Showing posts with label Random House. Show all posts
Showing posts with label Random House. Show all posts

Tuesday, September 19, 2017

An Insider's View of the Publishing Business

Random House: 1745 Broadway, NYC
Note: I was sad to hear that Daniel Menaker passed away of cancer in 2020 at age 79. Menaker championed works by authors such as Billy Collins, Alice Munro, and George Saunders. An author himself, Menaker wrote several well-received books. You can read about him here.

A while ago, I ran across an article in New York Magazine by Daniel Menaker, a senior literary editor at Random House. The title caught my eye: What Does the Book Business Look Like on the Inside?

This is a question every aspiring author wants answered, especially if they are trying to make a choice between traditional and self-publishing. But as I read the article, I realized that it clarified my own experience with Random House, and it bolstered my decision to abandon the traditional publishing route with my subsequent books.

In order to get the full sense of what Menaker had to say about his experiences with the New Yorker, followed by Random House and HarperCollins, I ended up reading his entire book. It turned out to be quite enlightening, not just in terms of what publishers do, but how they manage to exist in an environment that is, to use Menaker's term, "insane."

What Editors Do

For twenty-six years, Menaker was an editor at the New Yorker, where he received and edited fiction by some of the outstanding writers of our time. When the New Yorker was purchased by Newhouse, and a new chief editor was appointed, fiction was moved to the rear, and Menaker was "offered" a job at Random House. (He says he was "recycled.") Before leaving he got this warning from John Sterling, an agent and publisher:
"You do realize that what you will be doing is essentially a sales job. If seventy-five per cent of what you do now is editing and reading and writing opinions about fiction and twenty-five is office stuff and meetings and so on, that percentage will be reversed." (p 143)
Nothing could be more true. We think editors at publishing houses edit. The truth is they spend most of their time responding to memos, developing profit-and-loss statements, figuring out advances, supplementing publicity efforts, fielding calls from agents, attending meetings, and so on. They edit on weekends and evenings, and on the train as they are commuting. As Menaker puts it, "You have to give up reading for pleasure." (p 168)

Insane Publishing

At one point, Menaker realized that most books published by Random House (and other publishers) are privished, rather than published (p 152). By "privished" Menaker means the publisher quietly suppresses books, whether intentionally or not. A book is privished when it is not promoted, when few copies are printed, and when the publisher essentially buries it.

Privishing has become the norm for publishers for various reasons, the first of which is that there are limitations on budgets. The second is that editors compete for those budgets.
"Now I have been senior literary editor at Random House for six months. I remain in many ways ignorant of the realities of book publishing. But it begins to dawn on me that if a company publishes a hundred original hardcover books a year, it publishes about two per week, on average. And given the limitations on budgets, personnel, and time, many of those books will receive a kind of “basic” publication. Every list—spring, summer, and fall—has its lead titles. Then there are three or four hopefuls trailing along just behind the books that the publisher is investing most heavily in. Then comes a field of also-rans, hoping for the surge of energy provided by an ecstatic front-page review in The New York Times Book Review or by being selected for Oprah’s Book Club. Approximately four out of every five books published lose money. Or five out of six, or six out of seven. Estimates vary, depending on how gloomy the CFO is the day you ask him and what kinds of shell games are being played in Accounting." 
A No-Can-Do Attitude

The negative attitude that editors develop about manuscripts and proposals is in part because budgets are limited, and is in part driven by competition. But mindless rejection is also an inherent feature of publishing. (Just look at these idiotic rejections of famous authors here, here, and here.) Menaker attributes the negativity of editors to the harsh realities of publishing, but you will notice there is a bit a glee in these comments. Editors are not only competing for budgets, they are engaged in what may be described as a pissing contest in snark.
"Publishing is an often incredibly frustrating culture. If you want to buy a project—let’s say a nonfiction proposal for a book about the history of Sicily—some of your colleagues will say, “The proposal is too dry” or “Cletis Trebuchet did a book for Grendel Books five years ago about Sardinia and it sold, like, eight copies,” or, airily, “I don’t think many people want to read about little islands.” When Seabiscuit first came up for discussion at an editorial meeting at Random House, some skeptic muttered, “Talk about beating a dead horse!” 
You're more likely to be "right" if you express doubts about a proposal's or manuscript's prospects than if you support it with enthusiasm." (p 164)
Putting the Random in Random House

