Tuesday, June 17, 2008

Michael Eisner, Borders Team Up on Web Series

Hi Everyone,

We believe web series like the one just announced between Borders books and Michael Eisner, establishes an exciting new trend which marries the world of books with that of the web and film/TV.It is likely that such web series' will become test cases for what will sell at the motion picture theatres and in the home entertainment market. We know of several deals pending with major Los Angeles producers who are contemplating the idea of web episodes.


Michael Eisner,
Borders Team Up
On Web Series

ANN ARBOR, Mich./6/17/2008-- Borders Books has formed an alliance with former Walt Disney CEO Michael Eisner and Eisner's now independent media studio, Vuguru, to distribute the innovative Web series, “Robin Cook's Foreign Body: The Prequel,” through the retailer’s newly launched Borders.com site and to members of the Borders Rewards® loyalty program, which now number more than 26 million.

Borders, together with Vuguru, will offer its customers a series of 50 two-minute episodes that are the prequel to international best-selling author Robin Cook's novel, Foreign Body. Cook’s Foreign Body follows two young Indian beauties that are coaxed into traveling to Southern California by a group of cunning, cutthroat medical entrepreneurs who promise to help cultivate their nursing training in the States by offering them the American dream. The plot delves into the world of medical tourism with twists and turns of seduction, murder and international intrigue.

Customers can now watch new daily episodes of the series at www.BordersMedia.com/foreignbody. The last installment will air August. 4. Cook’s new novel, Foreign Body, to be published by G.P. Putnam’s Sons, will be released nationwide August 5. Borders is also the exclusive online book retailer for Vuguru’s official Foreign Body Web site. Customers interested in pre-ordering copies of Cook’s upcoming thriller can place their orders at www.BordersMedia.com/foreignbody.

“By teaming with Vuguru to offer our customers access to Body: The Prequel’ – exciting, high-quality digital programming – we are truly elevating the shopping experience for our customers and differentiating our company from our competitors,” said Borders Group Chief Executive Officer George Jones. “Now, customers can watch and learn the backstory to ‘Foreign Body’ via these Web episodes on Borders.com before ever reading the book. It’s a great way for readers to catch the excitement of a new release.”

“This unique marriage of offline and online content has created exciting new partnership opportunities for Vuguru around the ‘Foreign Body’ series,” said Michael Eisner. “We’re thrilled to be in business with Borders, a company that has truly embraced the emergence of digital media and continues to adapt to its evolving landscape.”

Borders Group, Inc., headquartered in Ann Arbor, Mich., is a $3.8 billion retailer of books, music and movies. Through its subsidiaries it operates more than 1,100 stores and employs approximately 30,000 people worldwide. The company recently launched Borders.com for online shopping. More information on the company is available at www.borders.com.

Vuguru is a new media studio for Michael Eisner's The Tornante Company. The studio produces and distributes innovative story-driven content for current new media and emerging platforms. Vuguru’s production of Prom Queen is the first of many shows developed and produced by the studio. Privately held, The Tornante Company makes investments in and incubates companies and opportunities in the media and entertainment space. Tornante, which recently acquired The Topps Company Inc., owns Team Baby Entertainment and has an ownership stake in Veoh Networks. More information on Vuguru is available at www.vuguru.com.

Dr. Robin Cook, who is widely credited with introducing the word “medical” to the thriller genre and 29 years after the publication of his breakthrough novel, Coma, continues to dominate the category he created. His most recent The New York Times best sellers include Crisis, Critical, Marker, Seizure, and Shock. Cook's medical thrillers have successfully combined medical fact with fiction to produce a succession of 25 “The New York Times” best sellers that have been translated into 40 languages.

Eisner, 63, is the former Chief Executive Officer of The Walt Disney Company, a post he held from 1984 to September 2005. He served as Chairman of the Board from 1984 to March 2004. Prior to joining the Company, Mr. Eisner was President and Chief Operating Officer of Paramount Pictures Corp., which was then a wholly owned subsidiary of Gulf+Western Industries, Inc. Prior to joining Paramount in 1976, Mr. Eisner was Senior Vice President, Prime Time Programming, for ABC Entertainment, a division of the American Broadcasting Company, Inc., with responsibility for the development and supervision of all prime-time series programming, limited series movies made for television and the acquisition of talent.

Tuesday, June 10, 2008

Borders Books Selling Off Units

Hi Everyone,


This week has been busy with publishing news. Borders announced it is selling off several foreign retail book units. In the prior week they announced a 20% reduction in staff. Could all of this slimming down mean the sale of the rest of the units may come soon?


