Licensing 2000: Not the Way We Were?

Copious amounts of ink flowed in the pages of the trade press and the New York Times on the subject of the most recent Licensing Show, which took place June 13–15 at the Javits Center in New York. Unhappily for exhibitors, however, the lucrative patina around the likes of Eloise and Curious George could do little to lighten the gloomy countenances of those on the floor. Most licensing veterans chalked it up to a certain post-apocalyptic malaise, noting that the number of licensees who were burned by stunning failures appears to be growing exponentially — starting with Disney’s Hunchback, moving along to Godzilla, and culminating with Star Wars. And licensees will tell you that one major failure hurts everyone, particularly as the royalties exacted from them (viz. Star Wars, which topped out at 9%) move ever higher.

Such dire times found most licensors clamoring for the security of the classics, abetted by the brand-sustaining powers of cable television. Cable TV means that your favorite program from 25 years ago never dies — and neither does the possibility of licensing myriad products. Leave It to Beaver tote bags, anyone? In any case, nothing could be more tried and true than backlist publishing. Hence the numerous book properties on deck, including Babar, Raggedy Ann and Andy, Rainbow Fish, Miffy (Dick Bruna), C.S. Lewis’ Chronicles of Narnia, Franklin the Turtle, The Lord of the Rings (based on a live action movie this time, and opening against Harry Potter in the 2001 holiday season), Peter Rabbit, Maisy, Curious George, Dr. Seuss, Clifford, pat the bunny, and Harold and the Purple Crayon. And, as Viacom licensing maven Risa Kessler notes, a lot more non-classic oldies are returning — Strawberry Shortcake is 20 years old and in the midst of a mid-life revival, with plenty of licensing attached (Viacom and Cinar). While many of these properties are being licensed by third parties (Warner is licensing the Harry Potter merchandise, demanding — and getting — those outrageous royalties), Scholastic is handling the licensing for Clifford, and Golden is developing its own program for pat the bunny.

But Harry Potter is unquestionably the moment’s 1000-pound gorilla. When a property with this much hype and money behind it flops, it drags the whole industry down with it. Based on the findings of focus groups, some close to the property feel that the range of licenses proposed by Warner Bros. is too great (Hasbro is the master licensee), is inappropriate for this kind of property, and could sink the business. (It is difficult to conceive of an audience for Harry Potter action figures, but they will undoubtedly be marching into toy stores near you.)

Meanwhile, the fair was bristling with licensing-industry versions of rightscenter.com and subrights.com, though they were more ambitious, with a dash of Inside.com thrown in for good measure. There was toynetwork.com, which went live following its launch at Toy Fair, and is a subscription-based B2B with links to all the commerce and communication resources you’ll ever need — for a mere $5000 annually. Initial agreements have been signed with Mattel, Hasbro, Universal Studios, and Dreamworks, among others. Also boasting a presence at the fair was WHN (whatshotnow.com), which lets retailers shop for branded product, and allows potential licensees to purchase rights to make products based on those licensors’ brands. So far Coca Cola and the 2002 Olympics have signed up, at a cost of $1,000 per month, following a six-month trial period. (Both licensor and licensee pay the fee, but retailers log on for free.)

As glitzy as they were, such Internet initiatives failed to satisfy an e-commerce panel sponsored by LIMA (Licensing Industry Merchandisers’ Association), where there was much comment on the likelihood that, if the US does not become more proactive, it will lag behind Europe in adopting PC-less technology. Panel member Nigel Huddleston, manager of the business consulting division of Arthur Andersen, told those assembled that his Mum, who lives in the UK, did her food shopping, made her travel arrangements, and did myriad other things all from home without benefit of a computer — via interactive TV. Others cited the phone as a successful tool for interactive commerce across Europe. Incidentally, the panel, billed as “E-Commerce: The Way We Are Is Not the Way We Were,” was chaired by John Barbour, whose amusingly self-deprecating manner was explained by the fact that he is CEO and President of Toysrus.com — a notable e-commerce failure to which Barbour frequently alluded.

For a final irony, we’ll have to wait for next year’s show to see whether or not licenses for all those imported megahit TV programs, from Survivor (UK) to Big Brother (Holland) to Iron Chefs (Japan) — and let’s not forget Who Wants To Be a Millionaire (UK) — share the spotlight with the longer-lived and undeniably classier imports: Dick Bruna, Jean de Brunhoff, J.R.R. Tolkien, and C.S. Lewis, to name just a few.

Sidebar: By the Numbers

It’s comforting to see that meaningful licensing figures are almost as difficult to arrive at as are book publishing ones, though for different reasons. A June 12 New York Times Business Day article features a chart under the presumably ironic heading “Literary License,” showing publishing royalty revenues at $40 million for 1999. However, LIMA’s own figures, presented at BEA, put that figure at $30 million. In addition, the presentation notes that “some users of this survey would want to also arrive at an estimate of Retail Sales of Licensed Goods. Industry practices suggest that in order to obtain retail sales of licensed goods, a good multiplier is 20,” but their own presentation has Publishing Licensing Revenue in Retail Dollars at $5.25 billion. The Times uses The Licensing Letter’s more conservative $1.3 billion number, which is, according to publisher Ira Mayer, a consensus figure based on sales estimates by publishers, retailers, property owners, and agents. Moreover, says Mayer “their sample is biased toward the entertainment world.” It is complicated, he explains, to break out publishing revenues on properties that may begin as books, but go on to become television and movie megahits with independent licensing programs and with merchandise that is sometimes only peripherally related to the underlying property.

International Fiction Bestsellers

French Lessons
Napoleon’s Deluge in France, Coelho in Teheran, and Italy’s Wayward Professor

A fiendishly degenerate account of a dead academic leads off in France this month, as the pseudonymous author San Antonio (the late Frédéric Dard) tramples all cultural propriety in his delirious novel Napoléon Pommier. Here’s the pitch: The august Professor Titan Ma Gloire is found “more or less murdered” after he had subcontracted out his great tome on Napoleon. Shortly thereafter, a perverse cast of characters assembles on the scene, including women disguised as Josephine de Beauharnais, an army of gay mechanics, and a nymphomaniac female cop by the name of Marie Bizarre. Fortunately, gumshoe San Antonio is on the case, accompanied by faithful basset hound Salami, who happens to speak French. The book wreaks havoc with Napoleonic history, among other things, and as far as we can tell, the title refers to Napoleon IV and his taste for Calvados. Dard, who died at age 78 on June 6, wrote his first San Antonio book in 1949, and went on to publish over 150 detective novels in the series. Widely admired for his Rabelaisian ingenuity (his obituary noted that Dard used over 200 different words for the male sexual anatomy), Dard was praised by President Jacques Chirac as one of the “magicians” of the French language.

