But what these firms do is something many publishers seem quite unable to do: recognise the full value of what publishing is all about, and then take it to the next level.

A few days ago TNPS reported on the latest numbers from OverDrive, as record were broken yet again, with 366 million ebook downloads blowing a gaping hole in the preferred industry narrative that ebooks are out of fashion.

This from Thad McIlroy in comments on the OP as posted in the TNPS LinkedIn newsfeed.

“What’s remarkable to watch is the success of ebooks and other digital media in libraries. A whole other story is how publishers made choices around ebook and audiobook pricing and distribution that ensured that much of the value in the digital ecosystem now accrues to Overdrive and its owner, $700 billion private-equity firm, KKR. Authors see only a small percentage of the revenue.”

Thanks, Thad!

The View From The Beach

KKR is among the more enlightened and progressive “hedge-fund” outfits buying into the publishing industry, and publishers would do well to sit up and take notice.

Look at what Elliott has done for Waterstones and Barnes & Noble.

Obviously it’s great for the industry when private equity steps in and, in the case of Waterstones and B&N, literally rescues them from liquidation.

Recognising Value

But what these firms do is something many publishers seem quite unable to do: recognise the full value of what publishing is all about, and then take it to the next level.

Instead, publishers are constantly fighting to maintain the status quo, resisting any and every change, obsessively believing their way of doing things is set in stone, and civilisation will collapse without their infinite wisdom.

Paperbacks, ebooks, streaming, audiobooks, digital libraries, AI, bookstores responding to consumer demand instead of having it dictated by publisher cash…

The Dinosaur Squad Strikes Again

In every instance the publishing industry, led by the Dinosaur Squad, have resisted every opportunity to renew and refresh the industry, watched others reap the rewards, then came rushing in when it was too late to keep control.

Let me quote Thad McIlroy again: “Much of the value in the digital ecosystem now accrues to Overdrive and its owner, $700 billion private-equity firm, KKR. Authors see only a small percentage of the revenue.”

Repeat for Amazon raking in the cash from online print, ebook and audio while publishers and authors get the left-overs.

The history of the western publishing industry is the history of missed opportunities.

Dinosaur Squad CEO Markus Dohle and UK Dinosaur Disciple Tom Weldon did irreparable harm to the industry with their blind resistance to streaming, and their pricing of a la carte ebooks to protect Dohle’s “bet on print”.

Imagine All That New Revenue Missed Out On

Safe to say, had Dohle’s fantasy buy-out of Simon & Schuster succeeded, Spotify Premium would not exist, with no major publisher daring to break with the Dinosaur Squad position that streaming was the slippery slope to oblivion. Imagine all that new revenue lost to appease the Dinosaur Squad’s self-interests.

But let me return to digital libraries to end this post, noting that 2023 saw 662 million downloads, but also reported the holds/wait list stood at 253 million. In other words there could have been a further 253 million downloads, taking the total to 915 million.

No holds/wait list number from OverDrive this year, but safe to say demand far exceeded supply. Another huge missed opportunity.

This post first appeared in the TNPS LinkedIn newsfeed.