BISG Annual Report 2012−2013 | © 2013 Book Industry Study Group, Inc. BOOK INDUSTRY STUDY GROUP annual report 2012-2013 BISG Annual Report 2012−2013 | © 2013 Book Industry Study Group, Inc. ©2013 Book Industry Study Group, Inc. All rights reserved. No part of this report may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except with the express written consent of the Book Industry Study Group. Book Industry Study Group 145 West 45th Street, Suite 601 New York, NY 10036 646-336-7141 www.bisg.org BISG Annual Report 2012–2013 ISBN 978-1-936757-25-1 Copyediting: Patricia Fogarty Cover design: Paige Poe, Augment Digital Workshop Printed and bound in the United States of America by Lightning Source, an Ingram Content Group Company. Special thanks to Lightning Source for its generous support of this report. 2 BISG Annual Report 2012−2013 | © 2013 Book Industry Study Group, Inc. Table Of Contents A Letter from the BISG Chair and Executive Director 5 Standards and Best Practices 7 Committee Activities 7 Content Structure Committee 7 EDI Committee 8 Identification Committee 8 Machine Readable Coding Committee 9 Manufacturing & Distribution Committee 9 Metadata Committee 9 Rights Committee 9 Subject Codes Committee 10 XBITS Committee 10 Education and Events Making Information Pay 11 Making Information Pay for Higher Ed 12 2012 Annual Meeting of Members 13 Executive Lunch Series 14 Product Metadata: Benefits and Challenges 14 Opening the Book 15 Professional Development Book Metadata and ONIX: Practical Guidance and Best Practice 15 15 BISG at BookExpo America (BEA) 16 BISG & NISO at ALA Annual Conference 16 BISG Webcasts 17 Additional Industry Events 19 Research and Information BookStats 3 11 19 20 BISG Annual Report 2012−2013 | © 2013 Book Industry Study Group, Inc. Consumer Attitudes Toward E-Book Reading 21 Student Attitudes Toward Content in Higher Education 22 Faculty Attitudes Toward Content in Higher Education 23 Financials, Operations, and Governance Audited Financial Results 24 Membership 25 Staffing and Administration 25 Infrastructure and Website 25 Social Media 26 Board of Directors 26 FY 2013–2014 Budget 27 Appendices 28 Appendix 1: New BISG Members in Fiscal Year 2012–2013 28 Appendix 2: BISG Board of Directors 29 Appendix 3: Current BISG Committees 32 Appendix 4: Sponsors of BISG Work 33 FY 2012–2013 Sponsors 33 FY 2012–2013 Supporting Organizations 34 Appendix 5: Professional Advisors to BISG 35 Legal Counsel 35 Auditor 35 About BISG 4 24 35 BISG Annual Report 2012−2013 | © 2013 Book Industry Study Group, Inc. A Letter from the BISG Chair and Executive Director Dear Members and Industry Partners, On behalf of the Board and staff, we’re pleased to present the Annual Report of the Book Industry Study Group for the fiscal year ending June 30, 2013. The Book Industry Study Group is in a state of transition, and it is exciting. Ken Michaels BISG Chair Len Vlahos BISG Executive Director This past fiscal year, the BISG Board and Executive Committee began a serious dialogue about the role and relevance of trade associations in the publishing ecosystem. That dialogue led to a complete reexamination of everything BISG is and does: The Board held two significant brainstorming sessions, a Working Group was constituted to reevaluate our mission, and we surveyed stakeholders from across the world of published content to understand their points of friction, their views on BISG, and more. This effort continued into the new fiscal year, and it has borne fruit. We will unveil a new mission statement at our Annual Meeting of Members in September, where we will also outline our growing and evolving portfolio of work. The Board will also begin the process of reevaluating the BISG brand. In addition to the work at the Board level, the BISG office went through a significant transition. In the past year, BISG said goodbye to two long-standing and highly valued employees. Angela Bole, Deputy Executive Director, left to become the Executive Director of the Independent Book Publishers Association, and Karen Forster, Director of Standards & Best Practices, moved to Germany. While acknowledging the challenges inherent in staff turnover, we elected to embrace change and used the opportunity to restructure and reorganize our personnel: Nadine Vassallo was promoted from Project Coordinator to Project Manager for Research & Information; Jeanette Zwart, a former Vice President of sales at HarperCollins, joined BISG in June as our new Marketing Strategist; and in June we welcomed Julie Morris, Project Manager for Standards & Best Practices, and Thomson Guster, Coordinator of Education and Events. Julie comes to BISG from the Columbia University Center for Digital Research and Scholarship, and Thomson from the Kelly Writers House in Philadelphia. Of course, this transition didn’t stop us from offering members top-notch services and programs. Key accomplishments for fiscal year 2012–2013 included the following. In partnership with our colleagues at the Association of American Publishers, and working with Bowker, we published Volume Three of BookStats, the only comprehensive, extrapolated view of the entire publishing ecosystem. With two years of experience under our belts, we were able to refine and tighten procedures, allowing us to publish Volume Three of Book Stats two months earlier than either of the previous annual volumes. 5 BISG Annual Report 2012−2013 | © 2013 Book Industry Study Group, Inc. We published new volumes of our two important consumer research studies: Consumer Attitudes Toward E-Book Reading and Student Attitudes Toward Content in Higher Education. Both reports are prepared in partnership with Bowker, as is Faculty Attitudes Toward Content in Higher Education, a companion piece to Student Attitudes. We held our tenth annual Making Information Pay (MIP) conference and our third annual Making Information Pay for Higher Ed conference. Each presented a robust program of content, and for the first time, MIP was the launching pad for BookStats data. We held two sold-out Executive Lunches during the past fiscal year, one on metadata and one on the debate around the container vs. open-web model of publishing content. We entered the area of professional development, offering two sold-out sessions of Book Metadata & ONIX, Practical Guidance and Best Practice, presented by Graham Bell of EDItEUR. Working in close partnership with groups from more than a dozen countries, we helped create and launch Thema, the new global standard for book classification. Our Metadata Committee approved the first substantial revision to our metadata best practices in several years. This valuable industry resource is being published in September 2013. Our Content Structure Committee published BISG’s Field Guide to Fixed Layout for E-Books. The first in a series of field guides intended to provide practical advice on e-book