December 2010

Clay Shirky on the changes to publishing & media

From Parul Sehgal’s “Here Comes Clay Shirky” (Publisher’s Weekly: 21 June 2010):

PW: In April of this year, Wired‘s Kevin Kelly turned a Shirky quote—“Institutions will try to preserve the problem to which they are the solution”—into “the Shirky Principle,” in deference to the simple, yet powerful observation. … Kelly explained, “The Shirky Principle declares that complex solutions, like a company, or an industry, can become so dedicated to the problem they are the solution to, that often they inadvertently perpetuate the problem.”

CS: It is possible to think that the Internet will be a net positive for society while admitting that there are significant downsides—after all, it’s not a revolution if nobody loses.

No one will ever wonder, is there anything amusing for me on the Internet? That is a solved problem. What we should really care about are [the Internet’s] cultural uses.

In Here Comes Everybody I told the story of the Abbot of Sponheim who in 1492 wrote a book saying that if this printing press thing is allowed to expand, what will the scribes do for a living? But it was more important that Europe be literate than for scribes to have a job.

In a world where a book had to be a physical object, charging money was a way to cause more copies to come into circulation. In the digital world, charging money for something is a way to produce fewer copies. There is no way to preserve the status quo and not abandon that value.

Some of it’s the brilliant Upton Sinclair observation: “It’s hard to make a man understand something if his livelihood depends on him not understanding it.” From the laying on of hands of [Italian printer] Aldus Manutius on down, publishing has always been this way. This is a medium where a change to glue-based paperback binding constituted a revolution.

PW: When do you think a similar realization will come to book publishing?

CS: I think someone will make the imprint that bypasses the traditional distribution networks. Right now the big bottleneck is the head buyer at Barnes & Noble. That’s the seawall holding back the flood in publishing. Someone’s going to say, “I can do a business book or a vampire book or a romance novel, whatever, that might sell 60% of the units it would sell if I had full distribution and a multimillion dollar marketing campaign—but I can do it for 1% percent of the cost.” It has already happened a couple of times with specialty books. The moment of tip happens when enough things get joined up to create their own feedback loop, and the feedback loop in publishing changes when someone at Barnes & Noble says: “We can’t afford not to stock this particular book or series from an independent publisher.” It could be on Lulu, or iUniverse, whatever. And, I feel pretty confident saying it’s going to happen in the next five years.

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These are their brilliant plans to save magazines?

From Jeremy W. Peters’ “In Magazine World, a New Crop of Chiefs” (The New York Times: 28 November 2010):

“This is the changing of the guard from an older school to a newer school,” said Justin B. Smith, president of the Atlantic Media Company. The changes, he added, were part of an inevitable evolution in publishing that was perhaps long overdue. “It is quite remarkable that it took until 2010, 15 years after the arrival of the Internet, for a new generation of leaders to emerge.”

At Time, the world’s largest magazine publisher, Mr. Griffin said he wanted to reintroduce the concept of “charging a fair price, and charging consumers who are interested in the product.” In other words, consumers can expect to pay more. “We spent a tremendous amount of money creating original content, original journalism, fact-checking, sending reporters overseas to cover wars,” he said. “You name it. What we’ve got to do as a business is get fair value for that.” Supplementing that approach, Mr. Griffin said, will be new partnerships within Time Warner, Time Inc.’s parent company, that allow magazines to take advantage of the vast film and visual resources at their disposal. One such partnership in the planning stages, he said, is a deal between a major cosmetics company and InStyle to broadcast from the red carpets of big Hollywood events like the Academy Awards and the Screen Actors Guild Awards.

But one thing Mr. Harty said the company was examining: expanding its licensed products. The company already pulls in more than a billion dollars a year selling products with a Better Homes and Gardens license at Wal-Mart stores. It is now planning to sell plants and bulbs with the magazine’s imprimatur directly to consumers. “We have relationships with all these consumers,” Mr. Harty said. “How can we figure out how to sell them goods and services? We believe that’s a key.”

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