Elsewhere in France, The Education of a Fairy is Goncourt-winning Didier van Cauwelaert’s novel about a chap who falls in love with a young woman he meets on a plane, and proceeds to settle in with her and her young son. Unfortunately, his new wife up and leaves him, but peace and love are restored after the unlikely intervention of a Baghdad-born supermarket cashier and a liberal dose of fairy dust. Van Cauwelaert won the Goncourt in 1994 for The Easy Way, which sold a million copies. Though not currently on the list, the new book is said to have made a strong showing in France (“It goes down like candy and it’ll make a great movie,” according to one reviewer). See Albin Michel for rights.

Meanwhile, Spain has embarked upon a journey to The Corners of the Air, said to be a disquieting blend of fiction and biography built around the life of the Barcelona-born Ana Maria Martinez Sagi, who passed away last year. A poet, journalist, and elite athlete, Martinez Sagi was a national javelin champion and a pioneering feminist who co-founded the Womens’ Sports Club, the first popular feminist organization of its kind in Spain. The book circles around Martinez Sagi’s reputed homosexuality, and even casts doubt on the reality of her existence. Author Juan Manuel de Prada, said to be “a brilliant and subtle writer in the early stages of his career,” has published two books of short stories and three novels, the last of which, Tempest, was published in the UK by Sceptre (he has never been published in the US). Foreign rights have gone to France (Seuil), Italy (Ediziones E-O), and Germany (Klett-Cotta); see agent Mònica Martin of MB Agencia Literaria.

This just in from Tehran: Following Paulo Coelho’s recent visit to Iran, we’re told the Ministry of Culture and Islamic Guidance has declared Caravan Books Coelho’s official publisher in that nation, thereby putting an end to a frenzied trade in pirated editions of the author’s work. Millions of Coelho’s books have apparently been sold in Iran, but because the country did not sign the International Copyright Agreement, no “official” edition had been published there. (Our HarperCollins source assures us, however, that rights to Coelho’s work can indeed be licensed to Iran.) For what it’s worth, Coelho is said to be the first non-Muslim writer to have officially visited Iran since 1979, due to President Mohammad Kathami’s efforts toward cultural exchange in this country of 71 million people.

In Italy, Vanilla & Chocolate is the 14th novel from bestselling Italian author Sveva Casati Modignani. The book concerns Penelope and Andrea, perfect opposites who once enjoyed matrimonial bliss. That perfect swirl of gelato, however, has soured considerably after 18 years of marriage, and Penelope leaves husband Andrea for a much-needed breather. All is reconciled when the pair reaffirm their vows over a pint of Ben & Jerry’s (or something like that). Modignani has been published in Germany, France, Poland, Portugal, Russia, among other lands. See Stefania De Pasquale at Sperling & Kupfer for rights.

On a less conciliatory note in Italy, Luciano de Crescenzo’s The Distraction finds the bestselling author returning to philosophical grounds, with a decidedly non-Platonic twist. The 70-year-old hero, Professor Bellavista, prattles about philosophy to a group of teenagers. During his disquisitions on the likes of Nietzsche, Heidegger, and Popper, however, the maestro takes a shine to young pupil Jessika, and a “short but dangerous” physical relationship ensues. De Crescenzo’s recent works include The Odyssey, which sold more than 200,000 copies in hardcover, with rights sold to Germany, Spain, Japan, and Korea. Thus far, rights to the new one have gone to Bertelsmann in Germany, amid much interest from abroad. See Chiara Ferrari at Grandi & Associati.

Cornelis Vreeswijk’s Writings clocks in at #3 in Sweden, with an eclectic assemblage of song lyrics, short stories, and poetry from one of Sweden’s most beloved singer/songwriters. Born in Holland in 1937, Vreeswijk moved to Sweden at age 14 and eventually became a sort of Dylan of the North. The book, edited by acclaimed Norwegian poet Jan Erik Vold, focuses on Vreeswijk as a writer and not necessarily a singer, and includes Vreeswijk’s interpretations of e.e. cummings, Victor Jara, and The Beatles, among others. Our source at Ordfront notes that the author sang the stories of “all kinds of people — prostitutes, alcoholics, politicians, and the women he loved.” Er, right. See Ordfront’s Elin Sennero.

Finally, The Happy Housewife has been cheering most of Holland this month. Written by magazine journalist Heleen van Royen, the book is said to be “an irreverently comic yet highly moving debut novel” about a blithe young woman’s nervous breakdown after the birth of her first child. The happiness part comes during her trip back to sanity. Rights have been sold to Germany (Rowohlt, on a six-figure advance pre-empt at the 2000 LBF), the UK (Virago), France (Albin Michel), Sweden (Wahlström & Widstrand), and Norway (Gyldendal Norsk, in a three-way auction that resulted in a five-figure advance). Submissions to US publishers are expected in Fall 2000 from Linda Michaels.

Fact Attack

A Quick Reference Fix for Publishers

As we were trying to find hard data on the subject of reading groups recently, we realized once again how little useful, accurate, or relevant information there is on book publishing. So we asked a few people who are in the knowledge business — reference librarians, consultants, packagers, etc. — and came up with a short list (not to be confused with an exhaustive compilation). The next time someone asks you to estimate the market share of “x” or the number of people who read “y,” check these out:

The Book Industry Study Group’s website provides useful links to resources, including sites and publications about publishing and related media fields. Click the “Industry Resources” link on the organization’s home page (www.bisg.org). BISG members receive the annual Book Industry Trends, with the most recent statistics, analysis, and forecasts of book sales. The 1999 Consumer Research Study on Book Purchasing, which looks at book buying by market, subject category, and consumer motivation, is also available free to corporate members.

