MASS PAPERBACK PUBLISHER GOES ALL DIGITAL

1.Do you prefer to read e-book or paper editions? Why?

2.Do you think that libraries will soon die out like dinosaurs?

3.Who are the customers of book shops?

4. Should the same edition of the same book in electronic form and in paperback have different prices? Why?

As digital books continue to gain market share, one of the country's oldest mass paper back publishers is abandoning its traditional print books and making its titles available in digital format and print-on-demand only.

Dorchester Publishing Inc., a closely held book and magazine house, said it is making the switch after its book unit sales fell 25% last year, in part because of declining orders from some of its key retail accounts, including Wal-Mart Stores Inc. A spokeswoman for Wal-Mart declined comment.

"It wasn't a long, drawn out decision, because we've been putting in the effort but not getting the results," said Dorchester Chief Executive John Prebich.

The move comes at a time when electronic-book sales are gaining popularity with readers. Mike Shatzkin, chief executive of the Idea Logical Co., publishing consultants, predicts that digital books will be 20% to 25% of unit sales by the end of 2012, up from around 8% today.

The decision to go digital could be a sign of things to come for other small publishers facing declining sales in their traditional print business. Dorchester's switch will likely result in significant savings at a time when it expects its digital sales to double in 2011.

Dorchester, which has been publishing mass market paperbacks since 1971, publishes 25 to 30 new titles a month, approximately 65% of which are romance works. The com pany launched its first mass paperback titles in 1971.

Romance fans in particular have already embraced e-books, in part because customers can read them in public without having to dis play the covers. In addition, type size is easily adjusted on e-readers, making titles published in the mass paperback format easier to read for older customers.

Mr. Prebich estimated that 83% of the books published by Dorchester are priced at $7.99. By comparison, the larger trade paperback format is typically priced at about $14.95.

Dorchester's switch to e-books is effec tive. It plans to make new titles available on a print-on-demand basis through retailers. Ingram Publisher Services, a unit of closely held Ingram Industries Inc., says it will ship orders to retailers as demand arises. News of Dorchester's decision was first reported by Publishers Weekly.

Some authors, Mr. Prebich conceded, may be unhappy if their titles are available only via e-books and print-on-demand, but he said that so far the response has "been receptive to what we're doing."

Hard Case Crime, an imprint owned by closely held Winterfall LLC, said it may seek to move its mystery books from Dorchester to another publishing house.

"It's been a good run, but if they aren't pub lishing mass market paperbacks, we'll have to decide what to do. I'm a believer in the mass format, but I do understand the reality of the marketplace," said Charles Ardai, who owns Hard Case Crime.

The country's largest consumer book pub lisher, Bertelsmann AG's Random House Inc., said it continues to be a strong believer in mass paperbacks. One of the country's most successful mystery writers, the late John D. MacDonald, is available from Random House exclusively in mass paperback.

"It's still a viable, popular, lower-priced alternative to the other reading formats," said Stuart Applebaum, a spokesman for Random House. "It also has a committed readership. Will that commitment be forever in a transformative marketplace? We'll have to wait and see."

By Jeffrey A. Trachtenberg Wall Street Journal
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