Power-Mad Macmillan CEO Hates, Doesn’t Understand Libraries

Seattle Public Library

On Wednesday, blogger Eric Hellman wrote this recap of an event at which Mamillan CEO John Sargent spoke (via). Sargent’s comments on libraries were quite distressing; he described borrowing library ebooks like this: “It’s like Netflix, but you don’t pay for it. How is that a good model for us?”

Yikes. Sargent’s anti-library-ebook argument is essentially that borrowing physical books from a library is a major drag, so people don’t do it so often. Borrowing ebooks is super easy, and that will bring the publishing industry to its knees.

Hellman, who actually asked Sargent the library question at the event, says this: “he has gaps in his knowledge of libraries.” I would put it in slightly stronger terms: it sounds like Sargent hasn’t borrowed a library book in 20 years, if ever.

Sargent doesn’t know about online card catalogs, which allow you to order physical books and have them waiting for you at the branch of your choosing. He thinks ten people reading a book will destroy it. He thinks anybody can get a card to any library in the country (in fact, you have to be at least a state resident, as I found out last year when I talked to Rachel Martin, a librarian at the Seattle Public Library). Basically, Sargent doesn’t know much about checking out books.

More troublingly, he seems to see libraries as foolhardy businesses that aren’t charging (and aren’t tithing out publishers) enough. Personally, I see free access to public libraries as a fundamental human right in an industrialized nation. It’s a sizable difference of opinion.

And I’m noticing something else: the more Sargent talks, the more dictatorial and greedy he sounds.
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Wednesday Links 3-10-10

What do these three have in common? They all have absolutely no business writing or "writing" books.

News about books and ebooks from around the web:

  • Vapidity will continue to rule the bestseller list. Sarah Palin plans to “write” another book (get ready, Marcos), Lindsay Lohan has plans to hawk her crazed mutterings, and Hilary Duff just signed a contract to write a series of young-adult Da Vinci Code-style caper novels (I kid you not). Previously, we learned about reality star Lauren Conrad, who’s writing novels (plural) despite having never read a whole book in her life (which you should do, if you want to write one). Then there’s always Dan Brown, a terrible writer of stupid books (even his website wants to be a movie)… but he has 80,000,000 readers. And let’s never forget Douglas Preston, a horrible writer who’s so overprivileged and out of touch that he attacked his own readers for not paying exorbitant prices for his crappy books. Please help me solve this. If you like any of those writers, do me a personal favor: stop buying their books and watch TV instead. TV does mindless entertainment much better than books, and then books can go back to being carefully crafted works of the imagination, and not just paycheck tickets cranked out by illiterate uncaring morons and vapid celebrities trying to cash in on their fleeting fame. Publishing industry: I hate you. To wrap up this rant, here is a grossly unreadable article about nothing, written by an editor from Knopf. It’s a joke, right? Nobody’s that bad a writer, especially not a professional editor, right? Right?
  • Borders is broke and starting heavy layoffs. Three months ago, while discussing the Nook, I noticed that Borders notably had no plans to release its own ereader/ebookstore. I said this about it: “Oh, and also… remember Borders? I’d say they have about 2 years of financial solvency left. It’s going to be like a brontosaurus dying.” Based on my understanding of the financial gobbledygook in the article in that first link, that timeline was just  slightly generous. Ebooks are the way of the future, bookstores. Don’t be shy.
  • Two weeks ago, the NY Times published this article by Motoko Rich about the prices of ebooks vs. paper books. It included this chart, which got everybody in a huff because it claimed that ebooks selling for as low as $9.99 will provide as much profit to publishers (not authors) as full-price, $26 hardcover books. Among the respondents: Gizmodo, GalleyCat, John August, and almost everybody else in the world. I just have one thing to add. Rich estimates the costs of printing and shipping at $3.25. Since online hardcover prices max out at about $15, that means, logically, ebook prices should max out at about $12. Since some new, hardcover, guaranteed bestsellers go for even less (like Stieg Larsson’s next one, pre-selling at Amazon for $11.50), ebook editions of those should come in at sub-$10. Which means maybe readers asking for $9.99 ebooks wasn’t so astonishingly entitled after all. Maybe the Macmillan/Amazon kerfuffle lost Macmillan more than it gained them. Maybe publishers should shut up about prices and windowing and all those other caveats, and just put their weight behind ebooks. Stop treating your customers like enemies, and maybe everything will turn out OK.