The Annual Library and Book Trade Almanac 2000 reports book industry statistics, including title output and price arranged by 23 subject categories, with the number of new titles and new editions produced in the past three years. Library statistics include the number and types of libraries in the United States and Canada, book budgets for all libraries in a state, and separate budgets for public, academic, and special libraries. The volume lists organizations, individuals, and conference dates. The almanac is available for $185 through Bowker.

The Library of Congress (www.loc.gov) hosts a compilation of book-related resources under the Center for the Book (http://lcweb.loc.gov/loc/cfbook/). There is also a Researchers’ information number, for quick questions: 202 707-6500.

The New York Public Library (www.nypl.org) offers several types of research assistance. You can email Grdref@nypl.org with questions, or call 212 340-0849 from 10 am – 3 pm for answers on questions of grammar, spelling, or for quick fact checking. NYPL has another service, NYPL Express (www.nypl.org/express), where six librarians will do research for a fee of $75/hour, and $15 per item for document delivery (or 25¢ per page for print-outs). Nancy Krumholtz, the director of NYPL Express, says most of the service’s clients are businesses — lawyers, Wall Street firms, consultants, and the media. In the last year they have fielded queries from all 50 states and 37 countries. Email them at express@nypl.org, or call 212 592-7200.

The Hanson Guide to Publishers lists 20,000 US and Canadian publishers, including smaller ones not mentioned in LMP. It offers information on their principal markets, discount structures, etc., and comes with an interactive CD-ROM. One of the most useful features is an index of publishers’ imprints. The cost is $310. The Hanson site (http://www.hansonpublications.com, now defunct) has 50 directories on a variety of businesses worldwide.

Besides publishing Book Publishing Report, Simba publishes Trade Book Publishing 2000, which breaks down sales by publisher (mostly the majors), 15 subject categories, and distribution channels. It is heavily weighted toward traditional retail outlets. The price is a hefty $1495.

Chefs Shake Up the Cookbook Market

When Bobby Flay went down in flames on the Food Network’s Iron Chef program last Sunday, having been crushed by opponent Masaharu Morimoto in the gladiatorial cook-off, you might have thought the Mesa Grill honcho’s defeat would darken one of the culinary universe’s brightest stars. Not likely. What with Nina and Tim Zagat among the judges, the Food Network flogging Flay’s own program, and even Good Morning America co-host Charles Gibson getting in a plug (“I’ll put my money on Bobby Flay,” he averred on-air), you can almost imagine that the whole affair was manufactured to juice the Flay empire — including sales of Bobby Flay’s Boy Meets Grill, prominently featured on Amazon.com.

Call it cacophonous marketing. The Internet, cable television, a few well-placed editorial features, and word of mouth all fuel the buzz factory long known to the cookbook world. But as celebrity chefs and other branded projects take an increasing share of the 600 or so cookbooks on the market each year, it becomes ever clearer that cookbook publishing is the ideal solipsistic world. Cookbook writers, publishers, reviewers, retailers, and consumers seem ever more incestuously related, each washing the other’s hand. And, not unlike the Christian book market, solipsism pays off handsomely in sales.

“In the nonfiction world, what we’ve seen for years is that publishers want authors who have a platform, a visibility, and a constituency,” says agent Doe Coover. Sure, it’s a no-brainer to cultivate star authors as the days of sub-10,000-copy cookbooks rapidly yield to the sure culinary bet. But as agent Robin Straus adds, celebrity chefdom offers a unique, perhaps unprecedented, path to success: “You’re getting exposure in so many different arenas. People are writing about your restaurant in magazines. You become a personality. It’s not just about promoting a certain style of cuisine. People are buying a whole package.”

Witness the success of Anthony Bourdain’s Kitchen Confidential, the culinary tell-all from the executive chef of New York brasserie Les Halles. According to Jeff Capshew, vp director of sales for Holtzbrinck, the book went out of the gates with a modest 15,000 first printing, but, riding the acclaim touched off by Bourdain’s related New Yorker article (“Don’t Eat Before Reading This”), not to mention his chef-auteur status, Confidential hit the Times list at #7 — making it Bloomsbury USA’s first NYT bestseller — and went promptly out of stock. Now back with a total of 85,000 copies in print, the book is #1 on Amazon’s cooking bestsellers and back on the Times list.

Clarkson Potter executive editor Pam Krauss, meanwhile, says Potter now publishes up to 30 cookbooks per year, aided by a strong relationship with the Food Network (including books by Bobby Flay, Mario Batali, and Ming Tsai, among other TVFN darlings). For example, Batali’s new cookbook, Holiday Food, will be featured in a Food Network holiday special based entirely on the book, which will air in that prime gift-buying time between Thanksgiving and Christmas. Potter also published The Barefoot Contessa Cookbook by East Hampton take-out maven Ina Garten, which built through tremendous word of mouth (foreword by Martha Stewart). While Krauss admits that red-hot restaurant culture has polarized the cookbook market — “There’s now a high-end market and a low-end market, while the midlist is becoming harder to sell than ever before.” — no one’s exactly complaining about Contessa’s hop over the 100,000-copy mark.

Then there are the corporate tie-ins. Clarkson Potter has been tapping the power of brands ever since publishing the Tabasco cookbook eight years ago, a work that has sold well over 100,000 copies and unlocked shelf space in special markets. Senior editor Katie Workman cautions that as spectacularly easy as they may appear, branded programs are harder to pull off than a good crème brulée. “You can’t slap a brand name on a book and expect it to sell,” she says. “You must partner in an intelligent way to make the sum greater than the parts.” As a case in point, Potter recently published its ninth cookbook with Pillsbury: the ring-bound Pillsbury Complete Cookbook, which Workman describes as “definitely the biggest cookbook launch we’ve ever had.” She recounts an array of cunning marketing stratagems forged with Pillsbury over the years, including email blasts reaching 250,000 people, slapping a book jacket on 80 million packages of Pillsbury cake-mix boxes, and packaging $10 worth of Pillsbury coupons into the cookbook itself. The book is also a featured item in the Pillsbury Doughboy premium store, which is promoted in advertising inserts hitting 40 million households. And Potter’s brand-powered program is expanding, with the help of a dedicated brand marketing associate who serves as a liaison with companies, backed by the support of all the divisions across Crown and Random House to create individualized marketing plans that will best reflect each book.

