Writing in Public, Too: NaNoWriMo Day 16

writinginpublicUp at a decent hour this morning. Made some coffee, and hit my email, which had been somewhat ignored the day prior. After catching up a bit, and continuing to comment on a couple of interesting industry threads I’ve been participating in (one on ethics, another on productivity), I started in on publishing business stuff. Specifically, I put up requests for ARC reviewers in a couple of locations.

The first episode of the Arthurian saga will be coming out next month. I’m actually a bit behind where I ought to be, in terms of finding potential readers for “advanced reader copies” (ARCs). The idea is simple, and the publishing business has been using it for ages: send copies to reviewers in exchange for a review. Used to be, one knew who all the likely reviewers were. They worked for magazines that ran reviews of your sort of book. If you were publishing a science fiction novel, you knew just which ‘zines would cover your book with reviews. And you probably knew who the reviewers were that worked for those magazines.

Today, lots of things have changed. (more…)

Update to the Fantasy Bestseller Breakdown

Back in February, I posted the results of some data mining, specifically about the bestseller lists for fantasy and science fiction. You can see the old article here.

It seemed like now might be a good time for an update. There’s been much to-do about the change to the Amazon algorithms. The very-important “Popularity” ranking has seen significant changes in March and again in May. The new algorithms have made major changes to how books show up in the “Popular” ranking – which is the default manner customers see ebooks on Amazon, making it vital to sales.

Roughly how it works: you get sales, your rank goes up. The more sales you get over the period tracked, compared to other books, the more your rank goes up. The old system made loans via the Select program about the same as sales, and gave a lot of weight to free books given away through Select promotion periods. The new system rates free books at perhaps 10% of the value of sold books, does not seem to give any boost for loaned books, and most crucial – it seems to factor price into the equation, weighting higher priced books more heavily.

So how does this affect indies, whose books have been selling like hotcakes because they’re priced lower? If Amazon weights higher priced books higher, then this makes breaking out at $0.99 or $2.99 that much more difficult.

It’s the end of June, four months since my last survey and over a month since the May algorithm changes. Seemed like it was time for new data!

 

Fantasy Genre, Top Hundred Bestsellers

Well, top 95 bestsellers, anyway. There seem to be some issues with doubled up versions of some of George R.R. Martin’s books, which resulted in only 95 books actually listed in the top 100.

The breakdown was 53 (56%) traditionally published books vs 42 (44%) self published books. This is a significant change. In fact, it’s the first time this year that I’ve seen the genre drop much below 50% indie/self pub books; in February, indie books were 53% of the top list for fantasy, and it’s stayed at that level +/- about 4% through early May.

Some other interesting data points:

Indie price average: $3.24

Trad price average: $9.56

Overall average price: $6.77

Breakdown follows. Note, there were several books I raised to the X.99 levels to make the data easier to chart. These were Indie at $2.51 and $4.95, and Trad at $4.90, $7.29, $7.39, $8.32, and $9.34 (actual numbers were used for the averages above, no rounding).

$0.99 – Indie 6 (down 7), Trad 0 (same), Total 6 (6%)

$1.99 – Indie 2 (same), Trad 0 (same), Total 2 (2%)

$2.99 – Indie 16 (down 7), Trad 0, Total 16 (17%)

$3.99 – Indie 13 (up 1), Trad 0, Total 13 (14%)

$4.99 – Indie 4 (up 2), Trad 2 (up 1), Total 6 (6%)

$5.99 – Indie 0, Trad 0, Total 0 (0%)

$6.99 – Indie 1 (up 1), Trad 0 (down 1), Total 1 (1%)

$7.99 – Indie 0 (same), Trad 20 (same), Total 20 (21%)

$8.99 – Indie 0 (same), Trad 15 (up 4), Total 15 (16%)

$9.99 – Indie 0 (same), Trad 7 (up 4), Total 7 (7%)

$10.99 Total 0 (same)

$11.99 Indie 0 (same), Trad 1 (same), Total 1 (1%)

$12.99 Indie 0 (same), Trad 6 (same), Total 6 (6%)

$13.99 Total 0 (same) (0%)

$14.99 Indie 0 (same), Trad 1 (down 2), Total 1 (1%)

$29.99 Indie 0 (same), Trad 1 (same), Total 1 (1%) (Martin boxed set)

 

Fantasy Graph

As ever, a picture is worth a thousand words:

 

Thoughts?

This is not enough data to draw conclusions from. However, coupled with the excellent analysis done by Ed Robertson, it’s possible to hypothesize that the changes he noted to the Amazon book algorithms are damaging indie sales penetration. Some of this might be the loss of impact from Kindle Select promotions and loans. Some could also be due to algorithms favoring higher prices (note the upward trend across the board for prices of indie books which made the top ranks).

