Why Do We Have to Choose Between Print and Digital?
Michael Clarke, an executive at Silverchair Information Systems and a passionate music lover, is torn between vinyl and digital – squarely split down the middle. Vinyl to him means warm sound, beautiful packaging, tactility and the special rituals of opening record jackets, reading the copy, placing the record on a turntable and lowering the needle on it. Against these advantages he weighs only one for digital music: convenience. But that one completely balances the scales.
But Michael Clarke wonders why he has to choose. Why can’t he have both? Why can’t he buy the record and get the download too – at no extra cost? It’s not unprecedented. Blogging in The Solitary Kitchen, he writes : “What indie rock bands have figured out is that the purchase of music does not have to be an either/or proposition. They don’t make their customers choose between analog or digital. Whenever you buy a record from just about any indie band, it comes with either a CD or with a card that contains a URL and a download code so you can get a digital copy at no additional cost.”
Clarke doesn’t use the word, but what he’s talking about is bundling, and we think it’s the next big step in the evolution of the book business. We also think it’s the next war zone.
Bundling is an age-old merchandising technique in which customers are offered a discount if they purchase two related products. In the case of books, it’s a combo of two formats, print edition and e-book. Though the technical barriers to delivering both in one transaction are coming down, the real issue is how much to charge for the bundle. A little test we gave readers a few years ago will give you a sense of how challenging the concept is:
When you purchase a print book you should be able to get the e-book for…
a) the full combined retail prices of print and e-book editions
b) an additional 50% of the retail price of the print edition
c) an additional 25% of the retail price of the print edition
d) $1.00 more than the retail price of the print edition
The choices aren’t just economic but philosophical, reflecting just how aggressive a publisher wants to be and the various thresholds at which the publisher believes consumer resistance will melt. A good argument can be made for each, and as the bundling issue warms up you can expect to hear them all endlessly debated.
The time will soon come when publishers will have to choose one of the above strategies and put it into effect. Misjudging consumer attitudes could prove to be a big mistake and possibly a ruinous one. My own view? I strongly believe that the e-book version should be included free of charge with the purchase of the print edition. What do you think – and why?
Details in Bundling: Publishing’s Next Battleground.