Of course, part of building a brand is knowing how to look good on the boob tube. “Authors who are media-genic are going to increase their chances ten-fold of being published and published successfully,” says publicist Lisa Ekus, who also notes that she gets twice as many bookings for authors who are media-trained. Interestingly, her base of clients has shifted from the large houses to the mid-sized or small houses, whose authors are reaching for the big chocolate cheesecake in the sky. “These people are getting increasingly savvy about what it takes to promote books and get them out there. The larger publishers, on the other hand, are letting it happen on a rote basis.”

‘Instant Mega Word of Mouth’

In particular, Ekus says, the publishing community lacks savvy about web-based promotions: “The Internet is a critical place for reaching your niche audience. And it hasn’t been embraced nearly as seriously as it should be.” Her office has been partnering with websites such as the Jessica’s Biscuit e-commerce emporium (www.ecookbooks.com) to deliver promotional materials through their newsletters. Ekus’s Internet campaigns also include press-kit mailings to editors at 150 choice food websites, plus distribution of electronic press materials to 50 sites, from which webmasters can extract recipes, author bios, and jacket images for use as instant content. Finally, extremely targeted “opt-in emails” with a recipe and press release are beamed to a list of 18,000 consumers who have signed up for mailings on food-related subjects.

And then there’s the big banana of Internet book sites. “What’s very clear is how Amazon has changed the nature of the business,” says Houghton Mifflin senior editor Rux Martin. “They’ve revolutionized the way cookbooks are publicized, the way they’re sold, and the way publishing houses can get a quick indication of how publicity efforts are influencing sales.” Martin cites Pam Anderson’s The Perfect Recipe, which had respectable advance sales but was plucked from mid-level obscurity by an Amazon top pick. “Suddenly that kicked off a chain of events including everything from QVC to the major chains,” Martin explains, bringing sales up to 120,000 copies. “In the second or third season we’ve had this groundswell of fascination for the book. That’s something that would not have happened if we had to rely on the chains alone. Amazon is a kind of instant mega word of mouth.”

Larry Chilnick, cookbook consultant and packager, confirms the Amazon phenomenon: After a weekend on QVC and a Monday morning Fox appearance, he says, one of his books popped from an Amazon ranking of 17,000 to 104, prompting sales of 380 books that week at brick-and-mortar B&N stores as well. Now, prior to an author’s television appearance, Chilnick calls Amazon, who then discounts the book another 10 percent. Incidentally, during a stint as a buyer for QVC, Chilnick also found that a large share of sales go to armchair chefs. “There’s a gigantic market of cookbook collectors,” he says. “Half of the people buy cookbooks because they’re collectors.” And speaking of QVC, that home shopping conglomerate has had so much success selling cookbooks that it has launched its own QVC Publishing line, which will put out about eight cookbooks per year, promoted via direct marketing and distributed by CDS in bookstores, as well as online at iqvc.com.

As for food-related websites, there’s StarChefs.com — which now links to Amazon but is developing its own co-branded bookstore, and has 15,000 pages of content, much of it cookbook-related — and OneBigTable.com, the site founded by Molly O’Neill and Arthur Samuelson. Other sites of note include Kitchenlink.com, Epicurious.com, and Cooking.com. But if you’re looking for star-chef synergy, look no further than Ming.com, the site for Blue Ginger author Ming Tsai, which is replete with links to “Ming’s Pantrys,” where you can order ingredients featured in his cookbooks and on his Food Network hit, East Meets West, plus links to the Ming Tsai Signature Series Kyocera Ceramic Knives, Ming’s Gadgets, and of course, Ming’s Cookbook. Ming, who has said that he considers his website his second restaurant, was also recently featured on the National Turkey Federation’s website (“I think turkey is completely underutilized,” Ming told the turkey trade) and, if all of that weren’t enough, has been given top billing on an exclusive Amazon monthly feature called Chef’s Bookshelf, where he plugs his favorite cookbooks.

In the emerging trend department, Jim Leff, food writer and “alpha hound” at the culinary site Chowhound.com, notes that the food-related content flourishing on the web is bound to find its way into print. “There’s going to be a big trend going backwards from websites to publishing,” Leff says. “I can take content from my site and use print-on-demand to put it into traditional distribution channels.” For example, he says that a restaurant guide he published has gotten staler by the week, but could be updated regularly via POD. He envisions packaging original content from his site and, perhaps backed by some of the venture capital he’s seeking, selling it to people too busy to read on the web. “We’ll take advantage of the immediacy of POD to preserve the immediacy and currency of our content,” he says.

It’s an intriguing prospect, particularly given the tight market for non-celebrity book projects. As Chilnick notes, “Dealing with the chains is very difficult right now. A few people control the entire cookbook area.” In fact, B&N was so unresponsive to one of Chilnick’s titles that he eventually stormed the corporate headquarters with galleys in hand. “I convinced Steve Riggio’s secretary to come out to the lobby,” Chilnick says, “and I pitched her.” Chilnick’s other insider tip for failsafe cookbook publishing? “I always look to what Williams-Sonoma are doing,” he says. “You know you’re close to a trend if they’re publishing it, because I’m sure they use market research.”

Book View, July 2000

PEOPLE


Mark Pattis
, who had been CEO of Tribune Education, but left in March, right before the division was put on the market (it was just sold to McGrawHill), has become an investor. He is a partner in Next Chapter Holdings, a company that invests in a number of areas, including books, magazines, and digital publishing.

Following the announcement that Harcourt had hired Goldman, Sachs to (maybe) sell the company, word comes that Michael Barson, just-appointed Director of Publishing and Advertising for adult books, has reconsidered and is not moving. He had come from Putnam, where he was Assoc. Dir. of Publicity. No word yet on Ann Patty, who was just hired as Executive Editor, Adult Books, working part time, and complementing the upscale fiction of Drenka Willen and nonfiction tastes of Jane Isay.

George Bick moves to HarperCollins as VP Dir. of Sales for Morrow/Avon, barely a year after arriving at Pocket. Elisabeth Kerr has left HarperCollins for Norton where she fills the Foreign Rights Manager post vacated by Lucinda Karter, who went to Rightscenter.com (PT 6/00).

