Economics of Deadtree Publishing

NY Magazine has an interesting article on New Yorkanomics. One of the profiled businesses is Random House.

Out of every eight books, one is highly profitable, one loses money big time, and the remaining six break even. It is also interesting that a big blockbuster only accounts for about 10% of their profits. The main revenue generator is their back-catalog, and fiction is 55% of all revenue.

The overhead breakdown is interesting:

Two thirds of Random House's income comes from paperbacks, which retail for about $10. Of that, $5 goes to the retailer; $2 covers Random House buildings and staff; $1.50 goes to author payments; $1 goes to paper, printing, and binding; 50 cents is profit.

The retailer, of course, has their own overhead and costs they have to cover in that $5 amount. It is also interesting that the most profitable way to make money for a publisher is to lock a writer into a long-term contract that is disadvantageous to the writer.

The music industry is having issues with this business model as bands are finding it more rewarding to self-publish and self-promote.

With the increasing popularity of vanity publishing companies such as cafepress and lulu; as well as the democratisation of vanity printing presses from companies such as Xerox and HP, then deadtree publishing will most likely follow the same route.

After all, South Sea Republic has published its own books in the past.

Green Manhatten

David Owen argues [pdf] for urban green with himself as a New Yorker as example. He lives in a modest house; has limited consumption because of his small house; does not own a car; and uses his feet, legs or public transport to get around.

Manhatten skyline from kaz7572's photostream

Owen writes that by modern suburban and American national consumption patterns the urban area of Manhatten is exceptionally green and austere;

Most Americans, including most New Yorkers, think of New York City as an ecological nightmare, a wasteland of concrete and garbage and diesel fumes and traffic jams, but in comparison with the rest of America it's a model of environmental responsibility. By the most significant measures, New York is the greenest community in the United States, and one of the greenest cities in the world.

Being green is usually confused with wilderness romanticism. This is why a photograph of a recently logged forest is emotionally powerful. However Greeness is about efficiency as much as anything else and urban centers are exceptionally efficient in comparison to suburban and exurban areas. Much of that efficiency is structural and based on scale; however, the urban areas do offer benefits in this time of increasing fossil fuel costs. Owen continues:

New York City is one of the most thoroughly altered landscapes imaginable, an almost wholly artificial environment, in which the terrain's primeval contours have long since been obliterated and most of the parts that resemble nature (the trees on side streets, the rocks in Central Park) are essentially decorations.

Ecology-minded discussions of New York City often have a hopeless tone, and focus on ways in which the city might be made to seem somewhat less oppressively man-made: by increasing the area devoted to parks and greenery, by incorporating vegetation into buildings themselves, by reducing traffic congestion, by easing the intensity of development, by creating open space around structures.

But most such changes would actually undermine the city's extraordinary energy efficiency, which arises from the characteristics that make it surreally synthetic.

Owens is arguing for an acceptance of urban town planning as efficiency which contributes to being Green.
adam: I think it's a crucial point which is still not widely understood ... cities have environmental service economies of scale which dwarf suburbs or villages.

Nice map on this from worldchanging:

http://www.worldchanging.com/archives/008068.html
Bernard Lunn points to Wall Street as why there is so few tech startups in New York: "First, Wall Street absorbs too much of the talent. Second, Wall Street generates a short term in a New York minute mindset."

Richard Florida would argue the opposite. Tech startups are in California as that is where the tech entrepreneurs and the VCs are. Central to Florida's argument is that companies are beholden to talent and will locate themselves where the labor market is supplying them with what they need, not vice versa. Wall Street probably exists because that is where all the traders and bankers are. Silicon Valley exists because that is where all the tech entrepreneurs are.

The arguments are not absolute, but I have more empathy for Richard Florida's case in this instance than Lunn's. Like many other techies I deserted the US North-East to come to the US South-West.

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Phoenix Eats Out is the restaurant review site for Phoenix, Scottsdale and Old Town Scottsdale which lists the modernist and contemporary restaurants, taverns and bars in the greater Phoenix area. This is the list of the most popular restaurants pages from phoenixeatsout.com that have been viewed the most; My personal favourite restaurants in Phoenix are AZ88, Postinos, Bomberos with Grazie, Humble Pie, Orange Table, The Vig, Fez and others coming close behind. View the complete list with the photo-journalistic style images on phoenixeatsout.com

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Arizona is an outdoor state and has lots of hiking in the city and around the state. Phoenix is unusual for most cities in having several large mountains in the center of the city with great hiking. Anyone who comes to Phoenix has to do the Echo Canyon trail on Camelback and the Summit Hike on Squaw Peak or Piesta Peak. The views of the city, suburbs and surrounding mountains are wonderful from Camelback and Piesta Peak. For more experienced hikers there is the McDowell Mountains in North Scottsdale that has several difficult and strenuous hikes in Tom's Thumb and Bell Pass. Alternatively, you can hike the highest mountain in Arizona. At 12,600 feet Humphrey's Peak is a long and difficult hike.

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Between 2004 and 2009 this site, southsearepublic.org, was a constitutional blog based on scoop which focused on Australian and global constitutional issues. One of the strongest aspects of it was the development of constitutions by those involved in the blog. These constitutions are the outcome: The constitutions were built using principles from Montesquieu's separation of powers, the enlightnment's universal political rights and the ancient Athenian technology of sortition and choice by lot.

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Who Is Cam Riley

Cam Riley I am an Australian living in the United States as a permanent resident. I am a software developer by trade and mostly work in Java and jump between middleware and front end. I originally worked in the New York area of the United States in telecommunications before moving to Washington DC and working in a mix of telecommunications, energy and ITS. I started my own software company before heading out to Arizona and working with Shutterfly. Since then I have joined a startup in the Phoenix area and am thoroughly enjoying myself.

I do a lot of photography which I post on this website, but also on flickr. I have a photo-journalistic website which lists the modernist and contemporary restaurants in phoenix. I have a site on the Australian Flying Corps [AFC] which has been around since the 1990s and which I unfortunately lost the .org URL to during a life event; however, it is under the www.australianflyingcorps.com URL now. The AFC website has gone through several iterations since the 90s and the two most recent are Australian Flying Corps Archives(2004-2002) and Australian Flying Corps Archives(2002-1999) which are good places to start.

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