development, Fixed Layout addresses an important need in the industry. It was a busy year at BISG, and it was a transformative year. The changes we’re implementing not only will spill into the new fiscal year; they are becoming a part of our DNA. We will not rest on past accomplishments, nor will we be slaves to the status quo. The Board and staff will embrace change when and where it makes sense, and will continue to drive this organization forward. And, of course, we can’t do any of this without you. At our Making Information Pay conference in May, we talked about “we first” thinking, and how BISG is a conduit for shared solutions and consensus. We urge you to get involved in the organization and to be in contact with us. We are only as strong as the participation of our members. Sincerely, Ken Michaels, Global Chief Operating Officer, Macmillan Science and Education Len Vlahos, Executive Director, Book Industry Study Group 6 BISG Annual Report 2012−2013 | © 2013 Book Industry Study Group, Inc. Standards and Best Practices BISG’s standards and best practices work is undertaken through its many Committees and Working Groups. All Committees are open to all BISG members; BISG relies on its members’ generous donation of time and experience to create recommended best practices and tools for the benefit of the entire supply chain. Committee activities are coordinated at a strategic level by the BISG Coordinating Council, which is composed of the Coordinating Council Chair, all Committee Chairs, and the BISG staff. The Coordinating Council meets five times a year to set and measure the activities of BISG’s Committees, while balancing those activities with BISG’s wider efforts in standards and best practices, education and events, and research. The Coordinating Council is chaired by Wendell Lotz of Ingram Content Group. Committee Activities Content Structure Committee Chair: Bill Kasdorf, Apex CoVantage The Content Structure Committee is charged with providing clear, useful, and authoritative guidance on structuring content, whether destined for print or digital output and delivery, through the creation of highly focused documents and web postings. The Committee also liaises with other trade associations and standards bodies engaged in a similar space, such as AAP, BIC, EDItEUR, IDPF, and NISO, to share information and avoid duplication of effort across the industry. The Committee was also charged with identifying and addressing issues of concern to BISG members surrounding the newly released EPUB 3 standard, as well as promulgation and support of the standard. EPUB is a distribution and interchange format standard for digital publications and documents based on Web Standards. The Content Structure Committee was very active during the past fiscal year: The Committee, with the aid of the BISG staff, continued to maintain BISG’s EPUB 3 Support Grid. The Grid is meant to show how various reading systems and platforms are adopting and implementing key features of the EPUB 3 Standard. The Grid was updated five times in the fiscal year. The Fixed Layout Working Group published version one of a Field Guide to Fixed Layout in E-Books. The guide gives practical advice on how, when, and why to publish digital content in a fixed-layout format. 7 BISG Annual Report 2012−2013 | © 2013 Book Industry Study Group, Inc. Chaired by Dave Cramer of Hachette Book Group, the Working Group also began work on a revision to the document. Two new Working Groups were also constituted in the fiscal year: Fonts Licensing for E-Books and Interactivity for E-Books. The Font Group, chaired by Lucy Albanese of HarperCollins, made significant progress in the creation of a Field Guide to Font Usage in E-Books. The Interactivity Group, co-chaired by John Costa of S4Carlisle Group and Jim Dovey of Kobo, began work on a Field Guide to Interactivity in E-Books. EDI Committee Chair: Doug Minett, The Bookshelf BISG’s EDI Committee helps create and support XML documents used by the US book industry for online bookselling and all other business transactions conducted over the Internet. The Committee also maintains X12 EDI standards as they relate to the book industry. A Working Group of the Committee, chaired by Francis Cave of EDItEUR, revised BISG’s Sales and Tax Reporting Template. The Template is intended to be used by a retailer, distributor, or other intermediary, or by an agent reporting on their behalf, to report sales and sales tax to a publisher or content owner. It can be downloaded from the BISG website. Identification Committee Chair: Phil Madans, Hachette Book Group The Identification Committee monitors, reviews, and develops best practices for the use of identifier standards in the book industry. It also contributes to the development of emerging identifier standards and the implementation of new ones. The main work of the Identification Committee was an important revision to BISG’s Policy Statement on Best Practices for Identifying Digital Content. The document outlines use cases for implementing different identifiers with digital content. A key revision was an expansion of the role of proprietary identifiers in the larger ecosystem. The Policy Statement can be downloaded from the BISG website. 8 BISG Annual Report 2012−2013 | © 2013 Book Industry Study Group, Inc. Machine Readable Coding (MRC) Committee Chair: Tom Clarkson, Cumberland Systems Review Group BISG’s MRC Committee is charged with drafting and maintaining best practice recommendations for the structure and use of machine readable barcodes and identifiers. An issue related to the use of barcodes on mass market paperbacks was brought to the attention of the MRC Committee. The barcodes were not in compliance with established BISG guidelines. The Committee Chair began a communications effort with upstream and downstream industry partners to better understand both the issue and potential solutions. This work continues into the new fiscal year. Manufacturing & Distribution Committee Co-Chairs: Jim Lichtenberg, Lightspeed LLC, and Roger Milroad, John Wiley & Sons This Committee was dormant in the fiscal year. A new chair, Joe Upton (Edwards Brothers Malloy), was appointed in the fiscal year that began on July 1, 2013, and the Committee will be reconstituted and regroup in December 2013. Metadata Committee Chair: Richard Stark, Barnes & Noble The main task of the Metadata Committee is to oversee the development and maintenance of the ONIX for Books standard in the US market. In FY 2012−2013, the Committee reviewed and recommended changes to each new release of the ONIX code lists. In June 2013, the Committee approved a new edition of Book Product Metadata Best Practices. The document, a combination of BISG’s Product Metadata Best Practices for Senders and Best Practices for Recipients, is the first substantial revision to metadata best practices in several years. Dozens of individuals from more than twenty companies participated in the process. Additional help was provided by Renée Register of DataCurate and the BISG Office. The document, which is being published jointly by BISG and BookNet Canada in September 2013, will be available for download free of charge from the BISG website. Rights Committee Co-Chairs: David Marlin, MetaComet Systems, and Emily Williams, Barnes & Noble BISG’s Rights Committee develops, maintains, and advocates industry-wide best practices designed to support the standardized electronic transmission of a defined set of rights information between trading partners, now and in the future. 