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One of the Seattle attorneys suing Apple and five big book publishers for e-book “price fixing” explains why he did it (without saying whether or not Amazon’s involved in his move):
The new system was clearly not helpful to consumers, as it meant that they could no longer shop for a bargain amongst retailers. Instead, prices at each retailer would be identical. Alongside the elimination of competition between retailers over price, the agency model allowed, we believe, a 30 to 50 percent increase in the price of the ebooks. Each publisher’s decision to sign an agreement with Apple was not illegal by itself. What would be illegal, however, would be the coordination of five of the largest publishers joining forces to thwart price competition. Given the nearly simultaneous timing of the actions of these five publishers, and the fact that their actions coincided with the launch of the iPad, we believe there was coordination.
The new system was clearly not helpful to consumers, as it meant that they could no longer shop for a bargain amongst retailers. Instead, prices at each retailer would be identical. Alongside the elimination of competition between retailers over price, the agency model allowed, we believe, a 30 to 50 percent increase in the price of the ebooks.
Each publisher’s decision to sign an agreement with Apple was not illegal by itself. What would be illegal, however, would be the coordination of five of the largest publishers joining forces to thwart price competition. Given the nearly simultaneous timing of the actions of these five publishers, and the fact that their actions coincided with the launch of the iPad, we believe there was coordination.
original mac screen fonts, from folklore.org
There’s a battle going on in the e-book field, one of the few media businesses that’s truly booming these days.
At stake: what these non-thing purchases will cost you.
In one corner: Amazon. The Seattle e-commerce king and Kindle e-book machine seller wants to set its own e-book prices (with most mass-market titles at $9.99), no matter what publishers want.
(Amazon also wants to eliminate the “hardcover window,” the early months of publication in which only the high-priced deluxe version of a book can be bought. Specifically, Amazon wants to sell e-books of a title the same week as that title’s dead-tree version first comes out.)
In the other corner: Five of America’s six biggest publishers (HarperCollins, Hachette, Macmillan, Penguin, Simon & Schuster), plus Apple (in a third corner?). The publishers have publicly proposed a different pricing structure, which they call “the agency model.” Under this scheme, publishers would set e-book retail prices. The e-book selling sites (Apple, Amazon, B&N, Kobo, etc.) would keep a 30 percent margin from this price.
Early last year, Macmillan threatened to withhold its titles from Amazon’s Kindle e-book platform until Amazon capitulated to the “agency model,” which it did; but only after Amazon threatened to withhold selling Macmillan’s physical books from the main Amazon site.
Now, a Seattle law firm has filed a class action suit in a California U.S. District Court. The suit alleges the five publishing giants and Apple have conspired to drive up e-book prices. The law firm names two individual consumers, in California and Mississippi, as the case’s official plaintiffs.
•
With all this going on, William Skidelsky at the Guardian asks what’s the “true price” of a book as a written and edited document, rather than as a physical object.
Skidelsky quotes ex-Billboard editor Robert Levine, who’s written a forthcoming tract entitled Free Ride: How Digital Parasites are Destroying the Culture Business, and How the Culture Business Can Fight Back. Levine, as you’d guess, takes the side of the intellectual-property industry, including the book publishers.
Levine (as quoted by Skidelsky) states that it only costs $3.50 to “print and distribute” a hardcover book.
Thus, the argument goes, e-books should be just that much cheaper than physical books, no more.
However, it’s not that simple.
First of all, the whole pricing structure of physical books is about the design, manufacture, shipping, warehousing, and retailing of the object; including big margins to the retailers and wholesalers (who still sometimes have trouble keeping afloat). When all that’s reduced to the storage of some megabytes on a server, that whole pricing model goes away.
And much of the publisher’s share of a book’s price includes an allowance for the industry’s tremendous physical waste. If a copy shipped to a bookstore doesn’t sell, it gets sent back. All those copies are either re-shipped at clearance prices (more likely for coffee-table picture books) or destroyed. With e-books, none of that happens.
You will note that, aside from Levine, we haven’t mentioned authors.
What would an e-book pricing structure look like if it were based on the people who actually make what’s being bought?
Take the current royalties for a book’s authors and illustrators.
Then at least double them.
