Grub Street Printing Newsletter #23, March 2011

What Went Wrong at Borders?

Including Borders' bungled web site and slow reaction to digital books, this insider lists six mistakes that led to its bankruptcy. One reason was the early (and sustained) commitment to music CDs both in inventory and floor space that channeled too much energy and resources away from books. And when the retail CD market cratered …

Borders Store Closings

Borders has asked the bankruptcy court for permission to close 200 stores. The stores combined to lose $2 million per week or over $100 million per year. Borders 2010 losses through late December were estimated at $168 million.

End of Physical Bookstores?

Every twitch in the retail book market spurs new conjecture about the death of physical books. The Borders' bankruptcy has started discussion about the possible death of brick and mortar bookstores.

Or, Will the Indies Return?

Another thought is that the bankruptcy might signal a decrease in the influence of the chain bookstores, heralding a renaissance of the independent booksellers.

Lerner Focuses on Content

While discussing the challenges of the marketplace, Adam Lerner, Publisher at Lerner Publishing Group, said that focusing on the hardware and software of the book industry instead of content can be a costly publisher mistake.

Protests of HarperCollins eBook Policy

Harper Collins has just announced a policy that would limit how many times a library could loan out a HarperCollins eBook to 26. You can read some of the protests here on Twitter.

B&N PubIt

Barnes & Noble introduced a production/ retail platform for self publishers last October called PubIt. Early reports indicate that the service has been widely accepted having made 65,000 titles available in less than six months, but sales figures haven't been released.

B&N/Amazon Feud

Amazon has been fighting sales tax issues in a number of states, including some that have Amazon warehouses in them. After threatening to close its Texas warehouse, B&N sent this letter to Amazon reminding them that it pays sales tax on every sales it transacts...and will be happy to work with Amazon affiliates.

Lacey Act News

The complexities of complying with and enforcing the Lacey Act are discussed from the manufacturing point of view.

Literary Games

If you're a fan of Samuel Beckett's surreal play Waiting for Godot, an equally surreal video game/tribute has been released. A similarly unique game version of The Great Gatsby is also available.

Tax Tips for Authors, Freelancers, etc.

It's that time. Here are some links to tax tips for creative independents in the publishing industry.

New Publisher Tools from WordPress

WordPress has made three new digital tools available for publishers to put their books online. An interesting presentation explains them.

Final thought

If I were blind, I would still take pleasure in holding a beautiful book. Sylvestre de Sacy

********************************************************Past GrubStreetPrinting.com newsletters available at http://grubstreetnews.blogspot.com/

Grub Street Printing Newsletter #21, January 2011

Borders Suspends Payments

Borders Group began 2011 by suspending payments to some publishers. Borders per store sales (200 stores have been closed) were off 12.6% in the third quarter.

China, Indonesia Dumping Paper

Both the International Trade Commission and the European Commission have ruled that coated free sheet manufactured in China and Indonesia was “dumped” in the US and European markets below its home market price and additional duties will be imposed on this paper.

Borders B&N Survival

While this article isn't remarkable to those who follow the book industry, I was shocked by the number of comments posted. It seems MSNBC readers have strong opinions about book retailing.

Quad Graphics

Quad Graphics' $1.1 billion purchase of World Color Press (formerly Quebecor World) out of bankruptcy last year has created many manufacturing inefficiencies. The world's largest privately owned printer has six plants with 2,400 employees that have been, or are being, closed.

Eco Friendly Paper: Beyond the Labels

Is using recycled paper always the best environmental choice? Are FSC papers always the most eco-friendly? These questions and more are discussed by an industry expert.

Gray Market Harvesting

31% of all data collected on the internet is obtained by companies who collect data from sites other than their own. In one study of fifty web sites, 167 different companies were actively gleaning customer information from them without the sites owner's knowledge or consent.

2011 Publishing Predictions

Another round of predictions to consider about an industry that must adapt to monthly, if not weekly, paradigm shifts. Is traditional book distribution (still?) on its last legs (again?).

2010 Printer's Wrap-Up

The big stories that affected the print industry in 2010 are right here. Some of the video links at the bottom of the page are pretty funny.

Great Books

On Oct. 5, 1789, President George Washington borrowed “Law of Nations” and a book of debates from the British House of Commons from the New York Society Library. There are over 221 years of late fees that have been forgiven, but the library just wants the books returned.

