making content available to all

Maximize the Value of Your Content

Demystifying the King:

Making Content Available to All

This whitepaper was completed on April 1, 2013.

2007 EPUB and Kindle

2011 EPUB 3

2010 iPad

It would be stating the obvious to say that publishing has changed over the last decade or so. What we knew as publishing in the 20th century hardly resembles the 21st century version. We can mark change in terms of technological innovations — 2007: EPUB and Kindle; 2010: iPad; 2011: EPUB 3. Each of these new technologies enabled us to think in a fresh way about how we publish, and how we reach our readers. Then we spoke of books and magazines. Today we use one word: Content.Content is king, they say. Content is the substance we produce, but it has freed itself from the shackles of its prior containers. Sara Domville, President at F+W Media, Inc., speaks of a “content explosion model,” content that has broken free of constraints and can be used in multiple ways.

Content is acquired by F+W, as with most publishers, by an editor. Editors, says Domville, bring passion to their work; they will “make it the best it can be.” After that, she continues, “we put it in the buckets.” These buckets, at F+W and elsewhere, are any number of formats and platforms by which content can be disseminated. It is up to the publisher to determine the best mode or modes of distribution to reach readers and users.

And the editors? Domville says: “Once editors get over the fact that they’re not just book editors, that they’re content creators, they like it. It’s rewarding.”

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Demystifying the King: Making Content Available to All 3

Content is king, and we publishers are content creators. But without a means to efficiently reach the end user, our content will not thrive. We need effective ways to translate our content into the appropriate formats, indeed to determine what these formats are and to understand which formats best suit our content.

This paper will explore the many options available to distribute content, and discuss some of the issues and “pain points” of publishers as they rethink their content distribution models. The goal of this paper is to shed light on best practices for moving content successfully along distribution channels. Make way for the king!

A Brief History of Content Distribution

Most conversations about content distribution begin with Gutenberg. When Johannes Gutenberg invented the first printing press in 1450, he enabled content distribution. His invention made it possible for books to be printed in quantity and to reach great numbers of readers. Thoughts and ideas spread like never before! Like the proverbial ripple in the stream, the ramifications have been felt ever since, and none would dispute the benefits thereof.

According to one source, by 1500, 20 million books had been printed in Europe, a phenomenal number in just 50 short years. Multiply that by five centuries and seven continents, and we have a multi-lingual abundance of content weaving its way from producer to reader. But as we move along the long continuum from moveable type to e-ink, the question becomes, What is the most efficient way to bring content to market?

There is also another important question: Why produce all this content in the first place? Those of us in the publishing business believe that ideas presented in print can make a significant impact on the world. The printed word can educate and inform, change minds, and improve lives. However, all of these noble ideals notwithstanding, publishing is, as we all know, a business. Our goal? One simple word: monetization. On second thought, perhaps it is not such a simple word.

Publishers distribute content with the goal of monetizing that content. These days the publishing conversation swirls around the question of how this is best achieved. In what form is content best for the market? In what form will it sell successfully?

Johannes Gutenberg enabled content distribution when he invented the first printing press in 1450.

Demystifying the King: Making Content Available to All4

Options for Content Distribution

There are many options available when it comes to choosing a means of content distribution. A new survey of 340-plus senior-level publishing executives conducted by Book Business magazine on behalf of SPi Global indicates that the question of how to distribute content is front and center in making strategic business decisions. Indeed, few are committing to one method of distribution: 89.9% are distributing online through a website, 67.7% of respondents are distributing their content physically through warehouses, and 31.3% are distributing through apps.

Physical Distribution Through Warehouses

Baker & Taylor, founded in 1828, is the world’s largest distributor of physical books. Headquartered in Charlotte, North Carolina, the company has five “Service Centers,” i.e., warehouses, with the eastern-most one located in Bridgewater, New Jersey, and a western outpost in Reno, Nevada. When a bookstore or retailer orders from Baker & Taylor, the company will ship from the warehouse closest to the customer, and the customer hopes that the stock he needs is located in a warehouse nearby, for speed of shipping. It is in part due to their strategically located warehouses that Baker & Taylor has the market position they enjoy in the distribution area.

