Transcripts For CSPAN2 BookExpo Discussion On Innovation And Publishing 20150531

Ive seen books that got terrible reviews that have gone on to sell very well. They review relatively few books. Thats the hard part. It matters greatly to the author come and the New York Times can only review so many books. They are limited by the number of pages in the book review and are so many, i know they have to say no to a lot of books that they wish they had the room to cover. And then you know, that always puts them in our position. Host i promise that wasnt set up, but maybe it was. Booktv went to the New York Times and we did a profile interview with pamela paul who was the editor of the new times book review section, and heres just a little bit of what she had to say. Do publishers want their books reviewed in the New York Times speak with yes but not if its negative. I guess, very much so. Unfortunately, we are the last remaining freestanding book review newspaper book review in the country. So the Washington Post book world before the San Francisco chronicle sold at their freestanding section. So that i think gives the section a lot more importance at least in the newspaper world but also in the online world as well. There are a huge number of places that are reading books from bloggers get people posting michael reviews on twitter. But i think that there are very few places that are doing it the way we do it with that kind of thoroughness and authority aspect that was pamela paul, we taped that interview this week in new york and that full interview will air on saturday june 6 at 7 30 p. M. , about an hour long profile of pamela paul and the New York Times book review. Well we all live still at the Javits Convention center in new york city. At bookcon. This is an open to the public book fair following book picks their and weve been talking to do publishers, jamie raab president and publisher of Grand Central publishing, and susan weinberg, Senior Vice President , Group Publisher of perseus. We thank you both for being on tv. Hardcovers from new york continues. Up next is a panel that was taped at the publishers convention. Its on innovation and data and the world of Digital Technology and some of the disruptions in the Publishing Industry today. Afterwards we would be back live with Pulitzer Prize winner chris hedges and chess champion and putin critic garry kasparov. To more live cullins today from new york city, but heres a panel on innovation. [inaudible conversations] [inaudible conversations] i am joanna stone herman cofounder and ceo of librify. I want to introduce you to our keynote panel. Today were going to be talking about data and innovation. Would start with a little hole of the audience. To here has a smart phone raise your hand. It is an absurd question. You would expect every hand in this audience to go up. As i see i expect many of you are holding your smart phone because you are ready to take pictures of our panelists and try to record their brilliance and send it to your social network for you may be ready to check your email if i get a little boring. You have it out. What is amazing to think about is ten years ago there wouldnt and yet now all the books that fit in this massive Jacob Javits Center Convention Hall can also fit right ear on this boat device. As you are sitting here reading one of those books, reading an article, posting to facebook, sending an email or just sitting here, it is capturing data, data about who you are data about what you like to read what services you like to use and companies are using that data. They are using that data to figure out how to make those Services Better for you to improve the services, create new products and services for new needs out there. Our first speaker today, Scott Galloway, take that day and uses it to predict where the broader technology and Media Industry is headed. He is going to start with a presentation which he talked about who are the winners and losers of this landscape. Then come back for a panel discussion. We are going to talk about data and innovation and how it relates to our industry. What we can expect to see, what lessons we can learn and what the future holds. It is my pleasure to introduce Scott Galloway, founder and chairman. Scott founded it after developing an algorithm to talk about digital competence of this is a professor of nyu school of business where he teaches the strategy of digital marketing. In 2012 scott was named one of the 50 best Business School professors. He is also the founder of red on the low and profit brand strategies. Scott was elected to the World Economic Forum Global Leaders of tomorrow and served on the board with a bower of the New York Times, gave way, berkeleys school of business. Scott is widely recognized as a leader on technology, marketing and digital landscape and we are thrilled to have him here today. [applause] thanks, appreciate you having me. I have 90 slides in 900 seconds so lets light this candle. Talk a little about an algorithm, we applied a 50 dated points, four dimensions of the brand, digital marketing, mobil land social. We do this across 11 geographies around the world, 1250 brands and we sit down with a brand and tell from where they are strong or weak relative to the competitive side. A lot of benchmarking but we have modernday air Traffic Controllers where we can see patterns and predict who is winning and whos losing and when we see winning and losing the mean gaining or leaking influence in the eco system. We affectionately call this talk the four horseman. We take a look at four incredible Companies Apple amazon, facebook and google and say who will gain or decline influence . Any of them could lose because anyone could decline influence for the next 20 years and be hugely important but looking through the lens of the audit a route where brands are investing or divesting is the answer to the larger Technology Landscape and how you might think about allocating your own flight capital in terms of where you think the world is headed. Lets kick it off. Huge companies have combined market cap. This data is a little dated, 1. 