The original impetus for Random House came from Bennet Cerf, who suggested publishing "a few random books on the side." Randomness has continued to be one of the publisher's defining features.
"[F]inancial success in frontlist publishing is very often random, but the media conglomerates that run most publishing houses act as if it were not. Yes, you may be able to count on a new novel by Surething Jones becoming a big best seller. But the best-­seller lists paint nothing remotely like the full financial picture of any publication, because that picture’s most important color is the size of the advance. But let’s say you publish a fluky blockbuster one year, the corporation will see a spike in your profits and sort of autistically, or at least automatically, raise the profit goal for your division by some corporately predetermined amount for the following year. This is close to clinically insane institutional behavior." (p 166, 167).
There is, in short, very little that is sensible about the decisions made by publishers. The question that comes to mind is: How can they continue to exist in the corporate world? (The answer to that question leads to yet another disturbing question: How can any corporation continue to exist given their counter-intuitive practices?)

Insiders and Outsiders

Menaker expresses his frustration with publishing, and with the seemingly contrary roles that editors hold, poignantly in this passage:
"I think it’s impossible to do an editor-in-chief’s job very well for any length of time. If I belong anywhere, it probably isn’t in publishing. But, then, I keep forgetting that this sense of dissatisfaction explains why work is called “work.”  ... When it comes to corporate life, especially at its higher altitudes, factors of all kinds tend to get tangled up with each other. And it’s impossible to untangle them, and pointless, and fruitless, to try." 
Publishing is a complicated affair, but unlike Menaker, I don't think it is "impossible, pointless, or fruitless" to try to untangle the factors that drive the insane world of publishing.

Underneath the ubiquitous background noise of runaway capitalist insanity, there is a counter-productive and equally insane attitude that publishers share with most professions. This can be summed up as "us against them."

Humans form groups - it's what we do as a species, and we wouldn't survive without the drive to congregate. One of the things groups do is identify insiders and outsiders. This can lead to some unfortunate consequences in societies that lack a broader concept of belonging. Police, whose function is to protect and serve, come to identify "their own" as insiders, and civilians (i.e. the public) as outsiders, and potential enemies. Medical professionals end up treating patients as outsiders, people who do not share the rights, or respect, offered to their own group. Politicians end up treating their constituents as opponents, as people they need to manipulate, dominate, or avoid, rather than represent.

Following right along, publishers identify writers as "outsiders," as "them," even though their income depends on the people they publish. This, I believe, is a significant component of the attitude that is shared almost universally among publishers, and which Menaker so eloquently describes in his book. The drawback to this adversarial attitude, particularly as it relates to publishing, is one I attempted to explain in my first meeting with my editor at Random House.

"You sell ideas," I said. "And that is what makes publishing different."

I don't think she understood what I was trying to say. But, there is a good chance Menaker does.
__________

Excerpts are from My Mistake: A Memoir, ­published by Houghton Mifflin Harcourt. © 2013 by Daniel Menaker.

Friday, September 6, 2013

Random House Still Trying to Outrun Amazon

This fascinating little industry tidbit (below) appeared in Publisher's Weekly a couple of weeks ago. Wattpad, for those of you who are not familiar with the site, features free chapters of self-published books. It boasts a readership in the millions. (Its Alexa ranking in the US is 2,553, which is very good.) This makes Wattpad an excellent platform for new writers, who generally care more about getting noticed than raking in the cash. (That comes later.)

Given Random/Penguin's recent launching of its various e-imprints, Loveswept among them, I was wondering how it was going to compete with the lure of Amazon's KDP Select, a program that has dominated the self-publishing scene for more than a decade. KDP Select allows writers to give away their books during 5 out of every 90 days in exchange for exclusive distributing rights. As a promotional tool. nothing beats giving something away for free, so Amazon, which has an immense reach, drew writers to it in droves.

