The Wrong Business Model?

I did a little searching, and meandering, and researching through several local Ottawa and City literary websites, compiling a list of Ottawa-based publishers.

(I excluded online publishers, online magazines, online journals, electronic formatted publications, (any "publisher" that had "no skin in the game"), 'publishing companies' that exclusively publish a single author's work (self-published indie-authors under a title than their own name), and scientific, medical, and university papers publishers).

I was left with 40 (allegedly) local Ottawa-based publishers. After a little bit more digging, 7 were not actually in Ottawa, so these were removed as well.

Of the 33 remaining, only 12 still exist. 63.64% went out of business and/or closed.

When we consider the current trend of the significant rise of the small to mid-sized presses/publishers, the question needs to be asked; Why? Shouldn't we be seeing the successful rise of small-mid-sized publishers?

Some degree can be attributed to outdated websites. Some degree could be attributed to simply bad-run businesses, but doubtful at a level of nearly 2 in 3. If we factor Ottawa being the nation's capital - meaning there's money in Ottawa, and that, as a government city, Ottawa is mostly insulated against major economic swings, it poses a question: Why have so many Ottawa publishers failed or gone out of business?

Ultimately, I can only imagine one reason: That they've attempted to use the same model as the traditional publishers; they've attempted to mimic The Big 5.

I believe that's a mistake, because, ultimately, the Big 5 are multi-billion dollar companies. They have resources unattainable for the average small-mid-sized publisher. 

They can afford the throw marketing money at a title, whether financially successful or not. In fact, it is debatable that their business model includes and incorporates suffering massive losses and continue functioning. The mystery of Penguin Random House/Simon & Schuster antitrust trial attests to it. (It could even be a form of accounting fraud or financial statement manipulation).

Historically, traditional publishers have always played it safe. Historically, traditional publishers don't know good literature from bad. Historically, traditional publishers have played the roll of literary gatekeepers and not facilitators. 

But equally concerning, on the other end of the spectrum, are the predatory Vanity presses or publishers. Vanity presses/publishers charge significant fees upfront at the author's expense, for various services along with questionable quality, a lack of transparency, and lack of control, often followed by little to no support in book sales and/or distribution.

Ultimately if a publisher were to embrace the model of being a facilitator of literature (allowing the reader to determine good from bad literature) rather than gatekeeper, yet without being a Vanity press/publisher, what can this look like?

Aside from traditional publishers, the only other apparent options would seem to be predatory Vanity publishers, or self-publishing. (And the challenge with self-publishing for many is a lack of sufficient knowledge, contacts, and skillset).

And from a publisher's point of view, there has to be another, viable option. And I think it would be a Hybrid model. I know this term is often demonized and unfairly used derogatorily and synonymously with Vanity publishers, but it is and has to be different.

I believe this newer model must take positive and affordable traits from all three avenues, combining them into something that works for the publisher, authors, printers, and retail storefronts. (Because all too often, the retail storefronts are forgotten in this equation).

If this were a Venn diagram, where would this model find itself? I would like to believe somewhere in the middle.

Although having a bad rep, the Hybrid model is likely the best option. And it lines up well with the model of a publisher being a facilitator and not a gatekeeper.

The Hybrid model includes authors paying for certain fees upfront, likely at a discount. I should think at a discount because these businesses would offer these services separate from their publishing contract/model - formatting, layout, editing, cover-design, printing, etc. I'd imagine these services, for a signed author, would come at a discount considering that there are still revenue being generated by the book's sales.

The Hybrid model also protects the publisher because they con immediately recoup some of their initial costs. And I think this is important to stress. With nearly 67% of Ottawa's listed publishers being no more, closed, bankrupt, or failing, it seems obvious there are problems with other models.

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