6 trillion equal to gdp of south korea, spain or australia. If you were to create a society with these companies you would have something that looks like the b. C. Him out of the matt damon movie. This year, when america wakes up to the fact that google, amazon, facebook and google are the biggest tax avoiders in the world offering 20,000 to store their eggs and offer battery eternity benefits, there and municipal Transportation Health benefits, dna testing, effectively economically through lobbyists they have achieved what the south was unable to do militarily, he effectively seceded from the u. S. And i think theres going to be a revolt against the. They decided they opted out of our tax and government system as they feel they can do it better on their own. So lets talk about amazon. We think amazon will decline in influence. That is why i was invited. I one of the few who believes that. Why is that . We dont believe pure play mono channel, retail works for anybody including amazon. The best example of this is 250 million in sales, raise money, billion dollar valuation at the end of 2013, 14 months later sold for scrap, declined 98. 5 in market capitalization. And i dont know how many of you use a fantastic Consumer Value proposition, giving you 100 of value for 80 bucks. Is great for everyone except shareholders. It cant work. The new Ecommerce Stores accessing cheap capital the consumer always wins. A great website great retail or great retail over the digital connected tissue between stores great web site and the consumer the answer is no. 3. I argue theres not a Single Company that is going to survive. We fail slowly over ten years. Pure play ecommerce does not work. For all the excitement and hype once the media falls out of love with magnetic founders and capital rise of these companies will be sold or go out of business. So they are opening stores. The number one most successful retailers in the history of business, apple in terms of economics number 2, parker just have tiffany, now opening stores. Retailers are not be funneled waiting to get disrupted by amazon. These are retailers additional brick and mortar retailers who grew Online Business faster than amazon this year. If you thought of innovation and stock reaching you would not think amazon has been the best return to shareholders, it hasnt. Macys outperformed over the past five for ten years. Has has nordstrom. Where it is amazon trying to establish competitive advantage . They made a multibilliondollar investment, trying to get 50 of americans between two to four hours. It is an extraordinary investment. They have tremendous ip around one click ordering. We believe the achilles heel in the amazon deal is the less investment. And shipping costs last year took in 3 billion and that is growing 40 year. That is not sustainable even for amazon. The last mile is too expensive for amazon with the current solution. When you look innovation in the payment space near catching up to one quick in things like apple pay giving us the opportunity, and we think that will erode their advantage. More often anything the Disruptive Force for amazon will give other retailers a solution for a fraction of the Capital Investment when i see hoover, it came to be in florida, i forgot my beach chair, and came back and was 4, gave my grocery list to the organic market, 12 bucks, we affectively at the post Office Without unions for collective bargaining, without uniforms and they buy their own trucks, becoming a vascular system to the business world. A private car service, the last solution for every retailer entity billions of dollars to create that solution. If you are visiting from out of town, take a taxi. They are going to die, they are the driving debt. This is the ratio of taxes tos in 2014, this is change in los angeles, miami, atlanta. Ready for this . Taxes are dying. They are going to go away. They make no sense. They offer Worst Service but are more expensive. The rise of the biggest trend in retail globally is we didnt realize consumers left the order to pick up and score. The biggest mistake including amazon is they opted for speed over convenience the consumer would rather go to fifth avenue and pick up their order when they want as opposed to getting home and finding out the listed on their door within an hour of ordering and they werent home. Convenience over speed, that is what stores offer even in france, not thought of as an innovative economy, 3,000 pick publications versus a year earlier. The future looked like me sees more than amazon. Closing a lot of Stores Opening new