The conversation between Michael Tamblyn, CEO of Rakuten Kobo, and Jens Klingelhöfer, CEO of Bookwire, took place as the first session during the Wedenesday’ big meeting during Readmagine 25. Both speakers are highly relevant figures in the international book scene and have previously participated in the conference taking place in Madrid during the last week of May. On this occasion, a conversation was organised between the two, without a moderator, to explore the various challenges of the current context in which the content industry operates.
Geopolitical uncertainty and its impact on publishing
Both leaders highlighted the increasing uncertainty in global trade and politics, emphasizing that geopolitical shifts are reshaping the publishing industry. For instance, the evolving relationship between Canada and the US is forcing Canadian publishers to reduce their dependence on a single market and diversify into other regions. Tamblyn noted that this transformation is particularly challenging for companies with strong ties to the US, which is now seen as less predictable politically and economically. This new unpredictability in US policies on free speech and freedom of the press is causing global concerns, especially for American publishers who are now required to navigate a more restrictive environment that other countries have already faced for years.
Freedom of speech and publishing responsibilities
The conversation also touched on the responsibility of the publishing industry to protect freedom of speech. Klingelhofer stressed the importance of ensuring that content is accessible in all markets without censorship, even amidst political pressure. He pointed out the increasing complexity of the regulatory environment, especially in Europe, where there is a delicate balance between regulation and freedom. Tamblyn agreed, noting that publishers must learn new skills to operate in a world where freedom of speech cannot be taken for granted, particularly in the US. Both acknowledged that while these issues are challenging, publishers must continue advocating for free speech and ensuring diverse voices are heard.
The role of AI in publishing
AI was another major topic discussed. Both leaders expressed a cautious optimism about AI’s potential but acknowledged the risks it presents, especially regarding copyright and content quality. Klingelhofer reflected on his experience in the music industry, where the rise of digital content created similar challenges with intellectual property rights. The fear of being overwhelmed by AI-generated content that lacks originality or quality was a key concern, with Tamblyn emphasizing that while AI might not replace great authors, it could flood the market with mediocrity. However, they both agreed that AI could serve as a useful tool for enhancing creativity, like assisting in research or managing large volumes of information, rather than being a disruptive force.
Risk and opportunity in innovation
The conversation ended with a discussion about the balance between risk and opportunity in adopting new technologies. Klingelhofer warned that without a clear purpose, companies might be tempted to pursue AI innovation without a solid plan. He stressed that innovation should be driven by clear goals, ensuring it solves real problems in the publishing space. Tamblyn echoed this sentiment, cautioning that while the publishing industry is good at identifying risks, it must also embrace opportunities that innovation offers. Both concluded that while AI presents potential risks, it can also lead to meaningful advancements in the industry, provided it’s used thoughtfully and strategically.
In summary, Tamblyn and Klingelhofer’s discussion painted a picture of an industry at a crossroads—facing geopolitical challenges, grappling with the rise of AI, and balancing innovation with the protection of fundamental values like freedom of speech. Despite these uncertainties, they remained optimistic about the future of publishing, stressing the importance of adaptability, responsibility, and a clear vision for leveraging new technologies.
Embracing innovation and AI
Both leaders emphasized the importance of innovation within the publishing industry, particularly in relation to AI. Jens Klingelhofer shared his perspective on AI as a tool to enhance efficiency in areas like translation and audiobook production, as well as its potential to create more interactive, human-like platform experiences. AI could be used to surface insights for clients, helping them make decisions more easily and interactively. However, he also cautioned against getting caught up in hype cycles without clear goals and ROI. He reflected on past ventures, such as their NFT marketplace for publishing products, which didn’t achieve significant success but offered valuable learning experiences.
Michael Tamblyn similarly recognized the potential of AI to improve the bookselling process. He focused on AI’s ability to offer better book recommendations through more nuanced insights into themes, styles, and characters, moving away from traditional «people who bought this also bought that» models. Both agreed that AI’s real power lies in its ability to support and amplify human creativity, rather than replace it entirely.
AI as a tool for content monetisation
Jens highlighted AI as a new potential sales channel for publishers, particularly through licensing content to AI platforms that need curated, original material. He mentioned an example where HR publishers are licensing content to AI companies creating valuable information systems for HR professionals. While AI’s role in content creation is still in its infancy, there is potential for significant business opportunities through content licensing, particularly in niche markets. Jens emphasized the importance of being open to these new avenues for monetization, though he acknowledged the scepticism some publishers feel towards AI-driven initiatives.
Demographic shifts and new reader trends
The conversation shifted to the demographic changes in publishing, especially the rise of younger readers engaging with digital formats. Tamblyn observed that the growth in eBooks is increasingly driven by younger readers, specifically those between the ages of 14-29. This marks a shift from the traditional pattern where eBooks were mostly consumed by older generations. Factors such as the rise of fan fiction, social media platforms like TikTok, and the pandemic’s impact on screen-based reading habits have contributed to this shift.
Jens mirrored these observations, noting the growing trend of young publishers and self-publishers in markets like Leipzig, reflecting an evolving industry where younger creators are breaking into publishing in innovative ways. This younger generation, accustomed to social media and digital tools, is reshaping how books are created, marketed, and consumed.
The overlap between audiobooks and podcasts
The discussion also touched on the relationship between audiobooks and podcasts. Jens explained that, according to a study by Bookwire, podcasts and audiobooks serve different purposes and do not directly cannibalize each other. While podcasts offer informal, conversational content, audiobooks are more structured and narrative-driven. However, the user experience overlap is growing, particularly with platforms like Spotify, which is integrating audiobooks with its podcast offering. By doing so, they can offer a seamless user experience, converting podcast listeners into audiobook consumers, and vice versa.
The challenge of meeting evolving consumer needs
Finally, both leaders acknowledged that the publishing industry is becoming increasingly complex with the rise of multi-format consumption and the diversification of business models. This includes not only the shift in the types of content being consumed but also the formats (e.g., eBooks, audiobooks, podcasts) and the channels (e.g., digital, print) through which it is distributed. The ability to adapt to these changes while balancing traditional publishing values, such as creativity and originality, remains crucial for success.
Jens Jens Klingelhöfer is CEO and co-founder of the internationally established digital PubTech company Bookwire (www.bookwire.de) with offices in Frankfurt, London, Barcelona, Paris, Sao Paulo and Mexico-City. Bookwire is specializing in marketing ebooks, digital audiobooks and Print-on-demand products in all existing and emerging sales channels worldwide. The company works with over 2000 publishing houses for which it provides the world’s largest network and a fully integrated distribution and marketing platform solution “Bookwire OS”. Prior to the founding of Bookwire, he was a media manager in the music industry for over 10 years and was involved in many major and successful projects in music and entertainment.
Michael Tamblyn, President and Chief Executive Officer at Rakuten Kobo, drives growth, profitability and international expansion in a fiercely competitive market. He combines a passion for reading with a deep focus on hardware and software experiences. In addition to leading Rakuten Kobo, the global digital bookseller, He advises startups focused on aging and technology as Chief Entrepreneur of Age-Well NCE, is on the board of directors of the Law Commission of Ontario, Ontario’s law reform body, as well as The Power Plant, Toronto’s foremost contemporary art gallery. Michael has been a part of Rakuten Kobo’s executive team since its inception in 2009, and previously held the role of Chief Content Officer. He holds a Master’s in Business Administration from the University of Western Ontario.
