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Originally posted on paidContent:
When the former HarperCollins CEO Jane Friedman cofounded Open Road Media in 2009, the publisher was one of the first of its kind: The idea was that it would mine the backlist for books that had never been available as ebooks, snap up the digital rights and publish the ebooks for the first time, thus introducing authors like William Styron and Alice Walker to new audiences.
Nearly four years and 3,000 titles later (with an additional 1,000 titles under contract), the company is still focused around acquiring and marketing backlist titles. Open Road has raised $15 million so far, from Kohlberg Ventures, Golden Seeds and Azure. (The company would not disclose revenues or whether it is profitable.) It still does not pay advances and still splits revenues 50-50 (after recouping some digitization costs) with authors, but it has also expanded its focus. It is publishing print books, expanding to new verticals like romance and the Vietnam War, signing up a limited number of original manuscripts, and handling digital distribution and marketing for both U.S. and international publishers.
These changes reflect Open Road’s adaptability to a changing market, but are also evidence of the fact that, in 2013, it faces more competition from other publishers than it did four years ago. The backlist — which covers books that have been out for a least a year and that in some cases are decades old — is estimated to make up around 40 percent of the trade book market, and many publishers are seeking to mine those rights. HarperCollins is currently suing Open Road over the digital rights to Jean Craighead George’s Julie of the Wolves; the case hasn’t yet gone to trial. Amazon (s AMZN) has bought up the backlists of several small publishers and plans to release those titles as ebooks for the first time.