveys done by the parent company’s magazines, such as Bloomberg Personal Finance, which in advance of its newsstand launch surveyed brand recognition of the Bloomberg name across the country. Outside major financial centers, it turned out, the brand was virtually worthless, a lesson not lost on Crutcher. “If we’re selling an entry-level book such as Investing 101, having Bloomberg on the spine wasn’t going to get the average person,” he says. “It’s important to know how valuable the name is, and when it stops being valuable. With hubris we could assume it’s valuable everywhere. And we would pay the price.”

Sally Richardson, President and Publisher of St. Martin’s trade division, was not about to risk paying that price with the January 2003 update of the flagship Let’s Go travel series. So last fall the company took a little vacation of its own to California for a round of focus groups that upended a number of basic assumptions. Readership was much more sophisticated than had been assumed of the typical sun-seeking, Kerouac-toting traveler, according to Mark Fortier, VP and Publicity Director for Goldberg McDuffie Communications, which is handling publicity for the Let’s Go relaunch. So a number of fresh features were added to the book, including highbrow essays on topics such as the advent of the euro, or about cultural traditions in Nepal. St. Martin’s was also caught off guard by the zest for volunteerism among readers, prompting more emphasis on socially conscious travel. And readers identify heavily with the series writers, so more first-person narratives were ordered up, and the media campaign will also make authors more visible than in the past.

Indeed, any amount of research can improve the shotgun approach to marketing. “Most publishers do a great job of marketing to bookstores, but reaching the reader is a different story,” says Carol Fitzgerald, Founder and President of, which surveys readers about their reading habits on an ongoing basis. “We get instantaneous feedback about what’s interesting to them.” Recently, for example, one of the site’s polls asked if readers always knew what they wanted before heading for the bookstore. Perhaps surprisingly, out of 728 responses, only 10% said they always know what they plan to buy. And a poll about online excerpts of books found that 23% of readers used them to make book selections (though 18% said they never read excerpts online). “This is not white-paper type of research,” Fitzgerald says. “It’s a snapshot. But it gives you much better information about how to promote to readers.” Sometimes snapshots are all it takes. An earlier survey on reading group guides, for instance, turned up some counter-conventional nuggets of wisdom. “We were surprised that 64% said they were not concerned with the format of the book — hardcover or paperback,” Fitzgerald says. “It was interesting to be able to share with publishers the fact that if you were going to be marketing a title to reading groups, it would be a good idea to market the hardcover instead of the paperback.”

Finding a Slice of Mind

As some researchers point out, focus groups are not necessarily a brand panacea. “Focus groups can be one of the most frustrating things when you’re looking for new ideas,” says Steve Xenakis, Managing Associate with research firm Ideas To Go. “It’s hard to expect eight to ten strangers to come together to identify a clear issue.” Xenakis, who has worked with the book program at Reader’s Digest, relies on multi-day sessions involving “Creative Consumers,” who are trained in areas such as naming or new product ideas. It helps streamline what can be a chaotic process. “Focus groups can be dangerous, because they are not quantified information,” adds Lloyd LaRousse, VP Global Market Research for Reader’s Digest. “They are merely good fodder with which to develop concepts. But there’s no gauge in a focus group to let you know whether something’s going to be a big winner or not.” To find those winners, Reader’s Digest takes concepts from the “ideation sessions,” and then tests them in larger mail or online surveys that target as many as 1,000 readers. Especially given today’s tough direct mail business, testing is crucial. “You get very big payoffs,” LaRousse says. “The stronger a concept scores, the greater the likelihood that it will be successful.”

