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Nate Hoffelder

Nate Hoffelder

Libro.fm Launches Audiobook Subscriptions

Eleven-month-old audiobook service Libro.fm launched an Audible-style subscription service last week.

This startup has been selling DRM-free audiobooks since last April, and now customers in the US and Canada can sign up for a monthly $15 subscription and buy one audiobook each month.

"The Libro.fm membership now gives audiobook listeners the opportunity to support their local bookstore every month and discover great audiobooks hand picked by expert indie booksellers," said Mark Pearson, CEO of Libro.fm, in a statement. "Most of us spend hours each day commuting and doing tasks where we could be listening to a book. Audiobooks are a great companion for escaping traffic, rocking your workout, or making the time pass while weeding, which is now one of my favorite activities."

Libro.fm has a catalog of more than 70,000 titles. You can listen to the audiobooks in its iOS or Android apps, and since the audiobooks are DRM-free you can also load them onto your preferred device and listen to them there.

Author Earnings Report: Kindle Unlimited is Bigger than iBooks in the UK, US

For the past 18 months I have been arguing that  Kindle Unlimited was one of the major ebook channels in its own right just based on what it was paying publishers and authors each month.

New data from the latest Author Earnings Report shows that Kindle Unlimited accounts for a larger share of the US and UK ebook markets than even iBooks.

Correction: Data Guy sent me an email, pointing out that my title is wrong. What he found was that KU earnings, when combined with the retail sales of all the titles in KU, accounted for a greater number of unit sales (which, in my opinion, is a pretty confusing way to measure KU activity).

The main focus of the report is the relative size of each of the five major English-language ebook markets, but a later section delves into Kindle Unlimited’s share of the market.

Indie authors often struggle with the choice of whether to make a particular title a Kindle Unlimited-enrolled Amazon-exclusive or to sell it at all retailers. For those authors, the breakdown of indie sales on the left side of the above chart is a particularly interesting one. But it’s worth keeping in mind that around half of the “KDP Select” indie sales are actually full-read-equivalent Kindle Unlimited payments to indies, rather than straight retail purchases.

So let’s now break those KU full-read equivalents out separately, as shown as yellow pie-wedges in the two charts below:

So what do the above graphs tell us about Kindle Unlimited and indie author earnings?

The breakdown of indie dollar author earnings looks nearly identical to the unit-sales splits shown above. Kindle Unlimited indie page reads (at a current run rate of $180M+/yr) are now paying Amazon-exclusive indie authors far more total dollars than “wide” indie authors are earning from their sales at all non-Amazon ebook retailers combined (a total run rate of roughly $50M/yr in non-Amazon indie author earnings).

So should publishers and authors go all in on Kindle Unlimited?

Maybe, but to be honest I would not make a business decision like that based on the above data.

I am not disputing the validity of the data; my point is that individual authors are so small and the market so large that (with the right marketing) you can make a lot of money with either option.

Hell, there are authors making a living on direct sales or from other channels that don’t show up in the broader market data.

So while Kindle Unlimited’s market share matters on a broader scale, it is less important to individual authors and publishers.

The Real Reason Why eReaders Succeeded as a Disruptive Innovation in the US, but not in Japan

There’s an article in tomorrow’s morning coffee post which I feel merits discussion.

A couple academics at the London School of Economics tried to explain why ereaders took off in the US but not in Japan, only they stumble around the primary causes without actually naming them or really understanding what lead to the rise of the Kindle.

For example, this is mostly true but still misses the most important detail:

In part, the limited availability of e-books in Japan reflected industry perceptions of Amazon’s critical role in the success of the Kindle. Our informants did not believe any single Japanese company could play an Amazon-like role in Japan, in the sense of developing a Japanese e-reader and securing a supply of hundreds of thousands of e-books for that reader. For this reason, publishers and retailers were unwilling to invest large amounts of money developing e-book editions of popular Japanese books.

The availability of Japanese e-books has also been influenced by the interdependence among book retailers, wholesalers, and publishers in Japan. Japanese wholesalers were most likely to be hurt by the introduction of e-books. Publishers and retailers were heavily dependent on the two major wholesalers for sales of paper books. These concerns were amplified by pricing concerns. In Japan, publishers had the legal right to set the prices of paper books, which eliminated price competition for new books. Although the resale price law does not affect the pricing of e-books, Japanese publishers worried about the potential impact of e-book discounting on the performance of wholesalers and other industry players. For this reason, many publishers were reluctant to offer discounts on e-books, despite the success of Amazon’s aggressive discounting in the US.

