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Tag: economy

Something for the Weekend

Sturm und Drang — Author Nick Harkaway (Angelmaker and the forthcoming The Blind Giant: Being Human in a Digital World) on Amazon and the publishing industry for The Guardian:

The most thunderous argument in Amazon’s favour is that the market has spoken, and demands cheaper product. This one I find utterly bizarre. We know very well, in this post-crash age, that the market can be an idiot. The market wanted easy credit extended to all, low taxes and plenty of public spending. The end result was a financial catastrophe that has just plunged us into a double-dip recession and shows no sign of being played out. Sometimes, things cost more than we want. That is a truth we were encouraged to forget in the 90s, but it’s one we’re going to have to remember.

See also: Jason Epstein in the NYRB and Dennis Johnson’s on-going commentary on the Department of Justice’s legal shenanigans at MobyLives (archive).

Literature Needs More Than E-booksJames Bridle for Wired Magazine:

What we are coming to realise is that no one thing can pick up where the book left off; instead it is everything, all of our networks, our services, our devices, the internet plus everything else, which will carry literature forward. Literature is unique among art forms in that it is enacted entirely in the minds of author and reader; a psychic dance. Literature is everything, and thus everything must be employed in its support. And publishers, so long accustomed to doing a couple of things well, are adrift in a world that needs them to do everything — or GTFO.

And finally…

No Sympathy for the Creative Class — A fascinating piece by Scott Timberg for Salon:

Creative types, we suspect, are supposed to struggle. Artists themselves often romanticize their fraught early years: Patti Smith’s memoir “Just Kids” and the various versions of the busker’s tale “Once” show how powerful this can be. But these stories often stop before the reality that follows artistic inspiration begins: Smith was ultimately able to commit her life to music because of a network of clubs, music labels and publishers. And however romantic life on the edge seems when viewed from a distance, “Once’s” Guy can’t keep busking forever.

Yes, the Internet makes it possible to connect artists directly to fans and patrons. There are stories of fans funding the next album by a favorite musician — but those musicians, as well, acquired that audience in part through the now-melted creative-class infrastructure that boosted Smith.

(And on that cheery note, have a good weekend).

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Cautious Optimism

Books a better buy in Canada? After all the problems caused by the high Canadian dollar in 2007, Canadian publishers and booksellers are “cautiously optimistic” at the start of this year’s holidays according to Vit Wagner in the Toronto Star:

“The climate is much better this year,” says [Nancy] Frater, proprietor of the Orangeville store BookLore. “My reason for optimism is that in challenging economic times, people do turn to books. As gifts, books have long-lasting value and they’re reasonably priced.”

It’s all relative though:

“I can’t look into the future and say everything’s going to be sanguine,” says Random House of Canada’s [Brad] Martin. “We’re doing a lot of cost cutting, but it’s more discretionary, like cutting the number of sales conferences from two to one. But we believe that the organization that we have now is what we need to successfully publish books in this country at the level that we have been publishing them.

“What I can’t tell you is what is going to happen to the market over the first six months of next year. It’s concerning for all of us. But certainly right now we seem to be performing better in a difficult market than the two other major English-language markets.”

And I’m not sure how this all sits with the recently reported “belt-tightening” in Canadian publishing — including staff changes at KidsCan Press and Thomas Allen postponing most of  their spring 2009 list — and all the grim news coming out of the US.

Is there worse to come? Any Thoughts?

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Whiskey Tango Foxtrot?*

There has been relentless torrent of grim publishing news coming out of New York the last few days.

It has, at times, been hard to keep up with it all, and I don’t know the people involved well enough or understand the machinations sufficiently to offer much in the way of trenchant analysis. I hope that a summary of ‘Black Wednesday’ and the rest of this week’s events — with appropriate links — will, at least, offer some kind of context.

The details are sketchy, but Houghton Mifflin Harcourt acknowledged that there would be further changes at the company, including job-cuts. According to Publishers Weekly, at least eight people have been let go including executive editor Ann Patty, senior editor Anjali Singh and legendary editor Drenka Willen. GalleyCat has spokesman Josef Blumenfeld’s full statement about the changes.