Fishing for what Xenakis calls the elusive consumer “slice of mind,” advertising agencies that have used market research for other clients are now preparing to swivel into the book biz. Bethany Chamberlain, President and CEO of ad agency Spier New York, says that the company recently acquired the Lord Group in part “to bring some of the more typical package goods and consumer advertising planning and research to bear on publishing.” The point is to anticipate consumer desires and purchasing habits, and then buy advertising accordingly. Lord Group President Roger Chiocchi adds that he hopes to draw on the group’s proprietary “One True Thing” process, a sort of zen-like procedure which distills the essence of a brand into a single word or thought. “It has been very powerful on the consumer side, and we’re going to be looking into how powerful it can be on the publishing side as well,” he says.

Richard Laermer, CEO of RLM Public Relations and trendSpotting author, notes emphatically that test-marketing and consumer mind-meld strategies that work for other industries could save publishing from always chasing after the Last Big Thing. “I’ve often wondered why book publishers don’t do what the movie business does,” he says. “They would have found out that they wanted Chicken Soup for the Soul a long time ago.”

Book View, April 2002


Laurie Brown
is leaving FSG, where she was SVP, Director Sales & Marketing. Her duties will be assumed by Jeff Seroy and Linda Rosenberg. . . Gary Gentel has been named VP Sales, Trade Division at Scholastic. He was most recently with Dorling Kindersley. . . John Schline has been made SVP, Corporate Director of Business Affairs for Penguin Putnam. . . Dan Weiss was named President of, following the departure of founder and General Manager, Sam Yagan. Robert Riger has been hired as on-site publishing consultant to the company, which is owned by Barnes & Noble. . . Following the demise of Talk/Miramax magazine, account executive Perry Janoski has moved to Harper’s Magazine where he will cover book publishing as well as travel and entertainment.

As announced earlier, Chris McInerney is closing her scouting agency, McInerney International, at the end of June, after 28 years in business. Barbara Tolley will lead the agency (with a name change in the wings) as of July 1. Jayne Pliner plans to remain with the firm. . . HarperCollins has appointed Maureen O’Brien as Executive Editor at Morrow/Avon, where she will acquire commercial fiction and nonfiction for HarperEntertainment as well as the entire Morrow/Avon division. She was most recently at Hyperion. . . Joel Conarroe has been named the PEN Center’s new President. Conarroe, who will step down in December from the presidency of the Guggenheim Foundation after eighteen years in the post, was formerly Chairman of the National Book Foundation and served several terms on the PEN Board.

Greg Anastas has been named the new Director of National Field & Online Sales at Simon & Schuster. (We reported last month that he had left the company — our apologies.)


Despite well-documented troubles in book publishing, there has been a lot of M & A activity recently, with deals for Klutz Press, Berlitz, Running Press, PGW and Bonus Books announced in the last month. According to one knowledgeable source, all of them were sold for sums that were “satisfactory or better than satisfactory” for the sellers. For those who are still looking to scoop up a publisher, Prentice Hall Direct is still on the block. Merriam-Webster and North-South have been taken off the market, though. Meanwhile, across the Atlantic, Random House has signed an agreement to purchase The Harvill Press. Founded in 1946 and acquired in the ’80s by Christopher Maclehose, it will remain an independent imprint. Harvill’s paperback list will be published by Vintage.

In the industry professionals-turned-writers column we can now add Toinette Lippe, editor of Bell Tower books, whose Nothing Left Over has just been issued by Tarcher. She may be seen and heard on April 23 at the 82nd and Broadway Barnes & Noble at 7:30 pm. Then to California for the rest of her tour. Agent Emma Sweeney’s As Always, Jack from Little, Brown will be launched with an appearance on the CBS Early Show on April 10 and followed by numerous autograph sessions in New York and environs as well as Texas, Maryland, DC, and North Carolina.

Meanwhile, BOMC’s Victoria Skurnick and co-writer Cynthia Katz team up for the seventh Cynthia Victor book, The Three of Us. At times funny and other times thoughtful and poignant,” PW says, “this inspirational story is the perfect elixir for any middle-aged woman who has ever battled with weight gain, a particularly difficult relationship or suffered an identity crisis.”

