MediaWeek (V7 N48): Amazon Drones, Digital Afterlife, PW Person of the Year + More

Lots and hype and hyperbole about Amazon.com this week.   At least Scott Pelley at 60mins went right to the top and managed to keep his hands clean.  As you probably know by now,  Amazon is going to deliver your toys to you with a toy helicopter.

Amazon is the world's largest online retailer, serving 225M customers worldwide. What's next for the company that prides itself on disrupting tradition? Charlie Rose interviews Amazon CEO and founder Jeff Bezos.

Other reporters tried out the drudgery of working in a warehouse to see how they were treated.  Guardian.

For a week, I was an Amazon elf: a temporary worker who got a job through a Swansea employment agency – though it turned out I wasn't the only journalist who happened upon this idea. Last Monday, BBC's Panorama aired a programme that featured secret filming from inside the same warehouse. I wonder for a moment if we have committed the ultimate media absurdity and the show's undercover reporter, Adam Littler, has secretly filmed me while I was secretly interviewing him. He didn't, but it's not a coincidence that the heat is on the world's most successful online business. Because Amazon is the future of shopping; being an Amazon "associate" in an Amazon "fulfilment centre" – take that for doublespeak, Mr Orwell – is the future of work; and Amazon's payment of minimal tax in any jurisdiction is the future of global business. A future in which multinational corporations wield more power than governments.

And The Economist on the same story.

Kevin Roose in NY Mag believes something more sinister(ish):

Instead, I think Bezos is up to something much more practical. By unveiling a huge drone program in progress, he's sending a message to the FAA regulators and Senate committees who are currently considering how unmanned aircraft can be used commercially. And that message is: Don't even think about getting in our way. By floating a teaser about the drone program, and allowing the public to freak out about it, he's showing regulators how popular such a scheme would be, and how much backlash they'd face if they outlawed it.

Also, NYMag will now go to bi-monthly printing rather than weekly.  There's an iPad version.

"New York has evolved dramatically since its founding in 1968, with its intelligence, humor, playfulness, and visual punch remaining constants," editor-in-chief Adam Moss said in a statement. "Readers will continue to find what they love in the magazine, and we're undertaking these new changes to meet their changing media habits on all platforms."  The company did not address any financial reasons for its print publishing cuts in the statement.  Nymag.com will have a new science blog, and more photography and political and cultural coverage, according to New York Media.

Questions about the digital afterlife from the FT:

The elderly who die today still leave behind an attic full of relics for children and grandchildren to rifle through: boxes of love letters and photos documenting the family history. But increasingly, such memorabilia is password-protected and stored online. Many wedding albums exist only on Flickr. The history of courtship and falling in love among today’s young newlyweds is documented on Facebook and in text messages.

“Look how awful people are when they fight over the couch or dad’s graduation ring,” says Josh Slocum, president of the Funeral Consumers Alliance, an advocacy group. “I can only imagine what the fight will look like over dad’s computer files.”
In the US, such questions fall into the messy intersection of state property laws, federal privacy laws and corporate policies of the companies housing online accounts.

A handful of US states have passed laws addressing the treatment of digital remains. In Oklahoma and Idaho, digital data are treated like tangible property. The executor of a will can take control of social networking or email accounts the same as bank accounts and houses, and decide to continue operating them or shut them down. In Indiana, a law allows access to those accounts but not control. In Rhode Island and Connecticut, only access to email accounts is covered.

The Atlantic notes the awarding to Oren Teicher as PW Person of the Year:

This year's selection for PW's Person of the Year represents a wholly different approach to the honor. It is Oren Teicher, CEO of the American Booksellers Association, and the ABA's board of directors, the organization that represents the country's independent book stores. The fact that these traditional brick-and-mortar, mainly locally owned bookstores are being recognized as outstanding contributors to publishing is not merely a sympathetic gesture to old-fashioned commerce in a generally downward trajectory. The accolade is justified by results defying the odds that so heavily favor the Amazon juggernaut and the chain stores, still led by (the struggling) Barnes & Noble.

From Twitter;
Yahoo’s Flickr Resurgence Continues With Handsome Photo Books, But Reliance On Sets Could Stumble Techcrunch
Prompt.ly Raises $1.5M Seed To Become The OpenTable For Time And Services Techcrunch 
Becksistentialism: because man is a goal-seeking animal TheConversation 

MediaWeek (V7, N47): Pearson CEO Fallon, Amazon Storage Underground, Rough Trade, Maigret, USB, EdX & MIT + More

John Fallon, CEO of Pearson plc was interviewed in London's Evening Standard last week.

