1
The New Challenges for The New Challenges for LA PublishersLA Publishers
How to Manage Your Companyto Realize Profitable Growth
Howard W. Fisher
2
What’s great about LA?What’s great about LA?
Mobile
Multicultural
Outdoors
Affluent
Weather
24/7 The real city that never sleeps!
Largest city in California
Pacific Rim attitude
Closer to expanding markets—China +
3
CACA——Largest State and GrowthLargest State and Growth Census Population Change, 1990 to 2000
Rank Area April 1, 2000 April 1, 1990 Number Percent
1 California 33,871,648 29,760,021 4,111,627 13.8
2 Texas 20,851,820 16,986,510 3,865,310 22.8
3 Florida 15,982,378 12,937,926 3,044,452 23.5
4 Georgia 8,186,453 6,478,216 1,708,237 26.4
5 Arizona 5,130,632 3,665,228 1,465,404 40.0
6 North Carolina 8,049,313 6,628,637 1,420,676 21.4
7 Washington 5,894,121 4,866,692 1,027,429 21.1
8 Colorado 4,301,261 3,294,394 1,006,867 30.6
9 Illinois 12,419,293 11,430,602 988,691 8.6
10 New York 18,976,457 17,990,455 986,002 5.5
4
California is the 5th Largest California is the 5th Largest Economy in the WorldEconomy in the World
1995—7th
2000—6th
2001—5th
Going for 4th
5
California’s Economy far LargerCalifornia’s Economy far Largerthan New York (Publisher Central)than New York (Publisher Central)
AerospaceSoftwareEntertainmentAgricultureBio TechTechnology
6
West CoastWest Coast
Trend SettingMedicalBio TechTechDesignFashionEntertainmentInternet Development
7
LA CultureLA Culture
Diverse Unlimited activities Genetic adventurer
disposition New Ellis Island
– South to North migration– Far East to West Coast
migration
Changing Latin culture– Language shifts– Tipping points
8
LA is a state of mindLA is a state of mind
Protest, ControversyPeoples Republic of CaliforniaSurfboards, SkateboardsLow Riders, Fast and FuriousMusic, Motion Pictures, TelevisionExtremismsIdea Generation, Integration, Fusion
9
LA—a tendency to set trends, LA—a tendency to set trends, but not capitalize on thembut not capitalize on them
Publishers’ reluctance to capitalize on scientific, cultural and product trends that move West to East.
What needs to be done differently?
Recognize your own trends
10
ResearchResearch
LA Times—best prognosticator of trends
Observe news from bellwether states– California, Oregon, Texas
Observation—implications—consequences
11
LA Times Festival of BooksLA Times Festival of Books
160,000 consumers in one place
What is really being offered?
What do these people want?
What will they want 5 years from now?
12
Market conceptMarket concept
Value is in growing markets
Can the concept be scaled?
Can the concept be expanded?
First to market?
13
Be Market DrivenBe Market Driven
What products will we need to create for this changed market?
Shape Product to Market
14
Think user / consumer—not booksThink user / consumer—not books
What are their needs for information?– Web– Book– Magazine– Newsletter– E-letter– E-community
Ancillary Products
15
Media explosion has changed Media explosion has changed consumer habits & expectations consumer habits & expectations
Information explosion60,000 vs 135,000 new titles in 5 years
– Gaps & opportunities
What future forms of information, education & entertainment do we see?
How can an LA publisher grow a business in this environment?
16
Research & Understand Your MarketResearch & Understand Your Market
Look at the big picture– Your media’s trends– Your market
Trade? Educational? Domestic International
– Your channels
17
Publishing PlanPublishing Plan
Where can you be successful?
Where can you own the category?
How can you own the channel?
18
IP rulesIP rules
What is the intellectual property?
What barriers to entry can be erected?
Success invites competition
19
Market ConditionsMarket Conditions
What are the market conditions we’re experiencing & expect to have?
Decreased bookstore sales
Increased Internet sales
Increased competition for Special Sales
20
Make Special Sales Core Make Special Sales Core
Large Chain27%Indie-SmallChain 16%Book Club 15%
Online 12%
All Other 30%
New New York trend Known by smaller and midsized publishers for decades Advantages—Closer contact with end consumer,
no returns, better margins, better payment
21
Are you doing the web right?Are you doing the web right?
Online communities
Google and other search words
ONIX compliant
Continuously evolving technologies
22
Think long-termThink long-term
Micro and small presses do have value
Quality titles stand the test of time
How do we create value from the beginning?
23
Questions?Questions?
How can we leverage changes in media explosion and new consumer expectations?
Should we be competing or cooperating with a compatible partner?
What areas of the publishing process should our company invest in or control?
24
ThanksThanks
Howard W. FisherThe Fisher Company7493 N. Oracle Road Suite 125Tucson, AZ 85704
Phone 520-547-2460 Fax 520-744-0944 E-mail [email protected]