• Amazon had 30.1 million unique visitors in January, compared with Yahoo! Shopping (25.8 million), and Barnes & Noble, the #3 site, at 8.2 million, according to Jupiter Media Metrix. is the heaviest advertiser in the books, movies, and music category, followed by Columbia House and Amazon. Together they represent 71% of all advertising in this category. Online book shopping expenditures in 2002 are estimated at $2.6 billion. There will be 82 million people shopping online this year, which represents 52% of the online population, and an average dollar expenditure per online buyer of $481.

The Daily News reports that the New York Times has online revenues of $700,000 from its 35,000 subscribers to Premium Crosswords, and that fees for archive material now amount to a seven-figure business. Topic-specific content is also being assembled and sold, including Thomas Friedman’s columns.

• PubEasy introduced Central Services at the London Book Fair, and US rep John Phillips tells PT it will launch first in the UK. The service allows booksellers around the world to check any participating publisher’s stock, the status of an order, or to place an order, by going to the site and entering the title’s ISBN. There are currently 9,000 booksellers in 112 countries using PubEasy, with 40% of those in the US, and 35% in the UK.


The National Book Foundation sponsors an evening of poetry for National Poetry Month on April 9 at 6:30 pm at the Blue Heron Arts Center. Tickets will be sold at the door. Go to (Separately, NBF said it had received a $100,000 gift from Microsoft to support the organization’s “continued recognition of books in electronic formats.”)

The Koret Foundation’s Jewish Book Awards are presented 5:30-7:30 pm on April 15 at the Harvard Club. Call (212) 629-0500 for information.

• Small Press Center and PW host a “Publishing Predictions” Roundtable at the Algonquin at 6:00 – 8:00 pm on April 17. Panelists include Bob Miller, Dominique Raccah, Peter Mayer, and PT’s own Lorraine Shanley. For information  call (212) 764-7021.

• University of Virginia & Library of Congress host “Publishing in the 21st Century: Blue Sky to Black Ink,” a seminar on the “alliance of electronic and print publishing.” Larry Kirshbaum is the keynote speaker, with “Blue Sky to Red Ink: Painful Lessons Learned on the Digital Publishing Highway.” It’s on April 18 – 20 in Washington, DC. Contact Beverly Jane Loo at (434) 982-5345.

The LA Times Festival of Books will be held April 27-28 on the UCLA campus. The LA Times Book Awards will be held on April 27 at UCLA’s Royce Hall. Go to:


Big parties in March, warming publishers up for the BEA onslaught (see PT, p. 3). First there was the elegant Poets & Writers gala at the Tribeca Rooftop, then there was the National Book Critics Circle awards and reception at NYU, and then, on to London. HarperCollins and Fourth Estate threw a cocktail party at Home House on Portman Square, where a multinational crowd drank champagne. The same night Duncan Baird celebrated his 10th anniversary as an independent publisher at the Groucho Club in Soho.

Back in the US, Roundtable’s Marsha Melnick and Julie Merberg hosted a farewell retirement party for Susan Meyer, who is launching a new career: studying NYC history at NYU and planning to write full time. Attending were VNU North American Chairman Jerry Hobbs and Georgina Challis, Corporate Communications and HR, Penguin Putnam’s Rick Kot, HarperCollins’ Susan Friedland, Disney’s Wendy Lefkon, and packager Paul Fargis, among others.

Publishing Trends celebrated its 8th anniversary and the 12th anniversary of its owner, Market Partners International, on March 25 at the Mercantile Library.


To Barbara Marcus, who was honored by the NOW Legal Defense and Education Fund at a luncheon on March 21 at the Waldorf. She was one of five women to receive the 2002 Aiming High Award.

To the Library of America, which turns 20 in April (the year of its first publication — it was founded in 1979 by Jason Epstein, who was just presented with the NBCC Lifetime Achievement Award). And to another spring baby, HarperSan Francisco, which turned 25 in March.