Wednesday Links 2-24-10

J.K. Rowling Sued Again + Other News

J.K. Rowling

Not really a full links post, but a few things caught my eye this morning. So here we go.

First of all, J.K. Rowling has been sued for plagiarism, again, hilariously. This time the plaintiff is the estate of a writer who died thirteen years ago. They claim she stole from a 36-page pamphlet called “The Adventures of Willy the Wizard.”

The entire case rests not on copied passages, but on the fact that “both Willy and Harry [are] required to solve a task as part of a contest, which they achieve in a bathroom assisted by clues from helpers.”

So, your case rests on the word “bathroom.” Good luck.

My other favorite line from that story is the estate’s PR guy (not lawyer) saying: “‘All of Willy the Wizard is in the Goblet of Fire.’” That’s a joke, right? Because “Willy” is only 36 pages long? Right?

And there’s a lot of other funny stuff in the Guardian piece. In other news:

  • Engadget reports the new iRex ereader is finally coming out, only four months late. This new model, the cutely named DR800SG, is notable because it costs less than $800, and it gives Engadget a chance to backhand the stupid Nook by calling the iRex “Barnes & Noble’s first big play in the space.” Since it has a stylus-driven touchscreen, file it under Y for Yet another reason not to get a QUE.
  • And, finally, The Rapture, one of my favorite bands, says this about their upcoming release:

“Our new album’s gonna be fucking 100 times better than the iPad,” [band member Gabe Andruzzi] jokes. “With this record you’re going to be interfacing with your soul in ways that have never happened before.”

So we’ve got that going for us. Which is nice.

Wednesday Links: 2-10-10

Some news about books and ebooks from around the web (more after the jump):

  • So Amazon is absolutely terrified of the iPad. Amazon is releasing a Kindle software development kit (or SDK), which means we’ll soon see iPhone-style apps for the Kindle. Those apps will suck, because there’s little you can satisfyingly do with an ereader besides read, and one of the rules (according to Kindle 2 Review) states that an app can’t be “a generic reader.” RSS? Nope, can’t use more than 100Kb/month in bandwidth. K2R speculates that apps will be such things as crossword puzzles and simple timers. Color me underwhelmed. To raise the stakes, Amazon bought a touchscreen company the other day. This is all just awful. Amazon needs to realize that the singular purpose of the Kindle (and ereaders like it) is a selling point, not a liability. You compete with the iPad by making the Kindle cheaper, and as simple and easy-to-use as possible; then, you allow library books and hype them. That’s it. Trying to compete with Apple on Apple’s turf will only end in tears, Bezos.
  • Speaking of Bezos’s screw-ups, did you hear about this whole Amazon/Macmillan thing? Macmillan wanted to set their prices higher, so Bezos removed all Macmillan books and ebooks from Amazon.com (like a four-year-old who doesn’t get his way). Basically, it was two big stupid corporations fighting to see who could screw up worst, and the winner was Amazon! John Scalzi breaks down exactly how bad they screwed up. Of course, Macmillan’s no prize, either—softly strangling a flourishing market is just not a good idea—but they’re too scared to see straight. Amazon capitulated almost immediately, when the entire world told them they were stupid. But then it took EIGHT DAYS for Amazon to relist the Macmillan books, and now the Kindle editions of books like Wolf Hall are…. wait for it… still $9.99! So, presumably, Macmillan will set its own prices starting in the future, not now. Which means it took Amazon eight days to relist the books because why again? Anyway, this whole thing brought us this awesome Macmillan ad, and makes about the hundredth stupid decision hamfistedly made by Bezos and Amazon’s Kindle team. So congrats to them. For further reading, check out Booksquare and the Guardian.
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Anecdotally: Piracy Is Hurting; DRM Is Not Helping

I’ve noticed a mini-trend in the past week or two. First, in the Millions, I saw Confessions of a Book Pirate, an interview with a real, live ebook pirate, code-named “The Real Caterpillar.”

He does a little defense of piracy, which I’ll leave alone in this post, and he also has a few interesting things to say about DRM. Most importantly, he says he would pay more for an ebook without DRM and, when asked what would make him stop pirating books, he says:

I guess if every book was available in electronic format with no DRM for reasonable prices ($10 max for new/bestseller/omnibus, scaling downwards for popularity and value) it just wouldn’t be worth the time, effort, and risk to find, download, convert and load the book when the same thing could be accomplished with a single click on your Kindle.