The new buzzword is efficacy: not just selling study programmes to schools or parents who want their children to get ahead but setting targets and measuring how they improve performance and help learners advance their careers, from Pearson’s South African university students to the millions being taught English online.

“It changes what we invest in, what acquisitions we make, how we recruit people and how we incentivise them,” explains Fallon, 51, with close-cropped hair and northern vowels. Where once Pearson hired editors and publishers, the new boss wants more software engineers and data analysts. By 2018, the company aims to report on the performance of its education programmes as reliably as it reports on its finances.
“What makes this much more doable now than it has ever been before is the application of technology has the capacity to transform the productivity of education around the world,” he says.

Fallon’s fast-moving agenda, including wholesale changes to his executive team, has spooked some investors, though Pearson shares are still up 10% this year. The shake-up has been accompanied by weakness in the US college textbooks market, its largest and most profitable division. College enrollments fall when the economy recovers, but it is a setback even the group’s former communications director can’t spin his way out of.

Such is the size and ubiquity of Amazon that even in an article about the Tube adding 24hr service and laying off 700 workers, the company is mentioned as a savior of sorts.  The FT reported that London Underground may be considering a proposal for Amazon to rent space heretofore used by transport staff to place their Amazon Lockers.  No other papers picked up this story.

In a sign of the sweeping changes under way at the world’s oldest metro system, Transport for London also said it was talking to Amazon, the online retailer, about converting its ticket offices – which will be closed in favour of automatic ticket machines – to “drop-off” points for its goods.

London's Rough Trade record store is opening in New York (today) and interesting to note the original store had its genesis in a visit to City Lights bookstore in San Francisco. (Guardian)

Godfroy admits: "It's been a testing process." The shop has been four years in the making and would have been launched much earlier if not for various setbacks, including Hurricane Sandy. Rough Trade NYC, housed in a former film prop warehouse at 64 N 9th Street, is three times bigger than Rough Trade East. Opening on Monday, it contains a café, bar, exhibition space and 250-capacity live performance room as well as a vast array of records and books. (Disclaimer: the Guardian will be curating its own space within the store.)

"We've learned how what is ostensibly a store can be so much more," says Godfroy. "Visiting us is like visiting a cultural hub; it's not simply a place for purchasing. There's a relative lack of places [in New York] that allow people to hang out in an environment that celebrates the art, not the commodity."

The idea of the record shop as cultural hub echoes Rough Trade's modest beginnings in 1976. Two years earlier, founder Geoff Travis abandoned a career in teaching to hitchhike around America and became a regular customer at San Francisco's beatnik hangout City Lights. "I loved the fact it was an environment you could sit in," he says. "You could stay all day as long as you didn't spill coffee on the books. It was so different to anything in London, which was like a Wimpy bar: the lights were too bright and the seats were too uncomfortable."

The New Scientist looks at the history of the fictional French detective Maigret (NS):

Simenon had perhaps enjoyed more than a couple glasses of schnapps and bitters that morning, for his memory is certainly at fault. There was no sudden puff of smoke by the side of a Dutch canal. Rather, Maigret seems to have emerged from the mists of Simenon’s imagination slowly, pensively, ploddingly and over time.
In 1929, Simenon was already a successful author. He had started work at the age of 15 as a junior reporter on his local newspaper, the Gazette de Liège, and in his twenties he had published more than 100 of what he called his romans alimentaires, pulp romantic and adventure novels, which he wrote under various pseudonyms and at incredible speed. (At his peak of pulp productivity, in 1928, he produced no fewer than 44 novels, many of them written in a matter of days.)
In the 1930s, he started writing what he called his romans durs, his literary novels, the most distinguished of which – L’Assassin (1937), L’Homme qui regardait passer les trains (1938), La Veuve Couderc (1942) – were masterpieces of psychological intrigue. The Maigret books bridge the two extremes of his career but have eclipsed all else in reputation and renown. When he died in 1989, France Soir announced on its front page, “Le père de Maigret est mort”.