I think we need to do substantial more work on data crunching to see where things are headed, and I’m open to collaboration with others. In the short term, however, I think it’s extremely likely many indies are selling themselves short by pricing too low – to their detriment.

Hopefully this helps some folks out.

 

Thanks for stopping by! I hope you found this information interesting and useful. I’d love to hear your thoughts on the data, what it might mean, and how writers can best adapt to these changes.

To celebrate a year of indie publishing, I have my novel, “By Darkness Revealed” reduced to FREE on Amazon for today and tomorrow – 6/21 + 6/22 only. If you enjoy urban fantasy, you might enjoy checking it out, and you’ll aid my in my quest to break the top 100 free books! http://www.amazon.com/Darkness-Revealed-Blackwell-Magic-ebook/dp/B005G8L3X4/ref=sr_1_1?ie=UTF8&qid=1340283711&sr=8-1&keywords=by+darkness+revealed

Publishers begin removing DRM from ebooks, smashing walls on Amazon “walled garden”

At the London Book Fair, one of the major topics of discussion was publishers discussing cessation of DRM use on their ebooks. DRM – digital rights management – is the encryption added to digital media which prevents copying, conversion, and some other sorts of uses of the media. In some cases, it might force the use of a user key to use the media. In others, it locks the media to a specific device. For ebooks, generally it prevents copying, prevents use on other devices, and prevents conversion.

All of the largest publishers used DRM as an anti-piracy measure – until yesterday. TOR, a subsidiary of Macmillan, announced that their imprints would be issuing ebooks DRM free in the US and UK.

The TOR announcement:

Tom Doherty Associates, publishers of Tor, Forge, Orb, Starscape, and Tor Teen, today announced that by early July 2012, their entire list of e-books will be available DRM-free.

“Our authors and readers have been asking for this for a long time,” said president and publisher Tom Doherty. “They’re a technically sophisticated bunch, and DRM is a constant annoyance to them. It prevents them from using legitimately-purchased e-books in perfectly legal ways, like moving them from one kind of e-reader to another.”

DRM-free titles from Tom Doherty Associates will be available from the same range of retailers that currently sell their e-books. In addition, the company expects to begin selling titles through retailers that sell only DRM-free books.

Removal of DRM is a big, BIG deal.

First off, it’s important to understand that DRM is ineffective. There is no unhacked DRM; in fact, any ebook from any major vendor can have the DRM quickly and easily removed with free tools you can acquire using a simple Google search. And once even one person removes DRM from a book and posts it publicly, the DRM free version is out there, being passed around.

Second, public feedback on ebooks without DRM has been positive. For example, in the hours after Pottermore opened, pirated versions appeared online (they don’t use DRM, they use watermarking of the files instead). User response was immediate: they saw this as taking advantage of a product which was already doing as users asked (cheap and DRM free), and within hours most of the pirated versions were taken down without the company having to do anything.

Third, and this is critical for publishers (and it’s key to understanding why TOR and other publishers are getting ready to remove DRM now), the main thing DRM does today is keep anyone but Amazon from selling books for Kindle devices and software.

Most people reading ebooks use Kindles or Kindle software on other devices (about 2/3). The only form of DRMed book that can be read on those is the sort bought from Amazon; anyone can make DRM-free mobi files, but only Amazon can sell Kindle ebooks with DRM. The result is that it’s impossible for companies like Google and Apple to really compete with Amazon for their market share – it’s locked into a “walled garden” by DRM.

Removing DRM would allow other companies to sell mobi books. It would allow new indie ebookstores to open up, selling epub AND mobi files. Since mobi/Kindle is the most popular ebook format right now, indie ebookstores at the moment are locked into competing with B&N/Apple/Kobo for the other third of the market.

Removing DRM opens the door for more companies to begin nibbling at slices of the Amazon pie. I suspect this could make a huge difference in the long run, allowing greater competition between online bookstores and more viability for smaller startups in ebook retail.

In short, this is a smart, smart move, and one which I believe other publishers will follow once they see TOR’s success. Kudos to TOR for having the courage and foresight to go first.

 

Addendum 1: John Scalzi (SFWA president) sounds off on the subject here.

Addendum 2: More on the topic from Charles Stross.

Amazon Updates KDP eBook Cover Recommendations

This change IS a pretty big deal for indie writers.

Amazon announced today in their KDP newsletter that they have updated their recommendations for cover sizes for Kindle ebooks.

The new guidelines are a minimum of 1000 pixels on the long side – although they “recommend 2,500 pixels on the longest side to ensure better quality, and an ideal height/width ratio of 1.6.”

