Book publishers have long feared that once Amazon (AMZN) completed its disintermediation of bookstores, publishers would be next in their sights. And according to this NY Times article, that day is rapidly approaching.
But this isn’t some nasty plot by Amazon to take over the publishing world (well, OK, maybe in part), but rather it’s the logical progression of a rapidly changing market.
In the traditional book publishing business, the role of publisher was largely focused on production, publicity and distribution. Publishers, leveraging their marketing budgets and relationships with bookstores and book reviewers, were able to take a book and get it into the hands of readers.
In the new world of publishing, the value chain has changed. Production and distribution are largely free and the key factor for success is driving discovery. Publishers with deep pockets can still drive some awareness through traditional advertising, but even that’s a lesser aspect of how to generate success.
Going forward, publishers need to show that they can drive awareness of their authors’ books on platforms like the Kindle, iBooks and Google, while leveraging social platforms like Facebook, Twitter and Goodreads. Publishers will have to embrace new models, like offering free eBooks to drive awareness.
While “big name” authors have always developed their own following, now every author is their own brand. Publishers who help authors develop their brand and drive discovery and awareness will succeed. The rest will find themselves quickly becoming irrelevant.
