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Stupidest Idea EVER

CNN has launched its Second Life Bureau, according to the Hollywood Reporter:

In the week of Nov. 5, the news giant is set to open a news-gathering outpost in Second Life. And unlike news service Reuters, which embedded a real reporter in the online virtual world last year, CNN will rely on Second Life "residents" to do all the legwork.

In the space, the network will create a variation of its i-Reports, the real-world vehicle through which average citizens contribute eyewitness reports. CNN will equip Second Life denizens with kits enabling them to transmit copy and photos. Visitors to Second Life will be able to get the latest news via kiosks scattered throughout the virtual community.

And the network will act as a sort of journalism school, offering guidance to avatar citizen journalists via weekly "news meetings" directed by CNN.com staffers. And top CNN personalities including Larry King will conduct virtual training sessions for budding cyberjournalists.

So the three people on Second Life who are NOT engaged in online porn can submit daily reports to CNN on how their avatars change outfits?

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Fractious Doings at Audiobook Conference

The Bookseller sponsors an annual seminar called Audio Revolution, and this year’s was lively to say the least. The Book Standard reports that Robert Lands, an intellectual property lawyer, suggested that audiobook contracts be separately negotiated – as opposed to audio rights being thrown in with everything else in a book contract:

"Audiobooks in a way have far more in common with films than books in that there are actors, producers and a performance. There are a whole bundle of rights involved here that books just don’t have."

At which point forty editors keeled over and had to be revived with liberal application of gin and tonics. Fortunately, literary agent Simon Trewin was there to save the day:

Trewin apologized for his fellow agents, calling some of them "Luddites." He added: "The book industry is very insular and cliquey, and often we like to deal with people we know. [Audiobooks] people are coming in from outside with new ideas, and we are not sure how to react."

Indeed.

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Wertz leaving ABE

COO of AbeBooks Boris Wertz will be leaving to start his own venture capital firm, report both Publishers Weekly and Shelf Awareness. His COO responsibilities will be distributed among three Abers – Laura-Lea Berna, Shaun Jamieson, and Thomas Nicol.

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Microsoft Wins

Microsoft is the winning suitor (Yahoo and Google being the other contenders) in the wooing of - for $240 million, MS gets a whole 1.6% stake in the company.

1.6%??????

Reports the Times:

As part of the deal, Microsoft will sell the banner ads appearing on Facebook outside of the United States, splitting the revenue with it. Last year, Microsoft struck a deal with Facebook to run banner ads on the site in the United States through 2011.

The astronomical valuation for Facebook is evidence that Microsoft executives believed they could not afford to lose out on the deal. Google appears to be building a dominant position in the race to serve advertisements online. Fearing it might lose control over the next generation of computer users, Microsoft has been trying to match and in some cases block Google’s plans, even if that effort is costly.

“We are now stepping outside what is typically a business decision,” said Rob Enderle, the founder of the strategy concern Enderle Group. “This was almost personal. I wouldn’t want to be the executive that’s on the losing side at either firm.”

….

The Microsoft investment throws the value of the holdings of Facebook investors into the stratosphere. Mark Zuckerberg, the 23-year-old Facebook founder who dropped out of Harvard to build the company, owns a 20 percent share which is now valued at $3 billion. Accel Partners, the venture capital firm that invested $12.7 million in May 2005 and owns 11 percent of Facebook, now holds stock worth $1.65 billion.

Ye gods. Staggering. Just staggering.

 

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Subway readers

As I was headed to a meeting this morning on the 4 train, I looked around the subway car and did a quick count.

40 riders
15 reading something (on paper – a book, a newspaper, a document)

That’s 37.5% of the car, reading.

You extrapolate that to all the subway ridership – 120,000,000 riders a month – and that gives you 4.5 million instances of reading throughout New York City at any given moment. Just on the subway.

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Link roundup

Some interesting stories on digital publishing:

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Creating viable digital products

My rant of yesterday was definitely inspired by some specific circumstances. But when I hopped on the treadmill last night (and while some of us get our ideas in the shower, I get mine on the treadmill), I found myself dwelling on a really key issue:

Talking to your market.

You’ve got ebooks, downloadable audiobooks, online supplements to books (coursepaks, workbooks), video accompaniments (interviews, demonstrations), animated accompaniments…all this STUFF that either is the book or is derived from the book. The book has ARMS – it has appendages.

Is that what the market wants?

Is anyone talking to the market?

Do people really WANT widgets? (Do you see a widget on this blog? That’s right – and unless I’m truly turned on by a title and need to acquire all of its appendages, you never will, either.)

Is anyone talking to the people who are going to use this stuff? Of those who are developing digital products in the book world, is anyone using it themselves? What are we learning from talking to the folks who will eventually consume what we’re creating?

I had an interesting exchange with my daughter yesterday. She’s 14. When she’s not reading, she’s on her computer. When she’s not on her computer, she’s reading. She reads for pleasure and for school. So I figured she was a good kid to ask:

"In your readings for school, would you like it if you could load up all your textbooks on a laptop and read them that way?"