Caterpillar also lays out the excruciating process he goes through to upload a single book, a process that involves scanning a hard copy page by page, and then proofing the scan by hand, which can take “5 to 40 hours.” Damn.

So, for pirates like Caterpillar, DRM has no stopping effect on their piracy (Caterpillar started years ago, when he couldn’t find digital copies of the books he wanted, so he’s used to scanning), and instead it’s actually a reason to keep doing it, because publishers still don’t offer “clean” copies.

And Caterpillar isn’t the only one who scans. In this summary of a panel at Digital Book World, Peter Balis says the majority of pirated ebooks are scanned galleys, manuscripts, or hard copies. This means DRM is powerless to stop widespread piracy.

From other corners, there have come cries of falling sky, from Macmillan president Brian Napack (and we all know Macmillan isn’t afraid to go to the mattresses), and from music industry group IFPI, whose latest report claims “95% of music is pirated.” That’s a grossly misleading stat, since IFPI also says that the industry has shrunk by only 30% since 2004. Evidently IFPI means 95% of albums are pirated by at least one person—and they don’t seem to know how much revenue loss piracy actually causes. Ars Technica does a pretty thorough examination/dehyperbolizing of the report here.

Still, piracy is a problem. So stipulated. But, as I’ve said for a long time, DRM is not a solution, and providing media in DRM-free formats is actually an incentive to buy it and not pirate it. The argument against DRM-free is that piracy will be easier and more widespread since pirates won’t even have to scan the books. That may be, or it may not (it didn’t happen with DRM-free music). But one thing’s for sure: DRM does not help paying customers in any way. With the iPad coming out soon—along with a whole new slew of DRM headaches—it’s a good time to remember that lesson.

If publishers (and content distributors) continue to fear a potential future threat more than they care about their present, spending, legal customers, I’m afraid I’m not going to shed many tears when major houses tell sob stories about lost revenue.

Macmillan eBooks Still Available At Sony’s Reader Store For $9.99

You can only buy Wolf Hall and other Macmillan books through third-party sellers at Amazon.com (click for full-size)

Sony's Reader Store still stocks Macmillan books, and for the controversial $9.99 price point (click for full size)

[UPDATE: Amazon gave in, and will sell Macmillan books via the "agency model" Macmillan laid out. Which means Macmillan ebooks will cost $13-$15, even at Amazon. I'm putting the over/under on the date of Amazon's next major Kindle screw-up at March 15.]

So Amazon has barred all Macmillan books (print and digital) from its U.S. website after the publisher insolently disagreed with Amazon’s stringent pricing policies. Macmillan asked for either a different pricing structure or “windowing,” i.e. delayed ebook releases (Macmillan CEO John Sargent claims Amazon will make more money, and Macmillan will make less under the new structure, which confuses me). Amazon responded with the Macmillan ban.

You can still find Macmillan books at the Sony Reader Store, however, and you can find many selling for the $9.99 price point that started all this. I’m assuming either higher Macmillan prices or windowing is coming to Sony, but at least you can buy the books.

For the record, I think the entire hardcover pricing system is greedy and predatory; it’s essentially publishers milking their biggest fans’ excitement to make a few extra bucks. I think Macmillan’s making a big mistake in trying to preserve hardcover pricing, and refusing to fully embrace ebooks.

However, this Amazon move is thuggery of the first order, and it doesn’t feel like the stalemate will be resolved very quickly [UPDATE: Or maybe it will, what do I know] (or that it will be the last of its kind). The Macmillan ban combined with Amazon’s continued refusal to allow library ebooks on the Kindle makes one thing clear: Kindle is simply not the best ereader for book readers. If you read mostly books, get a Sony Reader or an Astak Pocket Pro. If you read mostly newspapers or magazines, get an iPad. [UPDATE: Amazon's cave-in brings the Kindle back to the realm of relevancy for book readers. But it still comes with too many questionable corporate decisions for my taste.]

I’m just not sure who the Kindle is for.

