Mike Hyatt goes for broke...

What a week for Mike Hyatt, the Prez at Thomas Nelson Publishers. Early last week he announced that TN would pull out of ICRS (the big CBA book show) in Orlando this July. Then he announced that TN would also pull out of BEA (the big ABA book show for the general market). A day later, he let people know that TN was cutting 10% of its workforce. And in his blog the next day, he dropped his biggest bombshell: that TN was releasing too many under-performing books, and they planned to "eliminate a significant portion of our workload" by significantly cutting their list.

Wow. That is one lousy week.

Or maybe it turns out to be a great week -- who knows? It's got to be tough to face all these problems, and even tougher to blog about them. Mr. Hyatt keeps a blog (michaelhyatt.blogs.com), in which he reveals some of his thinking. It can be an interesting read, and kudos to the guy for being willing to share some of his thinking. He's got to be the highest-ranking person in all of publishing to offer thoughts in that format, and he took some hits for doing so -- some people posted very personal attacks on the guy.

Um... Look, let me get this out right at the start: Mike and I are acquaintances, not friends. He is always very pleasant to me, but we're not hanging out together in Nashville or going to get a drink with one another at CBA. I don't feel sorry for him -- when he signed on to be the Boss, he had to know he'd face some tough decisions. You figure they pay him the big bucks to make these types of tough decisions. But I gained a huge measure of respect for the way he handled this. I was a publisher once (though not in a position of authority like he is), and sometimes you're asked to look at the future and make difficult decisions. Deciding to cut people or trim books isn't easy, but I don't see any other publisher taking the time to post some of his or her thinking on a personal web site, so that authors and agents can review it and comment on it. And, in retrospect, each of these four decisions have big repurcussions, and each may be necessary...

DUMPING ICRS: This announcement had to send shock waves through the guys running CBA -- the largest Christian book publisher has just decided to pull the plug. This is something I'm on record as having predicted the past two years (go ahead -- look it up). I just keep wondering if the show is cost-effective. The CBA convention is expensive, it doesn't lead to much book ordering for a publisher any more, and in fact it's not really a "book" show  -- it's more of a jewelry/art/t-shirt/choir-robe/Christian crap show (see my blog last year about finding "faith filled footwear," "gospel golfballs," and "armor of God pajamas"). At least at BEA you still get to hang out with BOOK people... whereas at ICRS you're surrounded by 19-year-old music publicists, their 44-year-old-manager-with-a-ponytail, and people pushing gospel ties. The Christian book publishers are tired of it, and are ready to create their own book show that will focus on just books. (A couple publsihers have noted to me that for all the wailing CBA bookstores do about profits being down, they seem unwilling to recognize that their businesses took a downturn when they stopped focusing on books and started selling Thomas Kinkade art and Precious Moments statuettes. We're a culture that appreciates speciality stores, and too many CBA member stores are now nothing more than Jesus Junk Shoppes.)

So the guys at CBA immediately issued a statement, claiming that the Thomas Nelson booth space was already rented out to somebody else, and that they were moving ahead, and that all was right with the world... don't believe it. There were more Christian books created and sold last year than ever before. We live in the Golden Age of Christian books, with incredible quantity and excellent quality. And yet CBA is shrinking. Don't blame that on consumers, and don't place the blame on all those publishers who are producing good books. If CBA is shrinking, it's because the organization and its members need to change and become part of the success story that is Christian publishing. My guess is that Thomas Nelson was spending about a quarter of a million dollars on ICRS, once you factor in travel and housing for all their staff and authors. Instead, they can send a small team to Orlando to meet with their authors and key accounts in a nearby hotel suite for one-tenth of that cost. Not only is it cheaper, they won't have to put up with the nutty side of ICRS. They can even use some of that money to send sales reps to more independent CBA stores if they want. But I think this makes perfect sense, and I think you're going to see other publishers follow suit.

In reality, I think this spells the beginning of the end for the ICRS convention. The winter show is already dead. I think the publishers will begin to focus more on BEA, where the major accounts are already attending. Or maybe we'll see more publisher-specific events (Thomas Nelson just hosted an event for their best customers, flying them all to Nashville for a "Nelson-only" party, to rub shoulders with authors and find out what the new products are going to be.) Having been attending for 20 years, I'll miss the atmosphere of the old CBA conventions... but I completely understand why Mr. Hyatt has chosen this path.