GPO and Google ebookstore

The US Government Printing Office has allowed Google ebookstore to distribute its backlist titles (which Google has already scanned anyway). Although the arrangement is beginning with only 100 titles, it's expected that thousands of titles will soon be available.

Web Sites Beget Books

While publication of a new title often spawns a new web site, two Chicago authors found the popularity of their sites brought offers from publishers to produce ink and paper books based on their web site content.

Hold Up on Those BEA Plans

According to these folks the world will end on May 21, 2011, two days before BEA opens.

Final Thought

I can't write without a reader. It's precisely like a kiss – you can't do it alone. John Cheever ********************************************************Past GrubStreetPrinting.com newsletters available at http://grubstreetnews.blogspot.com/

GrubStreetPrinting Newsletter #20 December 2010

It Depends What You Mean by “Recycled”

While the Federal Trade Commission and Environmental Protection Agency work toward an American definition of “recycled paper” the international community already uses a different ISO standard.

If your paper is imported, will it still meet the legal definition of recycled?

Print, Electronic Media and the Price of Paper

This is an extremely insightful interview covering the immediate challenges and the future of the print industry, the impact of new technologies and the need for less expensive paper.

Meet Mooks

A hot topic in Newsletter 13 was “vooks”, a combination of videos and books. Now get ready for “mooks” a combination of magazines and books that seems to be catching on in Japan.

The KVML

If you missed the sneak peak of the soon to open Kurt Vonnegut Memorial Library in Indianapolis, IN, fear not: the Grand Opening is just weeks away.

Digital Inks

The “inks” used by digital output devices are broadly divided as inkjet and toner. As development continues to improve the “inks” and the presses they run on, the notion that one is better than the other in any given application is changing with new press technology.

RAN Ratings

The Rainforest Action Network has published a guide of publishers that don't use paper stocks produced from pulp from rain forest trees, especially Indonesia.(See Newsletter #7)

2010 Word of the Year

The editors of The New Oxford American Dictionary has named Sarah Palin's “refudiate” as the Word of the Year.

The Bad Sex in Fiction Award...

..goes to Rowan Somerville for the unusual imagery used in his book The Shape of Her.

Sales Correction 12 Months Later

Newsletter 14 reported a 12.3% spike in September 2009 book sales. This September book sales fell 12.1% according to the AAP.

Literacy Campaigns

Scribd and Scholastic have announced new literacy campaigns. With a high literacy rate of 19%, the US trails countries like Greenland, where 100% of the population is rated as highly literate.

Before Digital, Before Offset

Over 400 years after Johannes Gutenburg invented movable type for printing presses, Ottmar Merganthaler invented a machine that let printers set type while sitting at a keyboard instead of picking letters out of a type tray. Thomas Edison called it the Eighth Wonder of the World.

An upcoming documentary hopes to show how society was changed by this invention. Here's a promo of the film.

More Print Technology

In contrast to the Linotype (which set a “line of type”) the Espresso 2.0 doesn't make coffee and looks downright fragile compared to Merganthaler's invention.

Final Thought

Books are hindrances to persisting stupidity. Spanish Proverb

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Past GrubStreetPrinting.com newsletters available at http://grubstreetnews.blogspot.com/

GrubStreetPrinting Newsletter #19 October/November 2010

Digital Solution?

Rice University Press has closed after a last ditch effort to continue operations as an all digital book publisher failed.

Who Makes How Much?

Some surprises in PW's annual salary survey, not least of which is that men still earn more than women, although the industry is comprised primarily of women.

B&N Proxy Fight Cools Sale Interest

A fight for control of Barnes & Noble seems to have stalled a possible sale of the company. Perhaps that was the whole point?

Asian Paper Companies Grow

Paper companies located in China and India continue to grow rapidly. Before you place an order, however, I recommend a quick review, and full compliance with the Lacey Act, as does

R. R. Donnelley.

129,864,880

According to Google, that's the number of unique titles and editions of books written and published in the world. Given Google's view on copyright issues, that's 129,864,880 profit centers waiting to be exploited.

Jargon

Print terminology has evolved more in the past 15 years, as digital production has become more common, than in the preceding fifty years when offset printing supplanted direct (letterpress) reproduction.