So to break this down, if you go with the minimum, your new image size should be 625 pixels wide by 1000 pixels tall. If you jump to the recommended level, to retain a 1.6 aspect ratio, you want an image size of 1562 pixels wide by 2500 pixels tall (roughly).

While the smaller size is pretty typical of what many indies are already using for cover images, jumping to the recommended level will often mean paying higher prices for art. Jumping an image from 1000×625 to 2500×1562 isn’t just a matter of expanding it in your image editor – that way leads to pixelated, ugly looking images. Instead, you need to go back to the source art and use larger source art. Both royalty free art sites and artists for unique art will generally charge more for larger images, and in some cases artists might not have larger source art available for an image.

It’s not the end of the world, but it’s something indie writers need to pay attention to moving forward. Screen quality is only going to continue improving on ereaders, which means images with higher pixel counts are going to become desirable. Plan accordingly, and build your cover images with higher resolution than you intend to use.

A last note on this: these images are the display images Amazon uses to sell books on their site, NOT the cover image included in the book. In most cases, it is advantageous to include in the book file an image on the lower end of the spectrum, since readers will rarely actually see it there, and higher quality images result in a larger files size for the ebook. Since indie writers getting the 70% royalty from Amazon are billed a  small amount for file downloads, the bigger the file, the less you earn per sale. Those pennies can add up in the long run, so best practice is to include in the book file a smaller file size of image than the one you’re using for display.

Author’s Guild: latest evidence of loss of a clue?

The Author’s Guild blog has just posted a letter from Scott Turow titled “Grim News”. The post expounds upon how the DOJ’s recent announcement it intends to file suit against major publishers for conspiring to fix prices on books is a terrible thing for everyone, and basically defends the assorted publishers’ actions.

Leaving aside the major issue of trying to excuse publishers taking allegedly illegal actions in the defense of their business model, let’s look at the rest of the issues a minute.

Remember, his thoughts were sparked by the “Grim News” that the Department of Justice has just announced it plans to sue several major publishers and Apple for colluding to price fix ebooks with Apple, via the agency pricing system on ebooks. His thoughts are here.

 

Scott Confuses “Bookseller” with “Brick and Mortar Bookseller”

It’s an easy mistake to make. We’re all used to thinking about bookstores as those actual places you go to, you know, buy books. But that’s simply not the case for most readers anymore. Most consumer books are bought online. In fact, Amazon alone is thought to have close to half the trade book market in the US, these days.

Are the brick bookstores getting hammered? Sure. First by B&N – then by Borders – then Amazon, and now by ebooks from a variety of sellers. I know a lot of you reading this like the physical bookstores, enjoy browsing the stacks. Lots of folks liked buying CDs from a big CD store, too. That didn’t save CD stores, and bookstores are headed to the same place they did: online. Today most music is bought in MP3; and what’s left of the CD market is mostly either top album sales in Walmarts or online sales. Some music is coming out in MP3 only now, and that trend will likely grow.

We’re about seven years post iPod. We’re also about three years post Kindle. Based on comparisons of the trends in each, it is extremely likely that book buying is going to follow a similar pattern, which means over the next few years almost all chain bookstores will close, most indie bookstores (physical ones) will close, and most (but nowhere near all) books bought will be ebooks.

We don’t have to like it, but we should prepare ourselves for the idea. Ebooks are a replacement media, and are almost certainly the last nail in the coffin of physical bookstores. Nothing publishers or writers do is going to substantially slow that process.

 

Scott Attacks the Amazon Walled Garden

Scott attacks Amazon for having a walled garden, using it as an excuse for their alleged collusion with Apple. That would make sense – walled garden approaches to commerce limit competition, and aren’t really good for suppliers. But Apple, Sony, and B&N each have their own walled gardens too. It’s about as hard to get most Apple epubs into a Nook as it is to get most Kindle books into a Nook. Just because a company is using the epub “standard” doesn’t mean that DRM makes it easy to transfer the books to a new reader.

I recall getting a free review copy of Stephen King’s “11/22/63″ from the publisher’s website. I know from personal experience that converting a Kindle book to Nook is a LOT easier than getting that book onto the Nook software on my cell phone (yes, my cell phone has both Nook and Kindle apps – why not?). Shame on Scribner for making what ought to be an easy experience into one so painful that, tech savvy as I am, I had to spend half an hour trying to figure out how to follow arcane directions that I had to use Google to find in the first place.

Here’s the other catch: Amazon didn’t make their place a walled garden; publishers gave Amazon the walls. It’s called “DRM” – digital rights management. The little bits of code which prevent an ebook from being converted or copied. Years ago, the music industry figured out DRM was bad for business, bad for sales, and dumped it. The book publishing business has not caught on that the same might just be true for them, so pretty universally big publishers launch their ebooks with DRM.