Larry Chilnick, writer and packager (of the bestselling The Recipe Hall of Fame Cookbook), and formerly of Auerbach and QVC, has gone to Carlisle & Co. as an agent to expand and develop category nonfiction (diet, health, cookbooks, etc.) and as CFO. Marly Rusoff, formerly Assoc. Publisher of Morrow, has set up an “affiliate” relationship with Carlisle & Co. She continues to work with authorsonline.com and booktech on branding, new business development, and marketing.

Alan Smagler has been named Acting Publisher of S&S Children’s while the search for Rick Richter’s replacement (he’s now President of Sales for S&S) continues. . . . The ax has fallen at Routledge. Publisher Ken Wright is out, as is Publishing Director Heidi Freund. . . . Jennifer Landers, Hyperion’s Publicity Director, has left publishing for — not a dot-com, but a real advertising agency (though they do web work). . . . Gay Bryant has returned from three years down under working for Murdoch’s magazines. She is currently working at Hachette Custom magazines and may be reached at 212 560-2156. . . . Meryl Earl has been named Subsidiary Rights Director at Kensington Publishing signaling her return after the bankruptcy of Carol Publishing. Kensington has acquired the assets of Carol and will continue to publish these titles grouped under the Citadel imprint. . . . Ralf Daab, CEO of Konemann US, has resigned and will return to Germany where he will assume the post of head of worldwide book sales for te Neues publishing.

VIRTUAL PEOPLE


Walter Walker
has left S&S for Reciprocal, where he is VP, Publishers Relations. . . . Emily Heckman has left Pocket, where she was Executive Editor, to set up the New York office and become Assoc. VP, Publishing Alliances for Xlibris. . . . Amy Metsch, formerly of Franklin & Siegal, has joined Questia Media as Business Development Manager, Trade Publishing. . . . netLibrary opened a Publisher Relations Office in New York, hiring Linda C. Howey to run the shop.

DEALS


Bantam
pre-empted Dr. Tracy Gaudet’s Consciously Female for $1 million in a two-book deal. The agent is Doe Coover . . . . Kathy Robbins sold David Denby’s book to Little, Brown’s Sarah Crichton for something north of $500K. Ironically, the subject of the book is . . . money. And while on the subject of L,B, Michael Pietsch bought .Bomb by David Kuo (Glen Hartley, agent), for another $500K+ in a robust auction. It is a nonfiction account of the downfall of an internet company, ValueAmerica. Kuo was an executive at the company.

Eileen Goudge just negotiated a three-book deal with her publisher, Viking (Molly Stern is the editor). This trilogy will take place in a mythical town that Goudge has created. Writer’s House agent Susan Ginsburg says her publisher, which paid a “hefty seven figures” for the trilogy, is very happy with Goudge’s most recent book, Second Silence, which is selling at twice the rate of her last book, One Last Dance, when it was published in hardcover.

DULY NOTED


In The Knowledge Web: People Power — Fuel for the New Economy, a publication on the education market that comes out annually from Merrill Lynch’s Securities Research & Economics Group, and Equity Research Departments, we learned the following:

On average, each employee at the leading “New Economy” companies is “worth” $38 million based on market-cap-per-employee. In contrast, each employee at the leading “Old Economy” companies is worth about $689,000, or less than 2% of employee value at the New Economy companies.

When asked to choose which media to bring to a desert island, 33% of children ages 8-18 picked a computer with Internet access.

College students represent the single largest non-gender-based online demographic, constituting 24% of the total number of adult Internet users.

FIVE YEARS AGO IN PUBLISHING TRENDS


As we prepared the July 2000 issue of PT, we dared to look back at our 1995 issue for this month. Plus ça change — ain’t that the truth. The lead article is about the difficulty of finding reliable book biz stats (see this month’s Fact Attack). Then there’s the rundown on the Licensing Show, with “unhappiness having to do with contracts unfulfilled, promises broken, and hype just not up to the level required to generate adequate sales to meet royalty guarantees” (see this month’s Licensing, p. 3). And a piece about the New York Times’ coverage of books (see this month’s article about the Times and children’s books, p. 7). But the one thing that has changed is the faces — or at least, where they were, and are. Michael Jacobs, now SVP Trade Books at Scholastic, was on his way to The Free Press as publisher. Hearst’s Bill Wright was at Random, and — ever prescient — packager/entrepreneur Dan Weiss had entered into a joint venture (remember, 1995) to develop an online chat and games site for girls. The one constant? PW’s Daisy Maryles was celebrating her 30th anniversary at the magazine. Happy 35th, Daisy!

MAZELTOV


To BordersPhil Ollila and Marilyn Slankard, who were wed on June 24.

Midlist Madness

Crisis management was the reigning publishing paradigm when, in 1998, George SorosOpen Society Institute funded the Authors Guild Midlist Book Study. So it was slightly ironic when, at a meeting last month featuring study author David Kirkpatrick, several participants pronounced the midlist in satisfactory health and certified that it had never been as well published as it is today. Despite objections from S&S’s Alice Mayhew and Walker’s George Gibson (who had reservations about too many books being published), enthusiasm for the quality of midlist publishing came from the likes of panelist Roxanne Coady, the lone bookseller on the panel (B&N having apparently not acknowledged their invitation), who raised eyebrows when she waxed sanguine over the book section of Entertainment Weekly and pouted that a certain glossy publication devoted solely to books was simply “not trashy enough.”

Of course, the study did note that while the number of titles has not declined, midlist market share has suffered as mega-sellers have gone through the roof but midlist numbers have remained flat. The crux of the issue, Kirkpatrick concluded, was that chains, superstores, and online booksellers might have miles of midlist on the shelves — in fact, linear shelf space devoted to sale of trade books in this country, if laid end-to-end, would stretch from NYC to Caracas — but those books are lost without heavy marketing support. And, chain-store merchandising policies being what they are, the cost of marketing new books has soared into the stratosphere. He noted that publishers’ marketing budgets for midlist titles typically amount to less than $5,000 to cover advertising, book tours, and other promotions, but that it can take $10,000 just to get a book slapped on the table at the front of your local superstore. Declining library purchases and dwindling indie booksellers, Kirkpatrick said, have done nothing to help matters.