First, Amazon did not launch the Kindle with "a supply of hundreds of thousands of e-books"; the Kindle Store carried "more than 90,000 books" when it launched in November 2007 and was, in fact, missing the entire catalogs of major trade publishers like Macmillan.

Now that I think about it, Macmillan is a good example of US publishers being as much of a stick in the mud as Japanese publishers. Macmillan didn’t actually get serious about ebooks until well into 2010. It wasn’t just their backlist; Macmillan was publishing new titles print-only in mid to late 2009.

The simple fact is Amazon was not able to sign most trade publishers until after the Kindle took off. But that is a nitpicky detail; the important point is what happened before the Kindle launched.

Amazon was only able to launch the Kindle because it arrived after decades of disruption in the US book market.

Starting in the 1970s, big-box bookstore chains disrupted the market by buying in large quantities and discounting as deeply as they could afford. This forced small bookstores to close, and as a result consolidated much of the US book market in a double handful of companies.

That disruption and consolidation enabled Amazon to come along in the late 1990s and work out deals with publishers (rather than dealing with wholesalers). Amazon used its contacts with publishers to convince _some_ of them to put their titles in the Kindle Store.

That disruption and consolidation did not happen in the Japanese book market, and so it did not set the stage for a company like Amazon to come along and launch a platform like the Kindle.

Next, the economists also misunderstood the impact of contracts:

Copyright law has also influenced the availability of e-books in Japan. Since the 1990s, American publishers have typically secured the rights for paper and e-book publication at the same time. In Japan, however, books are often published based only on verbal agreements. Moreover, even with a written contract, authors generally retain the copyrights to their works. As a result, the publication of an e-book edition of a paper book typically requires a separate agreement with the author or authors. One publisher told us that in most cases these agreements must be negotiated in face-to-face meetings. Moreover, concerns about piracy often make authors reluctant to permit the publication of e-book editions of their works. As a result, relative to the US, the process of bringing an e-book edition to market is often more expensive and time-consuming in Japan.

That contract issue was still a problem in the US book market even after the launch of the Kindle; in fact, the paranoia about piracy was also true long after the launch of the Kindle.

And those are not the only similarities between the two book markets which the researchers misunderstood; they also failed to grasp basic details about file format incompatibilities:

One example of a technological factor that influenced consumer adoption decisions was the existence of two incompatible file formats, both designed to accommodate unique aspects of written Japanese. As a result, files designed to be read on a Sony e-reader could not be read on a Sharp e-reader and vice-versa. This incompatibility decreased the perceived value of e-readers for many Japanese consumers.

When Amazon launched the Kindle Store, there were six primary ebook formats in the US book market: Adobe PDF, eReader, eBookwise, Mobipocket, Sony Reader, and MS Reader.

Thanks to the quirks in Kindle DRM and other technical details, the  Kindle format was the seventh ebook format in the US ebook market.

The US ebook market was even more balkanized than the Japanese market, and yet Amazon somehow overcame the technical problems and quickly dominated the market.

O O O

The blog post discussed above was based on a recently published paper. I can’t see the paper (it’s behind a paywall), but I hope the researchers were more thorough in their investigation and analysis than their blog post suggests.

If not then the world would benefit from the paper being retracted and fed through a shredder.

Kobo Aura One to be Replaced by the Kobo Aura H2O Edition 2?

Many people, including in this blog’s comments, on MobileRead, and on other blogs, have been remarking over the past few months that the Kobo Aura One is rarely in stock. Kobo’s largest ereader might show up on the website for a few hours, but then it quickly sells out.

While we still don’t know why this 8″ ereader is out of stock, there is some light on the horizon. A little bird has tipped me to the news that Kobo’s next ereader was mentioned in the latest update.

The v.4.3.8871 firmware update includes a reference to the "Kobo Aura H2O Edition 2" ereader, a device which does not yet exist – not even on the FCC website.

The Aura H2O Edition 2 is the replacement for the Aura H2O, the 6.8″ ereader Kobo launched in August 2014. We do not yet know the screen size, but it is safe to assume from the name that Kobo’s next ereader will be water- and dust-proof just like its predecessor.

And based on Kobo’s history of launch events, it is also safe to predict that we’re going to see the new device in either April or August.

So if you are planning to get a Kobo ereader in the next couple months, pay attention to the rumors for the chance to be one of the first to get the new model.

New Pirate Site Focuses on Audiobooks

When it comes to pirate ebook sites there are far more fake sites than real ones, but this next site is the exception to the rule.