Random/Penguin's strategy, apparently, is to give books away for free before they are released. Chapters will be published on the Wattpad site in serial form, another tried-and-true method for hooking readers.

The progress of Knox's novel, Truly, is something the industry will no doubt keep a close eye on. If Random/Penguin's strategy works, it will solve the pesky problem of how to build an online readership while undercutting Amazon's most successful marketing scheme.

Random House's Loveswept Partners With Wattpad

Publisher's Weekly, Aug 19, 2013

Thanks to a deal between Random House's digital-only romance imprint, Loveswept, and Wattpad, author Ruthie Knox will have her new series appear in serialized form on the online writing (and reading) community. Through the deal, Knox's novel Truly, which is the first title in a planned series, will debut on Wattpad as a free story in the fall, before being released as an e-book by Loveswept in August 2014.

Chapters from Truly will begin appearing on Wattpad on September 3, and continue to appear until the conclusion to the story is posted on November 4. Throughout the process, RH will invite Wattpad readers to take part in choosing the cover for the e-book. The effort, RH said, will also allow a high level of author access to Knox as readers will be able to use Wattpad's platform, which has mobile engagement, to contact her

Allison Dobson, v-p of business development and digital publishing at RH, said that Wattpad offers an "innovative approach to content creation and distribution," noting that the site already draws "millions of voracious readers" from all over the world.

Thursday, August 15, 2013

Random House Publishes Five Novels By New Authors

Last November, Random House announced the inauguration of three new digital imprints: Hydra for science fiction, fantasy and horror; Flirt for "new adults"; and Alibi for mystery and suspense. Random House, of course, has many imprints, but what was unusual about these imprints is that they were digital only. Even more unusual was the fact that authors could submit their manuscripts directly to Random House - without an agent. Major publishers have not allowed unchaperoned authors to enter their hallowed halls for decades.

The announcement, though welcomed by potential authors, was received with skepticism by those who knew better; In the publishing industry the deck is always stacked in favor of the house. The House, in this case, was offering "revenue sharing" in place of an advance. Random House was also requiring authors to foot the expenses of production, and, most onerous of all, demanding rights for the term of the copyright. (Why even have a copyright in that case?) John Scalzi called the Random House conditions "a horrendously bad deal" and advised authors to "run away" as fast as their legs could carry them.

Random House eventually bowed to pressure and offered a more traditional deal for writers. Apparently, that deal was sweet enough to attract several new authors. Of the six titles Alibi will release next year, five are by debut authors.

There can't be any doubt that the publishing industry will keep a watchful eye on these books. Their success could indicate a new era for the big publishers, one in which they can have their cake and sell it, too. 

RH Imprint Alibi Announces Debut Titles

Publisher's Weekly, August 14, 2013

Alibi, the digital-original mystery and thriller imprint of the Random House Publishing Group, announced the acquisition of its first six titles. The new publishing program will launch with The Last Clinic by Gary Gusick, the first novel in the Darla Cavanaugh mystery series.

Alibi senior editor Dana Isaacson has also acquired the following titles, scheduled for release in late 2013 and throughout 2014: The Garden Plot, by Marty Wingate; The Final Age, by Pierre Ouellette; Maxwell Street Blues by Marc Krulewitch; The Travel Writer by Jeff Soloway; and A Penny for the Hangman by Tom Savage.

Thursday, July 4, 2013

Correspondence From My Pen Pal at Random House

I love getting letters from Random House. They always spice up their communications with such inspiring phrases: "sacred trust," "supply chain," cutting-edge," "market analytics capabilities," and, most stirring of all, "penetration of emerging markets." (Be still my heart!) 

What does this letter actually mean? Nothing, really. For those who like to read between the lines, one could infer that RH/Penguin feels left out of the ebook market. (We don't feel their pain.) Unfortunately for them, Amazon moves faster and more efficiently than traditional publishers. What's more, Amazon has captured the hearts (and market) of self-published authors everywhere.

