It seems that the deal is done although has the fat lady sung? Check out BBC news.

I calculate that HMV has paid £35m less than they originally offered. This reduction was caused by a deterioration in Ottakar's trading between the original offer and now. The delay was caused by the referral of the deal to the Competition Commission. I supect that the whole affair has cost HMV (and everyone else) a huge amount of money in legal and economist fees (not to mention management time) but at least HMV shareholders have a better deal than they might have done.

Let's now hope that the book trade can get back to selling more books more economically and that the lessons of this sorry affair are well and truly learnt.

I've been blessed by good bosses throughout my career - honestly!One of the very best was Dan Davin who was responsible for hiring me to Oxford University Press in 1975. Apart from teaching me most of what I know about scholarly publishing he also introduced me to the expatriate New Zealand community in Oxford and London. To this day I marvel at the creative, literary and sporting output of that tiny country. Not only that but in the Macmillan world New Zealand is always at or near the top of our league of best performing businesses. How come? Because we have the very best people. I asked our NZ Managing Director, David Joel, to tell us what's happening over there.

Dispatches from New Zealand

With the advent of the blog we seem to have mixed the boundaries of the formal business and the personal. At work the perfunctory “Good Morning” may be enough without giving away all the personal issues or delight in our lives –the blog and perhaps the internet seem to have changed that. If I mentioned in a blog I was really disappointed in the Super 14 final (a Rugby Union competition between Australia, South Africa and New Zealand) was held in such foggy conditions in Christchurch last Saturday it was as hopeless as the “mist” spectacle.you may not be surprised. If I mentioned this in a business report I might be considered loopy. Of course the final was between two New Zealand teams. I can tell you the failure of the Rugby spectacle was more than made up for on Sunday afternoon at a Beethoven concert conducted by my brother’s son which was spectacular. The soloist for the Violin Concerto was nothing but brilliant. I have about 8 CDs of the Beethoven Violin Concerto by different violinists (I can’t seem to get the Campoli one though) and I have to believe this young man was nothing but the best. Or is it that a live performance cannot be beaten by a CD? In any case Eugene Lee is a violinist to look out for.  Beethoven’s 5^th was excellent too.

On a more mundane note the recent NZ budget here was criticized because it did not offer personal income tax cuts. It was named the Bondi budget because the place to obtain a tax cut is in Australia (Oz is a three hour flight away and is not joined to Auckland by the Sydney Harbour Bridge as some who live in the Northern Hemsiphere believe) where they recently announced tax cuts in their budget. The prime NZ budget announcement was preempted from the budget night because a government courier had leaked the proposed budget announcement of the deregulation of Telecom two weeks early to Telecom themselves. Because it is the most significant NZ listed company Telecom felt they had to let the government know they had this information. So much for NZ Government security! To think we might obtain better ADSL prices and speed by deregulation? Why am I so cynical about central government’s ability to deliver?

In the book publishing industry the big news is that Penguin are moving their distribution to Australia in a few months along with Hachette Livre. The plane might take three hours but airfreight seems to take a week and a ship a month. At Macmillan NZ we should be smiling as we are in the process of installing a mezzanine in our warehouse which will give us 50% more floor space. We will be the only publisher/distrbutor in NZ which stocks tertiary titles.

Richard Charkin astutely pointed out before we put in the mezzanine we should just reduce the stock by half – we could reduce it totally if we distributed from Australia. Only time will tell which publishers are making the right move. In the meantime we are going to play on the concept our books are sent from NZ and not packed by people in Australia (You’ll note the rivalry between the countries does not stop on the Rugby field).

The other issue in New Zealand is the price of petrol (we are part of the global community after all) The price has risen 70% this year and we now pay about $1.80 per litre.(60p) This might not be so bad compared with the UK but it is a real shock to us all here.

We are blaming this for our difficulty meeting expected sales as we can’t seem to find another reason. It would be stretching credibility to believe that the demise of our 5c piece (sixpence in the old currency) was the reason. Surely everyone realizes $29.95 is about twenty dollars whereas $30.00 is thirty dollars without dispute?  

