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Archive for July, 2009

The Kindle Store: land of mysteriously missed opportunity

Friday, July 24th, 2009

My Kindle Store home pageIn an earlier post, I went into detail on the problems with the Kindle’s magazine store.  In spending a little more time in the books section, easily solved problems are present there as well.   It’s so compulsively simple and fun to buy books in the store that this represents a massive opportunity.  I’d say conservatively that Amazon could easily double its on-Kindle revenue with a few tweaks.

One big surprise right off the bat is the loss of Amazon’s Recommendations engine. My Kindle account is linked to my main account, where I have literally ten years of purchase and browse history stored.  My Kindle recommendations appear on the Kindle Store home page, as can be seen in the picture at right.  At best, I would regard these as ‘generic’ recommendations that have little to do with what I’ve ordered either in the past or over the Kindle. I also have 25 books stored in my “Save For Later” tab as well as a number of samples I’ve ordered.  Many of these are books about media & marketing, yet not one single business book recommendation.  Clearly these aren’t playing into the recommendation intelligence.

Kindle's top sellers - not much like the NYT's or USA Today'sThe Kindle Top Sellers proves to be pretty much useless as well as a discovery engine.  As you can see in the screen shot, the Top Sellers are a pretty weird bunch with little relation to today’s accepted Bestseller lists like those in the USA Today or New York Times.  What’s going on here?  With the exception of the Glenn Beck book, all of these are free.  While this certainly shows the power of price elasticity in the store (and again supports Chris Anderson’s Free, dammit), it also supports my earlier point: if you make it fun & easy to shop, people will buy books in droves – even titles they might not want that much. Sherlock Holmes making the Kindle Top Sellers list shows that people will ‘buy’ pretty much anything if it’s free.  At minimum, you’d hope that Amazon could separate out backlist or classics from the true contemporary bestsellers.

This goes to show an easy fix that should go on each line – there’s no easy access to price information! I have to open a link to each book to find out what I’m going to pay.  While the Kindle is advertised as having most books at $9.99, I can tell you after a few months of ownership that most of the books I’ve been interested in – many of which are true Bestsellers – are not $9.99.  I’d be curious to see a price distribution graph if anyone’s done the work.

The Sample Chapters program is half-baked. Their easy availability ois a great idea but in practice gives unsatisfactory results with no apparent rational oversight of content selection.  On Amazon proper, you can select a “random page” in most books just as you would in a bookstore; when you pick up a physical book to browse it, you naturally open to the middle not the Foreword.   All of the Sample Chapters I’ve received have been just the Forewords, not the ‘guts’ of the book, which is what I’m really interested in.  Worse, in many cases half or more of the sample is just the credits at the front of the book!

Finally there’s no linking from reviews and other sources, a longtime basic function of hyperlinking which Amazon supports with its open affiliates program.  Every Sunday I read the New York Times Book Review in search of ideas for things to read.  You’d think that the NYT on Kindle could at least have links into the store.  Even if that’s not feasible, there could at least be a menu on the home page (or even within) for “Recently Reviewed” by newspaper or magazine.  Instead I’m left to search, with each click making it a little less likely that I’ll make a purchase.  And then of course there’s the issue – key for all E-books – of whether all books will even be available when they’re reviewed.

All of these are solvable problems.  If even one of these can be fixed, I predict a huge increase in the vitality of the Kindle.  One wonders if these will be better addressed in the upcoming competitive devices from PlasticLogic and others – and if Amazon’s strength online will be an Achilles heel for its E-books business.

Baseball’s media strategy: ripoff magazine subscriptions?

Wednesday, July 22nd, 2009

Several weeks after casting my dutiful homer “Vote For Pablo” to make the NL All-Star Team, I received an E-mail invitation from Major League Baseball inviting me to subscribe to MLB Insiders Club.  Baseball has always had backwards-looking marketing overly reliant on its heritage, but debuting a dubiously Official Magazine in the era of social networking and 24/7 sports news shows baseball’s marketing at its worst.

Baseball-dedicated magazines have been around since time immemorial and – like every other magazine segment – they aren’t exactly killing it these days.  Baseball Digest, founded in 1942, recently downshifted to an 8x schedule from monthly, while the baseball-heavy Sporting News showed a 39% decline in ad pages for the first half of 2009.  The biggest players in sports magazines, Sports Illustrated and ESPN: The Magazine, saw ad pages down 28% and 31% respectively in Q1 2009.  (Curiously SI for Kids is one of only 11 magazinesthat showed an ad page increase so far this year.)

