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RIP BEA

BookExpo America (BEA) and BookCon are folding. The shows’ organizers are blaming the shutdown on SARS-CoV-2, but the mask slips a little when they add, “The pandemic arrived at a time in the life cycle of BookExpo and BookCon where we were already examining the restructure of our events to best meet our community’s needs.” That’s corporate doubletalk for “The shows were both in trouble before the virus, and the virus was a plausible excuse to shut them down.”
I used to go to BEA every year. (I’ve never been to BookCon, which is a sort of combined fan and publisher gathering in NYC, targeted at consumers and mostly about fiction.) BEA was useful in a number of ways, not least of which was to see how our competitors were doing in the ’90s. I kept going for a few years after Coriolis folded, just to keep a finger on the pulse of the industry and spot trends. That pulse has been harder and harder to find in recent years. Ginormous publishing conglomerates are merging. This generally means that the smaller one is in trouble, and the bigger one wants their cash flow. Penguin Random House is buying Simon & Schuster, assuming antitrust challenges don’t emerge. What used to be The Big 5 is about to become The Big 4.
Two (related) things seem to me as behind publisher consolidation and the loss of big trade shows like BEA:
  1. The large publishers never wanted ebooks and don’t know how to deal with them.
  2. Independent publishing (indie) is catching on in a very big way.

The business model of traditional book publishing is complex, and weird. (Weird, even to me, and I worked in it for fifteen years.) The biggest single problem is that large and very large presses are fixated on hardcovers. This fixation goes back a very long way, and cooks down to the notion that hardcovers are books, and everything else (primarily ebooks and paperbacks) are secondary markets that depend on hardcovers to exist at all. It’s true that if you go back to the 1800s, vitually all books were hardcovers. Granted, there are exceptions: I have a paperback edition of Oliver Twist from 1882, which indicates that cheap books on cheap paper were there in the shadows all along, but were all too often slandered as “dime novels” that corrupted young minds. The money and prestige were in hardcovers.

Paperback originals emerged as a force in the 1950s, roughly concurrent with the emergence of the mass-market paperback (MMPB.) Because early MMPBs were reprints of hardcover editions, the notion of paperbacks as a secondary market was logical. When paperback originals emerged, larger presses used them to build the audience for their hardcovers, and to a lesser extent, a midlist from which promising new authors could be promoted to hardcover. Hardcover pricing was what kept the doors open and paychecks going out. Secondary markets were gravy.

Various forces are now turning the hardcover-centric business model on its ear. The single most important force here is not simply the ebook, but the fact that you can read ebooks on smartphones. Ebooks were dismissed early on because “nobody’s going to buy an expensive gadget just to read books on.” Well, dedicated ebook readers are no longer necessary. I have a Kindle Paperwhite because it’s easier on my eyes, but I’ve read plenty of books on my Galaxy Tab S3 and three different smartphones. Today, everybody has a smartphone, which means that everybody can read ebooks. It’s no longer a niche market.

This scares the crap out of traditional publishers. They have kept the cover prices of ebooks close to (or in some crazy cases higher than) hardcover prices, insisting that it costs just as much to create an ebook as it does to create a hardcover, dodging the truth that it’s all about physical inventory, returns, and unit cost. The unit cost of an ebook is zero. Inventory and returns no longer exist.

The second most important force is, of course, Amazon, home of The World’s Richest Man. Amazon did not create the notion of ebooks or ebook readers, but the Kindle Store allowed the emergence of independent publishing, more on which shortly. And the smartphone, in turn, created the market for the Kindle Store.

Amazon has systematically undermined the hardcover price point by allowing a nearly frictionless market for hardcovers that were read once and then sold through associate accounts for a third the cover price–or less–of the same book new. Amazon Prime created all-you-can-slurp shipping, and with improvements in logistics allows a book to be ordered in the morning and delivered in late afternoon. Why bother fighting traffic to get down to the last Barnes & Noble in town, when you can get the book just as fast (and more easily) with a few taps on your smartphone? (Yes, I’ll miss bookstores. But I won’t miss tchotchke stores.)

And last but by no means least, we have indie publishing. There are a number of platforms on which ebooks may be published, but realistically, it’s Amazon plus debris. They have wisely combined ebook and POD print book publishing into one entity. (90% or more of my sales are ebooks.) The system is straightforward enough to allow anybody with half a brain to publish their own books and short items on the Kindle store.