Personally I’m stunned that the recipient of the 2007 Maxwell E. Perkins Award Drenka Willen, the US editor of Günter Grass, José Saramago and Umberto Eco, has been let go by HMH. PW profiled Willen in 2002, and, after pointing out that she has edited four Nobel Prize winners, MobyLives asked, pertinently, “do the proprietors of Houghton Mifflin Harcourt really know what they’re doing?”

I think my favourite quote, however, came from an unnamed ‘publishing veteran’ who told GalleyCat:

“Those fuckers have destroyed two venerable publishing houses in less than a fucking year.”

Elsewhere things are not much better.

Earlier in the week, Christian publisher Thomas Nelson announced it would be laying off 54 employees, or about 10% of its workforce. CEO Michael Hyatt said in a statement on his corporate blog From Where I Sit :

This was the second round of reductions this year. Unfortunately, this one was no less painful. We did the first round after significantly cutting our SKU count. However, this second round was purely a result of the slowdown in the economy.

According to GalleyCat , Hyatt apparently first made the announcement by Twitter. Stay classy Michael, stay classy…

After Doubleday cut 16 jobs in October, the “long anticipated” restructuring of Random House was announced on Wednesday. Maud Newton offered some bleak analysis and reprinted the full memo from Random House CEO Markus Dohle. Sarah Weinman has questions. Kassia Krozser at BookSquare thinks it’s all irrelevant:

“Who really cares if Crown or Knopf or Ballantine or Bantam Dell survives? I’m serious. Who. Cares… Focusing on imprints is focusing on the wrong problem.

The hyperbole-prone New York Observer called it “The End of an Era”.

In addition to the upheaval at Random House, Simon & Schuster announced it was eliminating 35 positions on Wednesday. Publishers Weekly reported that the Rick Richter, the president of the company’s children’s book division, and Rubin Pfeffer, senior v-p and publisher of the children’s group, would also be leaving.

On Thursday, Penguin Group chairman and CEO John Makinson announced the company will not give pay raises to anyone earning more than $50,000 in the new year. PW quoted Makinson as saying: “I cannot of course guarantee that there will be no job losses in Penguin in 2009. In this financial climate that would be plain foolhardy.”

And, according to a recent wire story from the AP on this week’s events in publishing, pay raises at HarperCollins have been delayed until next July. Spokeswoman Erin Crum says that “no decisions had been made” on job cuts, whatever that means…

All in all, it’s been quite a week. Thursday’s New York Times had a thorough summary and postmortem, and Andrew Wheeler has been keeping a running tab of the changes on his blog if you want more details.

Do I see a silver lining? Well, my hope is that all the talented, smart people who got unceremously dumped this week will stay in publishing (but who could blame them if they don’t?) and take their brilliance and vast experience to smaller more flexible companies and deliver a resurgence of creativity in New York. That would be nice wouldn’t it?

UPDATE:

Ron Hogan has posted some that trenchant analysis that I was talking about over at GalleyCat.

Also, what are the implications of all this, if any, for Canadian publishers? Anyone…?

*Thanks to Pete for the best blog post title ever.

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Don’t Panic

The news heard ‘round the publishing world” is how Sarah Weinman described  the decision of Houghton Mifflin Harcourt (HMH) — the US publisher of Philip Roth, Gunter Grass and José Saramago — to temporarily stop acquiring manuscripts.

Certainly the story has been ricocheting around the book blogs — and beyond — for the last week as everyone tried to figure out what the wider implications were.

GalleyCat, Sarah’s former stomping ground, quoted Janet Reid of FinePrint Literary Management :

“I think it’s smoke and mirrors,” she said of the announcement. “If they want something, they’re going to get it.” She pointed out that some HMH editors were known, even before yesterday’s freeze, for extremely judicious buying practices, and questioned how much less they could acquire (other than, of course, nothing)… “This is a whirlwind blown out of proportion to what it really is,” Reid continued, calling yesterday’s buzz a consequence of “the first huge economic downturn in the age of transparency.”

And, as the dust settled, HMH themselves tried to played things down.

According to The New York Times,  Jeremy Dickens, president of Education Media (HMH’s owners),  simply wanted HMH to be “extremely prudent about the way that we allocate our capital and where we make our investment decisions.” And HMH’s distinctly chipper-sounding spokesman Josef Rosenfeld described the new policy as “freeze-lite”  to the Associated Press:

“A headline about a freeze is very appealing, but in reality all we’re doing is taking a good, hard look at everything that comes in, much the way this company is watching all expenses and expenditures… It’s just a higher degree of scrutiny.”