A reader has tipped me to a new pirate site which focuses on audiobooks. From what I can tell, it was developed by the same guy who brought us TUEBL (which is now known as eBook.bike).

The new site is Audiobook.cafe, and it lets you both stream and download pirated audiobooks.

Both sites were developed by Travis McCrea (unless this is a fake identity created to hide the actual site operators). The sites claim to be protected by the DMCA, which is a ridiculous assertion given that one, the sites claim to be in Canada, and two, they don’t comply with the requirements of the DMCA.

There’s no obvious way to send a DMCA notice to either site, so if you find your work posted there then I’d recommend you send notices to Travis’s Twitter and LinkedIn accounts.

While you’re at it, you might also want to tell all your friends exactly who is pirating your work so they can help you yell at him.

If he can’t take the public criticism then he shouldn’t run a pirate site, IMO.

B&N Edu Buys Sister Company MBS Textbook Exchange

Len Riggio’s college bookstore operator just acquired Len Riggio’s textbook distributor:

B&N Education today announced that it has acquired MBS Textbook Exchange (“MBS”) for $174.2 million in cash. Together, MBS and BNED will operate over 1,490 physical and virtual bookstores and serve more than 6 million students enrolled in higher education institutions.

MBS is the largest contract operator of virtual bookstores for the institutional client market and one of the largest used textbook wholesalers in the U.S. Through its MBS Direct business, MBS services more than 700 virtual bookstores with a comprehensive e-commerce experience and a broad suite of affordable new, used and digital course materials. MBS sources and sells new and used textbooks to over 3,700 physical college bookstores, including BNED’s 770 campus bookstores, and provides inventory management, hardware and point-of-sale software to approximately 485 college bookstores. It also operates textbooks.com?, an e-commerce site for new and used textbooks.

Riggio no longer owns as much of B&N Edu as he used to, but he does still control MBS (and he is the Chairman of its Board). So in many ways, this is one of his companies buying another.

That said, this is a smart merger. The two companies were in some ways competitors while also business partners (MBS is a supplier to B&N Edu). In addition to gaining MBS’s expertise in digital curriculum, B&N Edu is also a player in the hot new segment of the college bookstore industry – virtual bookstores.

B&N Edu already runs college bookstores and college gift shops, and now it will also run virtual bookstores.

image by Brad Clinesmith

Mozilla Has Pocketed a Save-for-Later Service

The browser developers at Mozilla just acquired Pocket, a read/watch it later service:

We are excited to announce that the Mozilla Corporation has completed the acquisition of Read It Later, Inc. the developers of Pocket.

Mozilla is growing, experimenting more, and doubling down on our mission to keep the internet healthy, as a global public resource that’s open and accessible to all. As our first strategic acquisition, Pocket contributes to our strategy by growing our mobile presence and providing people everywhere with powerful tools to discover and access high quality web content, on their terms, independent of platform or content silo.

Pocket will join Mozilla’s product portfolio as a new product line alongside the Firefox web browsers with a focus on promoting the discovery and accessibility of high quality web content. Pocket’s core team and technology will also accelerate Mozilla’s broader Context Graph initiative.

Pocket founder Nate Weiner will continue to run the company. Founded in 2007, Pocket has more than 10 million monthly active users (according to a spokesperson). This is a great tool, but the limited uptake suggests that it’s still a fairly niche service with fierce competition. One one side, casual suers are satisfied by the simple “reading list” features Facebook, Apple, etc have built into their platforms, and on the other side is Pinboard, a paid service which is bound to be more appealing to heavy duty users.

The fierce competition might explain why last August Pinterest bought Pocket rival Instapaper from Betaworks, which had bought the startup from its founder, Marco Arment. Instapaper had more value to Pinterest, a save for later type service, than it did to Betaworks.

Say Good-Bye to Book and eBook Bloggers – Amazon Has Changed the Fee Schedule for Its Affiliate Program

Amazon decided this week that they don’t need their affiliates to drive sales anymore.

The retailer sent out an email to web publishers who belonged to the Amazon Associate program this week. You can find the email at the end of the post, but the short version is that Amazon is cutting the commissions it is paying on sales generated by the affiliates.

Under the old system, well, it was complicated.

Certain product categories paid specific commissions – Kindles and Fire tablets earned 4%, for example – while the bulk of the merchandise had a variable commission which increased as an associate sold more items (your first commission on a sale was 4%, the seventh as 6%, and the 631st was 8%, etc – more details here).

Under the new system Amazon is doing away with the variable commissions. Instead, all products will earn a flat commission based on its category. An Amazon affiliate will still earn 4% from Kindles and Fire tablets, while gift cards earn nothing and paper books will earn 4.5%.