To Reader’s Digest’s Alfredo Santana, and Lisa Tatsuuma, proud parents of Camilla Sayuri Santana, born Feb 4.


Gwenda David, legendary UK scout for Viking and Book-of-the-Month Club for more than five decades, has died in London. She will be remembered for bringing Iris Murdoch and Muriel Spark to US readers.

Browsing BEA: “It Won’t Be Dull”

As the great mother ship BookExpo America prepares to set down in New York City on May 1, and the wall-to-wall lineup of bashes, fests, and sundry galas has us all excruciatingly triple-booked, Publishing Trends checked in with a number of show veterans to see whether this year’s industry summit will be a whirlwind of activity, or merely a light buffeting from all those air kisses. In other words: Will anybody be doing any business?

Darn tootin’, if you ask Steven Rosato, Group Sales Director and Director of Strategic Accounts for BEA. He’s been talking up the fact that show officials have been wrangling non-traditional booksellers with the Gold Buyers Program, which has offered some small incentives to lure retail giants such as Costco, the Burlington Coat Factory, Marriott, K-Mart, Wal-Mart, and others to the show. We’re also told that Borders is set to conduct one of its major annual pow-wows at BEA, and is dispatching the chain’s entire buying group (upwards of 200 people). Amazon is doing likewise, and Books-a-Million has been seduced with the promise of a dedicated meeting room, the result being a significant number of BAM attendees as well. Adding to the anticipated hordes, Ingram has cut a deal with its customer base, offering affiliated retailers a $10 discount on their badge (which goes for $110 until April 4, but is $150 on site).

On the exhibitor side, hopes are high over the cheap “day” pass BEA has offered for $20, which is geared to give NYC-area publishers a cheap way to empty out the office and send more staff than typically attend. S&S is taking full advantage of that option, says Marketing Director Michael Selleck, so expect lots of curious bodies on the floor. Mobilization also continues apace on the library front, with Pennsylvania Library Association past president (and rabid BEA fan) Jack Burke chartering two buses for his colleagues to attend the show, for a $15 fare. We’re told 90 people are confirmed — and buses are full.

Despite the deals, however, Reed still seems concerned about bookseller turnout, particularly among Californians. There’s worry that if the show continues to alternate coasts, as in the past, attendees may simply take a rain check until it boomerangs back closer to home. Independent reps also report a mixed bookseller response, with many wary of the show “politics” and smarting from the past indifference of booth personnel to the lowly “blue badges.” And there’s the rising “body count,” or the toll last fall has extracted from publishers, sales management, and sales teams. “We have had eight sales managers fired, ‘disappeared’ or ‘defenestrated’ since the New Year,” one rep tells us, “and we have every reason to believe that this trend will continue as blame for flat or depressed sales continues to be parceled out.”

Depopulation may also be hitting the rights-trading floor, but for a different reason. “Most publishers want to have appointments in their offices,” says scout Christina McInerney. “In fact, some have even said they would prefer to meet the foreign publishers in their offices over the weekend rather than go to the Javits Center. I guess this attitude is determined by what sort of space has been allocated for rights sales. It doesn’t seem like many have made it an attractive proposition.” For those keeping score, among McInerney’s clients who will be trekking to BookExpo are Ediciones B/Vergara, Verlagsgruppe Luebbe, Campus, Het Spectrum, Sony Books, and Livres de Poche. The only clients not attending are from the Greek house Livanis.

Furthermore, according to one senior rights director, several scouts report that even though they attended the event previously, they wouldn’t be coming to BEA this year because it followed too closely on the heels of the London Book Fair. (They opted for London instead.) On the other hand, some editors said they were pointedly attending this year’s BEA because they were on their way to NYC (some were even here) in September, but never got to their meetings, so they’ll make up for it in May. Meanwhile, out-of-town reps were relieved that it saves them an air ticket to BEA, as they’ll come to New York anyway for sales conferences.

