Random House’s Salute To Fireworks

I’ve goofed on my history of (incredibly) small press publishing for years. While there are plenty of specific reasons why I was a failure, there are also some pretty enormous structural problems with the business of book publishing. I think most of those problems can be traced back to bookstore returnability, but it’s a complex argument that I don’t feel like making right now.

What brings me to this topic is the news that Bertelsmann, a privately held German media conglomerate, looks ready to announce a new president for Random House, one of the largest publishing companies in the world. Perturbed that Random hasn’t had any blockbuster hits in the last year and revenues have slipped, ownership (and new CEO Hartmut Ostrowski) decided to promote from within. Of course, when you’re a major conglomerate like Bertelsmann, “within” can be a pretty broad term.

In this case, Random House’s new president, Markus Dohle, comes from Bertelsmann’s Arvato Print unit. What’s Arvato? Why, I’ll let the WSJ explain:

While Arvato is so unglamorous a business it was once referred to inside Bertelsmann as “Siberia,” it has served as a major growth engine for Bertelsmann in recent years. Arvato has been plunging into far-ranging businesses such as repairing mobile telephones, storing pharmaceuticals and running call centers and billing systems. Last year it booked almost [$7.8 billion] in revenue, or about a quarter of Bertelsmann’s turnover.

I’m sure Mr. Dohle’s a fine executive, and I’m sure Mr. Ostrowski (another Arvato Print alumni) has some big ideas for how Bertelsmann can make book publishing a major contributor to its bottom line (it’s currently at 10% of company revenues), but this sort of pedigree sounds a lot like the appointment of Jack Donaghy to the role of Vice President of East Coast Television and Microwave Oven Programming.