Confused by all the jargon? Print Buyers International supplies an online glossary.

More iPad and Kindle

If you're still not sure of the differences between iPad and Kindle this is a good summary. In the eBook wars, according to analysts, each iPad device acquired 2.5 eBooks in the first 3 months they were available. During the same period, Kindle owners purchased 3 books per device.

Fonts, Type and Page Design

The convenience of desk-top publishing has turned font selection and page design into a no-brainer...and some text certainly looks it. But type and book design embody centuries of study, analysis, and creativity, so if you aren't sure about your skills and don't have a design staff here's a primer.

Borders Headquarters For Sale

The 460,00 sq ft building comes with a twelve year lease to Borders, but apparently concerns about Borders long term viability have prompted the landlord to list it for $18+ million. The asking price is said to reflect that concern.

Cruel and Unusual

Coming on the heels of Banned Book Week, a South Carolina sheriff has banned all books except for the Bible at the Berkeley County jail in Moncks Corner, SC.

This list demonstrates how fearful (and intentionally ignorant) the extreme among us can become.

And hey! What about those wild and crazy Moncks Corner cops, eh?

Final Thought

When you sell a man a book, you don't sell him twelve ounces of paper and ink and glue, you sell him a whole new life.

Christopher Morley

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Past GrubStreetPrinting.com newsletters available at http://grubstreetnews.blogspot.com/

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Past GrubStreetPrinting.com newsletters available at http://grubstreetnews.blogspot.com/

GrubStreetPrinting Newsletter #18 - August/September 2010

B&N For Sale

Barnes & Noble announced that it will investigate a possible corporate sale to enhance stockholder value.

Kindle News

The introduction of the iPad seems not to have hampered Kindle Reader sales which experienced a sharp increase when the price was lowered to $189.00

Amazon also announced that ebook sales for the Kindle reader have surpassed their sales of hardcover books by a ratio of roughly 1:1.4.

Mid-Year Sales Reports

Sales figures for the first half of 2010 are being released that show that publishers are actively adjusting their market sector mix.

Book Production Methods

While letterpress is no longer commonly used in book printing, even seasoned publishers ask about the differences between offset and digital book production. Here's a primer.

Amazon Exclusive

The Wylie Agency has seized the ebook rights for titles it represents and is offering them exclusively through Amazon, angering brick and mortar bookstores and some copyright holders.

Impressing Booksellers

Suggestions by booksellers for improving publisher relationships with booksellers can be followed on Twitter.

ISBN Info

As more of the publishers I work with are breaking into the industry via digital printing, I've been explaining ISBN numbers more frequently. How much do you know about buying one ISBN number?

Green Printing Tax Credits

Paper mills, printers and publishers may be eligible for federal tax credits under a proposal that would encourage eco-friendly print production. The proposal over-reaches in a few areas but expect a slimmed down version of the credit to become law.

Chasing 13%

Articles in the latest edition of Publishing Executive focus on electronic distribution of magazine content.

Yet in a poll of 1,000 magazine subscribers earlier this year, 87% said they prefer print over digital editions.

Gibson Guitars Busted

Perhaps the first citation under the enhanced Lacey Act protecting rain forest woods occurred when U.S. Fish and Wildlife personnel raided Gibson Guitars in Nashville TN and seized office records, computers and wood samples showing Madagascar rosewood was illegally imported for the manufacture of its guitars.

The Gibson CEO sits on the board of the Rainforest Alliance.

Do you know where the wood pulp used in your book's paper is from? You need to find out.

Enhanced ebooks

In an interview some years ago I was quoted saying that ebooks would command a set portion of the market until they were capable of sound, video and web links.

Meet the enhanced ebook from Simon & Schuster.

Past GrubStreetPrinting.com newsletters available at http://grubstreetnews.blogspot.com/

Grub Street Printing Newsletter #17 - June/July 2010

Book Expo 2010

It wasn't possible for us to attend Book Expo this year, but a number of friends managed to get to NYC and were kind enough to share their experiences.

Nearly everyone mentioned that a two day show is simply too short. Acquiescing to the majority (and angering the NYC publishers) next year's show will resume the three day exhibition format, May 24 -26 at the Javits Center.