Borders to Close

Sale of Some Foreign

Units to A&R Whitcoulls

ANN ARBOR, Mich./6/5/2008—Borders Group, Inc. (NYSE: BGP) has announced that it will sell 100 percent of its Australia/New Zealand/Singapore businesses—which include 30 Borders superstores—to A&R Whitcoulls (ARW), the leading Australasian retailer of books and related products owned by private equity firm Pacific Equity Partners (PEP). The total transaction is valued at up to $110 million and is expected to close next week.

Upon closing of the transaction, Borders Group will receive proceeds of approximately $95 million (AUD) or approximately $90 million (USD based on current exchange rates). Additional deferred payments of up to $15 million (AUD) or approximately $14 million (USD based on current exchange rates) will be paid to Borders Group on or about March 31, 2009 if certain performance targets are achieved.

Just last week, Borders announced an aggressive plan to cut $120 million in expenses, laying off 156 people at its Ann Arbor headquarters and another 118 corporate costs outside its headquarters.

As part of the agreement, ARW, which owns and operates over 260 stores including Australia’s oldest bookstore chain, Angus & Robertson, as well as popular New Zealand book, magazine and DVD retailer Whitcoulls, among other holdings, will have the right to use the Borders brand throughout Australia/New Zealand/Singapore consistent with a brand licensing pact that is part of the agreement.

“These businesses have performed well led by a talented management team who has consistently delivered strong execution in Borders superstores in Australia, New Zealand and Singapore,” said Borders Group Chief Executive Officer George Jones. “This transaction represents an attractive valuation, permits us to forgo further investment in these businesses, and provides our company with a significant cash infusion to further reduce debt, which is one of our key financial initiatives. ARW is a well respected and highly successful retail company with outstanding leadership that will be strengthened with the addition of the local Borders executive team and our stores. We trust A&R Whitcoulls to successfully manage the Borders brand.”

A&R Whitcoulls Group Managing Director, Ian Draper, said that the Borders assets are complementary to his company’s existing holdings, offering a different yet enhanced shopping experience to Angus & Robertson in Australia and Whitcoulls in New Zealand. “Borders will bring a new dimension to our retail offerings,” he said. “The customer-experience based model invites shoppers to browse with a vast range of books, music, movies and cafes in Borders stores. This model has proven popular in the local market and will complement our existing presence by targeting a different demographic through the premium format and vast selection of products.”

Managing Director of Borders Asia Pacific, John Campradt, will continue to serve in his current role managing the Borders business. “Building the Borders brand throughout Australia, New Zealand and Singapore has been fulfilling,” he said. “Now, we enter an exciting new chapter as part of ARW, which has welcomed our management team, our stores, and our people, and will provide the support we need to drive profitable growth.”

Borders Group, Inc., headquartered in Ann Arbor, Mich., is a leading global retailer of books, music and movies. Through its subsidiaries, Borders Group employs approximately 30,000 people and operates over 1,100 stores worldwide, as well as the newly launched Borders.com. More information on the company is available at www.borders.com.

A&R Whitcoulls is a leading book and stationery retailer in Australia and New Zealand. A&R Whitcoulls currently operates four divisions: Whitcoulls stationery chain, Calendar Club, a chain of specialty calendar stores; Angus & Robhertson, a nationwide book store chain in Australia, and Supanews, a joint venture that operates newsagencies in Australia.

Monday, June 09, 2008

HarperCollins Undergoes Major Restructuring


NEW YORK, N.Y./6/5/2008--After the sudden departure of Jane Friedman as CEO of HarperCollins Publishers last week, and her replacement by Brian Murray as worldwide president and CEO, the publisher has announced a new management structure.

Michael Morrison has been promoted to President and Publisher U.S. General Books and Canada, and Victoria Barnsley has been promoted to CEO and Publisher HCUK and International, overseeing the UK, Australia, New Zealand, India and South Africa.

Friedman had been with HarperCollins for ten years, and there had been no hint of her departure, even as she presided the previous week over the company's participation in BookExpoAmerica.

"Michael and Victoria are two of the most creative publishing executives in the industry and I am looking forward to working closely with them to help HarperCollins grow and achieve even greater success," said Murray. "They both have a rare combination of terrific creative instincts and business acumen. They are ideal partners to help us build HarperCollins into the publisher of choice."

"I love this company and am excited to work with my colleagues in this new role to further our reputation as the best publisher in town," said Morrison.

"I am thrilled to have the opportunity to extend my remit at HC internationally," said Barnsley. "The rest of the world offers us tremendous growth opportunities and will be an ever more important part of our business. I've worked with Brian and Michael for several years and believe that as a team we can take HC to even greater heights."