It has been said those of us who live in Auckland know the price of everything but the value of nothing. Well I paid the price for the new Blackberry model 8700 in the belief the irritating button on the side would be remedied (and it has) but they didn’t tell me the screen backlight would go off after not more than 2 minutes and I could see nothing unless I pressed a button – so much for my nonchalance in meetings now.  New models are supposed to be an advancement in critical areas but the new Blackberry demonstrates this is not always the case. I’m still not disposing of the old model yet. I thought I might put it on Trademe (NZ’s eBay). I could give you a blog on the story of TradeMe and NZ’s Gullivers Travels - in fact I have just thought of about 100 things I could blog on about but who would be interested?

Greetings to all from New Zealand.

As I mentioned a couple of blogs ago we are welcoming colleagues and friends from the book trade in Germany this week. Kathrin Berger from Stuttgart is the key organiser. Because things have gone so smoothly she has found the time to guest blog for me. Over to you, Kathrin.

We arrived yesterday and so far my spirit has lifted - London is always lively and overwhelming. There is no other city in Europe where you meet so many different cultures. We went for a walk in the city and for we Germans it was great because all the shops were open on a Sunday!

We're staying at a pretty hotel with flowers everywhere in the room - that's what we call typical English. Today it is a holiday in the UK but nevertheless we will start our conference. I am really curious what we will learn about the UK book market and the current trends there.

Tonight we will meet some authors at the Chelsea Arts Club - Clare Francis, Peter James, and Wilbur Smith and then tomorrow real work trying to get to grips with the absurdities and charms of English-language bookselling.

The joy of electronic publishing is that new ideas can sometimes be turned into real businesses without huge capital investments. Take for instance Exact Editions. I quote from their description of themselves:

Exact Editions was founded in the summer of 2005 by Tim Bruce, Adam Hodgkin and Daryl Rayner. The founders have backgrounds in software, publishing and marketing and they are all veterans of the first wave of web publishing. Their aim with Exact Editions is to build a web service which works for publishers and readers to make magazines as useful, simple and pleasurable as any other web service. The starting point is that a magazine on the web can be exactly as it is on the page. The web page should look like the magazine and it should be there when you search for it. No downloads, no flash, no ‘re-purposing’, no messing around. Just straightforward click and search, point and browse.

The founders are all friends of mine and so I should declare an interest but it seems to me that they are doing everything absolutely right. A straightforward business model, a clean website, effective software functionality, a genuine market - and low overheads to run the business. Do try out some of the specimen issues and see what you think.

If they succeeed (which I think they will) they will have done the magazine industry a huge favour in expanding their readership internationally as well as to their core domestic market. I'm not sure what Americans will make of the Spectator.

The Publishers Association has just published its Statistics Yearbook for 2005. It's well worth getting a copy if only to marvel at the divergence between popular perception and reality.

Next week Macmillan is welcoming a group of top German booksellers to London to learn what's going on in the UK and perhaps to avoid some of the British mistakes. And I'm hoping we can learn something from them. As part of the preparation we have been digging in to swathes of statistics on consumer behaviour in relation to reading etc. I thought I'd share some of the nuggets.

In Germany Internet users have increased from 7% of the population in 1997 to 58% now. The over 60 year olds have increased from 0 in 1997 to 18% now.

In UK Internet advertising now represents 7% of total media spend up 73% on the previous year.

In USA 27% of online users buy or sell in online auction sites.

On average across the world people spend 6.5 hours a week reading. The most of amount time spent reading is in India (10.7 hours), the least Korea (3.1 hours). UK is very near the bottom at 5.3 hours, Germany and USA a little higher at 5.7 hours.

The Chinese listen to radio less than any other nation (2.1 hours a week), Argentina the most (20.8 hours).

On average people now spend more time on the Internet for leisure (not work) than reading - 8.9 vs 6.5 hours. Mexico uses the Intenet for leisure least (6.3 hours) and Taiwan the most (12.6 hours).

Internet use reduces the time people have for reading by around 20%.

40% of Europeans do not read books.

More people use the Internet for leisure than read books in the developed world.

And people wonder why publishers are spending so much time and effort on digital developments...