BEA: The Full Meal Deal

Despite the jitters, some are predicting a full house. “I have quite a few clients attending,” says scout Mary Anne Thompson, “and I think people are making a real effort to visit New York City.” Some of Thompson’s clients who were already in town in the winter months are returning for BEA, and some of those attending BEA will also be back in September. Clients attending so far include: Rocco, Belfond, Piemme, Scherz, Droemer, Richters, Macmillan, Bruna, Vassallucci, Kadokawa, and Grijalbo-Mondadori. All told, it’s a “pretty good” head count of 22 people. As for logistics, Thompson says, meetings for clients pre- and post-BEA are slated for editors’ and agents’ offices, with a typical day’s schedule containing 6-10 meetings. During BEA, where most of the rights action will take place, at least 10 meetings per day are expected. She’s optimistic that heads of houses and senior reps will make an effort to attend the show, at least on Friday, and expects a larger international crowd than in past years, when the industry had tired of BEA, citing flagging energy levels and lackluster attendance.

For her part, Sarah Goodwin of Sanford J. Greenburger expects an action-packed show replete with “a lot of after-hours revelry and plenty of grist for the gossip-mills.” As Goodwin says, “A lot of our clients are coming a little bit before or after BEA as well, so they know they’re going to get to meet with absolutely everyone they want to. Usually, they would have to schedule a trip to New York sometime during the year, separate from the book fairs, but this year, it’s an all-in-one deal.” She notes that all of the agency’s big clients are attending, despite the proximity of both the Toronto Book Fair and LBF. Echoing other post-9/11 remarks, she adds, “If anything, people are even more eager to show New Yorkers their support.”

The safest attitude? Go for minimal sales and maximal parties. “We are guardedly optimistic,” says Christopher Kerr of Parson Weems. “Fewer client publishers will be exhibiting, largely because of poor bookseller attendance in earlier shows, as well as concern about NYC exhibit costs and union shakedowns.” Other booksellers, he says, are already salivating over visions that the parties will be on par with the last, decadent New York BEA. (PT’s informal survey turned up numerous bashes, most hosted by publishers.) But sales may be scarcer than a taxi on 11th Avenue. “We write very little business either at the show or around the show,” he says. “However, we encourage our publishers to promote ‘Show Specials’ and we see some backlist business as a result. Also, we hear, by the grapevine, that many other publishers are privately offering themselves or portions of their lists for sale. Whatever it is, BEA will not be dull.”

Book View, March 2002


More Random House movement: Craig Virden, who has been President of RH Children’s and before that, BDD Books for Young Readers, is leaving. Crown’s Chip Gibson will take over, with Rich Romano as his EVP. Meanwhile Jenny Frost, now heading up Random Audio (which she will continue to run), will take over Crown Publishing Group, which now includes Random Information Group’s imprints. Bonnie Ammer will report to Frost, along with Pete Muller, SVP Publishing Operations, Robert Allen, President of Random House Audio, and Lynn Bond, President of Random Value. It is unclear at this point what role Joerg Pfuhl (who had overseen Children’s and Random Information) will play in the reorganization, though he will be involved in audio and international.

Neal Goff has been named President of Scholastic’s Grolier Reference Division, reporting to Dick Robinson. He was most recently Senior VP of Marketing at BMG Music Clubs.

PJ Mark, formerly at, and before that, a book scout for Mary Anne Thompson, is moving to IMG as agent. He will be working for Mark Reiter.

Among the 30 or so let go at S&S were Charles Roberts, Regional Manager for Texas and the South West for 42 years, and Karen Weitzman, Foreign Rights Director and 22-year veteran. Meanwhile, Greg Anastas, Director of the online sales group, is now Field Sales Director for Field Key Accounts reporting to Roger Williams (we had earlier reported he had left the company — our apologies). Pocket Book Senior Editor Tracy Sherrod is leaving to set up her own literary agency with partner Beverly Williams. Tony Clark, who had worked at Holt, is also joining the firm which, according to PW Daily, will offer authors a variety of services.