LEAVING BEA: This was probably done for the same reason -- it's a chance to save money. But over time it wouldn't surprise me to see TN back at Book Expo America. It's a true BOOK show, and my guess is that they'll soon be doing a better job of integrating all the religious publishers. It's also possible the Christian publishers will create their own trade show, going back to the roots of the early CBA events, where the focus was on books and authors and meeting bookstore owners... but the industry and culture have changed. Books sales are now dominated by Barnes & Noble and Borders, the sales at Amazon top the total sales of all the independent bookstores, and among Christian publishes it's pretty well known that if you don't have the support of Family Stores, you probably aren't going to succeed in the Christian market anyway. So this decision of Mr. Hyatt is more of a surprise.

AXING STAFF: This one hurts. Again, I don't know Mike well, but he's got to be lying awake nights with this decision. Still, Thomas Nelson is the sixth largest publisher in America (I think I've got that correct), and they've had some growth recently in an industry that has been, overall, quite flat. I think this was the most controversial step -- if you're seeing growth, why cut jobs? But over time, growth causes you to put on some fat, and occasionally you have to trim the excess. I understand they cut most of the folks who had been with the old Rutledge Hill imprint (cookbooks, country music types, and Jeff Foxworthy humor titles), some sales staff, some support people... as I said, it can't be easy. But if you're going to trim the list of titles, you've got to trim the number of people working on titles.

CUTTING THE LIST: This is the one decision that has stirred up the most controversy. Last year TN produced 700 titles. Mr. Hyatt mentioned that 23% of them (about 160 titles) provided 90% of the company income. Or, to look at it another way, they produced more than 500 titles that, cumulatively, generated only 10% of the company income. Ouch. So they're going to trim the list. Makes sense. I think some people have over-reacted to this, thinking that TN is about to cancel a couple hundred book contracts... but that's not what he said (at least that's not how I read it). I think a better reading is to suggest that they plan to cancel some smaller books, put some non-performing titles out of print, and take a closer look at the projections of new titles.

Here's what's scary about all this: Mr. Hyatt notes that he wants the company to focus on titles that "are typically written by known authors or from authors who at least have media platforms ..."  Authors and agents are worried that means there will be more of a focus on celebrity, and fewer chances for new authors to be discovered and break out. A publisher is always looking for that next great voice -- the author who will come from nowhere and begin selling well. Publishing is full of stories like that -- in fact, their biggest fiction author, Ted Dekker, was an unpublished wannabe when TN did his first book. So here's a hope that "the platform question" won't always keep them from publishing great writing on a salable idea, even if the author is unknown.

This is too long already -- there's more to say, but I'll leave it at this: Mike Hyatt had one really bad week. But I have to tell you, I think he's done exactly the right things. The industry is changing, and here's a perfect example of how things are changing.

I welcome your comments and questions...

Comments

[Darcie Gudger]

Thanks for keeping your blog readers abreast of the latest industry news.

As someone about to begin the agent hunt (polishin' up my huntin' gear), this move by TN is a little scary. I'm not a celebrity. Don't want to be.

I hope book buyers will continue to purchase fiction based on the quality of the story and writing, not on the name of the author. :)

[Michael Hyatt]

Chip,

Thanks for your kind words and your analysis. I just posted this evening on Choosing Which Books to Publish:

http://www.michaelhyatt.com/fromwhereisit/2008/04/choosing-which.html

It answers some of the questions raised in my post about trimming our list. I think it is good news for new authors. I elaborate on how we choose what we choose.

Thanks again,

Mike

[Chip]

I agree with Mike Hyatt - this can be good news for authors. For years I've been sharing with people at writing conferences this message: "Don't come looking for 'the secret' to getting published. If you want to be published, become a great writer. Greatness gets discovered." I think Mr. Hyatt is saying the same thing -- the Thomas Nelson decision puts a premium on writers doing great work. As an agent, I can live with that.

Thanks for reading and commenting, Mike.

[Aurelius Tjin]

This is very interesting! I have enjoyed reading this very insightful post. Very engaging and informative. Thanks for sharing.

[Pam Halter]

Thanks for talking about this news, Chip. I'm sure there will be false stories and fear aplenty going around.

It's important to keep bettering yourself by going to conferences, workshops and writing, writing, writing. But when we're informed, I think we can produce better books, as well.

[Truth Box Girl]

Great post. Even greater that Mr. Hyatt would comment back. I continue to marvel at the willingness to educate coming down from some of the heads of the industry. Chip, you may not see it as one of the "good works" prepared ahead of time for you to walk in but I do.