ones where they can justify reinvesting capital and fulfillment technology. It is a larger metaphor for what is happening in the economy. We are losing a lot of jobs to government, a typical middleclass jobs. You get into the information economy you have the right skills and never been a better time to be an american. If your anybody else it never is going to worst, there has never been a worse time, most of the job growth is the service jobs are basically 350 million serving 7 million lords in the u. S. We are turning into the middle class is going the way and theres a decent argument the middleclass the free market economy basically rewards the most productive people to an unbelievable extent at this is playing out in the labor markets. The ultimate destroyer of jobs, Technology Creates jobs, it doesnt. It destroys jobs. Google needs, and people for every 10 million in revenue, they need 50 or 60. Amazon needs 12 people, macys need 65. For every 10 million these Companies Growing revenue you will lose 40 to 50 middleclass jobs, they will grow 30 to 40 billion a year so you can take the meadowlands, Madison Square garden the rose bowl, pasadena, copywriters retailers, and give them a pink slip and say courtesy of amazon, google, facebook and apple, you are now out of business. Some predictions. Amazon will decline in value. It will be forced to make the transformative brick and mortar acquisition. I dont think theyre going out of business. They will be an enormous retail. They will buy gas station companies, we are used to driving in and out of gas stations and picking up stuff, the perfect Consumer Behavior compliment amazon, going into that place and picking it up and stopping for ecommerce companies. Lets talk about facebook. Facebook has redefined what it means to have a relationship or be a friend. It be defined the semantics of relationships. They also pull out the greatest data switch in history, they convince brands to spend tens of millions of dollars to build communities and put a Walled Garden around these communities in sages king you have to pay. It is 6 meaning one in 16 messages they send to their community actually reach them. Facebook sales represent assumed the organic reached is zero and forcing everybody to pay to access the communities they can pay the bill. I say that in a respectful way. It is the bait and switch. There probably the smartest supplier of companies in the country. Instagram, remember he sold that company. It is worth 40 billion. If you look at what it is, it is strong everywhere facebook is week. Facebook is the most Successful Company in shares of relationships in the history of business. Facebook is losing teams the instagram owned by facebook. The most Popular Social Network wealthy teens, you never hear any individuals and we are not interested in will be teens, theyre the future of business, most Popular Network is instagram. If you look it engagement rates by the percentage of community on a piece of content, by the community, it is the most powerful platform in the world. Some of the losers interest will be blown off the map the moment instagram announces pages where you can be your phone is you see piece of the interest to go to less than the one billion dollars. I wish was a public stock. It broke my heart, but the product, Image Management team going away. Twitter is oversheight and fantastic opportunity to shorten my view. Social media traffic actually converting to purchase, very low. Social commerce is an enormous head fake and twitter has been over. There are more advertisers on linkedin the and twitter. The last 7 years, tumbler, instagram, the last five years tom was purchased for more and instagram will be 1. 5 billion, Marissa Meyer never mentions tumblers in their earnings fall. Theres a quiet war between facebook and google and that is key to the war on line, to attach your identity to your specific actions so the company can sell more specific higher price dads to advertisers. Facebook is winning the war. We decided it is okay for facebook to attach actions to identity. We are not comfortable with people attaching our searches to our identity. We would rather people not know what we put in that box and attach it to an identity. That would make me uncomfortable. Crazy stuff goes in that box. As a result the only way google can attach identity is for g mail and google plus which the have the same attraction. Facebook was winning the war of identity. I want to have some customer content from here. In the board of the New York Times, the first Board Meeting of this in recommended a shot off google, they are the enemy of all Media Companies. They quoted information that wants to be free but they fought intention should be sold to the highest bidder and a lot of Media Companies were totally blind sighted in the enamored with the cool kid who decided to be part of the pepsi generation to let google called a data and we debased content to slice it up and sell to the highest bidder when we got a bunch of cheap meaningless traffic. You would have thought we would have learned from this mistake. Theyre doing it twice with facebook, publishing on the platform in exchange for 100 of revenues of people dont leave the platform. Theyre doing it again, expediting their own demise. They want to be scarce and expensive. That is the future of great media and these have taken it for the second time. And they pulled the trigger again. What a stupid move. Facebook, 1 billion step identified catholics in the world, 2. 