Peter Osnos then stole the show when the discussion turned to author advances. He told would-be authors that writing a book is crazy, big advances are bunk, and a day job is a writer’s best friend. A prime case in point was Tina Rosenberg’s Pulitzer- and NBA-winning The Haunted Land. Sales were in the respectable teens when the awards and rave reviews arrived. Then another 30,000 copies or so were shipped — 70% of which were returned. The upshot was that some titles, no matter how worthy, may simply not be meant to sell more than 10,000 copies. The debate then veered abruptly into the sphere of grants, foundations, and fellowships, indicating that the real crisis was not midlist publishing but indeed how to pay the mortgage and feed the kids.

International Fiction Bestsellers

Dictators’ Desserts
Trujillo’s Dominican Feast and Franco’s Fall in Spain, Plus Cremer Redux in Holland

Peruvian writer Mario Vargas Llosa conquers lists in both Spain and Argentina with The Goat’s Feast, a novel that’s captivated critics (it “makes one’s flesh creep,” one wrote admiringly) and has been hailed as a revival of Vargas Llosa’s best literary modus operandi: his sprawlingly complex “development novel.” Detailing the Dominican dictatorship of Leonidas Trujillo (nicknamed “The Goat”), the new book examines Trujillo’s 31-year reign of terror through the eyes of Urania Cabral, a famous lawyer living in the US who returns to Santo Domingo to face her father, who had bequeathed her to Trujillo when she was a young girl in order to ingratiate himself with the dictator. When Trujillo’s attempted rape of Urania failed, however, her father fell from favor and the girl was banished from the island. The Goat’s Feast is described as an arduous documentary work in the literary tradition of the “dictator’s novel,” constructed “with the precision of a clockmaker laying siege to reality.” FSG will publish in the US, and other rights have been sold to France (Gallimard), Germany (Surhkamp), Italy (Einaudi), Portugal (Dom Quixote), and Brazil (Siciliano). See the Carmen Balcells agency for rights.

Dictatorship also rears its head in a novel that popped up on the Spanish list last month, The Agony of the Dragon by Juan Luis Cebrián. The book is a “history of a world coming apart,” specifically Spain under Franco, that is explored through the author’s personal memory of the Franco regime and its decline, as well as through Cebrián’s sharp journalistic lens. The book is said to be the first volume of an ambitious trilogy about the generation that brought democracy to Spain. Cebrián was born in Madrid in 1944, and was a founding editor of El Pais from 1976 to 1988. More than 40,000 copies of the new work have been sold in Spain, with rights still available from agent Antonia Kerrigan in Barcelona.

Also in Spain, Lesbian Lover, by the 83-year-old José Luis Sampedro, has been rocking the charts — and seriously updating the mucho macho “latin lover” paradigm — with an ardent romance in which a woman’s desire to meet a non-sexist male is fulfilled by a man who happens to be a fetishist and enjoys submission. The book has been described as an “awe-inspiring” text that is “completely divorced from the repressive sexual education which is prevalent” in Spanish society. The author’s motto? “Love, and do whatever you like.” No foreign deals have been reported as yet; contact the Carmen Balcells agency.

Cataclysms of a different sort are quaking France this month, where Baldassare’s Odyssey details events in that pre-apocalyptic year of 1665. Everyone, of course, is anxiously awaiting the dawn of 1666, predicted in the Book of Apocalypse as the world’s grand finale. Hero Baldassare is a skeptical rare book dealer in what would be present-day Lebanon who sets out to forage for a book that’s been damned in Muslim scripture. Lover Marta tags along for the adventure, which ends up in London by way of Chios and Genoa, and includes plenty of blockbuster murders, storms, betrayals, and even the Great Fire of London — but nary an apocalypse. Rights have thundered out to the UK (Harvill), Italy (Bompiani), Greece (Oceanida), Norway (Pax), and Turkey (Yapi Kredi), among other lands. See Grasset for details.

Elsewhere in France, bondage abounds in Philippe Djian’s new novel Vers Chez les Blancs (it’s untranslatable, according to his French publisher). The book details the exploits of a bitter, washed-up writer — whom critics have compared to Djian himself — who distracts himself by arranging sexual encounters for a younger, more successful and fashionable writer. The old lion eventually has an affair with the other man’s wife, and pornographic playtime ensues as our “Leporello of letters” indulges. See Gallimard for rights.

A revival has hit Holland, where the picaresque novel based on the life of artist and one-time enfant terrible Jan Cremer is back on the charts after 37 years. I Jan Cremer was published to critical revulsion in 1963, when literary watchers called the brash young Cremer vulgar, immoral, and even fascist as he “cocks a snook” at bourgeois society in a “raucous, roaring, bawdy, imaginative” look at the weaknesses and conceits of himself and his fellow-men. Cremer went on to become a respected painter and, incidentally, is still involved in humanitarian projects at Unesco, Unicef, and The Red Cross. Recently reissued in a jubilee edition, the book has been translated in 12 languages and published in 30 countries; rights are with Sterling Lord Literistic.

Also in Holland, sportswriter Jan Mulder tackles the charts with Victories and Defeats, the first book of a two-volume collection of articles and columns he’s contributed to newspapers and magazines over the years. Mulder, who together with Remco Campert writes a daily column on page one of the major Dutch paper De Volkskrant, has been called “the greatest column writer on sports in the Netherlands,” and wins celeb status for his weekly appearances on the popular Dutch talk show Barend & Van Dorp. Volume two is due out in October. See De Bezige Bij for rights.

In Italy, The Irresistible Glamor of Time has been stopping watches everywhere with its accessible exploration of the mystical and scientific foundations of temporality. This nonfiction essay is written by the acclaimed scientist Antonino Zichichi, who teaches physics at the University of Bologna and made a splash last year with Why I Believe in Him Who Made the World, which has sold more than 120,000 copies in Italy (rights to which are handled by Linda Michaels). The new book traces the philosophic and theoretical dimensions of time from the resurrection of Christ to atomic clocks. No foreign deals have yet been made; contact Pietro Formenton at Il Saggiatore.

Of note in Australia, Huckstepp: A Dangerous Life is an investigative novel — “part true-crime and part biography” — of charismatic Sydney crusader Sallie-Anne Huckstepp, who was found strangled in Centennial Park in 1986. Five years earlier, she had accused New South Wales detectives of murdering her lover and quickly ended up on any number of hit-lists, none of which kept her from dallying with Sydney’s underworld. The book tracks police corruption and takes a hard look at the criminal justice industry as it probes Huckstepp’s untimely death. Rights are available for all countries other than Australia and New Zealand; see Cathy Perkins at Australian Literary Management.