When Barnes & Noble began its superstore expansion in the ‘90s, they were heavily dependent on Baker & Taylor to supply books. It did not take long, however, for the company to realize the strategic importance of a well-placed warehouse, and Barnes & Noble began opening its own warehouses and decreasing its reliance on Baker & Taylor.

There are many book distribution companies currently in business, from small to large, as well as numerous publishing houses, also in a variety of sizes, which undertake their own distribution. Perseus Book Group, a mid-size publisher, is an example of a company that built its own distribution company called Perseus Distribution (which also includes Constellation, a provider of digital distribution.)

Physical distribution of a printed book through a network of warehouses and retail outlets, employing a variety of shipment methods, is obviously a complex logistical undertaking. But it is a necessary one to get the book into the reader’s hands. These distribution methods, a few of which were described above, are essential for the book that exists as a physical object. In a seamless version of this distribution, a book is ordered, shipped, and delivered to its destination in smooth order. The reality, however, is much more complicated: unavailable stock, late shipments, and of course the complicated system of returns and remaindering, controversial approaches endemic to the publishing industry.

Content is king, and we publishers are content creators. But without a means to efficiently reach the end user, our content will not thrive. We need effective ways to translate our content into the appropriate formats, indeed to determine what these formats are and to understand which formats best suit our content.

The brick-and-mortar bookstore emerged as the #1 sales channel for publishers in 2011 and bookstore continues to show robust growth in 2013.


Challenges aside, print sales continue apace. The BookStats Annual Survey examines US publishers’ annual net sales revenues and net units, and is co-produced by the Association of American Publishers and the Book Industry Study Group. The 2012 edition reports: “Despite the Borders bankruptcy resulting in the closure of more than 500 stores in 2011, brick-and-mortar retail again ranked as the #1 sales channel for publishers in 2011: net revenue was $8.59 billion, representing 31.5% of total net dollar sales.” The brick-and-mortar bookstore continues to show robust growth in 2013, with numerous independent stores reporting an uptick in sales and unexpected revitalization, in part attributable to community support and their historic skill at the art of handselling.

Online Distribution Through a Website

Online retailing is bridging the gap between physical and electronic distribution; online sales include both physical and electronic publications. The clear category killer in this distribution method is Amazon. Founded in 1995, the company has grown to become the dominant source of online book sales. As it grows, Amazon continues to both meet and disappoint Wall Street expectations; at the end of the 4th quarter of 2012, it reported a 22% increase in sales alongside a 45% decline in profit.

* According to a new survey of 340-plus senior-level publishing executives conducted by Book Business magazine on behalf of SPi Global indicates that the question of how to distribute content is front and center in making strategic business decisions.

Online retailing is bridging the gap between physical and electronic distribution;

online sales include both physical and electronic publications.

66.7%Physical Distribution Through Warehouses

How do you distribute content?*

89.9%Online Distribution Through a Website

14.6%Others

31.3%Distribution Through Apps


Nonetheless, this powerful retailer is hardly lacking in competition. From publishers’ own websites to a number of other aggregated sales sites, the online marketplace is lively and competitive, and in the dedicated ebook marketplace, numerous sellers exist. In the mixed print and digital online marketplace, brick-and-mortar retailers are also having a go at online sales. Barnes & Noble has an active and extensive Internet presence, which includes many of the same features available on Amazon (reviews, comments, author videos, searchability).

A number of independent booksellers have strong online brand awareness, and the American Booksellers Association has been active in supporting indies in launching an online retail presence.

Clearly online distribution through a website comes with benefits and disadvantages. The online retail environment offers 24/7 access along with the ability to provide a huge breadth of merchandise, more than can be accommodated by a brick-and-mortar sales outlet. Online retailers can take advantage of algorithms to study and make use of customer preferences, and they can also offer an interactive environment that supports reader reviews, comments, and other feedback. And yet the online purveyor of print is subject to the same limitations as any brick-and-mortar seller: availability and accessibility of stock, shipping challenges, and maintenance of merchandise in salable condition.