Run, Markus! Run!




MARKUS DOHLE
CHIEF EXECUTIVE OFFICER
MEMBER OF THE BERTELSMANN MANAGEMENT SE EXECUTIVE BOARD
July 1, 2013
To Our Authors,

Today, Random House and Penguin are officially united as Penguin Random House. For us, today is a beginning, and I very much want to reach out to you on our first day as a new company, because it all begins with you: you and the books you write and entrust to us to publish. For us, this is a sacred trust, one that before today Penguin and Random House have honored separately. Now it is a commitment and a privilege that unifies us.

Going forward, we will be defined by our mission for publishing with passion the books you write. In our author-focused, publisher-empowered culture, we respect that your most important day-to-day relationship is with your editor and your publishing team, and that will remain untouched at Penguin Random House.

Continuity within Penguin Random House will benefit all of us: The continuity of nearly 250 imprints and publishing houses worldwide, which will retain their individual identities and autonomy. The continuity of experienced, knowledgeable global and local leadership teams, drawn from both Penguin and Random House, who will fully support our publishers in realizing their objectives and your vision for your books. The continuity of vigilant protection of your intellectual property and copyrights.
Over time, as we gradually begin to integrate our companies, we will learn from one another and evolve to better serve you and your readers. With both businesses performing well, we can take our time with this process, to better understand and analyze the complexity and nuances of these important decisions.

One key development I am personally most excited about involves the future investments we will be making on a global scale for growing your readership in all markets. We will be strengthening our supply chain and our support services for physical booksellers while broadening opportunities in the digital arena. We will be developing more cutting-edge marketing tools and programs, further expanding our consumer insights and market analytics capabilities, and continuing to accelerate our penetration of emerging markets worldwide, all of which will allow us to maximize the number of readers we reach on your behalf.

The creation of our new company is the strongest possible affirmation of the future of trade publishing, and of the importance of maintaining strong and vibrant publishing companies, with diverse and innovative editorial teams. Our unprecedented alignment of resources and relationships is built on this foundation: the passionate belief that connecting authors and readers is at the heart of all we strive to accomplish together. On behalf of my colleagues, I deeply thank you for the opportunity to publish your books.

All my best,

Monday, April 1, 2013

Random House Opens Its Doors to Self-Publishers, Perhaps

Article first published as Random House Opens Its Doors to Self-Published Authors, Perhaps on Blogcritics.

Vanity of vanities; all is vanity

NOTE: Random House has now closed its Hydra imprint.

With a few famous exceptions, self-publishing, aka “vanity” publishing, has always been the kiss of death for writers. For aspiring writers hoping to take a seat in the hallowed halls of authordom, launching a novel with a self-published imprimatur was almost like having a scarlet A stitched onto your bodice – as far as the major houses were concerned.

Then, along came Fifty Shades of Grey, originally published as an ebook by an obscure “virtual” publisher in Australia. Within a year, Amazon announced that it had sold more copies of Fifty Shades than Harry Potter. The publishing world was shaken. An ebook, fan fiction no less, had outsold the top-grossing series of all time. Random House, still smarting from having turned down J.K. Rowling, leapt to its metaphorical feet and did the unthinkable. It picked up a self-published ebook. This was a first for the world’s largest publisher, an opening of doors that had, up until now, been almost impossible to enter. It was hailed as a turnaround for the industry. But was it?

Random House’s sudden epiphany - “there’s gold in them thar hills!” - was followed by yet another Eureka moment. Anybody can sell electronic books! Random House immediately threw its hat into the ring, and started its own digital imprints: Alibi (mystery), Loveswept (romance), Flirt (for “New Adults,” whoever they are), and Hydra, a sci-fi imprint aptly named after a multi-headed reptile which was so poisonous even its tracks were deadly. Notwithstanding the ominous association with Greek monsters, Random House held out the biggest carrot of all time: Authors could submit their works, even those “previously published,” directly to Random House, thus bypassing the almost insurmountable hurdle of snaring an agent.

