This presentation was given by Mark Coker at the Edinburgh Publishing Conference held June 12, 2013 at the University of Edinburgh business school in Scotland. The conference examined the innovation, disruption and new business models that are helping to shape the future of publishing. In this presentation, Mark Coker, the founder of Smashwords (a global ebook distributor serving over 60,000 indie authors and small publishers), examined ten trends that are shaping the future of publishing.
1. 10 Trends Driving the Future of Book
Publishing
PUBLISHING: EVOLUTION, DISRUPTION & THE FUTURE
June 12, 2013
Mark Coker
Founder, Smashwords
Twitter: @markcoker
8. I Concluded…
• The old model of print
publishing was broken
• Print publishing had become
harmful to…
Writers
Readers
Publishers
Books
9. The Culture of “NO”
• Risk mitigation leads to a “Culture
of NO”
• Most authors rejected
• Publishers unable to take a risk on every
author
• Publishers rejecting “Black Swans,” books
that would have become hits and classics
10. I contemplated the opportunity
• What would happen if someone
could say YES to EVERY writer?
11. My Answer: Smashwords
Launched in 2008
• FREE ebook publishing platform
• FREE ebook printing press
• Distribution to major ebook stores
• Share best practices secrets
12. How Smashwords Works
1. UPLOAD
• Upload a Microsoft Word file, formatted to
our Smashwords Style Guide
• Ready for immediate sale online
1. DISTRIBUTE
• Distribution to major retailers
1. GET PAID
• Author receives 85% of net
22. A blast from the past: US ebook
market share in 2008
Source: Association of American Publishers, publishers.org.
0
0.2
0.4
0.6
0.8
1
1.2
2002 2003 2004 2005 2006 2007 2008
23. Ebooks as a percentage of US
wholesale trade market
Source: Association of American Publishers, publishers.org. 2012 Smashwords estimate
0
5
10
15
20
25
30
2002 2004 2006 2008 2010 2012
25. Why ebooks are hot
• Screens offer better reading experience than
paper
•
Changeable font size A B C D
• Ebooks offer better consumption experience
• Lower cost than print
• Convenient sampling and purchasing
• Huge selection
27. US Percentage of book purchases
made online vs B&M, Print and E-
Brick &
Mortar
Web
Today?
28. Bookselling moves to the Web
• Brick and mortar stores
disappearing
• Decline of print
• Consumer drivers:
• Price
• Convenience
• Selection
• Implications for publishers…
30. Publishers Once Controlled
Publishing
• Publishers controlled the…
• Printing press
• Access to retail distribution
• The knowledge necessary for
professional publishing
31. Today, authors have free tools to
e-publish
• FREE ebook printing press
• Ebook distribution available to all
• The knowledge of professional
best practices is free and
available to all
32. Publishers losing their monopoly
• Writers no longer need publishers to
publish, distribute and sell
• Writers asking two dangerous
questions:
1. Do I need a publisher?
2. Will a publisher harm my ability to reach
readers?
34. Benefits of Indie Authorship
• Indie ebook author advantages
• faster time to market
• greater creative control
• lower expenses
• better distribution to global market
• immortal ebooks never go out of print
• lower prices to consumers
• earn more per book
36. Indie Ebook Authors Earn Higher
Percentage of List Price
• Indies earn more at lower prices
• At $2.99, indies earn ~$2.00. Trad. author
would have to price at $10-$15.00
• Lower price = reach more readers = more
sales at higher profits per sale
• Higher price = reach fewer readers
60-80% 12-17%
Indie Traditional
39. Authors Yield Two Benefits from
Every Sale
1. Money from the sale
• Unit sales X royalty per unit = profit
1. Gain a reader
• Readers lead to more readers
Pricing strategy essential to maximize
both
42. TREND SIX
Print is Dead for Most Self-
Published Authors
(and will become less and less
important to traditionally published
authors)
43. Print is Dead
• Brick and mortar bookstores disappearing
• Most self-pubbed authors don’t have access
to brick and mortar distribution
• Customers choosing low cost ebooks over
high-priced print books
• Exceptions:
• Face to face print sales will continue
• Some books are meant for print (for now)
• Specialty souvenir books sold in non-traditional
outlets
45. The Global Ebook Opportunity
• Countries outside the US are entering the
exponential growth phase of their ebook
markets
• Ebook retailers going global
• Apple iBookstore (51 countries), Amazon (12), Kobo
(14+), B&N (US, U.K.+)
• 44% of Smashwords/iBookstore sales global
47. In July 2012, the parent company of
Penguin acquired Author Solutions
Author Solutions earns over 2/3 of its
income selling over-priced services to
authors
$25,000 publishing packages!
Blood sucking parasites
51. Indies are Now Out-Publishing
Big Publishers
• Self-published ebooks scaling all
the bestseller lists
• Every week, indie ebooks in retailer
bestseller lists of every retailer
• Multiple Smashwords authors have
hit New York Times bestseller list in
the last year
• Prediction: Within three years, most
bestselling ebooks will be self-
published ebooks
52. June 11, 2013 at Apple
iBookstore
• Abbi Glines with
Forever Too Far
• #1 Worldwide today
54. The 10 Trends Create a Future that
Benefits Self-Published Authors and…
Disadvantages Publishers
55. The Plan Forward for Writers
• You’re in charge now
• You decide when you graduate
from writer to published author
• Honor your readers
• You have the opportunity to
publish…
• Faster
• Smarter
• More profitably
• at lower prices
56. The Plan Forward for Publishers
• The good news: You’re still needed
• Not all writers want to self-publish
• The bad news: It’ll get more difficult to
add value in excess of your toll
• Do for authors what they cannot and
will not do for themselves
• Abandon culture of NO
57. Final Thoughts
• There’s never been a better time to
reach readers with the magic of books
• Traditional Publishing vs. Indie is not
an either/or
• There’s never been a better time to be
in publishing
• Add value!
59. Free Ebook Publishing Resources
• Secrets to Ebook Publishing Success (best practices of
successful authors)
• Smashwords Book Marketing Guide (how to market any
book)
• Smashwords Style Guide (how to format an ebook)
60. Thank you for considering the
future!
Q&A
Connect with Mark Coker and Smashwords:
Web: www.smashwords.com
Blog: blog.smashwords.com
LinkedIn: linkedin.com/in/markcoker
Facebook: facebook.com/markcoker
HuffPo: huffingtonpost.com/mark-coker
Twitter: @markcoker