9 The Rights Committee went on hiatus during the 2012–2013 fiscal year. The Committee Chairs are regrouping as of this writing to frame projects for the new fiscal year. BISG Annual Report 2012−2013 | © 2013 Book Industry Study Group, Inc. Subject Codes Committee Chair: Connie Harbison, Baker & Taylor BISG’s Subject Codes Committee maintains the BISAC Subject Headings, Merchandising Themes, and Regional Themes, and provides guidance on the implementation and use of the lists by publishers, retailers, and other interested parties. A separate Working Group of the Subject Codes Committee is responsible for the US application of the new global subject code standard, Thema. Both the main Subject Codes Committee and the Thema Working Group were busy in the fiscal year. The main committee published the BISAC Subject Headings, 2012 Edition in November 2012, and spent the balance of the year working on the 2013 edition. The 2012 edition included significant changes to the Computers and Fiction sections, while the 2013 edition is scheduled to include changes to the Business & Economics, Family & Relationships, Fiction, and Self-Help sections. The Committee also reviewed and made changes to the Subject Codes Tutorial and FAQ that exist on the BISG website. The Thema Working Group, chaired by Kempton Mooney (Hachette Book Group), reviewed and responded to the initial draft of the Thema Global Subject Scheme. The Working Group proposed nearly seventy changes to the standard, all of which were accepted by the Thema International Steering Committee. The standard was launched in April 2013 at the London Book Fair. The Working Group has begun the process of creating a BISAC to Thema map. XBITS Committee Co-Chairs: Diane Degener, Courier, and Judy Varon, Hachette Book Group XBITS is both a BISG Committee and a Working Group of IDEAlliance that designs and maintains the standard XML e-documents to facilitate bi-directional electronic data exchanges between a diverse group of trading partners that includes book publishers, manufacturers, paper mills, and component suppliers. The XBITS electronic transaction standard is based upon the papiNet Standard, which is open, free, and easy to adopt, and which provides common benefits to supply chain partners supporting both traditional and digital print manufacturing. The committee continued development of the XBITS standard during the fiscal year. 10 BISG Annual Report 2012−2013 | © 2013 Book Industry Study Group, Inc. Education and Events Each year, BISG offers a robust program of BISG-branded events and participates in other notable industry events and conferences. In FY 2012−2013, BISG offered content designed to help members and other stakeholders understand the value of data and metrics in making business decisions, develop professional skills, and challenge the boundaries of accepted industry paradigms. Making Information Pay Data, Information, Knowledge, Wisdom May 15, 2013 | Kimmel Center for University Life, New York University | New York, NY For the past ten years, BISG’s Making Information Pay—a concise, half-day conference—has provided useful direction to thousands of book publishing professionals looking to build more profitable businesses through data-first thinking. For the first time, Making Information Pay 2013 featured the official release of data from BISG’s and AAP’s joint venture, BookStats, the only comprehensive, extrapolated view of the size and scope of the US book industry. At a time when “business as usual” is not enough, Making Information Pay, featuring BookStats, contributed an important set of data-focused presentations from innovators that revolutionizes how we think about modern business practices. Presentations can be downloaded from the BISG website. Speakers Tom Allen, President and Chief Executive Officer, Association of American Publishers Rachel Chou, Chief Marketing Officer, Open Road Media Julia Coblentz, Senior Marketing Manager, NOOK Press Ashleigh Gardner, Head of Content, Wattpad Tina Jordan, Vice President, Association of American Publishers Hilary Mason, Chief Scientist, bitly Ned May, Vice President & Practice Leader, Outsell Ken Michaels, President & Chief Operating Officer, Hachette Book Group Phil Ollila, Chief Content Officer, Ingram Content Group Andrew Savikas, Chief Executive Officer, Safari Books Online Dave Thompson, Vice President of Sales Analysis, Random House Len Vlahos, Executive Director, Book Industry Study Group Dan Weiss, Publisher-at-Large, St. Martin’s Press 11 BISG Annual Report 2012−2013 | © 2013 Book Industry Study Group, Inc. BISG thanks the following sponsors for their generous support of Making Information Pay 2013. Sponsors Bowker (Diamond Sponsor) Hachette Book Group (Diamond Sponsor) Media Services Group (Gold Sponsor) NYU-SCPS Center for Publishing (Gold Sponsor) Ingram Content Group (Silver Sponsor) Publishing Technology (Silver Sponsor) Readerlink Distribution Services (Silver Sponsor) In addition, BISG thanks the following supporting organizations: Association of American Publishers, Book Business, BookNet Canada, Evangelical Christian Publishers Association, and the International Digital Publishing Forum. Making Information Pay for Higher Ed New Strategies for Success in the Higher Ed Market February 7, 2013 | Yale Club of New York City | New York, NY BISG’s third annual Making Information Pay for Higher Ed explored the ongoing migration from print to digital in higher education publishing. In addition to featuring results from BISG’s Student Attitudes Toward Content in Higher Education survey, the 2013 program provided an array of data-rich presentations offering insights into the role of new business models in the higher ed space, such as MOOCs. The conference was structured to allow for dialogue between the presenters, with panel discussions in the morning and afternoon. Presentations can be downloaded from the BISG website. Speakers Dave Cormier, President, Edactive Technologies; Web Projects Lead, University of Prince Edward Island Rebecca Griffiths, Program Director for Online Learning, Ithaka S+R Joe Karaganis, Vice President, The American Assembly, Columbia University Carl Kulo, US Director, Bowker Market Research Len Vlahos, Executive Director, Book Industry Study Group 12 BISG Annual Report 2012−2013 | © 2013 Book Industry Study Group, Inc. BISG thanks the following companies for their generous sponsorship of Making Information Pay for Higher Ed 2013. Sponsors Bowker (Diamond Sponsor) Baker & Taylor (Platinum Sponsor) Media Services Group (Gold Sponsor) In addition, BISG thanks its media partner, Book Business, and a supporting organization, the Evangelical Christian Publishers Association, for their support. 