Naturally, there was a catch – or two.

The first catch was that authors would have to bear the costs of publication. This is also true for self-published authors, though now those costs would be exclusively determined by Random House. The second was that instead of receiving the traditional advance against publication, there would be “profit sharing.” The publisher and author would split revenues 50/50. As it turns out, “profit sharing” is simply a rebranding of the Subsidiary Rights clause of the standard Random House contract, in which proceeds of electronic books, audiobooks, translations, etc. are divided equally between publisher and author.

In short, by removing up-front payments to the author, while simultaneously eliminating all of its own expenses, Random House was imitating a vanity press. But, unlike vanity houses, they would take half of the profits. Random House was hoping nobody could add.

The Science Fiction and Fantasy Writers Association (SFWA) not only added, they subtracted their members. In a scathing letter sent to its members on March 6, the SFWA stated that it had “determined that works published by Random House’s electronic imprint Hydra cannot be used as credentials for SFWA membership, and that Hydra is not an approved market.”

The reason? “Hydra fails to pay authors an advance against royalties, as SFWA requires, and has contract terms that are onerous and unconscionable. Hydra contracts also require authors to pay – through deductions from royalties due the authors – for the normal costs of doing business that should be borne by the publisher.”

Needless to say, there are serious ramifications from being blacklisted by sci-fi’s largest and most influential writer’s association. Random House was compelled to make an immediate rebuttal.

“We read with interest your posts today about the new Random House digital imprints and our business model,” wrote Allison Dobson, V.P., Digital Publishing Director. “While we respect your position, you’ll not be surprised to learn that we strongly disagree with it, and wish you had contacted us before you published your posts.”

The opening of this letter precisely mimics the simulated regret that politically correct parents employ when punishing their wayward children: We like you, but we don’t like what you did.

Sci-fi wrists duly slapped, Allison now proceeded to the spin, “with a profit-share model … the author and publisher share equally in the profits from each and every sale. In effect, we partner with the author for each book.” Allison describes this partnership as “an all-encompassing collaboration.”

(Translation: We are on your side. We’re really your friends.)

Addressing costs, Allison says, “These costs could be much higher--and certainly be more stressful and labor-intensive to undertake--for an author with a self-publishing model. Profits are generated once those costs are subtracted from the sales revenue. Hydra and the author split those profits equally from the very first sale.”

(Translation: You’re too young to handle this. Leave everything to us. We know what’s best for you.)

As a disciplinary device, this letter was nothing short of brilliant. It hit every aspiring author’s weak spots in a way that nobody could resist. But Random House has had plenty of practice at this game. These tactics are the stock-in-trade of publishing houses: shining promises, followed by intimidating jargon, followed by incomprehensible terms.

SFWA did not recant, and Random House was forced to comply with the usual standards of print publication. Authors submitting work to Random House’s electronic imprints are now offered a choice of the advance against royalties model, with a royalty of 25 percent of net receipts, and the publisher “will cover production, shipping, and marketing for all formats at 100 percent of cost.”

The day has been won by organized labor, but in reality nothing has changed. Authors still provide the raw materials (for a small percentage), and publishers provide the finished goods for the bulk of the profit. Whether it takes on a new guise, sports a new brand, or appears to adopt a new format, The thing that hath been, it is that which shall be; and that which is done is that which shall be done: and there is no new thing under the sun.

Get the details:
http://www.digitalbookworld.com/2013/sci-fi-and-fantasy-writers-group-condemns-random-house-hydra-digital-imprint/

http://www.publishersweekly.com/pw/by-topic/digital/content-and-e-books/article/56244-rh-responds-to-sfwa-slamming-its-hydra-imprint.html


Tuesday, November 6, 2012

Biggered ... what the Penguin/Random House merger means for writers

Do not go to jail ... collect ALL the books!