Michael Morrison joined HarperCollins in January 1999 as Vice President, Associate Publisher of HarperCollins and later became Executive Vice President, Publisher of Morrow/Avon. Most recently he served as is President and Group Publisher of the HarperMorrow division at HarperCollins Publishers. He was appointed to this position November, 2004.

Victoria Barnsley has been Publisher and Chief Executive of HarperCollins UK since 2000, when her company, Fourth Estate, was purchased by HarperCollins. Barnsley sits on the Worldwide Board of HarperCollins Publishers Inc and is Chair of HarperCollins India Ltd.

About HarperCollins Publishers

HarperCollins, one of the largest English-language publishers in the world, is a subsidiary of News Corporation (NYSE: NWS, NWS.A; ASX: NWS, NWSLV). Headquartered in New York, HarperCollins has publishing groups around the world including the HarperCollins General Books Group, HarperCollins Children's Books Group, Zondervan, HarperCollins UK, HarperCollins Canada, HarperCollins Australia/New Zealand and HarperCollins India. HarperCollins is a broad-based publisher with strengths in literary and commercial fiction, business books, children's books, cookbooks, mystery, romance, reference, religious and spiritual books.

Consistently at the forefront of innovation and technological advancement HarperCollins is the first publisher to digitize its content and create a global digital warehouse to protect the rights of its authors, meet consumer demand and generate additional business opportunities. The publisher's website is located at: http://www.harpercollins.com.

Monday, June 02, 2008

Poll Finds Most Readers
Prefer Printed Books

Hi Everyone,
Here's a very interesting report just released at BookExpo America last week on America's reading habits. It contains a few interesting surprises.

Random House/Zogby
Poll
Finds Most Readers
Prefer Printed Books

UTICA, NEW YORK/6/1/2008--Random House and Zogby International released an extensive survey May 30 that explores how and where readers shop, what makes them buy, and their reading and book-buying habits. Despite the growing availability of other formats for reading—such as online or with an e-book reader or PDA-- the vast majority of readers still like to read the old fashioned way – 82% said they prefer to curl up with a printed book over using the latest in reading technology, a new Random House/Zogby poll shows. Women (85%) are more likely than men (79%) to say they prefer reading printed books. Reading printed books also has greater appeal among older respondents, although it is by far the preferred method among all age groups.

Just 11% of respondents said they are comfortable reading books in other formats, such as online or with an e-book reader or PDA. Men (13%) are more open than women (8%) to reading books in other formats, as are 13% of those younger than age 30, compared to just 6% of those age 65 and older.

Most book buyers head to bookstore with a purpose – but are often tempted into unplanned book purchases

The survey finds most readers often head to a bookstore knowing exactly what they’re looking for – 43% of respondents said they do this somewhat often, while nearly as many (38%) very often head to a bookstore with a particular book in mind. But just because they’re focused on a certain book, most admit they’re likely to be tempted by other books once at a store – 77% said that when they go into a bookstore for a specific book, they sometimes make additional, unplanned book purchases. For nearly half (48%), the first thing that draws them to a book while browsing in a bookstore is the subject, followed by the author (24%) and the book’s title (11%). When asked about their most recent book purchase, 43% said the book’s subject was the most important factor, followed by the author (29%) and a good recommendation or word of mouth (11%). When asked what makes them want to buy a book, 60% said suggestions from friends and family members, while nearly half (49%) said they are influenced by book reviews.

It is 3 AM and your telephone rings. The next president can’t sleep and is calling you for a book recommendation. Other than the Bible, what book would you suggest?

There’s been a lot of chatter this campaign season about White House activity at 3 a.m., and the survey finds among the top recommendations for the next president would be reading up on world and U.S. history – including the U.S. Constitution.

Among the most frequent responses were books on history, from the Federalist Papers to a more recent look at American history found in David McCullough’s 1776. Many also suggested politically themed books – including those by Ann Coulter, Rush Limbaugh and Glenn Beck.

Books by politicians such as Ron Paul, Barack Obama, and Al Gore - as well as books by both Bill and Hillary Clinton – which were also frequent mentions. So were suggestions to read anything by Ayn Rand.

Lengthy classics such as War and Peace and the Lord of the Rings also made the list, while others were more inclined to suggest more recent fiction by such authors as Tom Clancy, James Patterson, John Grisham and Stephen King.

