Publishers are tearing their hair out over ebooks. How do they make money when ebook prices are being pushed so low? One idea that has been thrown around is to subsidize ebook with in-book ads. Yes, the idea is controversial and probably makes traditional book lovers cringe. Heck, it makes me cringe a little too.

I’ve already visited this subject twice on Brad’s Reader. The first was back in 2007 in my post Advertising in Books: Will it Work? and again in 2009 Ads in ebooks – Coming to an eReader near you. Notice that my thinking on this does shift from post to post.

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Literature doesn’t have to be just words on a page (or screen). One literary publication is taking literature out of the confines of words and turning it into visual art. Electric Literature, a website I have already profiled here, does just that. They not only publish short fiction in both print and digital form, they visualize the literature they produce.

One of my favorite parts of what Electric Literature does is taking a single sentence from a short story they publish, and then animating it. The result is an illuminating visual interpretation of that one sentence. In a way, the short cartoons (often less than a minute long) represent how one’s imagination would perceive a particular literary “bit.”

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There’s been a lot of excitement for Apple fans this week. With the release of the iPhone 4, Apple has garnered a lot of media attention in the tech world. But another story also got a lot of attention and scrutiny from Apple: CEO Steve Jobs’ assertion that because of the iPad, Apple has eaten up 22% of the ebook market.

That’s a very large chunk. When I see numbers that big I become skeptical. Don’t get me wrong, I don’t doubt that Apple is now cutting a large slice of the ebook market pie. Just how much, though, is up for debate.

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I’ve always maintained that ebooks and digital publishing will bring the short story back to the mainstream. For over half a century now, short fiction has taken a back seat to novels.

There used to be a time when writers could make a living writing short stories that they sold to magazines (who paid a healthy sum for quality work). F. Scott Fitzgerald financed his novels by writing short fiction, as have other writers.

Today, I think it’d be nearly impossible for a writer to make a living solely on short fiction. But with ebooks now in the mainstream, it’s a lot easier for writers to publish their short stories and for readers to consume them. And publishers are taking notice.

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Amazon has announced a new publishing imprint called AmazonCrossing. The goal of this imprint is to publish foreign titles that will be translated into English. Readers in the US have a history of being weary of translated titles, which make up only a small percentage of overall book sales in this country.

The online retailer began its first imprint, AmazonEncore, as a way to give exposure to great writers who are more-than-worthy of being published. AmazonCrossing has the same goal, only at the international level. Jeff Belle, VP of Books, says in an Amazon press release:

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I always love to read author’s self-publishing success stories. They are not only very inspiring, but these stories chip away at the negative stigma of self-publishing. The route these authors take is a hard one, they don’t have the resources of a large publishing house and distributor behind them. Thus they often have to promote their work themselves using their own websites, Twitter, Facebook and other methods.

But one author has taken self-publishing to a whole new level. Christopher Herz decided to use the POD model with his book The Last Block in Harlem (aff link) and then take it to the streets, literally. He’d hand sell one copy at a time to strangers on the street. You might recall that I wrote about him in my previous post Author sells self-published book one copy at a time. His efforts were even picked up by Publishers Weekly. Well, all of his hard work has finally paid off.

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One argument publishers like to use to justify higher ebook prices is that it will also benefit their authors by means of higher royalty payments. But now that publishers are switching to the agency model in an attempt to increase ebook prices, the amount of author royalties is actually going down.

Surprise! Higher ebook prices benefit only the publishers.

Author Michael Stackpole wrote a very eye-opening article for the Huffington Post entitled Who Benefits from High Ebook Prices? As a traditionally published author, he knows the ins and outs of the publishing world and how royalty payments are calculated and paid out.

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The other day I wrote the post Giving it away for free: Obscurity vs. Making Money as a Writer. In it, I argued that giving books away for free is not going to hurt a writer’s career. In fact, free books can give writers (especially unknown writers) a boost and increase sales of future books.

The post was prompted by an article I read by Angela Hoy from http://www.writersweekly.com entitled Think Twice Before Giving Away Your Entire Book Online for Free. While I have a lot of respect for Angela and read her weekly newsletter every week, I have to disagree on this point.

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The debate about whether or not it’s a good idea for authors to provide their work for free (especially back titles) continues to rage on around the internet. I usually think of this in terms of ebooks, as they are easier to give away for free without the burden of printing and shipping costs.

The main argument in favor of giving your works away for free goes something like this: You provide an ebook or two for free, and it will give readers a sampling of your work, enticing them to buy future ebooks that they would, of course, pay for. This has worked for many authors who claim that giving their stuff away does increase their sales of other books.

On the flip side, the argument against giving your work away for free is that readers will expect it for free and will expect the same thing with all of your books, thus no one will want to pay. Why pay when you can get it for free, right? The other issue that comes into play here is that authors should be fairly compensated for their work.

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The largest book retailer in the United States is making the bold move of considering bundling ebooks and print books. Barnes & Noble, who came out with their own ereader Nook last November, will begin testing the idea within the next few months. This is according to a recent article on Publishers Weekly and the Teleread blog.

I’ve been advocating for this type of bundling for a while now. The obvious advantage is that you can read the print version in the comfort of your own home, and then take the ebook version with you while you’re on the go. This would work especially well with dinosaur-sized books like Stephen King’s Under the Dome (which I’m currently reading as an ebook). If I had bought King’s latest magnum opus as a hardcover, you certainly wouldn’t see me lugging it around so I could read a few pages in the doctor’s office waiting room.

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