Back at Confessions of an Idiosyncratic Mind, Sarah cited literary agent Colleen Lindsay’s advice not to over-react (“publishers do this kind of thing all the time”), but sounded unconvinced:

“So no, we’re not in panic mode, not yet. But as long as… HMH’s parent company… continues to take a bath and the economy stays moribund (or worsens in the first quarter of ’09), the gloom feels rather warranted, even if it’s only a metaphorical sign of what may well come in other places.”

Personally, I was reserving judgment on the whole situation. But, I have to admit, Sarah was looking bloody prescient this afternoon when AP reported  HMH senior vp and publisher Becky Saletin had resigned, and The New York Observer began speculation that “the C.E.O. of HMH’s parent company, a man named Barry O’Callaghan whose core business in K-12 textbooks is not generating enough money to offset his massive debt, will sell the trade division and its illustrious backlist.”

Yikes.

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Something for the Weekend

After a week of feeling gloomy about publishing, here are a few links to some less apocalyptic book-related stories that I’ve been reading:

“Your…fucking…book” : Author Michael Lewis, who just happened to chronicle Wall Street’s excess in the 80’s in his book Liar’s Poker, tries to figure out what the hell just happened for Portfolio magazine (via kottke):

“This was what they had been waiting for: total collapse… Lehman Brothers had vanished, Merrill had surrendered, and Goldman Sachs and Morgan Stanley were just a week away from ceasing to be investment banks. The investment banks were not just fucked; they were extinct.”

Did someone just say ‘Schadenfreude’? Well, I guess it is reassuring that there’s an industry more fucked than publishing… Anyway, Lewis is apparently writing a book about the whole financial crisis…

Contempt for the beautiful losers: Slate‘s Ron Rosenbaum goes to town on BuzzMachine’s Jeff Jarvis (author of the forthcoming book What Would Google Do?) taking in journalism, new media, publishing, the Frankfurt Book Fair, and “New Age boilerplate mysticism” of Paulo Coelho on the way:

“If Jarvis values books (and I can’t help think that despite all the digital bluster, he’s an intelligent guy who likes reading), do we just listen to the market and focus-group what we should print and give away, which is likely to result in all Coelho, all the time, with maybe a little bit of Jarvis thrown in?”

Inevitably you can already read Jarvis’ response on his blog. Despite all the overblown cattiness, it’s actually an interesting argument. (via fimoculous)

More Information Than You Require: Former literary agent turned author John Hodgman, best known for playing PC in those increasingly misfiring Apple commercials, interviewed by The Book Bench blog:

“I believe that by releasing ‘passing interest/low keepsake-value literature’ from the burden of physicality, you are actually releasing the words from their worst liability: the price and inconvenience of actual bookness.”

“Lord Death Man”: PowellsBooks.Blog previews  Chip Kidd’s latest pet project Bat-Manga! (pictured).

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Not Quite A Crisis

According Carolyn Reidy, president and CEO of Simon & Schuster, a worse publishing environment may be on the way, reports Publishers Weekly:

Reidy said she hesitated to use the word “crisis” but “there is no question that we are currently dealing with a set of problems that will test us to our limits.” Critical issues facing publishers included: significant decrease in retail traffic, less consumer purchasing, a gloomy economic forecast, declining backlist sales, brand name authors continuing to sell but “everything else is far off normal levels,” and retail partners who demand more favorable terms and concessions “as if we are the answer to their problems,” she said. Other pre-existing problems she enumerated include retailers competing with publishers, low barriers to self-publishing, and the economics of digital publishing that appear to bring in less revenue.”

Tough times indeed, but it is not quite the end of the world apparently. Although publishers must adapt to new realities, and change business practices, the current situation is an opportunity rather than a threat:

“now we have the chance to actually find the reader where they are spending their time—in front of a screen—and cement a relationship with them through e-mail newsletters, viral marketing, mobile delivery and other tools.” Publishing survives, she noted, because readers have a fundamental need for information, inspiration, and entertainment, “and they get that in a book, directly from an author, in an unfiltered way that they cannot get from any other medium.”

Notably, Reidy urges publishers to make entire catalogues available as e-books and to create adopt print-on-demand when a title’s  sales begin to slow.

Link

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