4 billion people have a relationship with facebook, the most successful product, religion, nation in the history of mankind. Sales facebook associates should go Something Like this. And twitter, tumbler or anything else a lot of awards, when you are interested in building a brand globally and i have more relationships and gone and i am on a mobile phone. We think google will decline in value, dominant share but new places to searches, there are a billion search query they on facebook 3 billion on google a billion on facebook. The cost per click is going down. Revenue and profits have stalled. Google didnt see the ship to the mobile economy happening as fast as they did. 80 of our time on mobile in apps and in air when we are less likely to search. We are moving away from Google Search by every time we spend less time on the desktop and move to mobile is bad for google. Google plus is that, harvested for its organs. Theyre taking its best features and incorporating to other products. People talk about youtube disrupting tv, facebook is likely going to disrupt youtube. There are more videos being up loaded to facebook native lee then youtube. That is a seminal moment in terms of the eco system. Google glass is not where rubble, it is prophylactic insuring you never conceive a child because no one will get near you. This e pmi is is how Technology Companies to for granted how difficult it is to get people to put something on their person and how meaningful is in our decision process about branded items. Berkshire would never have let this happen. Lets talk about apple. We teach luxury, it is a light corn and i cant describe it but they can recognize that. The touch l. A. What luxury is. An artist with a passion for a product. And iconic founder that embodies the product, the brand in a 3dimensional format that identifies you as a luxury player, and more than 50 of Luxury Brands are sold, branding moved through broadcast to the store, at the gap. It starts to put money into the stores from 96 to 2004, it used to be a Parent Company in the world, 7 billion to 4 billion. Your global Luxury Brands permeate cultural and geographic boundaries that is in any other grand because the most boring people in the world, smell the same. And middleclass people that different tastes. Rich people fly british airways, they are strikingly homogenous and boring and Luxury Brands have an easy time going global. You i really thought about to say, i think this is the key that shareholder value the last 20 years the most successful nation in the world. If you look at the richest 400 people and you take out inherited wealth and finance more people and luxury than technology. We make tremendous amount of irrational decisions which translates to profits and margins they somewhat mistakenly to other people. No one knows this better than luxury brand. It is not a tiny piece. Ive not wanted for five years. At the end of the day its really about me signaling to females if you meet with mutual more likely to survive and if you mate with someone wearing a swatch watch. [laughter] its basically would like to talk about out loud comic books were read comment subscriptions to new times or how many graduate degrees we had. The basic action of evolution, the primary source in history of modern nation, not to mention the last 20 or 30 years. You have partisanship, iconic founder, exceptional price point, the First Technology product in history that expanded its margins and matured. You have incredible vertical management, the most successful Retail Company in the world is a tech company, 13 years ago has blown out every notion of core competence. Apples core competence, seven including retail, incredible Global Management or associations across geographic boundaries but they are from the in luxury. We now know through the wash, only 3 things we do in business and we appeal to a three organ, the rational, these are bad businesses because rational decisions mean lowmargin transportation to Petroleum Service industries for survival. We appeal to peoples hearts, choosy moms choose just other species, we need to love to be loved how long you live, how many people in your life you are actively loving, new mothers to not die people take care of parents and live longer, that is the number one, how fat you are how skinny whar or how much you smoke or dont smoke but how many people in your life you love that how many love you directly related to happen is that dont live in the locker, some people you are taking care of. P n g figured that out and communicate to people if you watch kids detergent you love the more. Martians when the. We then appeal to reproductive organs, informed signaling to weather people buy more attractive, stronger, more interesting. These are highly irrational decisions. As you move down for so margins get better. Tesla is not an environmental car. It is a humble way of saying i can afford 140,000 car but i am groovy on granola. It is a way of signaling. Women will continue to buy 600 ergonomic the impossible shoes to solicit inbound offers from the simpson driving those teslas. That is the evolution of what is driving business right in all. Apple has migrated down