The new rules will take effect on 1 March, and you can read about the new program here.

O O O

When Amazon changed the affiliate program in the past, it was usually easy to see why. In 2013, for example, Amazon took steps to discourage sites from promoting free ebook downloads. And last year Amazon brought the hammer down on free ebook newsletters shortly before launching its competing service.

Now Amazon has removed the incentive for affiliates to be as active as possible in promoting goods sold on Amazon. Instead, the retailer is now paying a flat commission.

Amazon is saying that they don’t want to pay as much they used to; they no longer value the more active affiliates. That is their right; Amazon is in business to make money, and I can understand why they made this decision.

But I can also foresee that this change in policy will impact sites which depended on Amazon’s affiliate program for income.

I have been crunching my numbers, and I expect to lose about a fifth of my Amazon affiliate income. That’s going to hurt, and I won’t be the only one to feel the pinch.

There’s going to be a winnowing of book review blogs on par with the demise of book industry blogs last year. Book bloggers are going to look at their falling income, consider how much time it takes to read and review books, and decide that it is no longer worth keeping up the blog.

The smarter bloggers will find new sources of income (perhaps charging fees to authors) but many will decide their blog is no longer worth the effort.

And that is something authors will need to keep in mind as they plan their book launches for 2017.

That blogger you had planned to work with in June, September, or November might have thrown in the towel by the time that your book launch rolls around.

It would be a good idea to plan for backups.

Email:

Dear Amazon Associate,

We are writing to notify you of some changes to the Amazon Associates Program effective March 1, 2017. Changes include, but are not limited to: promotional rate changes, revisions to program policies, and updates to the Fee Statement. For more information about the Fee Statement changes, please find additional context below.

– What are the Fee Statement changes?
We will be updating the Fee Statement. The new plan simplifies our fee structure, removes all earnings caps on PC products and eliminates volume tiers.

– Why are we applying those changes?
We have received feedback from associates that the advertising fee structure could be made clearer, especially with respect to understanding which products are in fixed-fee categories and which products are in tiered-fee categories. These changes simplify the fee structure, clearly defining the advertising fees you can earn by referring traffic to Amazon. By offering higher advertising fees in certain categories, we want to reward associates that can refer sales across those categories.

– What’s on the horizon?
In addition to earning advertising fees for referring product sales, remember that you can also earn bounties for referring your visitors to a range of other Amazon services, including Prime Video, Prime Music and Kindle Unlimited. We will be adding additional bounty opportunities this year, as well special promotions throughout the year. Please visit https://affiliate-program.amazon.com/home/bounties to learn more about the Amazon bounty program.

Visit: https://affiliate-program.amazon.com/help/operating/compare to see the summary of changes to the Fee Statement and other important updates to the Associates Program.

Sincerely,
The Amazon Associates Team

image by MikeBlogs

AAP: Trade Sales Up, eBook Sales Down Through September 2016

The Association of American Publishers reported on Friday that trade publishing revenues rose a fraction of a percent in the first three quarters of 2016, to $4.99 billion.

At the same time, ebook revenues for the 1200 odd publishers submitting data to the AAP were down 20%, continuing the trend we’ve seen since the return of agency pricing in the US market.

Press Release:

The first three quarters of 2016 saw slight growth in trade books and a decline in educational and learning materials. Publishers’ revenues for all tracked categories (Trade – fiction/non-fiction/religious, PreK-12 Instructional Materials, Higher Education Course Materials, Professional Publishing, and University Presses) declined by $684.5 million from the first three quarters in 2015. Publisher revenues include sales to bookstores, wholesalers, direct to consumer, online retailers, etc.

Trade book revenue grew 0.6% to $4.99 billion through Sept. 2016 vs. the first three quarters in 2015. The $28.7 million growth came from children & young adult books and religious presses. Downloaded audio continues to gain popularity, growing 29.6%.

Overview of September 2016

September saw a slight increase in total sales for all tracked categories, with growth of 0.7% vs. Sept. 2015. Increases in children & young adult books and religious presses added to the year-to-date growth trend in those categories. Higher Education course materials also saw its first increase in some time, with growth of 9.2% vs. Sept. 2015.

  • In Sept. 2016, print dominated, and there was a significant bump in downloaded audio of 38.2% vs. 2015 numbers.
  • In the growing religious presses category, eBooks bucked the month and year’s trend with slight growth of 2.4%; they’re still down 20.0% year-to-date in the category.

