James Bond E-Books Show New Killer Publishing Model

Ian Fleming Publications is hoping to cash in on its classic James Bond novels by releasing them as e-books, but the savvy company is cutting out the middleman and bypassing its publisher, Penguin, altogether. It is a ruthless move worthy of 007 himself, and it will become more common as e-publishing becomes easier in the future. 

Damon Brown

The flagship book, Casino Royale, was the first Bond novel. In total, Ian Fleming Publications is coming out with 14 e-books.

First, when it comes to publishing, the barrier to entry is lower than ever. It previously required a manufacturing plant and a shipping network to deliver books, but the Amazon (AMZN) Kindle, Apple (APPL) iPad, and other devices now offer publishing tools and can wirelessly get the content to customers. More importantly, readers are becoming more comfortable with digital books. 

Damon Brown

Digital sales are increasing, but there is still debate over whether people are interested in reading on a tablet or a dedicated e-reader.

Second, traditional publishers like Penguin were totally unprepared for the digital revolution. Like big box stores selling physical units or cable companies selling overpriced packages, publishers had a natural reason to defend print books because it represented such a big part of their business model. However, a less generous view is that publishers weren't defending their territory, but just were too short-sighted to see the changes happening. They are now scrambling to figure out a digital strategy. Some publishers like Callaway Digital Arts are gracefully moving into new media, but most either paralyzed by the new world order or, worse, bickering with the content creators and their representatives.

Here's Corinne Turner of Ian Fleming Publications talking in the trade publication The Bookseller:

Penguin accepted long ago that they didn't have the digital rights. Of course they wanted to do it, but why would we? With a brand like ours, people are looking for the books anyway, so the publicity and marketing will happen. 

Damon Brown

Turner says that about 10 percent of its U.S. sales are digital, a large amount for a small company.

Ouch. Turner is right: What exactly did Penguin offer them to make it worth giving up a bigger cut of the cover price? As I mentioned, distribution isn't an issue anymore. As Turner says, marketing isn't an issue here, either. For a less known author or book series, Penguin would give the credibility, but in this case, Bond would actually give Penguin credibility. The publisher should have negotiated hard, and even given up some profit, just to get the digital rights in its stable. 

Damon Brown

Penguin claims it will not renew the James Bond publishing deal without digital rights included, but, as stated before, it has little to nothing to barter. And what other publisher wouldn't want the James Bond catalog?

It seems like publishers are the last ones to realize that they aren't really gatekeepers any more, especially when it comes to old but popular books like the James Bond catalog.  Expect other big brand authors and book series to start handling their own digital distribution, too.

Damon Brown

Ironically, MGM, which handles the James Bond movies, filed for Chapter 11 bankruptcy the same day this was announced. [Subnote, credit to David P. Hamilton, Senior Editor, BNET] And unfortunately MGM's financial troubles have also put the third Daniel Craig installment of the 007 movie series into limbo.

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