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The New Challenges for The New Challenges for LA PublishersLA Publishers

How to Manage Your Companyto Realize Profitable Growth

Howard W. Fisher

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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 +

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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

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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

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California’s Economy far LargerCalifornia’s Economy far Largerthan New York (Publisher Central)than New York (Publisher Central)

AerospaceSoftwareEntertainmentAgricultureBio TechTechnology

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West CoastWest Coast

Trend SettingMedicalBio TechTechDesignFashionEntertainmentInternet Development

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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

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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

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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

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ResearchResearch

LA Times—best prognosticator of trends

Observe news from bellwether states– California, Oregon, Texas

Observation—implications—consequences

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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?

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Market conceptMarket concept

Value is in growing markets

Can the concept be scaled?

Can the concept be expanded?

First to market?

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Be Market DrivenBe Market Driven

What products will we need to create for this changed market?

Shape Product to Market

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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

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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?

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Research & Understand Your MarketResearch & Understand Your Market

Look at the big picture– Your media’s trends– Your market

Trade? Educational? Domestic International

– Your channels

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Publishing PlanPublishing Plan

Where can you be successful?

Where can you own the category?

How can you own the channel?

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IP rulesIP rules

What is the intellectual property?

What barriers to entry can be erected?

Success invites competition

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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

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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

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Are you doing the web right?Are you doing the web right?

Online communities

Google and other search words

ONIX compliant

Continuously evolving technologies

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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?

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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?

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ThanksThanks

Howard W. FisherThe Fisher Company7493 N. Oracle Road Suite 125Tucson, AZ 85704

Phone 520-547-2460 Fax 520-744-0944 E-mail howard.fisher@thefishercompany.com