Also, Mike Campbell, most recently of Martingale & Co., is joining Carlton Books as VP Director of Sales in New York
. . . . Alissa Neil has joined PR agency Ellen Ryder Communications, as VP. . . . In the wake of Michael Denneny leaving St. Martin’s, Diane Reverand is rumored to be in active negotiations with St. Martin’s, possibly for an imprint.


AAP’s annual meeting took place in Washington, DC, February 27-28, and copyright — Pat Schroeder’s central focus — played a major role in the discussions. In fact, the king of copyright manipulation, Michael Eisner (Disney’s efforts to extend the term of copyright are being challenged in court), was a key speaker. He was in DC to testify before the Senate Commerce Committee in the interests of the content providers who are battling piracy. Meanwhile, Schroeder pronounced the “publishers’ axis of evil” as “postal rates, piracy, and illiteracy.”

At the board meeting on Thursday Hyperion’s Bob Miller officially stepped down from his two-year term as Chair of AAP, and was succeeded by Robert E. Evanson, President of McGraw-Hill Education. And Random CEO Peter Olson asked fellow publishers if they would contribute to the Rosetta Books suit. The response was, we hear, positive.


Pat Conroy’s new ms is in: My Losing Season, which takes the reader back to the Citadel, where his earlier novels were set. Publication is scheduled for October ’02 by Nan Talese/Doubleday and his new agent, as mentioned in PT (February) is Marly Rusoff.

As mentioned elsewhere, Riverhead Books has acquired world rights to publish a book derived from the personal journals of Kurt Cobain, the late lead singer for Nirvana. PT has learned that the amount paid for the journals is reputed to be close to $4 million, with Penguin UK putting in a hefty chunk of the change.

With Tim and Nina Zagat announcing the expansion of their guides, Fortune’s Tim Carvell speculates on possible future titles: Zagat’s Guide to Accounting Firms, Guide to Economic Forums, and Guide to Petty Grievances in Tim and Nina Zagat’s Marriage. Meanwhile CEO Amy McIntosh has left the firm.

A contract has been drawn up for the purchase of Klutz Press, which was sold just over a year ago to the Canadian company Nelvana, which was itself recently purchased by a larger Canadian company. At press time the identity of the new buyer was not known.

Those concerned about Colombian presidential candidate Ingrid Betancourt, who was kidnapped on February 23 by revolutionary guerrillas, are urged to email a note of support to [email protected]. Emails will be forwarded to the Colombian government as a show of American solidarity. The family is also setting up the site According to Justin Loeber, Director of Publicity at HarperCollins (and actively involved in galvanizing support for her), the NYTBR will run a review of Betancourt’s memoir, Until Death Do Us Part: My Struggle to Reclaim Colombia (Ecco), on March 17.


Winners of the 2001 Barnes & Noble Writers For Writers Award, E. Lynn Harris, June Jordan, and Wally Lamb, will be presented the awards at Poets & Writers annual gala benefit on March 5 at the Tribeca Rooftop, 2 Desbrosses Street, New York City.

The Tennessee Williams/New Orleans Literary Festival, March 20-24 (, is in its 16th year.

The Virginia Festival of the Book will take place March 20-24 in Charlottesville, VA. Marie Arana, Washington Post Book World’s editor, is the luncheon speaker. See

• National Book Critics Circle Awards take place on March 11, at the Tishman Auditorium, NYU, New York. Contact Linda Wolfe, [email protected].

• London Book Fair is March 17-19 at Olympia Exhibition Centre, London, UK. Contact Joanne Veale, 020 8910 7815; [email protected].