My take away as a new writer: I choose not to sit discouraged at the prospect of publishing success but to remind myself that God favors excellence even more than the publishing industry.

It's all so much harder than I imagined but then so is marriage and parenting and good relationships and ...

[Colleen Coble]

I love what Mike said about focus. I'm excited to think about what this means for those of us at Nelson. I've often looked around at how some houses bring out ONE book a year from an author but that one book sells really well. Maybe that's the right model. Or maybe not. But it sure opens some dialogue and interest in the right way to market. Of course I might go crazy from boredom writing only one book a year so I can't say I'm pulling for that just yet. LOL

But his new post really inspired me about bringing new and fresh ideas to the table. I have a brand as romantic suspense but that doesn't mean I can't take some sideways steps and expand on that brand. I'm just turning in a new book this week and my next one is a psychological suspense which is different for me and I'm excited to start it. And to spend some time thinking about what new and fresh idea I can come up with.

Mike is a genius. I was at Nelson before he became our head and there's a day and night difference now that he's at the helm. Just in ATTITUDE. When I visit there, the excitement and focused thinking is evident. And since Mr. Superman Allen Arnold took over as fiction publisher, EVERYTHING'S changed in the fiction department. That team is a Dream Team to work with.

So I'm excited to see what's coming down the pike now with this fresh focus. At first I wasn't so sure cutting those titles would be a good thing for Nelson itself. But I've learned to trust Mike. I should have realized he had it all thought out! :-)

[Linda M Au]

I've known who Michael Hyatt is since the '80s when he started Wolgemuth & Hyatt. Back then they were doing daring new things in Christian publishing, and as a wannabe published author myself, I was excited to see Christian publishing hit some cutting edge.

He was making bold, new decisions then, and I wouldn't expect any less of him now. I say wait to see how this one plays out, and I certainly suspect, Chip, that you are right on all counts. And that Hyatt is as well.

[Nicole]

Believe me when I say this: I have respect for the pros at every level of the publishing industry, agenting, etc., but the mantra which insists that only the "great" writing makes it into commercial publication is fiction. That's not to say that the majority of it isn't great writing. I'm simply stating that most of us have all read those books which leave us shaking our heads and wondering how they made it into print.
A few weeks ago, Chip, you mentioned over at "Novel Journey" how it seemed the instructions at conferences (generally speaking) seemed to indicate a "cloning" process. I agree. I read enough fiction to bear that out, too.
While I understand the need for stating platitudes of setting the bar high in order to be published, the "art" that is repeatedly produced by TN, Z, BH, etc. seems negotiable--and sometimes doesn't deliver.
Obviously you and other professionals understand the industry and what it wants at any given time and the underpinnings which make it stay productive, profitable, and successful. As a reader, and a writer, what I see are trends, some really fine books, and a large number of okay books, and a few of the really questionable books.
To me it doesn't matter if Mr. Hyatt eliminates B, C, and D writers. He's running the business as he sees fit. It's his job to succeed, and he's done his homework and come up with the plan.
I guess for me, being an avid reader and a writer, the platitudes ring hollow in light of some of the product.

[Gina Holmes]

I'd read Mike's blog and was taken back at first at the news, and then a little depressed about them only taking on proven writers.

However, if the result is fewer but better titles coming out of CBA, then it will be a good thing. More Peace Like a River's and fewer, slap 'em down in a month mediocre books.

What I'd hate to see though is amazing books not being published just because the author doesn't have a platform or proven sales. Everyone has to start somewhere.

I'd like to think that just for the love of words, TN would take a chance on a really talented newbie with a kick butt novel, though it sure didn't sound like it. That's a shame.

The bottom line is important but so is putting out great literature for the ages. As serious book people, at the end of the day, that's what it should be about . . .

How can we make enough money to continue producing books that will change the world for the better?

[Stephen Reynolds]

Yep, Chip. Massive, tumultuous changes in the publishing industry. I'd hate to be in his shoes. There's just not going to be an easy answer. Awesome grasp of the business side of the industry you got there, buddy. Thanks for keeping us informed.

SR

[Michael Hyatt]

Nicole,

Did you read my original post, the one that Chip is referring to? You can find it here:

http://snipurl.com/266fo

I tried to make it very clear that we will NOT just publish established authors. What we are looking for is “competitive advantage.” New authors can definitely have this. And sometimes, established authors won’t have it. The bottom line is that we want to publish better books. We know we can do better.