Last week I received this announcement from Random House:


"To Our Authors, 

Our most important mission will always be to publish the work you entrust to us for everyone, everywhere, in every format, and on every platform. That mandate is a primary motivation behind Bertelsmann and Pearson, the parent companies of Random House and the Penguin Book group, signing an agreement this week to combine our respective trade book activities.

One of the defining characteristics of the new company I am most excited about is that it will be author- publisher- and editor-centered – just like Random House. When we join together we will be retaining the distinct identities of both companies’ imprints and you will benefit from an extraordinary breadth of publishing choices and editorial talents and experience. Our Random House imprint leadership remains endowed with creative autonomy, and financial resources, to decide which books to publish, and how to publish them. We expect this to continue in our new business, where we will build on the history and heritage of each of our storied brands. Your relationship with your editor and your publishing team will be unaffected by the new company.


A diversified retail and distribution marketplace for print and digital formats remains a key priority for Random House now, and in the future. Our investments in enhancing the supply chain and our marketing support will supply more services for physical retailers, while expanding our opportunities in the digital space. We expect to create more tools to help you take full advantage of the many online marketing platforms for growing your readership. And we certainly want to continue to expand our Author Portal, which has become an enormously popular and useful resource for so many.

For now, it is business as usual at Random House and Penguin. Soon, we hope to join together to offer an even deeper backlist, alongside our newly published titles. In our partnership, we will be even better positioned to provide copyright protection and support your intellectual property.

Random House and Bertelsmann believe strongly in the future of trade book publishing, and our continuing commercial and cultural success is a major reason why Bertelsmann is extending and expanding its investment and support with the new company. For us, separately and in partnership, it is and always will be about the books. Your books.

All my best, 

Marcus Dohle"

If you are as impressed as I am by large quantities of horse manure, the true significance of this announcement will have completely escaped you.

So now, boys and girls, we will have a pop quiz.

What is the underlying meaning of the above passage?

a) This merger does not affect me, because I am never going to get published anyway.
b) WOW! If I ever do get published by Bertelsmann/Pearson/ Random House/Penguin, I'll be famous all over the world, and maybe even in Outer Space.
c) What the hell is a deeper backlist?
d) It is and always will be about the books. Your books.

(The correct answer is: e) We're screwed.)

(The first sentence is the tip-off. Notice the close proximity of the terms: "entrust", "mandate", "mission" and "everyone, everywhere, in every format, and on every platform.")

The reason that the union of the two largest publishers in the world is terrible for writers is unclearly stated in paragraph two: 
 "we will build on the history and heritage of each of our storied brands."

The
 history of these publishing houses has nothing whatsoever to do with storied brands. In fact, it has nothing to do with "marketing support", "platforms", or "supply chains" either. The origin of Random House, as stated by Bennet Cerf,  was "to publish a few books on the side at random."  And so they did. Many random authors, who couldn't find a home elsewhere, were published by Random House (Ayn Rand and Jerzy Kosinski among them).  The heritage of Penguin was to publish LolitaLady Chatterly's Lover, and Deer Park, books which had been rejected by scores of publishers (back then we still had scores), and which, once they were finally published, made it onto banned book lists everywhere.

This is the proud heritage of Random House and Penguin: to publish groundbreaking new concepts without regard to the "market." Because that is the purpose of a publishing house - the dissemination of ideas.

We will be reading fewer of them in future.

Bertelsmann, a privately owned company based in Germany, owns publishing, music, and broadcasting companies in 60 countries, including: BBC Books, Multnomah, Triumph Books and the largest English trade publishing house in the world - Random House, which in turn owns Crown Publishing Group, Knopf Doubleday, Crown, Harmony Books, Ten Speed Press, Tricycle Press, Celestial  Arts, Three Rivers Press, Broadway Books, Clarkson Potter, Watson-Gupthill, Back Stage Books, Anchor Books, Doubleday, Vintage, Pantheon Books, Delacorte, Fodor's, Bantam Dell, Del Rey, The Dial Press, The Modern Library, and ... (wait for it) ... One World. 

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