August 23, 2006

Publishers Move Towards Digitising Books

Filed under: Book Deals and Publishing — Thomasina @ 2:15 pm

In 2004, Google announced that it would begin digitizing books, scanning their content into an online library. Jane Friedman, the president and chief executive of HarperCollins, the world’s third-largest English-language trade book publisher, had two responses: first, sue them; second, join them.

Friedman’s additional position as the chairwoman of the Association of American Publishers prompted her act as the representative for the five leading publishers in a court battle with Google last year. Much like the arguments against programs such as Napster in the past, the publishing companies accused Google of violating copyright laws.

But, as Google persisted with its project, Friedman decided to scan HarperCollins’ extensive book directory into its own digitial files. “I was very concerned about Google actually physically owning our digitial copies, so we said, ‘Why doesn’t HarperCollins take this lead?’” she explained. “It’s up to us to recognise where we will be friends with them and where we will sue them.”

Friedman’s decision to digitize files dating back to the 1920s—by next year, she hopes to have 20,000 books available in digital form—indicates the importance of the backlist in publishing revenues. Publishers actually make a large percentage of their income on older books, because the most expensive elements of the publishing process have already been paid for, making reproduction costs the sole expense. And the internet, Friedman points out, facilitates the second-hand book trade as well as the housing the specter of libraries of free digitised books, both things that srip publishers of their means of staying afloat.

Because another problem with the backlist is storage: physical books take up a great deal of physical space. Bookstores have a finite capacity, and are likely to bump older books when the newest bestseller comes along. In order to compete, publishers will need to set up their own online storefronts and prepare for digital distribution. It’s an extremely costly process—Friedman quoted a seven-digit price tag for HarperCollins’ effort—but the storage space is free and the consumer can find the product in an instant, increasingly a requirement for a product’s success.

Other companies have begun to turn their eyes towards the future of digital books as well. Though e-books still represent a fairly small portion of the market, textbook companies like Pearson, offering learning materials in textbook form, have triumphed over their competitors. The American Association of University Press met in June to discuss the possibilities and drawbacks. “The mission must be getting more material to scholars faster,” said Stephen Rhind-Tutt, president of Alexander Street Press.

Most notably, Macmillan announced last year that it would begin digitising its books in a similar manner to HarperCollins. Richard Charkin, C.E.O. of Macmillan, expounded that “services such as Google Print have shown what can be done for books and we are keen to build on this by offering a range of services to our publishers, from basic search and display to marketing and e-commerce.” Jane Friedman agrees: “My intention is that everything gets integrated; the digital world becomes part of the fabric of the traditional publishing world.”

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