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Online Journalism Review
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It's not the medium - it's the market
Posted: February 1st, 2012, 12:49am CST
By Robert Niles: Newspapers and book publishers could learn some valuable lessons from one another. Unfortunately, it appears that the book industry's going to make the same costly mistakes as the newspaper industry did, instead. I thought again that as I read the New York Times' story about Barnes & Noble from last weekend, The Bookstore's Last Stand. The Times wrote of the publishing industry's hope that Barnes & Noble will be able to stand up to the challenge from Amazon.com, preserving a major retailer where their companies' products are king. Like many struggling businesses, book publishers are cutting costs and trimming work forces. Yes, electronic books are booming, sometimes profitably, but not many publishers want e-books to dominate print books. Amazons chief executive, Jeffrey P. Bezos, wants to cut out the middleman that is, traditional publishers by publishing e-books directly. Which is why Barnes & Noble, once viewed as the brutal capitalist of the book trade, now seems so crucial to that industrys future. Sure, you can buy bestsellers at Walmart and potboilers at the supermarket. But in many locales, Barnes & Noble is the only retailer offering a wide selection of books. If something were to happen to Barnes & Noble, if it were merely to scale back its ambitions, Amazon could become even more powerful and well, the very thought makes publishers queasy. If Barnes & Noble's future is tied to that of the print book publishing houses, then Barnes & Noble is as doomed as Borders, Crown Books and the other brick-and-mortar booksellers that have proceeded it into oblivion. The Nook alone will not save Barnes & Noble's business because the change that is roiling the publishing business today - whether it be for books or for newspapers - is not simply a transition from printed media to digital. It's a transition from a marketplace where information was controlled by a few gatekeepers to one where anyone may offer their content to a mass audience. This isn't about eBooks versus printed books. It's about a book industry where supply is controlled by a few publishing houses or one where supply is opened to all who wish to publish something. In short, it's not the medium; it's the market. If your business model is based upon controlling access to the information marketplace, you're doomed. If your business model is based instead upon enabling and expanding access to the market, you have a chance of succeeding. And that is what has the book industry scared.