2012 Annual Meeting of Members September 28, 2012 | Yale Club of New York City | New York, NY The 2012 BISG Annual Meeting of Members explored the transformation of the publishing industry and BISG’s role in it. Since BISG was founded more than thirty-five years ago, the foundations on which our industry had securely rested for the better part of a century have been torn down and built anew. As the industry has changed, so too has BISG. The organization has grown stronger and more innovative, embraced digitization while reaffirming its commitment to printed products and physical distribution, and stretched its reach across borders and around the world. The 2012 Annual Meeting celebrated these accomplishments while planning for a future of new opportunities and possibilities. The meeting featured a panel of BISG’s executive leadership, moderated by Len Vlahos and including Maureen McMahon (Kaplan Publishing), Ken Michaels (Hachette Book Group), Dominique Raccah (Sourcebooks), and Tom Turvey (Google). Presentations can be downloaded from the BISG website. Speakers Angela Bole, Deputy Executive Director, Book Industry Study Group Tara Catogge, Senior Vice President of Marketing, Readerlink Distribution Services Maureen McMahon, President & Publisher, Kaplan Publishing Ken Michaels, President & Chief Operating Officer, Hachette Book Group Dominique Raccah, Chief Executive Officer, Sourcebooks Tom Turvey, Director of Strategic Partnerships, Google Len Vlahos, Executive Director, Book Industry Study Group 13 BISG Annual Report 2012−2013 | © 2013 Book Industry Study Group, Inc. BISG thanks the following sponsors for their generous support of the 2012 Annual Meeting of Members. Sponsors Bowker (Diamond Sponsor) Bert Davis Executive Search (Gold Sponsor) Onixsuite (Gold Sponsor) Readerlink Distribution Services (Gold Sponsor) EXECUTIVE LUNCH SERIES Product Metadata: Benefits and Challenges July 24, 2012 | Kaplan Publishing | New York, NY Product metadata is the connective tissue of the book industry, binding publishers and authors to data aggregators, retailers, and others. But information about the products we sell is valuable only when it is accurate, timely, complete, and updated—and too often, that’s not the case. BISG’s research report, Development, Use, and Modification of Book Product Metadata, provided the foundation for a meaningful dialogue between key industry stakeholders on how to improve product metadata at the second event in the organization’s Executive Lunch series. Brian O’Leary (Magellan Media Consulting) presented the results of the research report. Publisher and retailer representatives then engaged in a conversation about how industry partners could work together to ensure quality product metadata. All presenters took part in a room-wide discussion of the opportunities and challenges presented by improving product metadata. Speakers Ashleigh Gardner, Director, Content Management, Kobo Phil Madans, Director of Publishing Standards and Practices, Hachette Book Group Brian O’Leary, Principal, Magellan Media Consulting Matt Supko, Technology Director, American Booksellers Association BISG thanks Bowker for its generous sponsorship of this program, and Kaplan Publishing for hosting the event. 14 BISG Annual Report 2012−2013 | © 2013 Book Industry Study Group, Inc. Opening the Book May 28, 2013 | Kaplan Publishing | New York, NY This program explored two important topics related to "opening the book": (1) the network vs. container model of producing and distributing content and (2) subcompact publishing as a new way of developing next-generation products. Craig Mod’s presentation introduced subcompact publishing, a straightforward philosophy centered around understanding and respecting what readers need, and simplifying publishing processes to meet those needs. Hugh McGuire then explored the concept of the networked book as well as business models that will help it emerge. Following the presentations, attendees engaged in a lively, strategic discussion about the future of books and storytelling. Speakers Hugh McGuire, Founder, Press Books Craig Mod, Independent Writer, Publisher, and Designer, craigmod.com BISG thanks Safari Books Online for its generous sponsorship of this program, and Kaplan Publishing for hosting the event. PROFESSIONAL DEVELOPMENT Book Metadata and ONIX: Practical Guidance and Best Practice March 4 and 5, 2013 | Random House | New York, NY The first in a new series of professional development workshops offered by BISG, Book Metadata & ONIX: Practical Guidance and Best Practice was a full-day training course introducing the business value of accurate metadata and providing a thorough and authoritative, ground-up introduction to ONIX for Books. The workshop was developed and presented by Graham Bell (EDItEUR) and included a review of metadata best practices and a deep dive into some of the trickier parts of the ONIX standard. Speaker Graham Bell, Chief Data Architect, EDItEUR BISG thanks Random House for hosting the event. 15 BISG Annual Report 2012−2013 | © 2013 Book Industry Study Group, Inc. BISG at BookExpo America (BEA) May 30, 2013 | Jacob K. Javits Center | New York, NY BISG presented one educational session during BEA 2013. Trending Sales with BookStats: How Publishers Identify Macro and Micro Trends in the Marketplace A joint venture of BISG and the Association of American Publishers, BookStats provides the industry’s only view of the size of the marketplace through a three-sided matrix: Category, Format, and Channel. During this session, industry thought leaders demonstrated how they use BookStats to aid in strategic planning, company acquisitions, list planning, title acquisitions, company benchmarking, and many more key decisions that they make on a daily basis. Speakers Frank Albanese, Senior Vice President, Market Insight and Sales Operations, HarperCollins Publishers Tara Catogee, Senior Vice President, Marketing, Readerlink Distribution Services Ned May, Vice President & Practice Leader, Outsell Kempton Mooney, Senior Analyst of Market Research and Business Development, Hachette Book Group Len Vlahos, Executive Director, Book Industry Study Group BISG & NISO at ALA Annual Conference The Changing Standards Landscape June 28, 2013 | McCormick Place Convention Center | Chicago, IL For the seventh consecutive year, BISG and the National Information Standards Organization (NISO) co-hosted The Changing Standards Landscape Forum during the American Library Association Annual Conference, this year held in Chicago. This preconference event was open to all ALA attendees free of charge. A survey of previous attendees was used to determine the issues most relevant to today’s library community, and formed the basis of the program. The presentations explored how the publishing and library communities are facing the new digital marketplace, with a special focus on the standards that underlie the e-book supply chain. As in previous years, this forum highlighted the commonalities between publishers and libraries and what each group can learn from the other. In this way, it allowed participants to consider cooperative approaches to common problems. 