Overview of First Three Quarters in 2016

  • For the three quarters of the year, sales in all tracked categories were down 5.8% to $11.13 billion vs. the same nine months in 2015.
  • In the first three quarters of 2016, compared to the first three quarters of 2015, trade sales were up 0.6% to $4.99 billion.

Trends for Trade by Format

In the first three quarters of 2016 vs. 2015

  • Paperback books grew 7.5% to $1.62 billion
  • Hardback books grew 4.1% $1.73 billion
  • Downloaded audio grew 29.6% to $199.2 million
  • eBooks were down 18.7% to $877.1 million

Educational Materials and Professional Books

  • Educational Materials had a revenue loss of 6.9% for K-12 Instructional Materials and 11.3% for Higher Education Course Materials, in the first three quarters of 2016 vs. 2015.
  • Professional Publishing was down 23.6% in the first three quarters of 2016 vs. the first three quarters of 2015. These categories include business, medical, law, scientific and technical books. University presses were down 4.5% in the first half of 2016 vs. 2015.

 

About StatShot

Publisher net revenue is tracked monthly by the Association of American Publishers (AAP) and includes sales data from more than 1,200 publishers (#AAPStats). Figures represent publishers’ net revenue for the U.S. (i.e. what publishers sell to bookstores, direct to consumer, online venues, etc.), and are not retailer/consumer sales figures.

image by Ryan McCullah

Draft2Digital is Adding Kobo Plus as a Distribution Option, But Not Smashwords

Kobo’s new subscription ebook service is currently available only in the low countries, and authors can only put their work into it via Kobo Writing Life.

That is quite limited, but I can now report that at least one of those details is going to change soon.

At the request of several authors, I asked several ebook distributors whether they planned to add Kobo Plus as a distribution option. I am still collating responses, but so far I have gotten one and a half responses from Smashwords and Draft2Digital.

Mark Coker of Smashwords told me that it would not be distributing ebooks to Kobo Plus: "I knew this was coming but it’s not something we’re planning to support with our titles at this time."

Draft2Digital was slightly more positive. I am still waiting for their complete response, but what I was told via twitter DM that "Technical details are being hashed out".

That was not a hard no, so I am going to put it down as a soft yes. (And when I have a statement from D2D, I will update this post.)

Here’s D2D’s statement:

We are still working on some of the technical parts of this, but here’s what we can tell you (and what you can share with your readers):

  1. The terms are similar to what KWL is offering for Kobo Plus, and we’ll take our usual percentage of net
  2. We’ve already worked with Kobo and authors with Dutch language books to manually add a few hundred books into the program
  3. The technical issues are mostly related to how the data will be reported. When these issues are settled, we’ll allow our authors to opt in just as they would any other sales channel

We’re very excited about this program and what it means for authors, and we’re even more excited to be a part of it from the beginning. We have always enjoyed a great relationship with Kobo, and it’s gratifying to see that they have the best interests of the authors at heart.

So if you are an author who wants to get your book into Kobo Plus without the extra work of also putting a title into Kobo Writing Life, you should start looking at Draft2Digital and not Smashwords.

And soon I would expect that authors will have other options as more ebook distributors announce new deals with Kobo.

If any distributor wants to announce your Kobo Plus deal, the comment section is open.

image by nadineheidrich

Wattpad Launches Chat-Style Reading App Tap

Wattpad is jumping on the short-short fiction wagon with the launch of a new app, tap.

Tap is a reading app in the style of Amazon Rapids or Hooked. It serves up chat-style stories which are the current fad in digital publishing.

According to TechCrunch:

With Tap, Wattpad is stepping away from the traditional storytelling format to experiment with a unique style of entertainment.

The app lets users discover “chat-style” stories – that is, those that unfold as you tap to reveal the next part. The stories are designed to feel like you’re reading someone else’s chat conversations, the company explains, and they are even visually presented in a text messaging-style format.

At launch, there are hundreds of stories available across categories like horror, romances, drama and more.

Tap will also allow Wattpad users to write stories of their own, though this is initially available only to a subset of writers on the platform. The company says that the writing and publishing functionality will roll out more broadly in the weeks ahead.

In addition to reading the chat-style stories, users can also share the stories to social networks.

 

When Tap is released to the public you will be able to download the app from Google Play or iTunes, but for now you have to ask for an invite on the Tap website.

If you like what you see, you can subscribe and gain access to more stories. The service costs $2.99 per week, $7.99 per month, or $39.99 per year. Yes, Wattpad is breaking with their policy of always providing free content.