Pushing the Envelopes

Direct Marketing Days NYC 2000

The “e-” prefix firmly attached itself to this year’s Direct Marketing Days in New York, where direct response pros from dozens of industries gather for an ever-lengthening shindig at the Hilton each May. Indeed, d-marketing gave way to e-marketing as fifty percent of the sessions were devoted to aspects of the online world, from “How to Translate Classic DM Creative Techniques to the Web,” to “Successful Web Prospecting and Retention.” That didn’t mean that at the accompanying exhibition there weren’t the requisite envelope sales guys (where else would you score a package of white “number 10s” as a giveaway?), the credit and collection agencies, and of course, the post office — US, Canadian, English, and German. These old-line marketers, however, are clearly fighting a losing battle. The Direct Marketer of the Year was AOL’s President of Marketing Jan Brandt — once an employee at Newfield (Weekly Reader) Publications; last year it was Priceline’s Jay Walker, coincidentally also an ex-book continuity guy — while the opening day luncheon speaker was not even a marketer, but a futurist: James Canton of the Institute for Global Futures.

Though the “clubs and continuity” panels that used to be dominated by Time-Life, Newfield, Book-of-the-Month and others have been given over to abstractions like “affinity marketing” and “back-end analysis,” there was a notably stronger showing of publishing types at the podium than in recent years. Seth Godin, onetime book packager and bestselling author, gave a keynote address asserting that “Success Online is a Ten Letter Word” (all together now, starting with a “P”). Reader’s Digest’s Tom Ryder spoke to a full house on the second day of the conference, highlighting his achievements since taking over as CEO. He singled out the books division as an area of growth, mentioning Books Are Fun as a “fabulous business,” with 19 million books and gifts sold last year through 60,000 schools, as well as hospitals, businesses, etc. He called condensed books a “wonderful business for us,” and promised more books in each of the categories (home, health, family, faith, and finance) that RD is targeting. Some observers expressed skepticism about the company’s forward-looking agenda, however, noting that the CEO presented his grand vision in what can only be described as a dressed-down Word slide show. Power Point, what’s that?

Two marketers from BN.com were on hand, one speaking about catalogs as a feeder to the company’s website, while the other, Roe Johnson, presented BN.com as “An E-Mail Marketing Case Study” where new-offer tests, emails targeted to customers’ buying patterns, and customer retention efforts are the order of the day. She described the 100 million emails they will send out this year, not to mention the 100+ “BN Insider” newsletters they will generate for various segments of the buyer and registrant list. Many of these are co-branded, with the affiliate getting a percentage of any subsequent sales. Then there’s the MyBNlink service, which allows companies without a website to become an affiliate, and is BN.com’s fastest growing program. Meanwhile, efforts to coordinate the catalog, online, and in-store buying patterns of individual customers are in the works. Even rival Amazon.com hasn’t had to tackle that database dystopia.

When all was said and done, the stats showed a deep divide between traditional direct response companies and their web-only, VC-funded cousins. The average customer acquired by direct mail costs $71, while one acquired by email (whose lists are costly and whose customers loathe spam-like mail) runs a whopping $286. Yet online companies throw 55% of their email marketing budget at acquiring customers, and spend only 45% on customer retention. Meanwhile, traditional marketers spend only 12% on email acquisition, and 88% on retention. Email retention (which costs as little as $2 per customer) also offers companies opportunities to upsell, cross-sell, and introduce viral marketing initiatives. FlonetworksRegina Brady estimates that a graphically enhanced message to a customer can achieve an astounding 85% click-through rate, and a 16.5% pass-along rate.

But the biggest stat to come out of the conference — in case it’s not obvious yet — 5.4% of the rest of your life will be spent online, with 8 – 9 months of that spent reading email.

Book View, June 2000

PEOPLE


Reader’s Digest
announces that Harold Clarke, most recently President of Random’s Children’s Publishing Division, has been named VP Publisher New Market Development, for RD’s Global Books and Home Entertainment Division, reporting to SVP and President John Bohane. Speaking of exurban, Janet Harris has left Workman, where she has overseen all sales, to become Associate Publisher of Storey Communications in Vermont. And even farther afield, Mike Winton, COO of Publishers Group West for 21 years, has decided to leave the company.

HarperCollinsMichael Morrison has been named Publisher, Morrow/Avon, but will continue in his role as EVP of the General Books Group. He has also joined the Executive Committee. Craig Herman has left HC to become VP, Marketing Director of Pocket Books. He was previously VP of Marketing for the Adult Trade Group.

Roger Cooper, formerly at BookSpan (née Doubleday Direct/Book-of-the-Month Club) is consulting on editorial, strategic alliances for iPublish, the new epublishing division of Time Warner Trade. And congrats to BOMC vet Alice van Straalen, newly named Editor at Anchor Books. Another erstwhile BOMCer on the move: Tracy Brown moves to Ballantine on June 5 as Senior Editor. He was formerly at Owl/Holt, and before that, Editor in Chief of BOMC. . . Finally, Karen Daly, formerly at Doubleday Direct, now heads up BoardRoom’s book publishing efforts.

Little, Brown’s Bill Phillips has resigned effective July 1. Meanwhile Deborah Baker, formerly of Kodansha, has been named Senior Editor at LB, replacing Jennifer Josephy, who went to Broadway. . . David Gale has been promoted to Editorial Director of S&S Books for Young Readers. He was Executive Editor. S&S has “redeployed” its academic marketing department to the web, with four lay-offs, including VP Director of Academic Marketing Dino Battista, and Academic Marketing Manager. Lyda Shuster. As it happens, Vintage just hired Keith Goldsmith from Library of America to be its new Director of Academic Marketing.

