S.Woody Palasek, executive vice president of e-books supplier netLibrary, said that after formulating a plan for mass market development, netLibrary can still maintain its planned growth plan for August, despite the initial need to increase funding for netLibrary and Can't afford it. Fortunately, netLibrary had enough time to find IPOs or other sources of funding before it needed to ask for more funds. At the same time, Palasek also stated that due to changes in the plan, the company will be more cautious before financing.
Although Palasek declined to disclose netLibrary's current capital operations, it can still be seen from the following data. NetLibrary obtained 130 million U.S. dollars a year and a half ago. By June 20, 2000, its production funds had been reduced from 68.7 million U.S. dollars six months ago to 38.7 million U.S. dollars.
NetLibrary’s plans to enter the mass publishing industry are considered to be a sign of the maturity of the e-book industry. If this process is postponed, it may have a negative impact on the development of e-publishing, but Palasek does not think so.
At the same time, Palasek has always believed that the academic field has more potential for the mass market, so he said that netLibrary will sell more books to more libraries each month. But Palasek also pointed out that peanutPress.com, which netLibrary acquired in February, is a mass-market e-books supplier that provides readers with e-books that can be read on the Palmpilot PLA, and the company is realizing its expected sales.
On the other hand, netLibrary basically focuses on the library and academic markets. In March, netLibrary acquired metatext, a company that converts printed materials into digital books. Metatext announced last week that it will convert a batch of Thomson Learning's educational readings into an electronic format.
Palase said that the future plan of netLibrary is to focus on converting teaching and research books and other student books into reading materials that can be read on PDA, with the acquisition of two-air companies.
The goal of NetLibrary is to publish 20,000 new books each year, but this requires a lot of conversion costs. In the past, netLibrary did not charge publishers, but netLibrary will charge related fees in the future, and netLibrary will provide publishers with copies of digital products for future use. Lastly, Palasek added that converting a printed publication into an electronic publication would require several hundred dollars per book. The specific cost would depend on the circumstances of each book. Publishers will withdraw from cooperation with netLibrary.
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