MLB InsidersMLB Insiders Club would need to bring something different to the table in order to succeed and what it promises is attractive: “Behind The Scenes looks into the clubhouse and front office of MLB teams” and “MLB Insiders Club Fantasy League Tips!”  First off, it’s surprising to hear that a major league would directly support fantasy leagues.  It would be a lucrative opportunity for a major sport league to get involved in fantasy leagues, but it’s also tantamount to supporting gambling – which has a history, especially in baseball, of being the worst crime a player or manager can commit.  One wonders if the MLB Powers That Be is aware that an official licensed product of this tacit endorsement.

As for “Behind The Scenes,” a review on Baseball Reflection reveals that the magazine practically begs for user-generated content.  The official license may get some access, but it certainly doesn’t guarantee more or better; the premiere issue features an interview with Oakland A’s General Manager Billy Beane, but he’s probably MLB’s most open GM, frequently giving long interviews to blogs like Athletics Nation.  And if UGC is the majority of content, you can be pretty sure the fans mailing it in don’t have any special access.

MLB Insiders Club is published by North American Media Group, a company that specializes in niche media with a few key licenses, including the Professional Golf Association and History Channel.  In addition to magazines, it also pumps out expensive coffee table books.  So for $24/year, you get some indeterminate number of baseball magazines (they don’t say whether its monthly or what) and the opportunity to buy more books (or as the come-on says “Preview Great Books and DVD’s”).  Ouch.

Baseball’s marketing and media sophistication continue to be disappointing and well behind its rivals for attention in the NBA and NFL.  Few of MLB’s teams or players are involved in social networking, while Shaquille O’Neal is the world’s ninth most-followed twitterer (as of this writing) and the NFL has so many tweeters that it had to conjure a “No tweeting during games” policy.  When these other leagues and their team are putting together their communications strategies, they are way past trying to sell magazines to their best customers. With overall attendance down nearly 6% so far this year, MLB needs to do something to make itself more compelling – more necessary – to its fans.  A clever coordinated social networking policy would be an inexpensive, low-risk way to go, especially in light of the vitality of fantasy baseball – one of the original pre-Internet social networks.

More on point: yesterday the Giants E-mailed me an offer for $5 tickets for next week’s Pirates series for my “vote for Pablo.”  Now that’s something I can use.

Maybe the problem for newspaper sites is too many readers

Friday, July 17th, 2009

Traffic reports from the newly-online-only Seattle Post-Intelligence placed its April readership at 4.3 million unique visitors, up from 4.2 million in the same month last year. That’s a modest gain, but considering the population of Seattle-Tacoma metro is 3.3 million, it starts to look like a magnificent achievement.

Seattle PIThe catch is that despite this impressive performance, the monetization is not happening. Each time I’ve reviewed the site over the last couple of weeks, I’ve found a bare few national campaigns and a whole lot of ad network inventory. Sure, the latter can be ‘optimized’ (maybe) and sold for slightly-better-than-rock-bottom rates, but it’s still a long way away from charging premium rates to reach a highly targeted local audience.

Name-brand sites still want maximum reach, but this may be a situation that calls for a wildly different tack. With uniques handily exceeding population, there’s no way an ad team could claim its delivering a ‘uniquely Seattle’ audience to a local advertiser, much less one with certain desired attributes. On a local site with a local target audience, visitors from the rest of the web are not valuable. A restaurant in Seattle should not have to pay for an ad shown to a visitor from Schenectady. And this in turn drives content strategy: no longer should a newspaper site aspire to be the central hub of everything, but merely the central hub of its metro area. Leave the national news to the national sites.

Earlier today I picked up this year’s “Best Of” edition of Oakland’s East Bay Express. It’s chock-fat with useful content and ads from all over the East Bay, from sandwich shops to bakeries to beauty parlors. Long reliant on ads from big retailers, banks and real estate (among others)heyhe holy grail for SeattlePI and other MSM newspaper sites is to get these advertisers into their ecosystem and away from Google AdWords. And the way to` do that may be antithetical to everything they’ve ever wanted to achieve: get smaller.

inland+studyIn fact, under the radar (and probably not on purpose), the ‘getting small’ strategy is already well in use. According to the Inland Press Association (via Newsosaur), the newspapers with the smallest circulations have actually had the least impact on their bottom lines. That’s because they were never reliant on the big retail, bank and real estate ads that drove old newspaper profits. The weekly independent papers actually stand to recover well and retain these ads because of their long-standing relationships with local businesses.