Meanwhile Marcia Burch, who left Penguin Putnam after having spent her entire career there, has become VP, Director of Publicity at S&S Trade Paperbacks. Celia O’Connell has resigned from the Center for Literary Presses to pursue a joint MBA/PhD degree in cultural studies. Candidates are lining up for the Executive Director position, with frontrunner reported to be Elizabeth Bogner, formerly of S&S. . . Will Lippincott has resigned as Publisher of the New Republic and is talking to book publishers about a position. . . Debby Tobias, who spent many years at Warner and other publishers, has gone to Zagat to oversee their sales. Ruth Pomerance, formerly head of AMG’s NYC office, has moved to USA Films as EVP Development and Production (phone: 212 358-4775).

VIRTUAL PEOPLE


Lucinda Karter
, Foreign Rights Dir. at Norton, defected to rightscenter.com. . . Contentville wins the award for the biggest publishing outpost, with 5 (to date) émigrés: Annik LaFarge (ex-S&S); John Conti (formerly Ballantine); Paul Schnee (Pocket); Kasumi Parker from Time Warner’s rights department; and a young assistant from Riverhead, Hanya Yanagihara. Susan Dalsimer (formerly Miramax), who was working on a freelance basis, left when the project was completed.

DEALS


Sarah Ban Breathnach
has signed her first deal at Scribner for her new imprint, Simple Abundance Press: Barry Dolnick’s Instructions for Your Discontent, from Emma Sweeney at Ober. It’s about dealing with life’s bumps through karma and power. (Dolnick used to publish with Crown.) The advance was not disclosed.

Two literary agents sold their own books (through agents) last week: Craig Nelson, to Viking, via Jennifer Rudolph Walsh, and Henry Dunow, to Broadway Books. The latter’s, titled Which Way to First?, uses Dunow’s experience coaching his son’s Upper West Side Little League team to explore his Jewish roots and relationships, and was sold by Betsy Lerner. . . Tod Shuster in the Zachary Shuster Agency’s New York office sold The Last Good Time, by Jonathan VanMeter, to Doug Pepper at Crown for a “very substantial six figures.” It is “Sopranos-esque” and tells the story of Skinny D’Amato and the 500 Club, a casino/cabaret where Frank Sinatra and Dean Martin got their starts. It darkens when Skinny’s son commits a series of brutal murders.

DULY NOTED


George Plimpton
, Robert Coover, Gene DeRose (Jupiter Communications) and a well-connected Board of Directors announce the Electronic Literature Organization (eliterature.org), “to promote and facilitate the writing, reading and publishing of literature in electronic media.” It will partner with the ALA, Academy of American Poets and others.

In a long-anticipated move, BN.com unveiled “Barnes & Noble University,” a collection of free courses for which users can sign up on a first-come, first-serve basis, developed with notHarvard.com. The list, which includes “Choosing the Right Diet,” as well as “The Interactive Wedding Planner,” doesn’t offer many synergistic opportunities to sell books through Textbooks.com, which the Riggio family owns, but perhaps those courses are in the works. . . And Suzanne Somers, inducted into the Books for a Better Life Hall of Fame this very year, has been named Response Magazine’s Marketer of the Year. In a 10-page paean, the article manages to refer to the actress’s complete oeuvre of titles, including publisher and date of publication. Watch those sales soar.

PARTIES


Scholastic
’s Dick Robinson was honored at the UJA’s annual black-tie dinner on May 24, and Peter Mayer presented the Scholastic CEO with his award. Katie Couric was the MC. On the same night Harper’s threw a party in Grand Central for its 150th anniversary, which lured those industry folk who felt like a party but couldn’t pony up the $600-per-seat charge that the UJA was asking. Then there was the downtown crowd who popped into Three Lives Bookstore to see author Marty Asher read from his new novel, Boomer. Afterwards friends and Knopf/Vintage colleagues (the latter being his publisher and the former, his employer) hosted a dinner for Asher and the book’s designer, Chip Kidd.

Dave Eggers was perhaps the closest thing to a publishing exec at the pre-BEA party for rightscenter.com, held May 25 at the Angel Orensanz Foundation. The converted synagogue on the Lower East Side was filled with new media types and beautiful people, including Chloe Sevigny and Parker Posey, who came out to listen to indie-rock god Steve Malkmus perform (sans his band, Pavement).

NEA at the Barricades

The Cultural Agency Gets Real on Books

Chances are the National Endowment for the Arts ranks somewhere down there between, say, Sears and Pets.com on the candidate list for publishers’ future business partners. But the organization that helps fund National Poetry Month and gave Michael Cunningham a fellowship more than a decade ago has re-branded itself as a “potential partner for ventures,” in the words of NEA literature director Cliff Becker, who set forth an ambitious, partner-powered agenda for the cultural agency at the Publishers Lunch Club in New York on April 5.

Citing a loathsome “culture of deliberate obsolescence” and a “marketplace that rewards homogeneous expression over innovation,” Becker summoned publishers to lock arms with the NEA at the barricades of the culture wars. Noting that just six authors accounted for 63 of the top 100 bestselling books of the 1990s, he said commercial publishers are distressingly close to consigning mid-list fiction, literary translation, and poetry to the historical dustbin. On that note, he went on to summon the spectre of Joseph Goebbels chucking Hemingway, Zola, and Proust into the bonfires, and suggested that increasing media consolidation is putting America’s literary heritage in jeopardy.

“The endowment’s role,” said Becker, “can and should go further” to help those in the book business fight the good fight, and that includes hooking up with publishers to seed the literary community with know-how and, when possible, cold cash. The endowment has met with the book community to help build a stronger audience for contemporary literature, in light of the fact that some 20% of America’s adult population is not literate enough to read story books to their children. The NEA is also working to cross-pollinate commercial and nonprofit ventures by forming liaisons between the two publishing worlds; looking into how reading habits develop and why people select the books that they do; and launching a major program with the ALA that links libraries, writers, and audiences through readings at libraries in all 50 states, for which the NEA committed $500,000 over two years.

Becker begged those assembled to remember that the NEA’s grant programs aim to broaden audiences by supporting book fairs, reading series, and literary journals. Not to mention the Literature Fellowships, which have helped sustain 35 out of 49 National Book Award, National Book Critics Circle Award, and Pulitzer Prize winners since 1990. All but two of those 35 winners received their fellowships before receiving the award, often 10 to 20 years earlier, Becker said. He hastened to point out that in supporting fabulous new talent, the NEA can be most beneficial to the book biz’s bottom line: “These are not writers who generally lose money for their publishers.”