16 BISG Annual Report 2012−2013 | © 2013 Book Industry Study Group, Inc. Speakers Todd Carpenter, Executive Director, National Information Standards Organization Suzy Haines, Digital Content Manager, bookshare.org John Law, Vice President Product Management, Discovery Services, Serials Solutions Roger Schonfeld, Program Director for Libraries, Users, and Scholarly Practices, ITHAKA Len Vlahos, Executive Director, Book Industry Study Group Richard Wallis, Technology Evangelist, OCLC BISG thanks CrossRef and OCLC for their generous sponsorship of this event. BISG WEBCASTS BISG hosted 14 webcasts in FY 2012–2013, including series in partnership with Digital Book World and Copyright Clearance Center, and a new recurring webcast that introduces BISG’s mission and initiatives to new and prospective members. Introduction to Agile Publishing July 31, 2013 Presented by Kristen McLean, Founder & Chief Executive Officer, Bookigee Introducing BookStats, Volume 2 August 29, 2012 Presented by Angela Bole, Book Industry Study Group, Kelly Gallagher, Bowker, and Tina Jordan, Association of American Publishers A SPECIAL THREE-PART WEBCAST SERIES: Getting Grounded with E-Books: The Latest Statistics and What They Mean Co-Presented by BISG and Digital Book World November 2, 6, and 13, 2012 1. Measuring the North American E-Book Market by the Numbers November 2, 2012 Presented by Noah Genner, BookNet Canada, and Len Vlahos, Book Industry Study Group 2. E-Books in the Global Marketplace November 6, 2012 Moderated by Ed Nawotka, Publishing Perspectives, with presentations from Olivannan Gopalakrishnan, Emerald Publishers, Jo Henry, Bowker, and Sebastian Posth, Publisher and Consultant 17 BISG Annual Report 2012−2013 | © 2013 Book Industry Study Group, Inc. 3. How to Define an E-Book Bestseller November 13, 2012 Moderated by Len Vlahos, Book Industry Study Group, with a presentation from Jeremy Greenfield, Digital Book World The New BISAC Subject Headings: Connecting Books to Readers November 28, 2012 Presented by Angela Bole, Book Industry Study Group, and Connie Harbison, Baker & Taylor Consumer Attitudes Toward E-Book Reading: Tracking Reader Preferences in an Evolving Marketplace December 5, 2012 Presented by Steve Paxhia, Beacon Hill Strategic Solutions Making the Most of Your BISG Membership January 8 and May 7, 2013 Presented by the Book Industry Study Group Staff A SPECIAL THREE-PART WEBCAST SERIES: The Business of Rights: Trends and Opportunities in Publishing Today Co-Presented by BISG and Copyright Clearance Center March 5, 12, and 19, 2013 1. Understanding Rights in a Changing World: Licensing Risks and Opportunities Created by a Global Marketplace March 5, 2013 Presented by Skott Klebe, Copyright Clearance Center 2. Managing and Organizing Rights in a Time of Change: Tools and Services for Effectively and Efficiently Organizing Your Rights March 12, 2013 Presented by Randy Petway, Publishing Technology 3. Monetizing Rights in a Time of Change: Good Rights Management Is Good Business Management March 19, 2013 Presented by Michael Covington, David C Cook and Mike Shatzin, the Idea Logical Company Classifying and Selling Books with Thema: The First Global Subject Category Codes April 24, 2013 Presented by Caroline A. Hayes, Barnes & Noble, and Kempton Mooney, Hachette Book Group Introducing BookStats, Volume 3 June 26, 2013 Presented by Nadine Vassallo and Len Vlahos, both of Book Industry Study Group 18 BISG Annual Report 2012−2013 | © 2013 Book Industry Study Group, Inc. Additional Industry Events BISG continued to maintain a strong presence at both US and international conferences in FY 2012–2013, providing relevant and actionable content to attendees at home and across the globe. Presentations made at partner events included: Tools of Change Frankfurt, EDItEUR Supply Chain Track (Frankfurt, Germany)—Metadata PubWest (Denver, CO)—The US Book Industry by the Numbers Book Manufacturer’s Institute (Jacksonville, FL) —Student Attitudes Toward Content in Higher Education CAMEX (Kansas City, MO)—Student Attitudes Toward Content in Higher Education IPBA Publishing University (Chicago, IL)—Consumer Attitudes Toward E-Book Reading Editech EPUB 3 Workshop (Milan, Italy)—Book Industry Study Group’s EPUB Support Grid Jouve Executive Summit (Paris, France)—The US Book Industry by the Numbers Research and Information In FY 2012–2013, BISG continued to focus its research efforts on collecting sound industry data through partnerships with the Association of American Publishers (AAP) and Bowker Market Research. With AAP, BISG published Volume Three of its flagship annual publication, BookStats, providing accurate and comprehensive data on the size and shape of the U.S. publishing industry. BISG also continued to measure the habits and preferences of general e-book consumers as well as higher ed students and faculty through its studies Consumer Attitudes Toward E-Book Reading, Student Attitudes Toward Content in Higher Education, and Faculty Attitudes Toward Content in Higher Education. All research reports are available for purchase or download via the BISG website; as is the case with all BISG products and services, members receive substantial discounts. 