The Economist looks at a 1000 page history of The Beatles:

After publishing important books about Beatles concerts and recordings in the 1980s, Mr Lewisohn took on the full-time job of Beatles biographer in 2004. But he insists that "All These Years" is not authorised.
"It wasn't an issue," Mr Lewisohn. "The Beatles had done their book, the 'Anthology' [published in 2000], which I helped edit. They weren't going to authorise another."
For "Tune In" he has found old fans in Liverpool, examined ghostly footage and listened to as many pre-EMI recordings as have survived. By piecing together EMI documents and those of Brian Epstein, the band's manager, Mr Lewisohn has proven that George Martin—the producer who was instrumental in shaping almost every Beatles album—was pushed to sign the group before meeting them (owing to corporate pressure after he was found having an affair with his secretary; they got married and are still together today). This "goes against every known account," he says.

Also from The Economist, how the USB could be our ubiquitous power source:

The big change next year will be a new USB PD (Power Delivery) standard, which brings much more flexibility and ten times as much oomph: up to 100 watts. In his London office Simon Daniel, founder of Moixa, a technology company, charges his laptop from a prototype souped-up USB socket. The office lighting, which uses low-voltage LED (light-emitting diode) lamps, runs from the same circuit. So do the monitors, printers and (with some fiddling) desktops. Mains power is only for power-thirsty microwaves, kettles and the like.
That could presage a much bigger shift, reviving the cause of direct current (DC) as the preferred way to power the growing number of low-voltage devices in homes and offices. DC has been something of a poor relation in the electrical world since it lost out to alternating current (AC) in a long-ago battle in which its champion Nikola Tesla (pictured, left) trounced Thomas Edison (right). Tesla won, among other reasons, because it was (in those days) easier to shift AC power between different voltages. It was therefore a better system for transmitting and distributing electricity.

From Inside Higher Ed, MIT is using EdX to re-think their strategy:

That’s where edX comes in. Half of MIT’s undergraduates use edX content in their residential courses, and as more faculty members break their courses into modules, Agarwal said he expects MIT will move away from the traditional four-year on-campus experience.

An education from MIT may soon involve a freshman year spent completing online courses, two years on campus and a fourth “year” of continuous education. While students pursue their careers, they could access a growing library of online courses to refresh their knowledge, Agarwal said.

“As we blend the courses, universities will take the next step,” Agarwal said. “We would be woven into the fabric of universities. And as long as we’re adding value, we have no qualms about that.”

MIT has already taken what Agarwal called “a bold step” toward such a model, even though the institution only describes it as an experiment. In September, the university’s arm of edX, MITx, announced the creation of two “XSeries” -- edX courses bundled into sequences. Partner universities are weeks away from announcing their own XSeries, he said.

From the twitter feed.

Guardian profile: David Tennant, our favourite Doctor … his time has come Guardian
Oven chip sales slump: is the end nigh for frozen frites? Guardian
Bruce Springsteen Bible seminars start in American university FW A full time job is not guaranteed. Run away Am dream.
David Suchet: Poirot and me Guardian  
Ron Burgundy on wild eagles, hair myths and jazz flute Guardian
BBC's loss-making Lonely Planet deal under fire Guardian

MediaWeek (V7, N44) Amazon Data Mining and new Literary Journal, McKinsey Business Strategy, Association Publishing + More

Amazon mines data for the next hot hit (WSJ)

Amazon Studios ramped up in earnest this year when the pilots were posted online in April. Users were able to rate pilots with up to five stars and offer comments, just as they would for a book or a George Foreman grill on Amazon’s site.
The pilot data was sliced in various ways—the percentage of five-star ratings, for example. Users also could fill out written surveys. Executives in May reviewed data for each pilot as well as recommendations from Amazon’s programming team.
Traditional networks test shows, too, but on a much smaller scale—typically focus groups of about 50 people. Amazon is testing on a vastly bigger audience and is collecting a range of metrics unique to its service, such as whether members of its Prime service liked particular shows.
...
“Amazon has lowered the barriers of getting a script in the right hands,” he says. “I don’t think anyone else would have bought this.” He feels that portrayals of kids on TV can be too simplistic—they’re often very happy—and he wanted to explore a more complex set of emotions.
Amazon pays $55,000 for scripts submitted online. If the pilot is successful and the series goes into production, creators get up to 5% of merchandising receipts and a per-episode fee of $4,000 for a one-hour show and $2,500 for a half-hour show. Deals set up offline with more established creators vary depending on the writer’s reputation. One uncertainty for Amazon creators is how much revenue potential there is from “back end” proceeds such as syndication and DVD sales.