This means that a great deal of what is published isn’t worth looking at. We all worried a lot about that. But as it happened, people are discovering ebooks they same way they discovered print books in the old days: By word-of-mouth, which these days includes word-of-Web. Discovery sites like Goodreads help a great deal, as do Web forums with a topic focus. Amazon’s reviews are generally good, though you have to read a lot of them and average things out in your mind. Some people are hard to please, and others please way too easily. All that said, I’m very surprised at how few Kindle ebooks I have bought and then hated. Sure, some were better than others. But I did an odd kind of crosstime quality spot-check on marginal ebooks and SFF MMPBs from 50-55 years ago. Pull a passage from a 55-year-old no-name SF potboiler (easier now that the pages are coming loose as you turn them) and compare it to a no-name ebook SF potboiler you took a chance on for $2.99 based on Amazon reviews. The Amazon book wins almost every time. Why? Automated discovery, via reviews and recommendations. All we had to go on 50 years ago was the back cover, and a quick flip through the pages. Now we can be as fussy as we like, or at least as fussy as we have time for.

The bottom line on ebooks is that with automated discovery and online recommendations, you no longer need traditional publishing at all. I’ve bought some ebooks from the few traditional publishers (like Baen) who embrace them. But at least 75% of the SFF I’ve read in the last year has been from indie authors. Some books were better than others. Remarkably, all but a couple that I took chances on were worth reading.

I’ll miss BEA–a little. I had fun there and met some interesting people. I will not miss hardcover culture and its attendant weirdness. If the Big 5, er, 4 can’t shed that weirdness, the reading public will shed them, sooner than later.

In the meantime, it’s a marvelous time to be a reader–and an even better time to be a writer.

Slow-Mo Espresso

I first heard about the Espresso Book Machine in 2001, back when it was called PerfectBook 080. That machine is now old enough to vote, yet…where are they? I was talking about that question in the mid-oughts, and described what I called just-in-time bookstores (which were in fact gumball machines for printed books) in 2006. A recent piece in the New York Post suggests that the machines are indeed out there, and are in fact being installed in bookstores for on-demand printing of books.

Well, it’s 2019 and ebooks have raced past the print-on-demand (POD) tortoise at about .25 C. You don’t hear a great deal about POD books anymore. I used to sell quite a few in the early-mid oughts, when I mounted several titles on Lulu and Amazon’s now-shuttered CreateSpace. As ebooks have become cheap and easy, POD books are a much harder sell. I wish Shakespeare & Co. (see the NYP link above) all the best, but whereas the concept sounds great on paper it may well be impossible to implement as more than an isolated and little-used oddity.

Why so? The bulk of it is simple copyright: Beyond public domain titles, the stores would have to have some sort of contractual agreement with publishers to print books, along with a usable print image. (These are generally but not always PDF files.) Publishers are reluctant for a number of reasons:

1. They don’t really know how to negotiate such a contract. How much should the publisher get? How much should the store get? How much would the authors get? Under what circumstances can the contract be terminated? With book publishing in the parlous state that it is, figuring this out would not be easy. Why? Once precedents of this sort are set, they become expectations and are hard to break. Publishers have no history here, and would basically have to guess. Bad guesses could be fatal over the long run.

2. Publishers want to protect conventional bookstores and chains. Publishers and big store chains have a fragile but necessary symbiotic relationship. Small booksellers with Espresso machines would nibble away at that relationship by making big-box bookstores even less necessary than they are today. If Barnes & Noble were to shut down, there would be publisher blood in the streets of Manhattan. Espresso machines in espresso shops would just hurry that apocalypse along.

3. This is probably the big one: If a book’s source file(s) escape a bookstore’s control, they’ll be all over the Internet, and anybody with a laser printer or access to a POD machine can create bootleg copies. This actually happened to me: The publisher print image file for my book Assembly Language Step By Step escaped its publisher’s control and was everywhere, just six weeks after the book was published in 2009. Bookstores are notoriously fluky operations, with lots of turnover and quirky people. One part-timer with a thumb drive in his pocket would be all it took. I’ve studied file piracy in detail over the past twenty years. This is a real fear.