Three years ago Nature Publishing Group decided to invest heavily in clinical medical publishing. We were well-established in science, particularly biology, and thus our medical focus was on the scientific rather than clinical end of health care. Of course clinical medicine is a very heavily published area and there are many very old and well-established competitors.  (I was the editor of Oxford Medical Publications back in 1975 - and a great job it was.) If we were to succeed in this field we'd have to do things a bit differently and better. Peter Ashman who has driven the project from its inception tells us a bit about it:

'About two and a half years ago, Nature Publishing Group made our first foray into Nature-branded medical publishing with the launch of the first four Nature Clinical Practice (NCP) journals. Since then we've launched a further four with more in the pipeline.

Quite apart from the achievement of launching eight journals in 12 months - an incredible feat in itself - one of the great successes of the Nature Clinical Practice series has been our ability to attract some of the world's leading medical specialists and opinion leaders as Editors-in-Chief and on to Advisory Board members. Doctors such as Vincent T DeVita (NCP Oncology) and Valentin Fuster (NCP Cardiovascular Medicine) are frequently approached by publishers asking them to endorse or to lend their weight to some medical publishing project or other. For NPG, we have been delighted by the willingness of so many key global figures to embrace the NCP concept and to give so freely of their time and knowledge.

One of our Advisory Board members is the pioneering heart surgeon Professor Sir Magdi Yacoub who, despite 'retiring' in 2001 is still a major influencer in the world of heart transplantation. An example of his continuing influence is the recent case of 12 year old Hannah Clarke who suffered from cardiomyopathy (a condition in which the heart can inflame to double its size before, frequently, giving up) on whom Professor Yacoub performed a heart transplant in 1995. During the operation Yacoub took the unplanned decision that, rather than remove the girl's heart, he would leave it in situ and place the donor heart on top - a 'piggy-back' procedure.

This turned out to be a visionary decision as, ten years on, doctors discovered that Hannah's body was rejecting the donor heart and it needed to be removed. Doctors called on Professor Yacoub to come out of retirement and advise on what to do. The decision was taken that Hannah's own heart, having had a 10-year rest, could now be re-started - the operation was undertaken and has proved to be a resounding success with Hannah now being able to stop taking her anti-rejection drugs. Had Professor Yacoub removed Hannah's heart in 1995 as was the norm for this type of condition ten years ago - Hannah would probably be dead by now. You can read more on this heart-warming story on the BBC site and here at CORDIS.

It's an honour for us at Nature to be working with people who make such a difference to our lives.'

I've been waiting for an opportunity to use my favourite film quote of all time. There were one or two moments in my sojourn at the Publishers Association and quite a few at Macmillan but they're not bloggable. So I'm going to give it to you anyway. I suspect it only works in English, so apologies to non-native speakers. It comes from one of the great non-arthouse films, Carry on Cleo (original idea by William Shakespeare), and was spoken by the brilliant and camp Kenneth Williams playing Julius Caesar as the plotters encircle. The line was lifted from an earlier series, Take it from here, by Frank Muir and Denis Norden.

And the quote?

Infamy, infamy, they've all got it in for me.

As a commentator points out, it gives 'Et tu, Brute' decent competition.

I can't help admire the Boersenverein des Deutschen Buchhandels , Germany’s association for the book trade, which yesterday launched its ‘full-text search online’ project. This collaborative initiative to develop a digital content storage and delivery platform, in which all German booksellers and publishers will be invited to participate, is a forward-thinking approach for sure.  Germany certainly looks like it's wisely gearing up for an increasingly digital future.   

Of course I am particularly pleased that  MPS Technologies and Hamburg-based sister company HGV, both Holtzbrinck companies, have been chosen as development partners for the project. MPS Technologies and HGV launched their ‘digital warehouse’ concept, BookStore, at the Frankfurt Book Fair last year. Since then a prototype has been developed and demonstrated to many publishers in the UK, Germany and the USA. A beta site will be available in late June. A bespoke version of the BookStore platform will be developed for the Bórsenverein which will be offered to publishers across Germany and launched at the Frankfurt Book Fair 2006. 

Yet one more step in publishers and booksellers opening their eyes to the imperative of adapting to a digital future.