A book exposition is held annually at the Metro Toronto Convention Centre, where publishers peddle their wares, people network to stay apprised of the literary world and authors wear out their hands signing autographs.
Part of BookExpo Canada is the one-day "Writers to Readers" event, which aims to link content creators with end users.
While in many industries this would simply be another day at the office, the technological revolution that has taken place over the past decade has radically changed the book business, altering the nature of those links. The 2006 event held in June featured such luminaries as Tom Turvey from Google Inc., Jeff Steele from Amazon,com Inc., Judy Rebick, publisher of rabble.ca, and Kevin Smokler, founder of The Virtual Book Tour.
Prior to the Internet, book buyers typically did their browsing in bookstores. To some degree this remains the standard practice, but in the digital age books are also perused and purchased on-line. The only page turning that takes place is clicking to the next website.
This change has led to far-reaching transformations in how books are marketed, and how authors relate to readers.
Literary wordsmiths still generally love their book tours, the chance to schmooze with the media and flog their wares. But industry experts say that permeating the Internet via blogs has become de rigueur for marketing. As was expressed again and again at the Writers to Readers event last June, without that Internet presence, a major demographic is missed, the coveted under-35 age bracket.
Book retailer Indigo Books & Music Inc. of Toronto has made a point to keep up with this development, which is showing up in its revenue figures. And its stock, which traded as low as $4 in 2004, now cruises at about $16.
Indigo sales for its fiscal first quarter ended July 1, rose 6 per cent year-over-year to $170-million, the fifth successive uptick, while its quarterly loss fell from $8.1-million to $5.8-million. The balance sheet is in very reasonable shape, and investors can be comforted knowing the deep pockets of the marital team of chief executive officer Heather Reisman and Gerry Schwartz, head of Toronto-based Onex Corp., back this enterprise.
The company's Chapters, Coles and Indigo divisions control an estimated three-quarters of Canadian book sales, making the Indigo umbrella the most potent channel for literary works in Canada, not counting public libraries. Perhaps "oligopoly" is the better word.
Is Indigo a good investment at this juncture? In 1999, shares of precursor Chapters Inc. reached a high of $36.50. Indigo stock, at its current price, seems fairly valued until the company can score regular earnings on an ongoing basis.
Despite the digital age, there is little to compare with the pleasure of turning the pages of a good summer read on a lounge chair. Even in winter, paper and a couch beat the heck out of a book on a computer or iPod. In our opinion, digital revolution figured in, books in print are here to stay, warming the night table by the bed.
Benj Gallander and Ben Stadelmann are co-editors of Contra the Heard Investment Letter. This column first appeared on GlobeinvestorGOLD.com.