19 BISG Annual Report 2012−2013 | © 2013 Book Industry Study Group, Inc. BookStats BookStats, a joint venture of BISG and the Association of American Publishers (AAP), provides a comprehensive view of the size and shape of the US book publishing industry measured by publisher net unit and dollar sales. Now in its third year, this revolutionary data project continues to carefully track transformational shifts in how book content is sold in the digital age. Volume Three provides annual publisher net revenue and unit sales going back five years (2008 through 2012) and across three dimensions: Formats: including physical (hardcover, softcover, audio, print textbooks, and mass market paperbacks), digital (e-book, digital course materials, downloadable audio, Internet-based products and services), and bundled products Categories: including adult fiction and nonfiction, juvenile fiction and nonfiction, religious, higher education, K–12, professional, and scholarly books Channels: including physical retail (chains, independents, mass merchants, college, and specialty stores), online retail, institutional sales, direct-to-consumer, jobbers and wholesalers, book fairs, and export sales Extrapolated data for BookStats is derived through a transparent methodology that fully sizes the complete U.S. publishing industry and provides the only means for understanding the rocketing e-book growth. The end result gives publishing, financial, and media businesses a valuable tool for analyzing our rapidly evolving industry. The report is available as a PDF Summary Overview and a PDF Annual Report. The data is also accessible through an Online Data Dashboard, with the option of adding on additional functionality, including Benchmarking, which enables selected survey participants to benchmark their company’s data against the full data set, and Category Deep-Dive, which provides deeper subject category breakdowns within adult fiction and nonfiction, juvenile fiction and nonfiction, and religion. Volume Three of BookStats was published two months earlier than each of the previous annual volumes, providing this important data in a much more timely way. In addition, data analysts at Bowker employed an improved and more rigorous set of procedures with Volume Three to ensure data integrity and reliability. More information is available at www.bookstats.org. 20 BISG Annual Report 2012−2013 | © 2013 Book Industry Study Group, Inc. Consumer Attitudes Toward E-Book Reading Now in its fourth year, BISG’s Consumer Attitudes Toward E-Book Reading provides comprehensive ongoing survey data from hundreds of e-book readers. Based on two fieldings of a core set of survey questions, the study aims to evaluate e-book consumers’ interests in and preferences for digital content, and to identify the factors that influence their reading habits and purchasing decisions. With Volume Four, the scope of the survey expanded to look at e-book consumers’ attitudes toward e-book subscription services, enhanced functionality, and search and discovery services. And for the first time, the study provided comparison data exploring the differences between e-book consumers and those who have not yet purchased an e-book. Survey participants were asked such questions as: When did you first begin acquiring e-books? Where do you typically acquire e-books? Which genre(s) are you more likely to read as an e-book rather than a print book? What device do you now use most frequently to read e-books? How likely are you to buy a dedicated e-reader or multifunction tablet device, either for yourself or to give as a gift (within the next two months)? Consumer Attitudes Toward E-Book Reading, Volume Four, is available as a set of PDF Summary Reports as well as a dynamic online data dashboard via the Real-Time Reporting (RTR) platform. BISG thanks the following sponsors for their generous support of this project. Sponsors Hachette Book Group (Platinum Sponsor) Barnes & Noble (Gold Sponsor) 21 BISG Annual Report 2012−2013 | © 2013 Book Industry Study Group, Inc. Student Attitudes Toward Content in Higher Education The way students learn and instructors teach is undergoing a radical shift, and the role of the traditional print textbook as the foundational tool for instruction is changing, along with the traditional publishing model. Now in its third year, BISG’s Student Attitudes Toward Content in Higher Education continues to provide a baseline for tracking the changes underway in this ever-evolving marketplace. Containing data from two fieldings of a core set of survey questions aimed at students enrolled in two-year, four-year, private, and non-profit colleges, as well as MBA programs, this survey provides trendable information to help answer questions such as: How do students define and seek value? What are the key factors in student buying (and non-buying) behaviors? Do students perceive improved learning outcomes when using digital learning assets? What is the current penetration and significance of textbook rental programs? Available as dynamic online access via Real-Time Reporting and as a set of PDF Summary Reports, Student Attitudes Toward Content in Higher Education provides practical guidance to companies working to refine their business strategies in the higher education space. BISG thanks the following sponsors for their generous support of this project. Sponsors Baker & Taylor (Gold Sponsor) Cengage Learning (Gold Sponsor) CourseSmart (Gold Sponsor) Follett Higher Education Group (Gold Sponsor) Pearson (Gold Sponsor) 22 BISG Annual Report 2012−2013 | © 2013 Book Industry Study Group, Inc. Faculty Attitudes Toward Content in Higher Education As a companion piece to Student Attitudes Toward Content in Higher Education or as a stand-alone report, Faculty Attitudes Toward Content in Higher Education sheds meaningful light on the changing role of the core print textbook as the centerpiece of instruction. Now in its second year, this survey explores instructors’ viewpoints on print and digital formats, online or hybrid teaching compared to the traditional classroom approach, textbook pricing, and more. It is an invaluable resource to any provider, analyst, or purchasing agent who needs to know: Where to allocate resources Whether faculty members are more likely to look for digital content in the form of web content for classroom use, coursepacks, or digital textbooks Which subject areas favor the use of publisher-provided digital assets The barriers to using integrated learning systems identified by instructors A joint publication of BISG and Bowker Market Research, Faculty Attitudes Toward Content in Higher Education is available via Real-Time Reporting (RTR), which provides web-based access to the raw survey data, as well as a PDF Executive Summary. BISG thanks the following sponsors for their support of this research. Sponsors Cengage Learning Follett Higher Education Group 23 BISG Annual Report 2012−2013 | © 2013 Book Industry Study Group, Inc. Financials, Operations, and Governance Audited Financial Results In FY 2012–2013, BISG sustained the improved financial results achieved in the prior fiscal year. While the organization failed to hit its modest projected surplus of $15,000, the overall result was revenue neutral. Income in key categories—membership and publication sales—held steady. On the expense side, the organization incurred one-time costs associated with the BISG office move in July 2012; those costs were offset by personnel savings resulting from the departure of a key employee in the third fiscal quarter. Book Industry Study Group, Inc. Statements of Cash Receipts & Disbursements FY 2012–2013 Ending 6/30/2013 FY 2011–2012 FY 2010–2011 Ending 6/30/2012 Ending 6/30/2011 Cash receipts: Membership dues $648,822 $634,139 $606,563 Publications, programs, and