Most admit to judging a book by its cover

More than half (52%) admit to judging a book by its cover, with younger respondents more likely to acknowledge a book’s cover influences their opinion – 66% of those younger than 30 said they judge a book by its cover, compared to just 34% of those age 65 and older. More than a third (35%) said they have purchased a book because of a quote from another author. When they find a book they like, the vast majority (89%) said they make a special effort to look for other books by the same author. Women (92%) are more likely than men (86%) to seek out books by authors they already enjoy. Other findings about reading preferences and habits include:

• Most said they typically read just one book at a time, but a sizable 40% said they usually are reading between two and four books at once. Another 3% said they generally read more than four books at one time.

• While 19% said they borrow most of the books they read from the library, the vast majority of Americans (78%) said they own most of the books they read. And while 71% are quick to loan books to friends, just 32% said they are in the habit of borrowing books from friends.

• Respondents were also asked to own up to their bad reading habits – 35% admit to folding over the pages, while 13% confess to sneaking a peek at the ending before finishing a book. Just 6% divulged that they have neglected to return a library book.

• Two in three respondents (68%) said they typically read a book just once, but 18% said they usually go back for a second read and 10% generally read a book three times or more.

• Once a book has been read, most respondents said it goes back on their shelf at home (57%), but others are more likely part ways once they finish – 20% usually pass books on to a friend or family member, while 14% give them away and just 3% said they typically sell their books once their done reading them.

• When respondents were asked what type of book would best represent their life, 20% said it would be humor, while 16% said satire and 13% said their life would be an inspirational book.

• The survey also shows respondents are more likely to purchase the most books for themselves than for family members or as gifts. On average, 39% of respondents said they purchase between one and five books per year for themselves, while 26% buy between six and 10, 14% between 11 and 15 – 22% buy 16 or more books per year for themselves. When it comes to purchasing books for family members, 51% said they buy one to five books per year, 23% six to 10 and 9% buy 11 to 15 – 18% buy 16 or more books per year for family members. Nearly three in four (73%) respondents said they typically purchase between one and five books per year as gifts, 19% buy six to 10 books as gifts and 4% buy 11 to 15 – just 4% said they buy 16 or more books as gifts per year.

Most head online or to chains for books, but nearly half also shop at independent booksellers

While most purchase books online (77%) or at chain bookstores (76%), nearly half (49%) said they also purchase books at independent bookstores. Others said they purchase books at locations, including the airport (39%), big box retailers (29%), warehouse clubs (27%), supermarkets (25%) and drug stores (16%). The youngest respondents, age 18 to 24, are more likely than older respondents to say they purchase books online and at chain bookstores, but are also more likely to buy books at independent bookstores (54%), compared to 41% of those age 65 and older.

Readers most frequently buy books online or at chains

Respondents said they most often buy books online (43%) or at chain bookstores (32%), while 9% said they purchase books at independent bookstores most frequently.

Nearly one in four are reading more – but slightly more said they are reading less than usual

While 46% of respondents said they have spent about the same amount of time as usual reading in the past year, 23% are spending more time reading – and 30% said they are reading less than usual. Nearly two-thirds of those who are reading less (65%) said they are spending more time online, while 37% are spending more time watching television or movies and 18% are devoting more time to playing computer and video games.

Younger respondents are more likely than older respondents to say they are reading more – and less – than usual. Among those who are spending less time reading, younger respondents are more likely to say they have increased the time they spend online, as well as time watching television or movies and playing computer and video games. The same trend holds true for women, who are more likely than men to say they are spending both more and less time reading books – among those who are reading books less, women are more likely than men to say they are devoting more time to the Internet, television, movies and computer and video games.

John Zogby to discuss survey findings and his new book

Zogby International President and CEO John Zogby put the findings of this survey into context and provided marketing information that booksellers and publishers can use to connect with the changing American consumer during his presentation on “The New American Character” May 30 at BookExpo America in the Los Angeles Convention Center.

Zogby, one of the leading voices in the public opinion research industry, is the author of a new book, THE WAY WE’LL BE: The Zogby Report on the Transformation of the American Dream, which Random House will publish on August 12. In it he identifies a new American consensus arising from the collapse of trust in our leaders and leading institutions. Basing his analysis on thousands of polls conducted by his organization, he sees four main trends that affect how Americans buy and vote: learning to live with limits, embracing diversity, rejecting materialism, and demanding authenticity.

The Zogby Interactive online panel represents a national sample that is slightly more well educated, earns slightly higher incomes, is more likely to vote in elections, and is slightly less racially diverse than the national adult population as a whole. It is a tool to measure public opinion for such topics as high technology, shopping habits, reading habits, and attitudes toward such things as business, politics, and leisure. For a comprehensive report on his survey, plus a complete methodology statement, please visit: www.zogby.com