Thanks,

Mike

[Kit Wilkinson]

Chip,

I think Mike is a smart man and here's why...

I attend a large church where I was recently sharing with the head pastor's wife that I write inspirational fiction. Now, this is a woman of superior intelligence whom I respect beyond measure and who holds a great deal of influence over many people. Well, she scrunched up her nose at me. So, I asked why and she explained that she had picked up one too many mediocre books over the years and that she rarely read Christian fiction anymore. At first I was shocked but the more I thought about it I decided that she's probably not alone.

As a new writer, I strive for that excellence which Mike and agents, like you, search for...I hope that when I do sign it's because my work is worth reading and ready for the public.

[Nicole]

Mike, I did read the orignal article. I simply meant that I, personally, didn't care who you "eliminated" from consideration since you're the boss, and you have to make the hard decisions.
I do stand by my opinion of the publishing platitudes, and I still maintain that the "art" factor is more subjective than the "artists" care to admit.
From the current trends it appears that the publishing biz is a lot like the film biz. If it works once, a whole bunch of the same will surely follow.
I'm not criticizing the authors or the book producers. I just find that I often take exception with some of the proclamations of "great" writing and to-die-for-proposal cliches, etc. regarding some of the methods for getting noticed and published. It isn't just about sitting and creating and polishing and being "the best". It's about God's favor and timing and his design for each writer.

[Cara Putman]

Chip, Thanks for adding your insight to the week of news from Thomas Nelson. It's been interesting to watch and digest what it could mean...but I think at the root we should all be encouraged to go back to basics:
1) Trust God with our calls and careers -- in whatever fields.
2) Learn everything we can and hone the craft. That each book be better in some tangible way than the prior one because we're always striving to improve.
3) Write each book as if it were our last. We aren't guaranteed any contracts. So the privilege to write even one book that makes it to print is huge.

[Camy Tang]

Awesome, Chip! Thanks for your thoughts on these things going on. I liked how Mike explained things in his follow up post, too.

I like how Cara summarized things. I would add one more: Keep abreast of the market yourself (as a writer). I think too many writers don't bother to read enough of the imprint they're targeting or understand the reader demographic the publisher is targeting. This relates to what Mike talked about in terms of competitive advantage--a writer can't position him/herself if she doesn't understand the market environment in the first place.

Camy

[Natasha Kern]

Chip I was so delighted to read your comments about ICRS, BEA and the changes at Thomas Nelson. I wholeheartedly agree with them and as usual admire your inimitably humorous and informative style. BRAVO!

Natasha

[Julana]

The only Christian bookstore in our Columbus suburb closed its doors in the past two weeks. It was probably three to four years old.
It had both Borders and B&N within two miles or so--and I was more likely to find authors I put money down for (Eugene Peterson, N.T. Wright, etc.) at the chains.
It carried an odd mix of evangelical pop, charismatic, and Catholic material--along with art, cards, and t-shirts.
It's sad to see those go.
At the same time, it's good to see so many Christian books placed where people who never enter Christian bookstores are strolling past.

[Curtis Riskey]

Mr. MacGregor, some things aren’t always as they appear…. In fact, most times there’s another side to the story. You’re always welcome to call or write us.

I’m a Christian retailer who also works for CBA (Christian Booksellers Association). I was called into Christian retailing by the God we both serve. Someday, maybe I could buy you a cup of coffee and tell you the story, as it is quite amazing. The store that I am a steward of is in Oshkosh, WI. It is really a cross between a Border’s with a Starbucks inside. I can tell you that we have always been a bookstore first and everything else was secondary.

I learned early on that we needed to run our store to serve our customers which is what I always tried to do. Many of our customers purchase our gift items and display them in their homes because they may remind them of Christ, friendship, love, or the Word of God. I don’t always agree with everyone’s particular tastes, but that is what makes all of us unique and different. One person’s “Jesus Junk” is another person’s treasure and I am not about to try to define what that is for them. I believe we all have freedom to express our faith just as you have the freedom to write or publish books that express your thoughts. We don’t always agree and that is OK, too.