events Other receipts $318,078 $338,308 $269,881 $26,096 $21,802 $21,755 Total $992,966 $994,249 $898,199 Publications, programs, and events BISAC expenses $277,225 $271,988 $237,710 $2,073 $7,200 $8,500 Office services and operating expenses Total $713,879 $715,296 $848,185 $993,177 $994,484 $1,094,395 ($181) ($235) ($196,196) Cash disbursements: Excess of cash receipts over disbursements 24 BISG Annual Report 2012−2013 | © 2013 Book Industry Study Group, Inc. Membership BISG was delighted to welcome twenty-four new companies into membership during FY 2012–2013. Mirroring changes in the industry and the continued growth of digital product, many of the new members include companies focused in the digital space, such as Hewlett Packard, Intel, and Sony. Thirty-eight companies left BISG membership in FY 2012−2013; several cited budgetary constraints or changes in management as reasons for their departure. A complete list of new members can be found in Appendix 1 of this report. Staffing and Administration Two highly valued and long-term employees left BISG in FY 2012–2013. Deputy Executive Director Angela Bole left to become the new Executive Director of the Independent Book Publishers Association; and Karen Forster, Director of Standards and Best Practices, moved to Berlin, Germany, with her husband. BISG thanks both Angela and Karen for their service and wishes them well. The organization used the opportunity of these departures to restructure and reorganize the staff. Nadine Vassallo, who had been Project Coordinator, was promoted to Project Manager, Research & Information. BISG also hired three new employees: Jeanette Zwart as Marketing Strategist; Julie Morris as Project Manager, Standards & Best Practices; and Thomson Guster as Education and Events Coordinator. Infrastructure and Website At the very end of the fiscal year, BISG engaged Augment Digital Workshop to begin construction of a new BISG website and database. The new website will move BISG from a proprietary content management system to Drupal, a widely used open-source system. It will also incorporate an open-source database, allowing the organization to tailor content to the needs and desires of individual members. The new website and database are scheduled to roll out in mid- to late fall 2013. 25 BISG Annual Report 2012−2013 | © 2013 Book Industry Study Group, Inc. Social Media BISG has expanded its use of Twitter for promotional purposes and member engagement. The BISG Twitter account (@BISG) is updated daily, including live tweets from major BISG and other industry events. As of September 2013, BISG has more than 3,300 Twitter followers and continues to grow. BISG also relaunched its LinkedIn page in summer 2013. It is located at http:// www.linkedin.com/company/book-industry-study-group. Board of Directors The following people were elected to the BISG Board of Directors for a three-year term at the BISG Annual Meeting of Members in September 2012. Heloise Ardley, Digital Operations Manager, Pearson Technology Mark Bide, Executive Director, EDItEUR Ken Brooks, Senior Vice President, Global Production & Manufacturing Services, Cengage Learning Joseph Gonnella, Vice President, Publisher Relations, Barnes & Noble Mark Kuyper, President & Chief Executive Officer, Evangelical Christian Publishers Association Dave McCree, Senior Vice President Sales, Book & Directory Group, RR Donnelley Maureen McMahon, President & Publisher, Kaplan Publishing Jonathan Nowell, President, Nielsen Book Tom Turvey, Director of Strategic Partnerships, Google BISG and the Board were delighted to welcome the following new members: John Rubin, President and Founder, Above the Treeline/Edelweiss John Wicker, Digital Publishing Solutions Head, Tata Consultancy Services In addition, Angela Bole, Executive Director, Independent Book Publishers Association, replaced Florrie Binford Kichler; David Hetherington, Vice President, Academic Merchandising & Publishers Services, Baker & Taylor, replaced Dan Johnson; and Neil Strandberg, Director of Member Technology, American Booksellers Association, replaced Dan Cullen. BISG’s Executive Committee also was expanded in FY 2012−2013, welcoming Directors Maureen McMahon, President and Publisher, Kaplan Publishing, and Tom Turvey, Director Strategic Partnerships, Google. 26 BISG Annual Report 2012−2013 | © 2013 Book Industry Study Group, Inc. FY 2013–2014 Budget Book Industry Study Group, Inc. Summary Budget 2013 Ordinary income ($US) Membership dues $710,000 Publication sales 245,500 Program fees Interest and misc. 92,500 4,000 Sponsorships 137,000 Total income 1,189,000 Cost of goods sold 381,500 Gross profit 807,500 Total expenses 762,686 Net surplus/deficit $44,814 After sustaining the gains made in the prior fiscal year, the Board of Directors is looking for FY 2013–2014 to be characterized by growth. With the launch of a new mission statement and the restructuring of staff into a flatter organization that now includes a dedicated marketing function, the Board sees the new fiscal year as rife with opportunity to increase membership and to launch new projects. As part of its normal budget review and monitoring process, the Board will examine shifting realities in the organization and larger industry, and will reforecast the budget in the second fiscal quarter. BISG members can request a copy of the full FY 2013−2014 BISG budget by contacting the BISG office at info@bisg.org. 27 BISG Annual Report 2012−2013 | © 2013 Book Industry Study Group, Inc. Appendix 1: New BISG Members in Fiscal Year 2012–2013 28 Bookish Michael Poston BTLF MIT Press Conch/Shore Souvenir, Inc. NA World Services DETI Group LLC North Texas Library Partners Digi-Express LLC Open Book Systems Direct Brands Perry Rahbar Ferguson Library Progress Publishing Company LLC GiantSteps Media Technology Strategies S4Carlisle Publishing Services Hewlett-Packard Sony Electronics, Inc. Intel Corporation Treadwell Media Group Mary Tripsas True’s Relate Publishing McCarthy Digital W. W. Norton & Company BISG Annual Report 2012−2013 | © 2013 Book Industry Study Group, Inc. Appendix 2: BISG Board of Directors Chair Ken Michaels Global Chief Operating Officer, Macmillan Science and Education Vice-Chair Tara Catogge Senior Vice President, Marketing, Readerlink Distribution Services Secretary Judith Appelbaum Managing Director, Sensible Solutions Treasurer George Tattersfield Vice President, Merchandising, Ingram Content Group Other Executive Committee Members Sally Dedecker President, Sally Dedecker Enterprises Maureen McMahon President & Publisher, Kaplan Publishing Dominique Raccah Publisher and Chief Executive Officer, Sourcebooks Andrew Savikas Chief Executive Officer, Safari Books Online Tom Turvey Director, Strategic Partnerships, Google Other Directors Heloise Ardley Digital Operations Manager, Pearson Technology Mark Bide Executive Director, EDItEUR 