Have you tried it? Do you think it is worth the cost?

Authors Can Learn a Lesson from the YouTubers Who Keep Imploding

Inspired by the recent self-destruction of Youtuber PewDiePie, Polygon published a long editorial yesterday which looked at why Youtube stars keep imploding.

According to the insider who wrote the piece, many of the fallen suffered from two common problems – problems which I think authors could learn from.

The first is that the pro Youtubers have to maintain a grueling daily schedule of shooting and uploading videos in order to not just keep their audience’s attention but also to keep being punished by Youtube’s algorithms.

For example: “subscriber burn,” which is a nefarious little side effect of not uploading a new video for a couple of weeks. The term was popularized by the Game Theory channel in 2014; your subscribers stop getting notified of your videos if they stop watching or you stop uploading. Going on vacation? Let’s hope you got a backlog, because you’ll see a big drop in views if you take a week or two off. And they might not come back.

…

Most uploaders begin to believe they have to flood the site with videos for a chance one goes viral or to reach subscribers who aren’t notified or to make up for losing them. And the numbers do go up when you start to do that, leaving many to believe it’s the only reliable way to keep relevant.

You need ad revenue if you want to make a living talking over video games, which means views and that means uploads. Or at the very least, you need brand deals which means you need clout, which means you need subscribers, which means views, which again means uploads. Most pros create at least one video a day, and it’s a punishing schedule. Some create as many as three videos a day.

Speaking from personal experience, I fully understand that need to get the content out today. It pushes us to go for "good enough" rather than the best work we can do.

And it’s worse for pro Youtubers, who are under more pressure than news bloggers such as myself.  They have to produce content on a daily basis, and what’s even worse is that they have to be photogenic, articulate, personable, and even worse – funny.

That might not sound like a difficult job; after all, it’s what stand up comedians do, but Youtubers don’t have the time to devote to perfecting each joke.

There’s an apparent double standard, right? Comedians tell AIDS jokes, Holocaust jokes, 9/11 jokes and much more. When a popular YouTuber does it, it’s suddenly being reported by the media (and, cough, other YouTubers). Didn’t George Carlin once say no topic is off limits?

Yeah. But like most comedians, he also spent a lot of his time writing those jokes, refining them, trying them in smaller clubs before his big venues, commiserating with his peers, etc. A “secret” of successful comedians is you don’t just spit out jokes that come to you. You develop bits, callbacks, sets, etc. There are legit reasons that Louis CK, Sarah Silverman, and Jim Jefferies get away with questionable jokes and JohnnySephiroth315 doesn’t.

So when PewDiePie tells a joke that goes wrong like using an Israeli company (Fiverr) to promote anti-semitism, it’s not that he is an ass so much as there is a fundamental flaw in the process he uses to produce his videos – he has no easy way to beta-test his work:

You can actually imagine, if you like, PewDiePie doing a stand-up set and having comedian friends tell him at the bar that “man, you’ve been leaning on the Nazi stuff a bit lately.” Or an audience groaning at a smaller venue, which signals to him it’s time to do a rewrite. That’s why there are workshops, writing sessions and smaller venues and drinks with fellow comedians. You have to fail often when the stakes are low to learn how to get the big wins. It’s a process.

And like many Youtubers, PewDiePie has no opportunity to make small mistakes.

That is not to excuse his mistakes, however; my point is that PewDiePie’s failure wasn’t the specific videos but more general; it was the process he used to make the videos.

The general problem is that many Youtubers don’t have a source of feedback which could help catch horrendously bad ideas before he uploads a video.

Which brings me to the second problem shared by many Youtubers.

Like bloggers, the pro Youtubers will often partner with agencies which sell ads and line up brand partnerships. Those agencies are called "Multi-Channel Networks", and according to the insider these agencies are strictly sales agents who do not fill the roles of business managers, image consults, producers, PR flacks, etc.

My MCN is typically pretty nice and in touch, but I’m not managed and if I decide to do an interview — or write this article — a PR person won’t notice or care. I’m completely on my own when it comes to thinking about how my audience views me, for better or worse. I don’t have a manager to call for advice, guidance or media training.

Surprisingly, this is also true of some of the biggest names in the business. I don’t want to make it sound like MCNs do nothing, they are valuable business partners that make it easier to pay the bills, but they definitely don’t curate your content. They don’t tell their big talent to “lay off the political posting,” or “dial it back on the hard stuff for a bit.” It’s all business, no grooming or advice.

I don’t think this is due to apathy or greed. I’m not sure they know how to handle these things either.

There are two lessons to be learned from this.