So, yes, I see a future where the San Francisco Chronicle is no longer the dominant player in its metro area, but independents like the Bay Guardian and SF Weekly stand tall. These smaller papers with distinctive editorial voices and tighter relationships with local advertisers may be the future of the newspaper.

The question for the reputable MSM big-city dailies is how they can get true local businesses – the restaurants, nightlife, storefront businesses and so forth – to advertise. In these narrow margin times, that means putting out a marketing solution they can afford. So long as CPM remains the measuring stick, newspapers will need to reduce readership to make it truly affordable and guarantee they can reach the audience they need. Starting point: the number of uniques is something less than the metropolitan population.

In an era of worries about media and business homogenization – the ‘Walmart effect’ and c. – going small may be the best defense for keeping local media, attitudes and businesses flourishing.

avid Foster Wallace on Making Choices

Thursday, July 16th, 2009

I’m trekking along with the Infinite Summer group that has dedicated this summer of The Year Of The Depend Adult Undergarment (also known as Y.D.A.U. or 2009) to reading David Foster Wallace’s Infinite Jest.  At over 1,000 pages and hundreds of characters, footnotes and plot-strands, it’s an intimidating doorstop tome, but a lot more fun than I ever hoped when I started: a recognizable Pynchon crazy-world of language games and coincidence, but eminently more friendly.  (This is a good thing, since I have been reading diligently for three weeks, nearly two weeks ahead of the ‘Book Club’ schedule, but still find myself barely 40% through the book.)  The personality and philosophical thrust of the the book seem much in line with what we know of the man, who died tragically by his own hand last year with another giant novel stuck in perpetual rewrite.

Wallace’s philosophical bent – he cares deeply about Choice and Distraction in an era with too much of both -  is the source of running plots and discussions throughout IJ.  This led me to seek out some of his other more casual writing, which in turn me brought me to this commencement address posted on Scribd.  These are wise words, worth reflecting on in our media-saturated age.

(PS For those who are not in on Infinite Jest, 2009 is Y.D.A.U. because in the IJ-world, the US President has sold off calendar sponsorships to  pay off the debt from a toxic waste disaster that destroyed four New England states, which are then expatriated to Canada.   ‘Subsidized time’ pays off the lost tax revenue from those states.  This is but a passing story in a book full of shaggy dogs.  If that tickles you even a little, consider picking up a copy.)

Click on the “Toggle Full Screen” button at right for a better view:
David Foster Wallace Kenyon Address

Book Publishers: Embrace The E! (or else)

Thursday, July 16th, 2009

Yesterday The New York Times reported on book publishers’ discomfort with releasing books simultaneously as E-books and through traditional channels.  One idea, not supported universally, is to release E-books later than hardcover editions in the same manner that paperbacks are held back for at least a year.  The reason proffered is to preserve the initial $20-35 hardcover price versus the $9.99 becoming commonplace for E-book editions.

sQ1EMoVD81yp2ywxp7yFX4gt_500The ‘hold-back’strategy is ridiculous and totally ignores how most readers actually use their books.  While E-Books only represent a small slice of total sales today (but growing fast), there’s little question that somebody willing to shell out $200-300 for a ‘reading device’ is likely to be a passionate reader.  As one of those, I would surmise that many of the sales on E-Readers are actually incremental to publishers’ income, keeping people like me away from used book stores and libraries.  That’s where the E-Books goldmine is for publishers: not in keeping existing sales but in diverting money away from long-standing secondary and ‘free’ markets.  While its true that publishers get a nice arbitrage gain from the de facto DRM of a first-edition hardback (tough to reproduce cheaply, tough to read freely in its reproductive form), that gain can in turn be picked up by the reader upon completing the book by selling it or trading it.  An E-Book edition is essentially non-transferable.  I pay less – and perhaps the publisher makes less – but its fungibility also destroys its secondary market value.

Take, for example, my current reading: Infinite Jest.  It’s been fifteen years since it was first published, so there are plenty of used copies out there for around $10 and libraries consistently stock it, while a new copy runs $16.  Because of its ease of delivery and portability, I elected to get the $10 Kindle edition with the publisher getting some profit and no incremental printing costs.  Had I purchased a used copy, I would likely have resold it later for half-price – meaning no profit for the publisher, virtual cost of only $5 to me and $10 profit to the used book store (for selling it twice at 50% profit).  So where is the advantage to the publisher in holding it back?  It’s simply ceded its ability to profit off of its back catalog.