Distribution Across Apps

Oh how we consumers love our apps! We download them on our smartphones and on our tablets, we use them to entertain and inform us, we seek useful free apps and pay for those we deem worthwhile. Although at 31.3%, this distribution method is the least favored by publishers surveyed. It stands to reason nonetheless that apps would play an important and growing role in content distribution. Apps used for distributing book content are available free across devices and platforms. Kindle, Kobo and Nook apps are all available in Android and iOS versions, to name just a few.

The key appeal of the apps is closely connected to the prevalence of devices, primarily our practically omnipresent tablets and smartphones. As John Wheeler, Senior Vice President for Strategy and Emerging Technologies of SPi Global, says: “The pull on this has been the explosion of mobile devices that have made it easy for people to receive content pretty much anywhere they are.”

The beauty of the app is its ability to push out new information to the user as it becomes available. Another strength of apps is that they live on the device, making them easy to access frequently. An app that proves itself easy-to-use and provides a steady stream of useful, up-to-date information is sure to be a frequent go-to place for the device owner.

The key appeal of the apps is closely connected to the prevalence of devices, primarily tablets and smartphones. It’s beauty lies in its ability to push out new information to the user as it becomes available.


Formats

Moving on from the question of outlets, publishers must address the key issue of which of the numerous available formats that support content distribution they will select. In our survey, we find publishers choosing multiple methods. Of the 253 respondents, replies are split among four key methods, with some overlap.

By far the most popular method remains print. After all, with a lead of more than 500 years on other formats, it isn’t that much of a surprise that many of us still rely on the tried and true, and not without good reason. Amid cries from industry pundits that “print is dead,” the numbers support a goodly amount of print readers remaining in the marketplace. And expertise developed over the years enables publishers to continue laying out, typesetting, designing, and printing content for the static, fixed, ever-reliable paper page.

As co-founder and staff writer of Salon.com Laura Miller recently wrote on the site: “If print could talk, it would surely be telling the world, Mark Twain-style, that reports of its demise have been greatly exaggerated.” A recent report from the Pew Research Center indicated that the number of Americans over age 16 who read at least one print book in the prior 12 months declined from 72% to 67%, still a very healthy number.

Digital distribution shows significant publisher commitment and investment as well. SPi Global’s John Wheeler explains: “Our customers have always made some level of content available digitally even as much 10 years ago.”

According to our survey, 73% of respondents are distributing content by PDF. PDF is a standard format easily accessed and utilized on a range of computers and other readers, and it maintains the integrity of the publication with its fixed-format layout, being particularly useful for highly designed publications and those with charts, tables, and other illustrations.

The publishing industry, creative endeavor that it is, encompasses a range of other formats used in varying degrees, from audiobooks to braille, but by far the most popular alternative format is the ebook. 60.5% of those polled in our recent survey indicate that they are using the Kindle format, and 63.7% of publishers polled are using the EPUB format.

EPUB

Unlike print and PDF, EPUB provides for reflowable text. While the format does support fix-layout content, its strength is its ability to adapt and its interoperability across platforms and devices (Publishers take note!). The EPUB standard was developed by IDPF, the International Digital Publishing Forum, and the current version is EPUB 3.0. “HTML5 is the architect for EPUB 3 which enables semantic structure, interactive media, accessibility, metadata, etc.” say John Prabhu, Vice President, Solutions Architect, Content Solutions at SPi Global.

As described by IDPF: “EPUB is the distribution and interchange format standard for digital publications and documents based on Web Standards. EPUB defines a means of representing, packaging and encoding structured and semantically enhanced Web content — including XHTML, CSS, SVG, images, and other resources — for distribution in a single-file format. EPUB allows publishers to produce and send a single digital publication file through distribution and offers consumers interoperability between software/hardware for unencrypted reflowable digital books and other publications.” (idpf.org/epub)

PRINT CONTINUES TO BE THE MOST POPULAR FORMAT FOR CONTENT DISTRIBUTION

If print could talk, it would surely be telling the world,

Mark Twain-style, that reports of its demise have been greatly exaggerated.

Laura Miller Co-founder and staff writer

Salon.com


EPUB 3, says Prabhu, is “not at maturity stage yet. There are few EPUB 3 readers (such as Readium, iBooks, VitalSource, Azardi, Bluefire, etc.) available now, however all the functionalities of EPUB 3 are not fully supported yet. Publishers want more readers supporting EPUB 3 functionalities so more adoption and budget can be put into developing EPUB 3 files.”