The ABA announced a partnership with the forthcoming Google Editions to make digital books available for all e-readers but Amazon's Kindle.

Cursor's Richard Nash explained why copyrights are irrelevant at a morning panel, using Cursor's 3 year contracts as a business model.

Carole Horne of the Harvard Book Store, Cambridge, MA, acknowledged that the store's reliance on an Espresso Book Machine as part of its three pronged “green delivery system” has received an underwhelming response.

And while the BISG gushed about the rise of the e-book (5% of the total market!) the Wall Street Journal questioned proprietary formats in the industry. Further format discussion is ongoing. And concern about piracy and profits haunts many authors and publishers.

Flat Was the New Down

At last years BEA, the BISG predicted modest 1.8% growth for book sales, proclaiming “flat is the new up” (Slide Show page 30). In April the AAP reported that book sales fell 1.8% in 2009.

All Hail iPad

Even though we're more paper and ink than pixels and iAnything, we've received many questions
about e-book formatting this year, and the introduction of the iPad has spurred about half of them. Current info on iPad formats is still being released. If you use Adobe CS or InDesign, this video offers an overview of converting books to the ePub format for iPads (and many other readers).

This blog is an e-book format do-it-yourself guide.

Calligraphy, Typography and Hermann Zapf

Your word processor probably has at least one font created by Hermann Zapf. In the past century he's designed 61 typefaces, including Palatino, Optima, and a collection of dingbats.

CMYK and RGB

There's still confusion about the difference between what your monitor shows and what your printer produces. Additive vs. subtractive color reproduction isn't that hard to understand, but even with all of your devices (monitor, printer, scanner) calibrated, there is no way to perfectly convert RGB colors to CMYK.

Changes at Borders Group (Again)

Borders has shuffled the name plates in the executive wing one more time. Mike Edwards has been named President of Borders Group and CEO of Borders Inc.

Big time Borders investor ($25 million in May) Bennett Lebow is the new Borders Group Chairman of the Board and CEO of Borders Group. Edwards will report to LeBow (in case you were as confused as us).

Past newsletter issues are available at http://grubstreetnews.blogspot.com/

No. 17 June/July 2010

Grub Street Printing Newsletter #16 - April / May 2010

Tight Paper Market

After years of downsizing, international paper markets may face shortages due to a dockworker strike in Finland and halted paper and pulp production in Chile after the Feb. 27^th earthquake, affecting roughly 12% of the world's annual paper production.

The dockworkers settled their strike March 19^th after Finnish paper producers cut production by 70%.

India is poised to ramp up production to take advantage of the current spike in pricing.

Although some American paper mills immediately began allocating (rationing) paper, caution needs to be used when changing paper suppliers. The Amended Lacey Act is now law and you will need chain of custody documentation for your book papers proving they are not from threatened or rain-forest habitats or you will be liable for infractions to the same extent as the printer, the paper vendor, etc.

Another Google Opt Out Lawsuit

Google's model of introducing inclusive products that require users to opt out of participation faces another lawsuit for including 31 million Gmail addresses in its newGoogle Buzz social networking product without the address holders consent.

Do Games Sell Books?

Random House has announced it will partner with video game creator Stardock in an effort to enhance the sale of ancillary gaming products like, books, posters, trading cards, comics, reference books, etc.

Future of the Book

They say that if you only have a hammer, all of your problems look like nails.

HP sponsored a webinar on the future of the book, which posits that digital production across multiple media platforms will save publishing.

Since HP is trying to be the dominant supplier of digital production equipment, take it all with a big grain of salt but the webinar has as much information as hype.

(Download the free MS Silverlight plug-in to watch the video, available at the HP site.)

3D Printing

Azuna LLC has pioneered the ability to print non-lenticular 3D images on a synthetic substrate. Information and a free sample are available here.

Eco-Freebie

If you have an iPhone or Blackberry, this free Eco-Calculator app from Neenah paper quantifies the ecological benefits of using recycled paper as well as paper made with renewable energy. It's also available online for PCs here. If you have questions about how many sheets of paper and the sheet size your book requires, call me or ask for the information when you request pricing.

Down but Not Out

As stockholders were heading for the exits anticipating a $42.5 million loan default, Borders surprised the industry with a 1^st quarter $59.9 million profit in spite of a drop in sales.