The first is that authors need to pay as much attention to their process as to their content; it’s not just about publishing a book as it is about the steps authors go through.

How many editors are involved? What about beta readers?  Has anyone gotten a second opinion on the cover?

The second lesson to be learned is that authors need a safety net. The need to surround themselves with people who can catch mistakes before they blow up into huge public fiascos.

Luckily, most authors already have that safety net in the form of writing critique groups, beta readers, online forums like Absolute Write, and local writing clubs.

So authors have all sorts of ways to avoid blowing up their career – if they remember to take advantage of them.

image by iamchad

 

Kobo Plus Does Not Require Exclusivity, Pays Out Shares of a Limited Funding Pool

Kobo still hasn’t announced its ebook subscription service, but that is okay because I have another scoop for you.

Kobo Plus is now listed as a distribution option in Kobo Writing Life, Kobo’s publishing portal, and I have a copy of the Kobo Plus contract addendum T&C.

You’ll find the text at the end of this post, but the tl;dr version is that Kobo is going to pay authors out of a pool funded by subscriber payments.

The math determining the payment is rather complicated, but I can report that the payment will be triggered when a Kobo Plus subscriber has read 20% of the book.

Also, a book has to be in Kobo Plus for at least six months but there is no mention of an exclusivity requirement.

The payment terms are similar to the terms offered by Amazon for Kindle Unlimited (since July 2015), which pays based on the number of pages read and is funded by a finite pool.

And that is good news for the long-term health of Kobo Plus.

As we learned from Oyster and Scribd, companies need to keep their expenses in line with their income.

Oyster failed, sold out to Google, and then shut down. And Scribd had to gut its ebook service. Both companies learned the hard way that charging a flat subscription rate and paying wholesale was a great way to lose a lot of money.

Kobo has apparently learned that lesson from others' mistakes and has crafted a program that has operating expenses which will scale with its income.

The service is going to launch at midnight (I don’t yet know which day) and is described as being live in the Netherlands and Belgium.

O O O

Addendum to the Kobo Writing Life Terms and Conditions

This is an addendum to, and forms part of, the Kobo Writing Life Terms and Conditions as agreed to by You upon registering for the Kobo Writing Life service. Both the Kobo Writing Life Terms and Conditions and this Addendum may be amended by Kobo from time to time.

Subscription Service

1. Definitions

“List Price” means Publisher’s provided price for the purchase of a Subscription eBook in the Service Territory, as established in accordance with the Agreement, minus Sales Tax.

“Price Factor” means the result, in respect of any month, of (A) the aggregate monthly Subscription Service fees collected by Kobo from Users in the Service Territory in respect of that month, minus Sales Tax, divided by (B) the Reading Activity Value.

“Read” means the determination by Kobo using its customary technology that a User has read for the first time at least 20% of a Subscription eBook, excluding its front matter, or such other percentage as may be otherwise agreed in writing on a title-by-title basis.

“Service Territory” means the territories where Kobo may include the Subscription eBooks within the Subscription Service (identified in the check-boxes below).

“Subscription eBook” means those eBooks designated by Publisher for inclusion within the Subscription Service pursuant to Section 2(b) below, which may include eBooks that are not eligible for purchase by Users under the Agreement.

“Subscription Service” means the eBook subscription service offered by Kobo in the Service Territory pursuant to which Users will have the ability to have access to read an unlimited number of eligible eBooks for a monthly subscription fee.

“Reading Activity Value” means the aggregate, for each Subscription eBook that has been Read during the month (other than during permitted introductory trial periods), of the number of times the Subscription eBook was Read multiplied by the List Price of the Subscription eBook.

2. Subscription Service – Publisher Rights and Obligations

  1. Grant of Rights. Publisher hereby grants the right to Kobo to include certain eBooks in the Subscription Service in the Service Territory.
  2. Adding and Removing eBooks. Publisher shall designate eBooks as Subscription eBooks by indicating as such within the relevant eBook Metadata. Any book made available in this manner shall remain available for a period of not less than six (6) months. Following such minimum time period, Publisher may, on no less than thirty (30) days advance written notice to Kobo, remove Subscription eBooks from the Subscription Service by modifying the eBook Metadata accordingly. Following removal of a Subscription eBook from the Subscription Service, Kobo shall cease to make available the Subscription eBook for Users to check-out; provided, however, that Users who have already checked out the Subscription eBook will remain entitled to access it.