He continues: “SPi Global is assisting the publishers in converting the assets into HTML5 to ensure it is compatible with various mobile platforms and devices. The industry is moving towards more interactivity and it is inevitable that the distribution platform will factor in these evolutions.”

Kindle

Kindle’s original proprietary format, called “AZW,” is built on the MOBI, or Mobipocket format. The Kindle Fire introduced a new (backwards-compatible) format called Kindle Format 8, or KF8. KF8 supports HTML5 and CSS3. Prabhu calls KF8 “an enhanced version of EPUB 3.”

Kindle’s choice of a proprietary format ignited debates regarding the value of open source publishing. At the current time, however, its market share remains solid, leaving ebook publishers in a situation where many will likely choose to publish into both formats, as our survey results seem to indicate.

In sum, the multitude of formats increases the complexity of the publishing challenge. SPi Global’s Wheeler says: “It’s certainly a challenge for the publishing base in that they have all of these formats. They have competing formats now as far as the various types of electronic formats that are supported.”

The positive side of this is the ability to reach readers on their own terms, and provide the content in the mode preferred by the end user. Wheeler concurs: “On the provider side, that gives us an opportunity. For a number of our publishers we’re producing the same thing multiple ways. They are looking for low friction in their distribution, and to use the same type of workflows they’ve had in their past. We keep it simple but work on multiple platforms.”

THE MULTITUDE OF FORMATS INCREASES THE COMPLEXITY OF THE PUBLISHING CHALLENGE

It’s certainly a challenge for the publishing base in that they have all of these formats. They have competing formats now as far as the various types of electronic formats that are supported.John Wheeler Senior Vice President for Strategy and Emerging Technologies SPi Global


Platforms

Getting the word out is the publishers’ most important task and is, after all, the crux of the work of content distribution, the penultimate task to be achieved after our content has been acquired, edited, proofread, designed, and formatted. While the number of platforms from which publishers can choose can feel overwhelming, judicious selection can lead to a strong and remunerative outreach strategy. Publishers we survey are doing exactly this: a mixing and matching array of approaches.

With a strong 71.4%, Amazon is by far the most prevalent choice. Declining profits aside, it is the go-to choice for consumers. Offering appealing price points and unparalleled breadth, in addition to extensive information about each title, including its “search inside this book” feature, author videos, and reader reviews, Amazon has crafted a supportive and enjoyable online retail environment.

At 51.8%, our survey participants’ second choice is Barnes & Noble. The retailer, which originated as a bricks-and-mortar store, conducted a come-from-behind end-run to quickly build its online presence into an appealing retail environment which in many ways matched the features offered by its competitor, Amazon. Running somewhat but not too far behind at 43.7%, iTunes captures significant publisher support, and appeals to the strongly and vociferously loyal Apple user.

Lest this triumvirate of high-profile book retailers distract our attention from contenders, let us note several other platforms for digital distribution selected by publishers in our survey: Inkling and Ingram/Vital Source.

As far as delivery platforms go, Inkling has a lofty goal. As founder and CEO Matt MacInnis says in Book Business, “We’re trying to define the medium that replaces the book.” Inkling, which launched in 2009 out of the founder’s living room (an apparent exception to the garage rule), builds interactive content for the iPad. Starting with the creation of interactive experiences for textbooks, Inkling is now expanding into other categories of illustrated consumer books. Recently it created its own storefront for its books which makes use of Google Search. Called the Inkling Content Discovery Platform, it makes pieces of content, which it calls cards, searchable and available free, hoping to lead the consumer deeper into the work and hence into a purchase.

Ingram’s VitalSource is another e-textbook delivery platform. VitalSource has numerous programs increasing discoverability and accessibility, including an iOS-based app and a partnership with Blackboard integrating its content within the Blackboard LMS. For higher ed publishers, VitalSource offers the ability to sell, distribute, create, and enhance content; for institutions, it offers the ability to more fully integrate content into the curriculum.

It is no wonder publishers struggle with developing a consistent strategy to negotiate their content distribution challenges and needs. Questions abound. How does one best monetize content? What will the consumer pay for, and in what form? How will the consumer discover the content, and how will they choose to access and utilize it?