29 BISG Annual Report 2012−2013 | © 2013 Book Industry Study Group, Inc. John Bohman Vice President, Sales and Customer Operations, Random House Angela Bole Executive Director, Independent Book Publishers Association Ken Brooks President, Treadwell Media Group Kyusik Chung Vice President, Business Development, Goodreads Terry Downes Vice President, Publishing Operations, Disney Publishing Worldwide Noah Genner President & Chief Executive Officer, BookNet Canada Lyle Girandola Vice President, Publishing Finance, The McGraw-Hill Companies Joseph Gonnella Vice President, Publisher Relations, Barnes & Noble Helene Green Vice President, Business Information & Data Operations, Simon & Schuster David Hetherington Vice President, Academic Merchandising & Publishers Services, Baker & Taylor Ted Hill President, THA Consulting Tina Jordan Vice President, Association of American Publishers Mark Kuyper President & Chief Executive Officer, Evangelical Christian Publishers Association James Lichtenberg President, Lightspeed LLC Sharon Lubrano Vice President and General Manager, RR Bowker 30 BISG Annual Report 2012−2013 | © 2013 Book Industry Study Group, Inc. Dave McCree Senior Vice President, Sales, Book & Directory Group, R.R. Donnelley Jonathan Nowell President, Nielsen Book John Rubin President & Founder, Above the Treeline Neil Strandberg Director of Member Technology, American Booksellers Association Michael Tamblyn Chief Content Officer, Kobo Fran Toolan Founder & “Chief Igniter”, Firebrand Technologies Rob Weisstuch VP, Business Analysis, HarperCollins Publishers John Wicker Digital Publishing Solutions Head, Media & Information Services, Tata Consultancy Services 31 BISG Annual Report 2012−2013 | © 2013 Book Industry Study Group, Inc. Appendix 3: Current BISG Committees BISG Coordinating Council Chair: Wendell Lotz, Ingram bisac_chair@bisg.org Content Structure Committee Chair: Bill Kasdorf, Apex CoVantage digitalstandards_chair@bisg.org EDI Committee Chair: Doug Minett, The Bookshelf bisac_scedi@bisg.org Identification Committee Chair: Phil Madans, Hachette Book Group bisac_identification@bisg.org Machine Readable Coding Committee Chair: Tom Clarkson, Cumberland Systems Review Group (CSRG) bisac_mrc@bisg.org Manufacturing & Distribution Committee Chair: Joe Upton, Vice President, Sales & Marketing, Edwards Brothers Malloy deig_chair@bisg.org Metadata Committee Chair: Richard Stark, Barnes & Noble bisac_metadata@bisg.org Rights Committee Co-Chairs: David Marlin, Metacomet Systems, and Emily Williams, Barnes & Noble bisac_rights@bisg.org Subject Codes Committee Chair: Connie Harbison, Baker & Taylor, Inc. bisac_subjectcodes@bisg.org XBITS Committee Co-Chairs: Diane Degener, Courier, and Judy Varon, Hachette Book Group bisac_pubman@bisg.org 32 BISG Annual Report 2012−2013 | © 2013 Book Industry Study Group, Inc. Appendix 4: Sponsors of BISG Work FY 2012–2013 Sponsors Baker & Taylor Platinum Sponsor Making Information Pay for Higher Education 2013 Baker & Taylor Gold Sponsor Student Attitudes Toward Content in Higher Education, Volume Three Barnes & Noble Gold Sponsor Consumer Attitudes Toward E-Book Reading, Volume Four Bert Davis Executive Gold Sponsor Search 2012 Annual Meeting of Members Bowker Affiliated Partner, 2013 Bowker Diamond Sponsor 2012 Annual Meeting of Members (as Affiliated Partner) Bowker Diamond Sponsor Making Information Pay 2013 (as Affiliated Partner) Bowker Diamond Sponsor Making Information Pay for Higher Education 2013 (as Affiliated Partner) Bowker Sponsor Product Metadata Executive Lunch Cengage Learning Gold Sponsor Student Attitudes Toward Content in Higher Education, Volume Three Cengage Learning Sponsor Faculty Attitudes Toward Content in Higher Education, Volume Two CourseSmart Gold Sponsor Student Attitudes Toward Content in Higher Education, Volume Three CrossRef Sponsor BISG/NISO Forum at ALA 2013 Follett Higher Education Gold Sponsor Group Student Attitudes Toward Content in Higher Education, Volume Three Follett Higher Education Sponsor Group Faculty Attitudes Toward Content in Higher Education, Volume Two Hachette Book Group Affiliated Partner, 2013 Hachette Book Group Diamond Sponsor Making Information Pay 2013 (as Affiliated Partner) 33 BISG Annual Report 2012−2013 | © 2013 Book Industry Study Group, Inc. Hachette Book Group Platinum Sponsor Consumer Attitudes Toward E-Book Reading, Volume Four Ingram Content Group Silver Sponsor Making Information Pay 2013 Media Services Group Gold Sponsor Making Information Pay 2013 (as part of special three-event sponsorship agreement for 2013) Media Services Group Gold Sponsor Making Information Pay for Higher Education 2013 (as part of special three-event sponsorship agreement for 2013) NYU-SCPS Center for Publishing Gold Sponsor Making Information Pay 2013 OCLC Sponsor BISG/NISO Forum at ALA 2013 Onixsuite Gold Sponsor 2012 Annual Meeting of Members Pearson Gold Sponsor Student Attitudes Toward Content in Higher Education, Volume Three Publishing Technology Silver Sponsor Making Information Pay 2013 Readerlink Distribution Gold Sponsor Services 2012 Annual Meeting of Members Readerlink Distribution Silver Sponsor Services Making Information Pay 2013 Safari Books Online Sponsor Opening the Book Executive Lunch FY 2012–2013 Supporting Organizations Association of American Publishers BookNet Canada Book Business Book Business Evangelical Christian Publishers Association Evangelical Christian Publishers Association Independent Digital Publishing Forum Independent Digital Publishing Forum 34 Making Information Pay 2013 Making Information Pay 2013 Making Information Pay 2013 Making Information Pay for Higher Ed 2013 Making Information Pay 2013 Making Information Pay for Higher Ed 2013 Making Information Pay 2013 Making Information Pay for Higher Ed 2013 BISG Annual Report 2012−2013 | © 2013 Book Industry Study Group, Inc. Appendix 5: Professional Advisors to BISG Legal Counsel Michael Bamberger Dentons US LLP 1221 Avenue of the Americas New York, NY 10020-1089 Auditor McGladrey & Pullen, LLP 750 3rd Avenue, 9th Floor New York, NY 10017-2719 ____________________________________________________ About BISG The Book Industry Study Group, Inc. (BISG) is the book industry’s leading trade association for policy, standards, and research. The mission of BISG is to create a more informed, empowered, and efficient book industry. Membership consists of publishers, manufacturers, suppliers, wholesalers, retailers, librarians, and others engaged in the business of print and electronic media. For more than thirty-five years, BISG has provided a forum for all industry professionals to come together and efficiently address issues and concerns to advance the book community. Book Industry Study Group, Inc. 145 W. 45th Street, Suite 601 New York, NY 10036 Telephone: 646.336.7141 Fax: 646.336.6214 Email: info@bisg.org Twitter: @BISG www.bisg.org 35