[More Macmillan/Amazon analysis by Edward Champion, E-Reads, Ars Technica, and the Guardian.]

iPad Reaction: In Which Apple Eats Plastic Logic’s Lunch, Glares Menacingly At Spring Design

[UPDATE: It's confirmed that the iPad won't be compatible with Adobe ePub books. That means no library books, and it takes a lot of the shine off the new iBooks. For some reason, Apple hates Adobe, and Adobe hates them back.]

The new Apple iPad

A few short weeks ago, the Plastic Logic QUE ($650 WiFi/$800 3G) and the Spring Design Alex ($400 [EDIT--the Alex is now $360, I missed that]) debuted at CES, and immediately crushed my interest in them with exorbitant price points.

Today, Apple unveiled their new tablet computer, the “iPad,” (Gizmodo’s full coverage here) and made the QUE entirely irrelevant. The iPad is cheaper ($500 WiFi/$630 3G), faster, and more functional than the QUE, and it will actually be available earlier.

Not only does the iPad have a new, Apple-branded ereading program (iBooks), it can do video, internet, maps, and everything else that an iPhone can, on a grander scale. The only advantages the QUE has left are its ability to hand-write notes, and its E-Ink screen which makes for less eye strain and longer battery life. Still, the iPad has ten hours of battery life, so that last point is moot.

Basically, this spells doom for the $650 QUE, and if you were thinking about getting the Alex for $400 $360, or (God forbid) a $490 Kindle DX, how can you not scrape up a little extra for an iPad instead?

The iPad’s debut highlights the folly of “luxury” ereaders like the QUE and the Alex, which have gone in the wrong direction, trying to have an ereader that’s half laptop, with a price tag to match. Simple, affordable ereaders like the Kindle, Astak Pocket Pro, and Sony Pocket Edition are the only ones worth looking at now, at least until the Alex’s price drops by $150.

A few more tidbits, and links to more iPad coverage, after the jump.
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Get a Kindle For Free? (But Only If You Hate It)

So this popped up when I went to Amazon.com last night. I’m going to call it like I see it: this feels like a scam.

For one thing, I’m not that prolific a book customer at Amazon; I bought a lot of books as Christmas gifts there, but otherwise Amazon’s my last resort for books.

Point two: How do you prove you hate your Kindle, and if you do hate it, why wouldn’t you want to return it? It can’t be transferred to any other account, and presumably you won’t be able to buy any new books for it, since Amazon sees everything you do with it, and, after all, you hate it so much.

Here’s the crucial clause in the suspiciously unrigorous and incomplete terms and conditions–>

So I’m baffled. Anybody else heard of this? Should I be looking for a catch this hard, or just buying one and saying I hate it? Or is that the catch?

Wednesday Links: 01-20-09

Some news about books and ebooks from around the web:

  • Confused about ereaders? After CES pooped a thousand of them, it’s getting a bit crowded. Gizmodo has a guide to the major players, and news of a couple new Asus entries that will be available “this year” (meaning 2012). There’s a Samsung ereader, and a big newspaper reader called the Skiff, and probably another few dozen will come out this year. MobileRead has a guide to articles about there being too many ereaders. If you’re new to ereaders, let me provide a base camp for your shopping expedition: if you want a device to read books on, start by looking at the Sony PRS-300; if you want to read newspapers and magazines, start by looking at the Kindle. You might not wind up with those (they both have serious weaknesses, as do all ereaders), but they’ll provide a good baseline for comparison. And remember to breathe.
  • The publishing landscape is changing. The Wall Street Journal freaked out Friday, saying that the Web makes it impossible to get noticed from the slush pile. The Rumpus says there’s still plenty of slush (via), but then we’ve got to worry about piracy and people hating DRM, the Guardian is picking out the horsemen of the book apocalypse, and it’s starting to sound like ebooks are ruining publishing. Calm down, please (publishing is jittery and excitable), and let me posit another theory. Roughly 60,000 novels are published in English in the U.S. every year (via). For the sake of a conservative estimate, let’s cut that figure in half. Then we’ve got 100 novels a day (remember, that’s just in English, in America). Say 90% of them are obviously not your cup of tea. Soooo… haven’t been to the bookstore for a week? Enjoy sifting through 70 novels (67 of which, just guessing, are crap) to find your next read. Bookstores have become the new slush piles, and that is killing the book much more than the Web, or ebooks, or libraries, or anything else. Anecdotally, authors are now reading to handfuls of disinterested cupcake enthusiasts, literally, desperately trying to sell a couple dozen books. This is not good.