Amazon has launched a literary magazine:

With so many things competing for your attention in this increasingly digital world, it can be tough to figure out what to read next—especially if you are looking for fresh voices and new perspectives.
That’s why we created Day One, a weekly literary journal dedicated to short fiction from debut writers, English translations of stories from around the world, and poetry. Day One showcases just one writer and poet each week, with issues delivered directly to Kindles or Kindle reading apps. Each issue of Day One includes a letter from the editor, as well as occasional bonus content such as playlists, illustrations, or brief interviews with the authors.
In addition to fresh voices, Day One offers unique visuals—we commission the cover art for each issue from emerging artists and illustrators—and each week subscribers can learn more about the artist as well as the genesis of the cover.

McKinsey Quarterly article on business strategy formulation is interesting (McKinsey)

It’s also easy, though, to go too far in the other direction and make the creation of strategy a rigid, box-checking exercise. Appealing as a formula-driven approach might be, it ignores the truth that strategy creation is a journey—and an inherently messy one at that. Proprietary insights are hard to come by. Shaping keen insights into good strategies requires deep interpersonal engagement and debate from senior executives, as well as the ability to deal with ambiguity in charged and often stressful circumstances. When would-be strategists overlook these dynamics, they cover the essentials in name only. Consequently, they miss opportunities and threats, or create great paper strategies that remain unfinished in practice.
In this article, we’ll outline a middle path—an end-to-end way of thinking that views the creation of strategy as a journey, not a project. This method, developed through our work with some 900 global companies over the past five years, can help senior executives approach strategy in a rigorous and complete way. We’ll also describe some principles that strategists should keep in mind as they use the method to ensure that their strategic-planning processes embody the spirit of debate and engagement, which, in turn, yields inspiration. By better understanding both the method and how to get the most out of it, companies can boost the odds that the strategies they create will beat the market.

Folio Magazine published some results of their annual Association Publishing survey (Folio):

The 2013 association publishing survey breaks down what close to 200 respondents are seeing right now. Some elements, like revenue sources, haven’t changed much over that time. Print advertising is still the dominant source of income, followed by paid subscriptions and online/emedia. Other aspects, like the outlook for the coming year, have shifted dramatically. Respondents didn’t paint a rosy portrait—more than half of the associations surveyed say they’re projecting revenue to stay the same—but it’s a significant improvement from 2009 when 49 percent forecasted declines.  Other changes, like the introduction of digital editions, have altered the association publishing market as well. Five years ago, no one was producing them. Now, two thirds of respondents’ organizations are.

From Twitter this week:

Follett Invests in Campus Quad Mobile Platform for College Campuses -- CHICAGO, Oct. 30, 2013 /PRNewswire/ -- PressRelease
Courier Bringing Custom Textbook Production to Brazil StreetInsider
Netflix Flirts with a New Idea: “Big” Movies at Your House, the Same Day They're in Theatres : AllthingsD
In the New Economy, Everyone Is an Indentured TaskRabbit NYMag 

Justice Department declares emphatic victory in price fixing case against Apple eBookstore

In a decision which will undoubtedly be appealed but which opens the possibility of hundreds of millions of dollars in penalties and restitution, Apple was found guilty of conspiring with publishers to raise eBook prices.  Personnally, I thought Apple had a good case but Judge Denise Cote noted that Apple facilitated the conspiracy, took advantage of the publishers paranoia regarding Amazon and also leveraged the impending launch of the iPad that caused higher pricing for eBook consumers.

For the Department of Justice - them of the spider-web of telephone conversations - this was an opportunity for a victory lap and some degree of hyperbole (DoJ)

“This result is a victory for millions of consumers who choose to read books electronically.  After carefully weighing the evidence, the court agreed with the Justice Department and 33 state attorneys general that executives at the highest levels of Apple orchestrated a conspiracy with five major publishers – Hachette, HarperCollins, Macmillan, Penguin and Simon & Schuster – to raise e-book prices.  Through today’s court decision and previous settlements with five major publishers, consumers are again benefitting from retail price competition and paying less for their e-books.