Naturally, as a Brooklyn kid, she immediately responded, "Mom, the laptop would get STOLEN." I wish I could imitate the accompanying eye-rolling. As I say, she’s 14.

Then I said, "What about reading for pleasure? What if you had a gizmo you could actually curl up in bed with? Maybe even read in the dark?"

And she said something that really surprised me. "Actual books are better. You can curl up with them and feel them and save them. If My Sister’s Keeper was an ebook, would i be able to get it autographed and watch as the cover fades off because i’ve read it so many times? No, i wouldnt."

For her, books are an emotional experience. They are, as Seth Godin puts it, a souvenir of an experience. She marks her journey through life with books – the physical objects. They go everywhere she does, even into bed (along with 10,000 other things: dirty laundry, tubes of lip gloss, the wrappers from smuggled candy, and a decrepit old Elmo doll she’s had since she was born).

I was surprised at that. Surprised at how such a digital kid (and try to pry her away from her iPod, my God) is so attached to physical books. But when I look around at my house, which is just wall after wall of books, I realize I shouldn’t be so surprised. I’m very digitally-oriented too, and I have more book-souvenirs than a sane person should. A classic example of the thousands on my shelf: My Psychopathology textbook from college – which is hopelessly outdated, but which I cling to because (a) it was the most expensive textbook I ever bought (at $36) and (b) it reminds me of my senior year of college, which was magical. God knows I haven’t cracked the spine of the damn thing since the 1980s. But after endless stoop sales and book donations over the last 20 years…it remains on my shelf.

People are complicated. This market is complicated. People’s relationships to books are complicated – as are their relationships to technology. This is not an easy course we’re charting. We’re dealing with things like…feelings.

Maybe I should crack open that Psych book after all. 

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Digital Publishing

It seems that editors are either being told or sensing that they have to “do something digital”. But they’re not sure what that means, even, or what they should be doing. So they go to the “digital group” and tell them, “We need a digital product.” And it’s supposed to do everything but wash your socks, you know? It’s an ebook, but it’s not really an ebook – it’s a course cartridge/coursepack, except it’s supposed to be compatible with all course management systems and not just Blackboard – it’s got to have video because the competition doesn’t have video yet, and money’s not a problem because it will raise the profile of the brand and ultimately sell more print books….

 

I cannot tell you how many things are wrong with that. (But I will try.)

First of all, the digital product is not arising out of any real consumer need. It’s arising because publishers are nervous that other publishers might be figuring out the whole “digital thing” and leaving them in the dust. It’s arising because the publisher is scared to stand still and let the customer tell the publisher what s/he needs. “Wait! Let me guess what you need! Here, you need an ebook that’s a coursepack that has video that you can download onto your iPod!”

Second, the goal is not to raise the profile of the brand and thus sell more print books. (Shocking, I know.) The goal is to develop and sell viable digital products. Which is very different from being in the print book publishing business.

For now you are in the print book publishing business and that is fine – you have to run this other business in parallel and have it ready to move to center stage when the market inevitably moves there. It will earn, it will pull its weight, we’re not talking about throwing money down a hole. It has to be profitable. But it’s apples and oranges to print publishing. Yes, we are talking about different ways of content distribution. But McLuhan is more apt now than ever – the medium in which you distribute that content can in many cases determine the content that gets distributed. If you’re going to distribute video, you’re in the broadcasting business. If you’re going to distribute text, you’re in the publishing business. If you’re going to build online learning centers, you’re in the website business. And each of these businesses has its own business model – and when you combine them, you breed new business models.

You also have to take a few risks. Developing features just to meet competition is not a good use of resources. And yes, you may lose market share to other publishers whose digital products have bells and whistles that you cannot possibly foresee or develop. But if your digital products are truly driven by the needs of the market – rather than being developed in anticipation of what you THINK those market needs might be – then your customers will come back to you with more loyalty than ever because you’re really looking out for them, not just throwing features in their path like golden apples.

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One of the best decisions PW has made

…is to have David Rothman contribute a column on ebooks. The man knows his stuff and he’s a joy to read. In this week’s post, he talks about Holtzbrinck (Macmillan?) internet marketer Jeff Gomez’s book and blog, Print is Dead.

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Less Mooring

I’ve been, for the last 3 weeks now, consulting at McGraw-Hill Education, in their Digital Group. I love it – it’s so nice to actually BE in the front lines of what I’ve been writing about for the last year. My gig goes till January, and essentially I’m managing a suite of world language textbook titles while the "real" product manager is out on maternity leave. It’s a relief to find out that the advice I was giving hedge fund managers over the summer about the textbook market is actually spot-on. More than that, though, it’s cool to be working in the trenches of a rapidly morphing industry.

Hence the sparsity of posts. Just sayin’.

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