4. Espresso machines are not cheap. They cost about $80,000 and up depending on speed and sophistication. Most firms rent them, with periodic maintenance included in the rental. I have no good numbers for that, but Espresso uses xerographic printers and I was a Xerox repair tech forty-odd years ago. Those machines are messy and touchy. Something gets a little out of line and the machine ceases to work. So it may not be an option for tiny storefront shops, especially if publishers aren’t on board.

5. Here’s the insight I bring to the issue: Near-term, espresso bookstores are likely to be opportunities for small, very small, and indie publishers. It would cost a bookstore very little to host a print image that might be ordered twice a year. PDF files for mostly textual works like SF novels are very compact. (Heavily illustrated books, of course, require larger files, but not that much larger.) Small/indie press would be far more likely to cut deals with the bookstores than Macmillan or Wiley. They have a lot less to lose, and a whole lot more to gain.

So where does all this leave us? Alas, I’m nowhere near as bullish on POD as I was even six or seven years ago. I attribute this to the promotion of smartphones to mini-tablets. I myself have a “phablet” (a Samsung Note 4) and I love it. I also do exponents more reading on it than I ever thought I would back when I bought it toward the end of 2015. (And this is true evenn though I have other readers with much larger screens.) Basically, almost everybody who partakes of modern life today has an ebook reader in their pocket, and some of them are actually called “ebook readers.” People have become used to reading genre fiction on small screens. It’s a tougher call for technical nonfiction containing figures, photos, or code. I have read technical books on my Lenovo Yoga convertible, and it’s…so-so.

Back in their heyday, the pulps were considered disposable books. You read them once, maybe kept them for a little while (the bathroom was possibly their final redoubt) and then threw them away. Fiction ebooks work like that: People read a novel once…and then, having done its job, it vanishes into the archives. It may never emerge from the archives again, but with terabyte drives in increasingly small devices, who cares? You’d have to read a lot of SFF to fill one of those.

POD will continue to make a certain amount of sense for science, tech, and history books, or any other genre that depends on fixed page-layout specifics. Reflowable tech books are just hideous. The big question is whether that sort of nonfiction is enough of a market to float a maintenance-hungry beast like an Espresso Book Machine in the basement of a bookstore. Given how long that question’s been hanging in the air, my guess is that the decision’s already been made.

Guest Post from Brian Niemeier: Here Comes The Secret Kings

Before I turn it over to Brian, a note or two on what this is about. First of all, if you haven’t read what I wrote as intro to his first guest post, it’s here and worth reading. Brian’s making quite a stir in the business, and it’s in part his success (and the success of other indie writers that I hang with) that led me to scrub traditional publishing out of my life last year. A key element of my long game is to create a new blog that follows the same general functional model as the Mad Genius Club, with posts from several indie writers on the process of writing, the tech of self-publishing, news and announcements, excerpts, odd lots, and pertinent gossip about the industry as a whole. When this happens is unclear, but I’m working on it. It’ll be 100% trad-free and 277.79% contrarian. No fake news, some commentary, and (I certainly hope) a near-daily posting schedule. Watch This Space. And now, heeeeeerrrrrreeee’s Brian:


The Secret Kings-cover-15.jpgGreetings, Contrapositive Diary readers! Jeff has kindly lent me his blog to announce the launch of my new SFF novel The Secret Kings, Soul Cycle Book III. This book is the follow up to Souldancer, the first–and so far, only–indie novel to win a Dragon Award. But whereas Souldancer took the Best Horror Novel prize, the sequel fits much more comfortably into the space opera genre with a more straightforward plot that’s even more focused on action. The Secret Kings is also the point in the series where events and concepts from prior books really gel. Characters from Nethereal and Souldancer get drawn together in ways that early readers found highly intriguing, and plot threads spun in earlier installments find satisfying conclusions.

This isn’t the end, though! Leave it to the guy who bypassed the traditional publishing path altogether to also buck the trilogy trend. I can divulge right now that there will be a Soul Cycle Book IV, and inf fact, a preview of what’s in store next is included at the end of The Secret Kings. It’s an understatement to say that this series has exceeded expectations. Nethereal earned me a Campbell nomination. Souldancer won a Dragon. By all accounts, The Secret Kings marks a new series high point. There’s no telling where this ride will take us, so get on board!

Thanks again to Jeff for helping out with my book launch, and for all of his sterling advice. You can be certain that I’m just getting warmed up.

Merry Christmas,
Brian Niemeier