Not only do the creators deserve it, but such a step would acknowledge that, since e-books are cheaper to get out, there will be more titles out there scrambling for readers’ bucks, and hence each individual title might not sell as much.
Then add in a budget item for the work-for-hire participants in a book’s making—the editors and designers and cover artists and licensors of agency photographs. Again, they’d be higher than for traditional paper books, to make up for lower expected total sales.
There’s still a role in the e-book realm for what we call “publishers.” They put up the money. They arrange promotion and advertising. They put authors, artists, and editors together. In many cases, they organize the transmutation of a vague idea into a saleable product.
Once these parties all have their pieces of the pie set into a fixed wholesale price, e-book sellers could charge as much or as little as they think they can get away with.
That’s one potential e-book pricing model. There are others.
One is that of Take Control Books, for which I’ve worked in the past. They sell their e-books directly on their own site. Half the retail take, minus a cut for the company’s e-commerce provider, goes directly to the authors. (Take Control sells its e-books as .pdf files, which can be transferred with greater or lesser ease to all e-book reading devices.)
Another is self publishing, that past and present refuge of the artiste with no perceived commercial potential. Only in the e-book age, some authors are actually succeeding this way.
Earlier this year, bestselling thriller writer Barry Eisler said he was walking out of his “handshake deal” with St. Martin’s Press. For the time being, all books written by Eisler will be published by Eisler.
Of course, Eisler has an established “brand” for his works; much like Radiohead had when they released a download-only album. And Eisler has experience in the Silicon Valley startup world.
A more realistic role model would be that of Amanda Hocking. She’s young. She’s photogenic. She writes in a popular commercial-fiction genre. She’s sold a million e-books without a corporate backer (she’s got one now, though).
The business side of book publishing, as I’ve carped here for years, has been a moribund, tradition-obsessed infrastructure of waste and lost opportunity.
E-books represent the biggest chance in decades (since the rise of the big-book bookstore chains) to fix this.
Let’s not blow it.
(Thanx and a hat tip to Michael Jacobs for suggesting added angles to this story.)
2005 fremont solstice parade goers at the lenin statue
Boredom should not be abused, exploited, ignored, sneered at, rejected or talked down to as a product of laziness or of an idle, uninventive and boring mind. It’s there to help, and its advice should be welcomed and acted upon.
illo from the 1962 world's fair guide book
Many of the people out on the streets this week are usually invisible. They are part of an underclass, an underworld, where the rules are different and you have to take what you can to get through the day. Given the chance, many would in fact make something better out of their lives – but they don’t get the chance. What little equilibrium existed even a year ago has now vanished, and they are raging. Because they have no hope, no future, nowhere to go and nothing to do.
The Thursday Northwest-getaways tab was axed. It was another of those sections that existed only to sell ads, and which was utterly failing in that goal. Four tab pages of regional event listings were added to the Friday entertainment tab, and two pages of regional destination stories were added to the Sunday travel section.
Also, the Friday “Your” page in the regular paper (the last vestige of the daily “living” section) was axed.
This means 16 half pages and one full size page were reduced from the weekly page count; with four half pages and two full pages added. The net reduction is five full-page equivalents, from a SeaTimes that’s already been cut-crazed in the past three years.
The op-ed pages on Wednesday and Friday were axed, leaving a single opinion page Monday-Saturday.
Sunday sports was cut to eight pages plus ads. We’ll see if any pages get restored for college football season, traditionally the biggest time for Sunday sports coverage.
The Saturday “Weekend Preview Edition” of the Sunday paper is now a cutdown miniature, with all the ads (including the insert flyers) but less editorial (even canned wire copy). No local news content (not even the pre-written feature “cover stories”). Only four pages of sports copy (heavy on previews of Sunday’s and the following week’s events).
The SeaTimes is expanding in one department. It’s taking over the Everett Herald’s home delivery operation.
from thelmagazine.com
There’s bad news today for the book snobs out there.
(You know, the droning turned-up-nose guys who love to whine that Nobody Reads Anymore, except of course for themselves and their own pure little subculture.)
Turns out, according to a study co-sponsored by two industry groups, book sales are actually up over the past three years!