Grub Street Printing Newsletter - Google Settlement

DOJ Asks for More Changes

The Department of Justice issued its comments on the proposed Google Settlement on February 4^th and has provided eight specific problems that continue to need attention.

Justice has filed a statement of interest in the case and recommended that the judge postpones ruling and allow the parties to resume negotiations.

Even before the DOJ issued its comments critics of the revision voiced their dissatisfaction with a number of points that were not addressed or changed, including opt-out vs. opt-in, Google Book's immunity to future claims, and legal, monopolistic rights to copyrighted orphan works.

The opt -out option originally would have affected all books with a U.S. Copyright published after Jan. 5, 2009. The deadline to opt-out then was last September 4.

Hopefully Google Book (named Google Print in 2004) will once again roll back it's deadlines to claim ownership and opt-out of the agreement as negotiations seem destined to continue. The most recent deadline was Jan. 28, 2010, eight days before the DOJ comments were released.

Google is no stranger to the opt-out option and has been sued by a number of parties over a variety of its actions. Google's Street View service was sued for invading homeowners privacy both here and in the UK. Google's standard defense is that people are free to opt out after the fact.

The Onion put a humorous twist on the Google opt-out system last year and a You Tube video shows how ubiquitous yet invisible opt-in, opt-out is on the internet.

Here are more reactions to the DOJ comments.

The Paper Situation

Demand for paper in the US is expected to decline by 1.2% in 2010, following an 11.8% drop in 2009. Surprisingly, uncoated free sheet (e.g. offset, text, etc.) is expected to rise by nearly 2%. Domestic paper manufacturers also face increased paper imports into an already soft market place. Downward price pressure is coming from Asia and Indonesia which are currently offering uncoated free sheet at lower prices than coated.

I would encourage all publishers to review the Lacey Act which takes effect this April and requires chain of custody documentation establishing the origin of the trees used to make the paper in an effort to stop the use of rainforest trees in the making of paper products, sold or manufactured in the United States.

International Paper has announced plans to close it's Franklin, VA plant this spring idling three paper machines and 1,100 employees.

Grub Street Printing Newsletter #15 Feb./March 2010

Google Settlement

This issue of the newsletter was to be delayed a few days to report on the Justice Department’s response to last fall’s revised “Google Settlement”, which is due to be released on February 4.

Then all sorts of book industry announcements were made. A special newsletter will be sent after the Justice Department comments are available.

While We Were Waiting…

Quebecor Redux

On January 26, the nations largest privately held printer, Quad Graphics, announced that it has begun to acquire World Color Press, formerly known as Quebecor before last years bankruptcy, for $1.3 billion. The new public company would equal the nation’s largest printer, R.R. Donnelly, in revenues.

Borders Redux

Also on January 26, Ron Marshall resigned as CEO of the Border’s Group. Border’s faces numerous challenges according to Debtwire.

After a frustrating year, the turn-around expert leaves to head the Great Atlantic and Pacific Tea Company (A&P).

Apple Newton Redux

And on January 27^th, Steve Jobs attempted to erase the memory of the 1993 Newton by introducing the iPad. Steve Jobs exalted that it was a “truly revolutionary and magical product.”

Priced from $499 to $699, WiFI capability is standard, while 3G adds $230 to the price.

Wii Read

A reading game called Storybook Workshop has been introduced for the Nintendo Wii. Participants can read the story on screen and read aloud with it, listen to the narrator read it or playback their voice reading the story while the program alters their voice for each character.

It’s Official

Pantone Inc. has named 15-5519 turquoise as the Color of the Year 2010.

Books Recalled

Oxmoor House has recalled over 1 million home improvement books going back to 1975 because of errors involving electrical wiring that could lead to fires or death.

A 5’ x 6’ Book

The largest book in the world will be on public display for the first time ever this summer. The 350 year old Klencke Atlas may be viewed at the British Library .

Brouhaha Brewing?

Steven Covey has moved the electronic rights for two of his best sellers from his longtime publisher Simon and Schuster to Rosetta Books which will offer the ebooks exclusively through Amazon (Kindle).

Simon and Schuster said it intends to protect all electronic rights for its backlist.