 

“As the department’s litigation team established at trial, Apple executives hoped to ensure that its e-book business would be free from retail price competition, causing consumers throughout the country to pay higher prices for many e-books.  The evidence showed that the prices of the conspiring publishers’ e-books increased by an average of 18 percent as a result of the collusive effort led by Apple.

  “Companies cannot ignore the antitrust laws when they believe it is in their economic self-interest to do so. This decision by the court is a critical step in undoing the harm caused by Apple’s illegal actions. 

“I am proud of the outstanding work done by the trial team.  The Antitrust Division will continue to vigorously protect competition and enforce the antitrust laws in this important business, and in other industries that affect the everyday lives of consumers.”

Other reports:

Reuters
Telegraph
WSJ - No comment from Amazon.

Amazon's Fan Fiction Play

From the Hardy Boys to Mad Men, fan fiction may have been the growth market within the publishing industry that no one knows about.  Fans are by nature the most ardent supporters of character narratives whether they be text or image based and some fairly large online communities have developed around specific shows, characters and franchises.  Over the years, traditional print publishers have dabbled in the market and video and television have accommodated fan fiction into some of their offerings but today's announcement from Amazon is a new twist (I think).

Amazon has now launch their fan fiction site in the Kindle store.  Amazon doesn't own any content but they've circumvented this issue by establishing licensing agreements with content owners so that fans can publish their fiction within an established "world".  It is a really interesting model and given the extent of the Amazon reach one could assume revenue from these fan "worlds" may generate impressive 'found cash'.

More from the Amazon press release:

Kindle Worlds is a new publishing model that allows any writer to publish authorized stories inspired by popular Worlds and make them available for readers to purchase in the Kindle Store, and earn up to a 35% royalty while doing so. Kindle Worlds stories will typically be priced between $0.99 and $3.99 and will be exclusive to Kindle. To learn more and get started writing, visit kindleworlds.amazon.com.
Here’s what authors and licensors are saying about Kindle Worlds:

• “It’s actually a gift to be able to take someone else’s creation and see whether you can take it in a new direction. Watch every show; read every comic book. Honor the canon and honor the fans. There is a reason these stories have become so popular. And don’t feel restricted by the universe that has already been created. It reminds me a bit of writing a haiku or a sonnet. There are rules that must be followed, but within those rules, you can go anywhere. Your imagination is the only limit.” —Carolyn Nash, writer in Archer & Armstrong
• “I believe Kindle Worlds has the potential to increase writership in much the same way the introduction of the Kindle expanded readership. I am thrilled for the Silo Saga to be a part of this program. It’s a natural fit because for the past year, talented authors have been exploring Silos of their own creation, and I look forward to reading more and to crafting some Worlds stories of my own.” —Hugh Howey, World Licensor for the Silo Saga
• “I was intrigued by the opportunity to create something that absolutely had to fall inside a canon that someone else came up with. In one way, it was very freeing to do so. Because the universe itself exists, with all the richness of an already established background and history, I could get right into the meat of the story without having to explain everything to the readers. I did try to make it understandable and enjoyable to a newcomer to the world, however. But there’s a lot I worked to add that will hopefully tickle the fancy of the fans.” —L.J. McDonald, writer in The Vampire Diaries
• “It was great fun to play ‘What if?’ and come up with scenarios that had ties to things that have happened on Vampire Diaries but which took things in a different direction or introduced new characters that could fit into the world of Mystic Falls. There’s probably not a writer fangirl alive who hasn’t fantasized about being able to write at least one episode of her favorite show, and I’m no different. While these stories aren’t show episodes, it’s still pretty darn cool to be able to write them with the idea of fellow fans reading them.” —Trish Milburn, writer in The Vampire Diaries

The Kindle Worlds Store is now open with over 50 commissioned stories including:

• “Pretty Little Liars: Stained” by Barbra Annino
• “The Vampire Diaries: The Arrival” by Lauren Barnholdt & Aaron Gorvine
• “Shadowman: Salvation Sally” by Tom King
• “The Foreworld Saga: The Qian” by Aric Davis
• “X-O Manowar: Noughts and Crosses” by Stuart Moore

I expect publishers and other content producers will pay close attention to this experiment.  Licensing has always been a part of many new title, tv or movie marketing and promotion campaigns and I could see this opportunity becoming very important within product development at many content companies.