Interesting piece of news this:
Michael Pietsch, CEO of Hachette, said the founding publishers “never intended to run Bookish forever,” and that their objective of starting a first-class recommendation engine has been achieved in the current Bookish version. Despite the problems, and costs, of getting Bookish off the ground, Pietsch said the founding publishers would tackle the venture again. “We saw a need for a great discovery engine and that is what we created. We are happy to see it move to Zola where we expect it will thrive.”
With Bookish, Zola will be able to expand on existing elements of its social networking capabilities. Chiefly, the acquisition allows Zola to incorporate Bookish\’s book recommendation technology into its site. (That technology is a proprietary algorithm pairing users with content.) Regal said this is “the most exciting aspect of the Bookish opportunity. ” The recommendation engine Bookish has built will be incorporated into Zola’s site and this, Regal thinks, “is going to be really significant.” While Regal could not share details about how the Bookish algorithm would be added to Zola, he said it will happen “in the months to come” and he could explain more once “we have more insight into their technology.”
via Bookish Acquired by Zola.
In many ways this issue highlights both the complex decision-making processes that lie behind things that are highlighted as faults among large publishers (and in so doing offers if not a defence, then at least an explanation for seemingly bizarre decisions) and the core problems of these publishers (that they are at once too large to move easily and too small to challenge their existing partners on tech or ecommerce grounds). There’s much to ponder in this post as you would expect with Mike:
Because Random House didn’t have that blind spot, they were, first of all, aware that their conversion rate on clicks to Amazon was very high, much higher than they would expect to get themselves if they tried to encourage consumers to buy direct. So the capture of more margin per sale would be at the expense of losing many sales. But, in addition, the extra margin can get burned up pretty quickly with the costs of running a direct-sale operation. One that provides solid user experiences, customer service, and other now standard eCommerce practices anywhere near today’s customer expectation is expensive — more so when it isn’t your primary business. eCommerce is a huge distraction, especially when it is executed by the folks who are also your digital marketers! That, or additional head count (which further lowers margins), would constitute a publisher’s choices.
via Publishers do need to sell direct, but here are five things they should at least be started on first – The Shatzkin Files.