the torso, rational decision used to be a better computer singing to our heart with music and now is the self expressive branch. Mobile operating systems in new york if you want to live in new york in and upper income household you own and apple. If you live in lowincome households in new jersey you own and enjoy. If you live in el a near the beach or Beverly Hills or South Central the inland empire you own and android. People think the apple watches the world market it is the death of the wearable market. They were more in 24 hours than in the entire world market in the first in the last year. The apple watch is not terrible, it is the Second Screen for your iphone and about the everywhere rubble company out of business. The first year of launching the apple watch is going to be the biggest box company in the world. This hurts everybody. King retailers have been wrecked by looking at problems at apple problems kids identify themselves with their phone these Companies Take a hit. The number of 300,000 product people can buy when you have to and to 20 billion consumer discretion of the eco system will be reduced substantially it feels there at the naval about brand or product problem. Some predict apple will be the first trillion dollar market that company unsuccessful migration down the course of the luxury end hit a wall. Lets summarize with amazon and google declined in value, facebook and apple will increase in value. My name is Scott Galloway and i appreciate it. [applause] i am going to go to introduce you to our panelists and we will jump into the discussion. To my right is my mentor and role model Dominique Raccah who is publisher of source book and the Largest Independent Book publisher in the u. S. And to my left i have gareth cuddy, Enterprise Software Company Providing ebook distribution, sales analytics and data to publishers around the world. Bethlam forsa from peers learning centers who oversees their k12 curriculum technology. Trip adler is ceo and cofounder of script a leading Subscription Service offering unlimited access to 1 million ebooks, audio books. To start us off i thought i would go back to the a word scott talk about in his presentation, the one that film these hallways with dread, amazon. Stock Scott Galloway sees weakness in amazon, potential achilles heel. I want to look down the table to trip adler. I imagine this is music to your ears. I think you also see that there may be weakness to amazon and i would love to hear your thoughts on that and bring us back a little bit as part of the day at that amazon has that is so enormous that it is sharing with no one and how that plays into amazons future. Definitely agree with some of the things that were said about amazon in that the whole idea that this one big store that appeals to every single vehicle of commerce make the little thin and there are opportunities for retailers who are attacking certain niches of the market in more specific ways to be able to compete with amazon. And around working in with the book with this description model but can offer a Subscription Service different from an amazon has been able to with kindle unlimited. Amazon has a lot of data on books. We also generate a lot of data on books and use that to deliver unique personalized Reading Force depends. We take all the data used to read and authorize a personal experience with the more you read this Marketing Experience gas and making a signals like the books you read, authors genre what time of day lang of the books to personalize your reading experience. We are doing this in no way that is very different. We actually have a human editors to go through the books and look at each book one at a time and pick out what we call tags for the books that labeled the books. So we can actually look at the themes in the books, and its saddening and use all of the signals to recommend new books to you as a reader. With subscription and recommendations we can really make it much easier to discover new books in a way that amazon has not been able to do. On this data allows you to do a flop at the books that are out there in more. I would like to nominate to talk about how not only do she is data for the books shes publishing but a little bit about what she does and personalization of data and the potential of that. Share before we do that i want you to answer in part where you last over there because i think scott made to other points that were really adjusting. One of the data points we have today is retail in bookstores is actually growing in the united states. That is probably a surprise to you but its actually speaks to the point that was making. There are more book retailers than they do some really interesting work. On the channel is also growing for us. I thought that was really cool. We are working in a very interesting space. We are working in a space between the content providers and actually to readers. We are actually creating books that are personalized for you with your childs ame, child and miniature creates them in completely different. You have to think about it. Youre kind of at the intersection between copyright where somebody has owns that content and actually the reader. How do you make something extraordinary happened . How do you want to be connected to Something Like star wars . How do you want to be connected to lemony snakeheads. How