Many Christian retailers are struggling. Please check out my blog posts (A Changing Value Proposition and Buying Local!) at cbablog.typepad.com/cba/. We as a group are trying to change with the changing consumer and better meet their needs. Sometimes, we as Christian retailers have been unfairly criticized by our own Brothers and Sisters. Many stores are undercapitalized and are just looking for ways to survive, especially now. We could use the support and encouragement of the Body rather than criticism. I have always been of the belief that if you are to criticize something, two things need to take place: First, you need to walk in someone’s shoes and try to understand their perspective. Second, you need to also bring a solution to the table and not just merely level a criticism. These Christian retailers have been called into ministry and are trying to serve their local communities. This is many times at great sacrifice of their time and talents. The competition is also fierce, but the Christian retailers I know are in this to change their world one person at a time, and we are on a mission.

There are, however, many new, up-and-coming Christian retail stores that are addressing the current consumer trends and are doing quite well. We have stores that are growing into new models of success and are adapting to their individualized communities. These stores need to be celebrated and promoted as models worthy of emulating. This is one of the things we are trying to do here at CBA is to celebrate innovation.

The International Christian Retail Show (ICRS) has been changing with the changing needs of our customers as well. Is the show perfect? Absolutely not, but does it still provide retailers and publishers/suppliers a chance to get together and do business? Absolutely! In fact, with over 300 companies in four concentrated days, retailers have the ability to scope out new products and suppliers, get training to retail better, and identify trends, not to mention capture new vision and new ideas. It is so important that we as a committed industry come together – to worship our King, build relationships that facilitate the work, build our Industry, and partner in Kingdom building. As an aside, the registration for ICRS is currently tracking at double the attendees for the same period last year. I don’t know if this trend will continue, but so far this show is clearly outpacing many former years’ shows.

Mr. MacGregor, I would like to end by saying that I appreciate your opinions, but I would like to dialogue directly with you in the future about your ideas to solve these challenges. Blessings!

[C.J. Darlington]

Wow. Lots of great insights here. I'm always one to try and stay abreast of the Christian markets, so I welcome this give and take discussion. Thanks, Chip, for posting. Thanks, Mike, for being so forthright with us.

[Sonjia Bradshaw]

Thanks for posting updates. A publicist with a major Christian publishing house told me ICRS continues to trend away from books and toward trinkets. The importance of ICRS to authors and publishers is diminishing.

[chip responds]

Hello Curtis - Thanks for your thoughts. A couple responses...

1. You said booksellers need encouragement. That's very fair -- I love shopping in a great Christian book store, and appreciate those who run great Christian bookstores. I just think it's fair to offer criticism where it is due.

2. You claimed I failed to offer solutions -- but in fact I clearly offered suggestions: Focus on books. Don't confuse consumers with so much art/jewelry/collectibles Last year there were more Christian books sold than ever before, yet CBA had a bad year. Doesn't that strike you as odd? And my contention (supported by many in publishing) is that the struggle began when Christian bookstores moved away from selling books and began selling other stuff.

3. As for walking in other's shoes, I appreciate the thought. I've been in this industry a long time. I've made my living as a writer, editor, publisher, and agent. I've sold plenty of books, and know something about the industry. You're obviously a very polite and devoted person. I'd love to sit and talk sometime. We may not agree on a couple contentions (I'm not trying to pick a fight here, but I think a bookstore is a business, not a ministry), but I think it would be great to visit at ICRS in Orlando this summer -- and I'm glad to hear the numbers are up, if that's actually the case. Still... you have to admit that Thomas Nelson leaving CBA caused a stir, and it's probably not done yet. There's no question publishers have been unhappy with CBA and the move away from books. I'm not really sure I believe the organization quickly re-sold the Nelson floor space, and I don't believe for a minute that the leadership isn't getting sweaty palms about this. You just can't lose the #1 vendor in the industry and note feel it.

4. I'm with you -- I will miss the old-style CBA convention. It has always been great fun, and I'd prefer to see everyone participate. But I understand why a publisher would pull out -- too expensive, without a big enough return. And for book publishers, it's not really a "book" show any more.

Appreciate you coming on to respond, Curits. -Chip

[L.B. Graham]

Chip,

I first attended the ICRS in Denver in 2005, the year my first novel "Beyond the Summerland" was a Christy finalist, and I was stunned at what I found on the convention floor. I love books, almost everything about them, and yet fully half the floor was knick-knacks and junk. Even the side devoted to "books" was more about stalls that were faux-buildings competing with one another to display eye-catching gradeur. It was interesting as spectacle, but it didn't appeal to my literary sensibilities at all. It will be interesting to see if your prediction comes true and the show ends or is transformed. Thanks for your thoughtful reflections on the potential impact of TN's moves.

L.B. Graham