14th Small Press Book Fair is March 23-24, NYC; call (212) 764-7021 or visit

The New York Public Library’s 2nd annual Young Lions Fiction Award will be presented March 20 at the Celeste Bartos Forum. The finalists for the award, which comes with a $10,000 prize, are David Czuchlewski, Allegra Goodman, Peter Orner, Brady Udal, and Colson Whitehead.


Going to school with the right people can pay off as Arthur Klebanoff demonstrated at the Texere party held at the Bloomberg headquarters to celebrate his book The Agent: Personalities, Politics and Publishing. Hizzoner spoke of his school chum, followed by Chuck Schumer. And to reinforce them were Ed Koch, Cindy Adams, and Bill Bradley. A few publishing folks were also sighted.

• Terrence Cheng, director of electronic marketing for Random House, celebrated his first novel, Sons of Heaven, set during the Tiananmen Square massacre. The book is coming from Morrow in May to coincide with the Chinese New Year. The event was splendidly catered and featured some of the best Chinese dim sum this correspondent has encountered.

• Otto Penzler’s reception for Michele Slung at his Mysterious Bookshop to celebrate the publication of her latest anthology, Stranger (HarperPerennial), featured publishers-turned-writers Joe Kanon and Amanda Vail, Voice fashion columnist Lynn Yaeger, NY Post drama critic Donald Lyons, as well as fans that included agents Nat Sobel, Vicki Bijur, and veteran editor (responsible for the current hit, The Red Tent) Bob Wyatt.

• Barney Rosset displayed another side of his mercurial and talented self at the opening of his collection of war photographs taken in China (where he was in the US Army Signal Corps Photographic Services) at the Janos Gat Gallery, where there was much whispering about his autobiography just sold to Gerry Howard at Broadway.

And the tireless Michael Pollan showed just what it takes (again and again) to sell books (The Botany of Desire is now up to 110,000 copies since last May) at The Stegner Circle (“Readings by Writers of the Land”) benefit lecture on behalf of the Trust for Public Land held at the New York School of Interior Design.


Happy Birthday to AMS, 20 years old and now the proud owner of PGW; to Trafalgar Square, 30, and with a total of 50 clients, eight of them new. Also, best wishes to Aperture, which celebrates its 50th anniversary by a group that included Minor White, Ansel Adams, and Dorothea Lange. And to the Today Show’s literary editor Andrea Smith, recently honored by the AAP. And it’s the show’s 50th anniversary too this year.

The New Old-Fashioned Way

Mike Shatzkin of the Idea Logical Company took a retro tack at the Seybold Seminars last month  as he rolled out “a brand new opportunity to get more sales and lower the returns of physical books.” We offer a brief excerpt of his remarks.

Here’s the fact most publishers and chain booksellers seem to ignore: the only effective way to control book inventory is title-by-title, store-by-store. All of the various shortcuts, like saying “this title is ‘like’ that one” or “we’ll buy six for the A stores,” which have become increasingly common over the past 20 years as computers and central offices served by national account managers replaced reps visiting retail locations, have served to block sales and increase returns.

This is not to fault the skill level, dedication, or work ethic of the people doing either the buying or the selling. This is the inevitable result of more and more aggregated decisions. But when a company like Borders or Barnes & Noble is managing in excess of 100 million retail stock levels with all decisions being made by humans, it is hard to see how else to do it except by aggregating and averaging.

Now, in the old days, the successful publishers that grew over time (the two best examples were Doubleday and Random House) did so by building large sales forces that took inventory in store after store so that informed backlist buying recommendations were based on the real sales and inventory information in that store. Today, publishers have the opportunity to go back to that work ethic, without getting on their knees to count books on the bottom shelf. Point-of-sale data exists for almost every retail outlet in the country that matters. A substantial business called Bookscan has been built assembling and selling that data. New businesses are being organized to help the titans in the marketplace analyze that data. But not a single publisher that I know of is routinely assembling and manipulating that data at the granular level — the store level — to manage inventory title-by-title, location-by-location.