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Challenges and Opportunities

With a marketplace so fully in flux, technology that is continuously reinventing itself, and consumers drifting back and forth over the print/digital divide, it is no wonder publishers struggle with developing a consistent strategy to negotiate their content distribution challenges and needs. Questions abound. How does one best monetize content? What will the consumer pay for, and in what form? How will the consumer discover the content, and how will they choose to access and utilize it?

And before publishers can even begin to consider the vital question of consumer needs, they must first determine a smooth course through the challenging waters of content creation. How to update a print workflow for new digital needs? Is an entirely new workflow called for? Should one be print- or digital-first? Or perhaps a simultaneous print/digital approach is best? And which formats will best support a publishing process that is agile and efficient and allows for speed-to-market and widespread availability? And what of the myriad technological challenges, from trouble-shooting recalcitrant devices to solving storage problems in a data-heavy environment?

The industry is evolving so much. Everyone is looking for various business models and mobile devices, be it Android or iOS. At SPi Global, we have a platform enabling clients to distribute their content seamlessly on mobile platforms, and reach out to their customers and bring the revenue back to the client.John Prabhu Vice President, Solutions Architect SPi Global

Moving Forward: Wagging The Technology Tail

SPi Global’s John Wheeler sees it as his job to help his customers make strategic decisions. Asked how he helps his customers address their biggest “pain points,” he says his company does it by “helping them understand all of the different and competing file formats and what’s best for them and appropriate to use.”

Wheeler describes a situation he sees frequently: “The technology tail wagging the content dog. Customers need someone to help them review what their needs are as far as distributing the content, to review what their target markets might be, and to help them reach the widest variety of target devices.”

As John Prabhu says, “The industry is evolving so much. Everyone is looking for various business models and mobile devices, be it Android or iOS. At SPi Global, we have a platform enabling clients to distribute their content seamlessly on mobile platforms, and reach out to their customers and bring the revenue back to the client.”


SPi Global’s solution is a complete turnkey solution that allows publishers and content providers to manage, distribute, and monetize content in custom-branded mobile applications. Each app is customized to the owner’s requirements and then distributed globally via App Stores to mobile devices with development, submission, approval, and maintenance managed by SPi Global.

SPi Global’s full-service approach includes integrating content that may be supplied in simple formats such as PDFs or enhanced with video, audio or interactive HTML5 elements. SPi Global provides full analytics on downloads and weekly sales reports. Content can be free or sold through the app and all monetary transactions are handled by SPi Global on behalf of the Publisher.

Solutions Architect John Prabhu sums it up: “SPi Global is truly a strategic partner by making sure the content is semantically and consistently structured, along with interactive media if required, ensuring interoperability, maximizing the value of the content and making it accessible.” It can be just as simple as that. Now that’s a solution of which King Content approves!

SPi Global’s full-service approach includes integrating content that may be supplied in simple formats such as PDFs or enhanced with video, audio or interactive HTML5 elements. SPi Global provides full analytics on downloads and weekly sales reports. Content can be free or sold through the app and all monetary transactions are handled by SPi Global on behalf of the Publisher.

About SPi Global

SPi Global empowers leading publishers and content providers to maximize the value of their content online and offline by infusing technology, know-how, and innovation into their businesses. SPi Global provides its clients with a competitive advantage by creating unique strategies in redefining a business model, enhancing an existing or developing a new service offering, and increasing operational efficiencies by introducing a system or redefining workflows.

With a complete suite of digital, publishing, content enrichment, marketing, and customer support services, we help companies adapt to the rapidly changing demands and needs of their own customers through our unique and innovative solutions.

For over 30 years, SPi Global has been helping leading publishers, not-for-profit organizations, information providers, and Fortune 1000 companies to increase their revenues, reduce costs, improve time-to-market, and automate operations. With over 500 clients and 9,000 content specialists, no job is too large for us.

For more information on how SPi Global can help you maximize your content online and offline, please contact:

Jamie Israel Director of Marketing, Content Solutions M 732 662 8345 [email protected]

www.spi-global.com

Maximize the Value of Your Content

making content available to all

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