do we create a new experience for you . That is the work we are working on for. The thing i think is so shocking about this is data can changing the product we offer and how we create the product. You use this in education. And i think there is a lot education can learn and that can teach the broader book business. I would love to hear your thoughts on that. What are you doing that could apply to education . In terms of education we have gone through the process of transformation and we were known as a text book company and now more education solution provider. We are moving faster and more data driven. We had text books traditionally and all of the children were taught the same way before. What this has enabled us to do is to create a highly personalized pathway for students by leveraging data that is based on leverage technology. We are able to create a model where a teacher is not going to be able to touch every kid and require enhancement for those who are behind and some kind of intervention in the past a kid when was reading two grades below probably dont remember middle school, used to be pulled out and you read Something Different than the other kids. So everybody in the world would know you are not the leader. So today Technology Enables us to keep the kids reading the exact same text by leveraging Different Technology and sitting in the same classroom but those two or three grades behind which is normal in a number of schools, to engage them in that same. We use and leverage a lot of that data to create a prescriptive path that the teacher can leverage so they can create a learning path highly individualized for every child. We also are able to use the data so that you know, i need different help than you do and that enables us to do that. So is the feeling that the publishing indust reis resisting instead of embracing it. Harris wrote a piece urt a complacency taking thoefsh book industry and there is a lot of danger there. How do we make sure we are embracing data . You put out a wakeup call we need to embrace the new technology and innovations and what they can offer instead of holding back. I think i echoed something scott said because i think it is important particularly for the trade indust reand that is amazon pulled off the bait and switch move twice. They offer wider distribution new marketface and now amazon is dominating print space and able to dictate terms and same with ebooks. And the biggest problem is for trade publishers. They dont have the same likes in terms of what the end user is doing. It is very difficult to do that. I would like to think newer companies can share more active data with publishers because it is hugely important to allow them to make changes. We are a Technology Company first and Publishing Company second. We do this in two ways. We have 400 publishers using our platform so we can understand how to help them improve, and we can understand where they are stuck in the system and how they are engaging with our product and changes off the data. On the flipside we are getting the Sales Information of 400 publishers so we have an opportunity to use that data and give advice on optimized pricing for example. I think publishers will have to get to the roaders. Dominique has built a bran that is recognized and very few are recognized. I totally agree with gareth it gives you an incredible competitive advantage. We introduced a story called put me in the story and we knew we had a problem and enough data to tell us there is a problem with this book and we need a shift in delivering it. Having that data is useful because we think of changes quickly. And what is is especially amazing is the well known brands you are working with. You are working with star wars every sort of known brand that is out there brands people know. And you are also capturing data on them. So what is powerful is what you offer back as a publisher to all of these different places. I think scott spoke wonderfully about brands and relationships. If you think about the brooks we produce as a community, we have authors have remarkable relationships with readers and what we are doing is thinking about how to make that relationship more personal. And i think that will provide a lot of insight down the road. We are enjoying that. I think one of the points made about publishers being risk adverse i think that is true and afraid of new things to a certain extent. Which is remarkable for what in map ways is the riskiest many industry out there. You find ten projects you like back them, seven are duds and two might be okay and one is successful. They are afraid to do this sometimes. How do we avoid what scott talked about and Book Publishers dont go down the road newspapers went down and think Technology Companies are cool lets partner with them and give them the keys to the castle. I dont know if this is a benefit or liability. I know nothing about your industry. I see dominant players with 7080 percent of the share dealing with companies that are fragmented and that means you are going to be a price taker. You need to be radical and bound together. I felt at the new york city times we needed to go the the piersons the tribunes and bind together going to the two Search Engines and say none of our content of or all of it at an outrageous price. Unless you innovate radically and bound together you will