This is one of the central mysteries of Kindle Store availability to date.  It features plenty of hot new titles, but the back catalog titles is still mysteriously empty with many major authors most famous works; Roth, Mailer, Pynchon, Heller and Updike just for starters.  Wouldn’t a great cut-rate selection be a great source of found profit with barely any incremental cost?  I understand there may be unanticipated contractual issues (a la last year’s Writer’s Strike over web royalties), but the longer they wait, the more the price will drive towards Zero (as it did for the music industry and iTunes).  Already sites like ebooksbay.org are popping up with ‘free’ back titles.  (I found a fully convertible PDF copy of Gravity’s Rainbow last weekend.  There goes a lost sale.)

Click here for free Free

On this very same day by coincidence, Chris Anderson’s Free: The Future Of A Radical Price was released for free on Kindle and immediately shot up to #1 on the Kindle sales chart.  I’ll leave his argument for other bloggers, but in Anderson’s eyes, he’s able to do this because he (and presumably his publisher and agent and c.) can use it as a platform to make money other ways: speaking fees, leverage at his job, increased opportunities generally.  This is also the direction the music industry has taken with its ‘360-degree’ contracts for its biggest artists; Live Nation taking a cut of all of an artist’s revenue streams, from ticket sales to licensing.  The book publishing industry needs to figure out its ‘Freemium’ strategy quickly.  As a post on Mashable points out this morning, not all Free business models are created equally.  People will pay (as I have done with IJ) for convenience or added value.  What can book publishers bring to the table?  Figuring this out quickly before E-Readers become commonplace – look for them to spread like wildfire among textbook-toting students – is absolutely urgent for an industry that’s lived off the same industrial-based business model for hundreds of years.

The Kindle Store’s Magazine Salesmanship Needs Work

Tuesday, July 14th, 2009

First in a series of posts about adapting to life with a Kindle 2

One of the things I most looked forward to in my Kindle was the magazine store. For a fraction of the cover price in most cases, the full text of a magazine is quickly and seamlessly downloaded to your Kindle. If you order a subscription, each new issue supposedly turns up automatically upon publishing.

For publishers, youd think this would be a great deal: distribute a copy with no physical costs, satisfy your hungriest readers, allow inexpensive sampling and get a few more eyeballs on the advertising. (Disclosure: I have no idea what Amazons deal points are with publishers.)

In its actual use, however, the Kindle Store seems to be doing everything possible to frighten away new potential readers. The Kindle Store, from which every issue is sold, is a neglected sad piece of real estate that does little to provoke buying.

First, KS forgets the basics of single copy sales: featuring whats actually in an issue. Instead of that weeks cover lines and an illustration, you get a narrative of what the magazines history and its mission statement. So instead of buying Newsweek with this review and that think piece and such-and-suchs guest column, youre faced with a black box.

The review system doesnt help either. It appears to be entirely unmoderated. I found one one-star review that said I love the magazine but Im canceling to save money. How is that a review of issue content?

On such a small screen, of course I dont expect the full featured infographics that are the one true unimpeachable USP of magazines, but I was surprised to get no illustrations whatsoever. The New York Times is able to provide photo lead-ins for its Kindle-formatted issues, why cant The Atlantic?

Finally, the pricing structure is bizarre. A single issue of Newsweek at 49 cents is an awesome bargain. But The Atlantic charges a monthly fee even though it does not publish monthly; its a 10x. Worst of all, the just-added Economist has a single issue price of $5.49, which pretty much says Stay Away, Do Not Buy Me in the competitive arena of the Store. Id also saw the discrepancy makes its competitors also look like it does not value its content highly enough since there are no ad impressions attached at this point. I appreciate that the pricing is probably set by the publishers, but some iTunes-style guiding hand could help a lot here.

I know the Kindle DX is supposed to amending many of these issues with its larger screen and greater graphic capabilities, but expecting me to pay $480 to get a better magazine delivery system is just not going to happen. In the meantime, Amazon should spend a little time in the Kindle Store making the magazines and newspapers a little more enticing. You know, with marketing.

Endings & Beginnings

Wednesday, July 8th, 2009

One last mention of Walter before we return you to our usual pontifications on media, music and so forth. After four weeks of having him here, I conceded that I was not going to be able to find him a home on my own and enlisted the help of San Rafael’s Milo Foundation. After a teary farewell on a Thursday, he was rehomed by the following Sunday. Quick work! He was adopted with another little friend, a puggle named Princess, and is now residing in Fairfax.

Though we do miss him a little, its also something of a relief to have moved on from one of my proxies for unemployment depression. I suspect from the picture below that he might miss me a little, too, but Im calling this a happy ending for us and a great new beginning for Walter.

Walter in the arms of The Entroporium

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