Yes, I can remove DRM. In fact, just about anyone can remove DRM. But it’s a pain, and unless your Google-fu is strong enough, finding out how can be tough. Most customers probably won’t bother unless they’re driven to do so for some reason. Which means the DRM publishers *ordered* Amazon to put on their books is one of the most powerful tools Amazon has for retaining customers (note: Amazon is just as happy to not put DRM on books; none of my works have DRM on Amazon, because I don’t want DRM on my books – I want readers to be able to read my books where they want to). Once customers have invested heavily in a DRM-laden library from Amazon (or anyone else) they are unlikely to switch venues.

Publishers, you MADE the monster you fear.

 

Scott Mixes Up His Facts About Booksellers

Once again, recall: Scott only considers bookstores with a physical store “booksellers”. Those online places which ship tens of millions of books per year to customers don’t count.

He claims “bookstores are critical to modern bookselling”. No – they’re critical to large publishers maintaining their oligopoly on distribution of books. Books are selling just fine online.

He claims “Marketing studies consistently show that readers are far more adventurous in their choice of books when in a bookstore than when shopping online.” To which I reply, “lies, damned lies, and statistics”. There are very few studies out there about book buying patterns performed in the last two years which I have not read. I have never seen data which even vaguely backs up his claim. Citation, please?

He says “Publishing shouldn’t have to choose between bricks and clicks.” He’s missed the point. Publishers don’t get to choose where they sell their product. Readers get to choose where they want to buy the product publishers sell. If readers want to buy books from physical bookstores, they will; if not, they won’t. Publishers don’t get a say in this.

He says “A robust book marketplace demands both bookstore showrooms to properly display new titles and online distribution for the convenience of customers.” A fascinating claim. Why? He never explains. In fact, the majority of fiction ebook bestsellers in my recent genre surveys have no print presence in bookstores, putting the lie to his claim. What he truly means is major publishers need bookstore showrooms to properly display their wares and advertise them to readers so they can charge higher prices for their work.

He claims that bestsellers are OK, but that “For new authors, however, a difficult profession is poised to become much more difficult.” Again, pretty obviously false. Even a cursory investigation of Amazon shows that, on that site alone, several thousand self published ebooks are selling in excess of a thousand copies a month. The reverse of his claim is actually true: as bookshelf space decreases, bestseller advances are going down. However, more “midlist” writers are making excellent returns on their work than we’ve seen in over fifty years.

 

Scott Thinks Agency Helped!

No, not really. What agency pricing did was allow publishers to set their prices: which they did. At very high levels. In fact, skimming by Amazon one can find hundreds of ebooks from major presses at $10-15. Most of those titles have numerous 1-star reviews from customers protesting the price. Publishers didn’t help themselves with their ebook pricing scheme.

But most devastating for publishers is the loss of a majority of the ebook market.

There’s only one type of book growing in sales today – ebooks. Print sales are declining, and will likely continue to decline in a rapid slide for years yet before they settle down. Ebooks are the growth market. Ebooks are what most readers will be buying – if they are not already – within a year or two. And by pricing themselves out of the market, all existing evidence says that publishers have handed a majority share of that market to self publishing writers and small presses. No, we don’t have all the data to absolutely and positively prove that as fact – but all data which does exist, including all the market surveys I have personally done, support that theory adequately enough.

The folks who will mourn the passing of agency pricing the most are not publishers – it’s the indie writers, the self publishers, who will miss it the most. Agency pricing has allowed self publishers to dominate ebook fiction in a manner which would never have been possible if Amazon and B&N had been able to discount books from major publishers. Once Amazon gets to discount the hit bestsellers (at their expense), indies will have a harder time of it. We can only hope enough writers will have won enough fanbase by the time that happens to make a difference in the long run.

So yes, when agency pricing falls, life will get harder for writers, but not for the reasons Scott suggests. ;)

 

So what the heck is going on there over at the Author’s Guild?

They’re sticking up for publishers committing allegedly illegal actions. They’re spreading information that’s got more holes than swiss cheese, loaded with false claims and erroneous data. They’re favoring one retailer over another. They’re proving they’ve locked their minds into 20th century retail, ignoring the fact that for better or worse, retail has changed with the advent of the internet.

Perhaps Scott, who wrote this article, really believes this stuff he wrote; it’s certainly being shoved down the throat of the public by enough mass media sources (the owners of whom also own the publishers currently under threat). But shouldn’t somebody over at the Author’s Guild be better informed? It’s embarrassing to see this sort of tripe up on the website of what’s supposedly a writer-focused organization.