It is not easy to do that. There are both political barriers and systems barriers to getting that data, even through Bookscan. Indeed, Bookscan and its sister company in Britain, BookTrack, have focused on selling aggregated data and seem unaware of the critical value of granularity. But as the trade book business seems daily to become ever more unprofitable for publishers, it is now possible to use data to solve inventory problems, title-by-title and store-by-store, if there is the will to learn the way.

The Seybold Scuffle

As panelists brandished tablet-sized, next-generation Nokias (“wireless ebooks will be a reality in 2002,” one e-prophet intoned) and others dusted off vintage ’90s web nostrums (“go where the traffic is”), there was also some refreshing digital realism on hand for the Seybold Seminars at the Javits Center on February 21. While much time was spent pondering the “intellectual property supply chain,” and scheming to use digital workflows to boost productivity (or, as it was baldly put, “We’ve got to start thinking of ways to turn those brains into money”) some publishers have thrown caution to the bitstream — and wound up with impressive results.

Barbara Kline Pope, Director of the National Academy Press, brazenly offers free online browsing of the complete texts of 2,500 titles (though there’s a charge for printing a copy). The press is now taking a whopping 40% of its orders over the web, the bulk being scholarly titles; the Joseph Henry Press trade imprint is still mainly sold via brick-and-mortar stores. In an attempt to answer the e-riddle of the millennium (i.e. “Will they pay?”) the press has mounted an elaborate online survey project in association with the Smith School of Business at the University of Maryland. The findings? “Unbundling” books and offering each chapter as a separate download got the big thumbs up. “If we unbundled our content we could have a major market expansion,” Pope said, adding that consumers were willing to pay for such content at a 110% premium of the printed book price. Now, armed with a Mellon research grant, the press is looking extensively into free online browsing and other print-vs.-PDF conundrums. Check it out at

Meanwhile, free content was the mantra of the day for Jennifer Gold, Director of New Media for Rough Guides. “We figured out how to actually make money from our site,” she reported, “without alienating users.” That holy grail was conquered after a site relaunch late last year (see which posted the full content of over 50 titles online, plus a whole host of reader-contributed features such as personal travel journals and photos. Throw in partnerships with travel goods purveyors — call ’em “contextual commerce opportunities” — and you’ve got profits. “We note sales of our print books have gone up,” Gold added. “They haven’t been cannibalized by our free content.”

There ensued a vigorous scuffle among ebook vendors, with Franklin President Barry Lipsky boasting that he’s shipped 27 million devices to date, and adding, “We’re one of the few companies that pays publishers in excess of $500,000 a year in royalties.” For her part, Microsoft’s Julie Blackwell Stamstad plugged Microsoft Reader 2.0, noting that the program fixes a litany of bugs and has an installed base of 6 million. Then Mike Segroves, Director of Business Development for Palm Digital Media Group, deemed Palm “the leading ebook platform” with 21 million Palms in use today. The company currently offers 4,000 titles, and sells to about 100,000 customers, who download 10,000 volumes per week. And they keep coming back: 49% of first-time Palm ebook buyers become repeat customers within 30 days. Meanwhile, they are getting into the e-galley business, thanks to a chance meeting at the seminar, where conversion service provider Publishing Dimensions introduced the new site Segroves was so taken by the idea of supplying advance reader’s copies that he offered Publishing Dimensions the necessary DRM to ensure encryption. Contact Ken Brooks ([email protected]), or Kathleen Doody ([email protected]) for more information.

And for a final take-home message? When you’ve got to compete in a virtual world, it pays to keep your overhead low. “The goal for me and for any proper publisher is to be as close to virtual as you can be,” said e-reads’ honcho Richard Curtis, noting that his e-publishing firm outsources everything conceivable, including scanning, conversion, proofreading, and e-tailing. “The average trade publisher’s profit margin is 2% or 3%. Our profit margin is 40%,” he continued. “I would tell publishers to strip down to their underwear.”