Yes, even during this current economic blah-blah-blah!
Ebook sales have particularly exploded.
But regular dead-tree volumes are also up; except for mass market paperbacks (perhaps the most vulnerable category to the ebook revolution).
Adult fiction sales rose 8.8 percent from early ’08 to late ’10. Also doing well, according to the NYT story about the study: “Juvenile books, which include the current young-adult craze for paranormal and dystopian fiction….” (Good news for people who love bad news, to quote a Modest Mouse CD.)
Oh, as for that other commercial communications medium? You know, the medium that the book snobs call their sworn enemy?
The AP headline says it all: “Pay TV industry loses record number of subscribers.”
Has the above inspired you to get with the program, hop on the bandwagon, follow the fad, and start buying some more books for your very own?
I have a great little starter number, just for you.
nalley's display at the puyallup fair (1948); from the tacoma public library
It’s the end of the (canning) line in Nalley Valley.
The 93-year-old south Tacoma food processing giant became a regional (and in some product lines, international) hit in potato chips and dips, pickles, pancake syrup, chili, mayonnaise, salad dressings, and countless other packaged-food products.
But the company was sold back in the ’60s, and resold several times since. Various managements sold or closed Nalley’s product lines over the years.
Finally, the New York equity group that now owns the brand has shut the last part of the plant, which made chili and canned soups.
The equity group, and its trademark licensees, promise to keep the Nalley’s brand alive, in the same way that there’s still a beer called Rainier (made at the Miller plant in L.A.).
But that’s not the same thing as actually being here, employing local workers, sourcing from local farmers.
(In the comments that follow the hereby-linked Seattle Times story, one commenter notes the current owner of the Nalley’s pickle line touts it as “The Taste of the Northwest,” even though the stuff’s now made in Iowa from cukes grown in India.)
The Seattle Times has affirmed something I’ve known personally for a while now.
The only jobs to be had in this town are for software programmers.
Can I learn to program at my stage of life?
And if so, any recommendations where/how?
And would it even be worth it?
I’d rather not go through a whole costly course of study, only to find the companies still want only to hire the young and/or already employed.
And I don’t want to study technologies that will cease to be in demand after I’ve started studying them.
pride parade viewers at the big popsicle
(A relatively long edition this time, bear with.)
bachmann family values?
Barack Obama ate John Boehner’s lunch, and then he turned Boehner out to go preach to his conservative colleagues that this eating of the lunch by Obama is actually politically good for them.
sorry, maude, you didn't make the list
Thursday was “Last Thursday” at the beloved 619 Western art studios. This low-key ending came after 30 years of magic and memories (including two events curated by this web-correspondent), and about a year of wrangling with the city and the state. (The latter wants to drill its viaduct replacement tunnel under the building, and claims the 1910 warehouse structure’s too unsound, in its current condition, to withstand being dug under.)
The 100-some tenants in the building’s six floors thought they had an agreement to get out of the building by next February, while the city offered relocation assistance. Any hope of actually preserving 619 for artists, during or after any rehab, seemed to dissolve away during these negotiations.
Then, earlier this month, came the surprise. The city decided the whole place was just too unsafe even for short-term occupancy. Everybody had to be out by October 1. Public events in the building were banned effective Aug. 1.
One final “First Thursday” was hastily scheduled, retitled “Last Thursday.”
One last chance to ride Seattle’s third coolest elevator.
One last chance to pay respects to the memory of Su Job, the building’s heart and soul for so many years.
One last chance to admire the familiar rickety stairwells.
One last chance to admire, and buy, locally-produced art in the corridors and the studios. (Only some of the building’s spaces were open this final night. Many tenants were already packed or packing up.)
Yes, 619’s got structural damage.
Yes, it needs shoring up, even if the tunnel project’s stopped.
And maybe its occupants would have to split the premises during a rehab, if not sooner.
But it still didn’t have to go down like this.
And I still want the place preserved, as an artist space.
(Some artists will sell their wares outside 619 next First Thursday, Aug. 4. That same evening, a tribute show to the building, Works of History: 30 Years of Anarchy, opens at Trabant Coffee, 602 2nd Ave.)
menu screen from 'mickey, donald, goofy: the three musketeers'