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Edition: U.S. Article Comments (5) Save Email Print Reprints Most Popular Most Shared Obama calls for bank tax as next step in reform 26 Jun 2010 Court to rule on Sarbanes-Oxley and gun rights 11:20am EDT Trapped drunk driver opens another beer as awaits rescue 23 Jun 2010 Oil spill teams keep wary eye on storm in Gulf | Video 2:28pm EDT World's biggest gold coin fetches over 3 million euros 25 Jun 2010 No good info on bin Laden for years: CIA's Panetta 2:20pm EDT Methane in Gulf "astonishingly high": U.S. scientist 22 Jun 2010 Miley Cyrus "no underwear" photo is fake, blogger says 15 Jun 2010 N.Korea rejects U.N. truce talks over ship sinking 7:40am EDT G20 walks tightrope between growth and deficits | Video 4:12pm EDT Trapped drunk driver opens another beer as awaits rescue 23 Jun 2010 Obama calls for bank tax as next step in reform 26 Jun 2010 E-books pave way for more blockbusters, serials 25 Jun 2010 Methane in Gulf "astonishingly high": U.S. scientist 22 Jun 2010 Scientists find way to predict timing of menopause 4:58am EDT Court to rule on Sarbanes-Oxley and gun rights 11:20am EDT For sale - village with pub, 40 people 25 Jun 2010 Maimed cat walks again with artificial paws 25 Jun 2010 Top New Orleans chef sues BP over seafood losses 11:13am EDT World's biggest gold coin fetches over 3 million euros 25 Jun 2010 E-books pave way for more blockbusters, serials Christine Kearney NEW YORK Fri Jun 25, 2010 6:03pm EDT NEW YORK (Reuters) - Stieg Larsson copycats take note: The slow rise of electronic books is paving the way for more safe-bet fiction blockbusters and serial-type books, at least in the short term, according to some book experts. Entertainment | ipad | Technology With book sales stagnating in recent years, the nascent e-books market has thrown the industry into turmoil. In response, large publishers are taking fewer financial risks and betting more of their dollars on established authors, said Eileen Gittins of self-publishing company Blurb.com. "In the face of these economics, publishers just cannot take the risk," said Gittins. "They need some sure wins." Similar to movie studios' betting on well-known franchises to bring box office gold, Gittins said publishers want to market more blockbuster authors writing serial books featuring a distinctive leading character to lure repeat readers, as was seen with the success of prolific, late Swedish author Stieg Larsson, or crime fiction writers such as Michael Connelly. With prices on the fledging e-book market still being battled over among larger publishers and makers of electronic readers, publishers still have yet to profit much from e-books, with the lower priced e-books eating into profit margins. The e-book market has grown rapidly with wholesale revenue from e-book sales in the United States increasing to $91 million in the first quarter of 2010 from $55.9 million from the last quarter of 2009, according to International Digital Publishing Forum. But e-book sales still only account for 5-6 percent of overall U.S. book sales and less than 1 percent in Britain, The Financial Times reported this week. Contrary to popular opinion, most of publishers' costs are developing and marketing authors, not the cost of printing and shipping books. Such costs don't lessen with e-books even though they sell for less than paper books, Gittins said. That heightens pressure "to need to do blockbuster big titles because now there is even more pressure on them," said Gittins. "They are not really saving money with the e-book, all those costs are still there." SAFE-BETS Book experts predict in the e-book market, bestselling authors will remain popular in the short term. According to Amazon, all three of Stieg Larsson's books, which include sensation "The Girl with the Dragon Tattoo," sit in the top five best-selling books on Amazon's Kindle reader. Customer favorites for e-books include "great Summer reads" such as Stephenie Meyer's new novella. Daily Beast book editor Lucas Wittmann said in five years e-book sales could reach levels to make up for lost paper book sales, but for now publishers are feeling the pinch. "There is a big squeeze right now," said Wittmann. "All the great predictions for e-books haven't quite been realized yet. E-books are growing at an astounding rate but they are not yet making up for the lost (book) sales." When e-books first hit the market, some nonfiction economic and political books fared well, but now as the e-book audience had widened, more fiction is selling, he said. "Publishers are still experimenting," Wittmann added. Publishers Weekly Editorial Director Jim Milliot said online sites such as Amazon.com encourage readers to buy the same author, while smaller publishers were slow on e-books. "A lot of the independent publishers have been slower to move to put their titles on, mainly because they don't have the resources to do it," he said. "Fiction seems to be winning out, at least in the early going." As electronic readers improve, the type of e-books that sell well could change. Improving graphics could help genres like nonfiction and children's books become more popular. "The possibilities seem to be opening up for more graphic work, incorporating multimedia and embedding links to audio when you are reading a biography of Bach or something," Wittmann said, predicting such advances in a year or two. Wittmann said there will still be some "pain in the industry" but diversity and change was coming. "Most publishers...are warming to e-books and thinking creatively about them," he said. "The only question is the time frame ... when we see a truly dramatic shift." (editing by Mark Egan and Bob Tourtellotte) Entertainment ipad Technology Comments See All Comments (5) | Post Comment Jun 25, 2010 10:06pm EDT Why do publishers act like making an ebook is an arcane art on the order of turning lead into gold? Indie authors are formatting them in an hour or two. As in movies and music, more “safe bets” will inspire audiences to stray in search of the unsafe. Scott Nicholson http://www.hauntedcomputer.com scottnicholson Report As Abusive Jun 26, 2010 12:47am EDT E-books will become more popular now that Amazon wised up and allowed its e-books to be formatted so they could be purchased by PC, MAC, iPad and iPhone users. As Wittmann said, “some pain in the industry” will be experienced. Trudge164 Report As Abusive Jun 26, 2010 8:19am EDT What taxpayers money? Did you ask me when you sendt money to the banks? Did I get a dime when the banks paid back? Will I get a dim from the bank tax? I’m a demo but I won’t vote for you again because you are destroying the system and the country. autoledger Report As Abusive Jun 26, 2010 5:43pm EDT Ebooks work. As an avid reader, purchasing ebooks instead of hardbacks or paperbacks since January 1st has saved me over $350.00 and almost 4 feet of shelf space. These are books I’ll probably never read again so having them sit on a shelf is of no real value. The only negative? I don’t have a copy to lend to a friend if it’s a really good read. kboy116 Report As Abusive Jun 26, 2010 9:40pm EDT How could they not be making money off e-books. Once the initial cost of converting to the electronic format is recouped, the rest is pure profit. They don’t have to buy paper and ink for printing, cost of storage is nil, no shipping fees… I just don’t get how e-books couldn’t be profitable. As an avid e-book fan, I would like to see MORE books in this format. I love the advantage of being able to carry my library in my pocket. drtmp01 Report As Abusive See All Comments (5) Add a Comment *We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language or appear to be spam and review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. © Copyright 2010 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Reader Feedback Analyst Research Mobile Newsletters RSS Podcasts Widgets Your View Labs Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week FindLaw Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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