3. Subscription Service – Kobo Rights and Obligations

  1. Operation of Subscription Service. Kobo shall have the right to include the Subscription eBooks within the Subscription Service offered to Users in the Service Territory. Kobo may offer the Subscription Service either directly to Users or indirectly through third parties. Nothing herein shall oblige Kobo to offer or to continue to offer the Subscription Service or include any or all of the Subscription eBooks as part thereof. Kobo shall be solely responsible for administering all aspects of the Subscription Service, including technology operations, reporting, and billing and collections. Kobo shall be solely responsible for all business relationships with Retailers, Users and other third parties in relation to the Subscription Service, including fees and charges applicable thereto.
  2. Security System. Kobo shall maintain the Security System in respect of Subscription eBooks made available to Users pursuant to the Subscription Service as described in the Agreement. Notwithstanding the foregoing, Kobo will encrypt all Subscription eBooks using Kobo’s proprietary digital rights management technology and no other method.
  3. Trial Period. Kobo may offer potential new Users of the Subscription Service an introductory trial period of not more than thirty (30) days, during which limited time the Users may use the Subscription Service in the same manner as subscribing Users. No amounts will be payable to Publisher in respect of Subscription eBooks Read by a User during a trial period, and all data pertaining to such activity shall be omitted from the fee calculations described below.
  4. Monthly Reporting. Following the end of each month of operation of the Subscription Service, Kobo shall deliver to Publisher a report in respect of the preceding month describing:
    1. the number of times each Subscription eBook was reported as Read,
    2. the Price Factor,
    3. the corresponding amounts payable to Publisher by Kobo.

4. Fees and Payments

Kobo shall pay Publisher within 90 days following the end of each month of operation of the Subscription Service an amount equal to, in respect of each Subscription eBook that has been Read during the month, excluding during permitted trial periods, the product of: (A) the List Price multiplied by (B) the number of times each Subscription eBook was reported as Read, multiplied by (C) the Price Factor, multiplied by 60%.

5. Term and Termination

  1. Effect of Termination. Upon termination of this Agreement, Kobo shall cease to offer the Subscription eBooks within the Subscription Service. Any Users who have downloaded any Subscription eBooks shall continue to have the right to access and read the eBooks for a period of 120 days following termination of this Agreement; provided, however, that Kobo’s payment obligations described in Section 4 hereof shall not apply in respect of such eBooks.

Kobo Launches eBook Subscription Service Kobo Plus

I have little solid information yet but I have just heard that Kobo is going to launch an ebook subscription service at midnight EST (about 30 minutes from now).

Edit: Kobo hasn’t launched Kobo Plus yet, but the service is very real (I have the T&C).

There’s a blank info page for Kobo Plus on the Kobo Writing Life blog, and a similarly blank page on the (US) Kobo website. The meta description for that page says:

Kobo Plus eBook subscription gives you unlimited access to titles from every genre that can be read on any device. Start a 30-day free trial today.

Further digging has revealed that the Dutch-language page (German?) for Kobo Plus is already live. Bol.com is going to be a partner, and the service will cost 10 euros per month with a 30-day trial.

The matching catalog is also live, and I can see that 37,127 titles are listed.

It’s not clear how Kobo Plus compares to Kindle Unlimited, the subscription service Amazon launched in July 2014, but it is clearly a competing service.

According to my source, Kobo Plus is "better in terms of royalties and there’s no exclusivity involved. And it also benefits readers, as well."

KU paid out $16.8 million in royalties last month, and close to $200 million in 2016 alone. I can’t wait to see how Kobo tops that.

I guess we will have to wait for the official announcement to find out.

Edit: Authors are reporting that there is a new "Kobo Plus" section of their dashboard. The one screenshot I saw on Facebook mentions that this service is live in Belgium and the Netherlands.

 

 

BBC is Now Streaming an Abridged Version of Colson Whitehead’s "The Underground Railroad"

Parts of Colson Whitehead’s monotonous award-winning tepid novel The Underground Railroad was released this week by BBC Radio, and is available to stream online.

The book is narrated by The Wire’s Clarke Peters, who told the BBC that he found the book distressing. “I felt my emotions get stuck in my throat and could no longer narrate,” he said in an interview.

“Because I found it hitting things inside of me that I thought might have been dormant but still had not been resolved. And some of those things resonate today. It’s one thing to forgive, but we must never forget. I think that what happened yesterday while reading it and getting so emotional is that I realized I hadn’t forgiven and that’s what hurt because I don’t know who to give that to.”

This is an abridged audiobook about 2 hours long; the version available through Audible is close to eleven hours long.

It is free to stream for the next 29 days.

BBC Radio via BookRiot