Grub Street Printing Newsletter #14 Dec./Jan. 2009 - 2010

Less Capacity & Higher Prices

By the end of 2009, International Paper will have shut down paper machines that produced over 10 million tons of U.S. paper products annually.

And, my paper insider at Central Michigan Paper, Mark Bultema, points out that pulp prices have stabilized at the increased levels mentioned in last month’s newsletter and further increases are being considered if demand remains steady.

Bureau Grotesque…

...is one of the typefaces, along with Interstate and Antenna, allegedly used without authorization by NBC shows such as Saturday Night Live and the Jay Leno Show.

Font Bureau, the designer of the fonts, has sued NBC for $2 million for trademark infringement. Font Bureau claims NBC purchased one license then disseminated unlicensed copies of the fonts to be used throughout the company.

Getting Better All The Time?

An unexpected increase in September book sales was reported by the American Association of Publishers. The 12.3% increase boosted YTD sales 3.6% over 2008.

Book Industry Study Group had forecast a 1% overall increase for 2009.

Opt-Out vs. Opt-In

September’s 28 page critique of the Google Book Settlement by the Justice

Department sent all parties back to the negotiating table.

Google has dug in its heels over the ability of copyright holders to opt-out of Google’s “orphan” book reproductions while most informed copyright advocates demand an opt-in option.

Stay tuned for the February 4, 2010 Justice Department’s response.

M & A

In a merger that apparently will challenge HP’s dominance of the digital print and office machine field, Canon, Inc., known for its cameras and midline office products, has purchased Océ N.V. whose digital presses revolutionized print on demand books.

Also, the proposed merger of Heidelberg Druckmaschinen AG and MANRoland AG, both top of the line German press manufacturers, was surprisingly put on hold, allegedly because Heidelberg’s financial house has some serious issues.

Heidelberg has received assistance from the German government this year to forestall possible liquidation.

Will More Mean More?

Jared Friedman, the Chief Technical Officer at Scribd (aka The YouTube for Books) has prescribed increasing the number of titles published yearly from 300,000 to 3 million to strengthen the publishing industry.

Friedman maintains that there are sufficient writers and readers but the current structure of the industry prevents such expansion.

Grub Street Printing Newsletter #13 Oct./Nov. 2009

Illegal Paper: The Lacey Act

Effective April 1, 2010, it will be illegal to “import, export, transport, sell, receive, acquire or purchase” products made from illegally sourced plants or plant products. In short, paper made from rainforest trees, in particular, or protected species cannot be used in the manufacture of books printed or sold in the U.S.

Books printed in Asia will be under heavy scrutiny, but since Asian paper, especially from China, is exported and sold globally as well as in the U.S., all books will need to have appropriate chain of custody documentation, which should be available from your printer.

There will be no “innocent owner provision” and fines can be as high as $500,000.

(See GSP Newsletter #7, Oct. 2008 for more on International Paper’s Indonesian paper mill.)

Contact us for recommendations.

Google and Espresso 2.0

Google Books has announced that it will make its 2 million non-copyrighted books available for production on Espresso 2.0 on demand book making machines. Some of the machines are in university libraries which will apparently compete with local book retailers.

Google Books will recommend a retail price of $8 per book (any trim size, any page count?) but will leave final pricing to the retailer.

You can see a short video of an Espresso 2.0 making a book at

http://www.youtube.com/watch?v=8Pt4T-AJKJM

Paper Prices

Some pulp and paper mills will test an increase of roughly 10% in pulp prices effective Oct. 1 to see if demand is sufficient to support an increase.

National Bookstore Day

Publishers Weekly is encouraging publishers to offer special discounts and promotions to their independent bookstore outlets to increase store traffic and promote book buying on National Bookstore Day, Nov. 7. PW is hoping more than 200 indies will participate.

Vooks Are New

Simon & Schuster has released 4 vooks (books with video) in 4 different genres. Vooks are available for iPhones and some other handheld devices but not for the Kindle or Sony e-Reader, which have no video capability.

More information on vooks at http://www.publetariat.com/publish/what-vook-and-how-will-it-change-publishing

Print 09

A look at this year’s print show can be seen on American Printer TV http://americanprinter.com/tv/viewing/index.html. It has some upbeat print forecasts and shows the new touch-screen color controls available on the newest multi-color presses.