suck the oxygen out of the room and industry. The problem is people are human and the older generation and i am making a plank statement about most industries used to make a great living now it is good and probably dont want to make a good living to make the requirement in the investment. They are coming after you, though. And you need to bind together and have some resemblance of power to go toe to toe with these guys and you dont right now. One thing in education to a certain extent that made a difference and also in this world where there is a democracy of content and content is being pubished by everybody. In our world someone says why do i need to buy text book i can write something, utit up and they can use it. The enforcement thing is the fact what we do is Research Based and ethicacy based and we are a very outcome driven industry. We are able to say i always say one of out of two kids in america learns how to do math using one of our products. We have the efficacy that enabled them not to have the disruption to a certain extent we are seeing in the trade books. The second thing is the direct relationship with our users; the children the learners around the different parts of the country and world. There are 15,000 districts in america and they are our customers and access our content directly. Yes, you can buy it through amazon apple and so forth but the vast majority of the relationships we have happen to be directly with our consumers. So i think that makes a difference as well. So kwlou so you have a relationship with consumers and are taking what they want and making that experience better. But you have to content providers as well. How doyou bridge the gap between the Old School Players that are resisting a lot of change and knowing what your customers want and giving it to them. We think of the pun publishers and readers as two different groups. On the reader side they get the deal of paying once and read whatever they want and forget about the concept of buying books going from the ownership model to the access model where they can open the app, be recommend books, tap on a book and read the entire book without a pay wall between every book they want to read. On the publisher side we tried to keep the Business Model as consistent as possible which is the individual sale model and pay publishers every time a book is read. Once a consumer hits a certain percentage of the book we pay the publisher. We are open to trying other models but that has been able to bridge the publisher and reader the most and we have been making it work. I think if you look at the industry i dont see any major innovation industry in 20 years. That is because the model worksed for a long period of time. Innovation is taking something and making it better. Ebooks are derivative of the physical book and dont enhance the story telling experience. I saw a major publisher stand this morning and one of their Big Marketing push is the e ebooks are available in full color and they have always been but the device was black and white. So there is no innovation happening there. There was a talk about Digital Media Senior Executives and 70 percent of those senior level executives said they would forego short term revenue in order to have long term digital sustainability. I am not sure if you took the poll among publishers it would be the same. Radical innovation is where we need to be and that is what we are committed to. But i think the first path we took at things as an industry may not have been perfect. Okay. But the second pathway will be fabulous. If you look at the first pathway we took on the retail for example, to look at independent book stores are respect to google, that didnt work. But i think the next path may work. So i think we are iterating on innovation as an industry and creating really interesting stuff. I think you will see more radical innovation from us that you have seen in the past, probably in the next three to five years. Totally. I think there are Things Holding publishing back particularly fraid publishing which is the lack of data on the end user and also the lack of common standards that inhibit us because if you look at Google Facebook or twitter there is not a lot of original code. They are using other technologies out there. Totally agree. And you have fairly fundamental problems in terms of talking to one another that we dont seem to be getting past that need to be taken care of in tern terms of standards. Lets go back to data and dock about the power of data but the downfall. I want to know if there is a aha moment where you take the data and realize you can build the winning team . Is there the other side with the downside of having too much data or as one publisher told me this is great but i dont have the systems or infrastructure to do anything with it so what good is it to me. Starting with dominique i would love your thoughts on the power of data and the real downside that might be there. I think data is going to revolutionize innovation in Book Publishing and we are finding it used in every single part of our business. However, from my point of view there are two real downsides. The first is we have more data than analyst. As an industry we dont have enough competent analyst. We need them. Get training now. We are gathering a lot of data but also gathering a lot of noise so lets