Frankfurt 2024: Jonathan Karp & Richard Sarnoff
"There's no question within a very short period of time, you'll have a massive amount of AI content vomited forth right at you," said Richard Sarnoff, chairman of media for private equity firm KKR, during the CEO Talk at the Frankfurt Book Fair Wednesday afternoon.
Sarnoff took the stage with Simon & Schuster global CEO Jonathan Karp and publishing consultant Ruediger Wischenbart, who moderated the discussion. Topics included AI, growth, and emerging business models. Karp and Sarnoff also fielded questions from four journalists representing an assortment of international industry publications.
Jonathan Karp (l.) and Richard Sarnoff |
Amid a "morass of AI content that is okay but not great," Sarnoff continued, there will be readers who care enough and are discerning enough to "want to have material that is human created and edited, so they know it's high quality." In that landscape, he added, S&S will distinguish itself by endeavoring to be a great publisher of "things that are not spit out by machines ad nauseam."
Karp agreed, saying that S&S's "curatorial prowess" will be crucial "in separating us and elevating us from the glut of AI product that's going to be out there." Particularly, the company's employees "are going to distinguish our books in the marketplace and they're ultimately going to be the reason why readers prefer our books."
While they were not at all bullish on the idea of AI authorship, Karp and Sarnoff appeared more optimistic about other applications for AI, including translation and audiobook narration. For translation, Karp remarked that "as the AI gets better, the translation will get easier," and those advancements "could be a very exciting thing for all of our publishing companies." He added that the key to managing these sorts of changes is "servicing the authors in a really clear, fair-minded way and communicating with them well enough so they trust us when the opportunity arises."
When it comes to AI narration, Sarnoff said the question is about serving the author and the book "the best way we can," and today, in S&S's core languages, human voice is the best way to do that. But there may be instances where that is no longer the case, such as trying to publish an audiobook "in 12 different Indian dialects"; in those circumstances, "the author I think comes right along with us."
Karp and Sarnoff both expressed a lot of optimism regarding audiobooks, with Karp calling the format "particularly exciting." There are myriad opportunities for digital distribution, and that will only increase as S&S is able to translate more easily. Audio also presents a different kind of "literacy opportunity" and has the potential to bring in consumers who might not "automatically come to books." Sarnoff pointed out that audiobooks are unique in that they create additional time for reading because they can be listened to while cooking, cleaning, driving, or exercising. That is "something we haven't had as an industry" until the advent of audiobooks.
After Wischenbart brought up subscription models, Sarnoff noted that for consumers, they can "lead to a far greater market," but from an author and publisher perspective, they have "a lot of things freighting it down and making it difficult." The goal is to "end up in a place where subscription models can work at consumer level without affecting the amount of money an author and publisher make from that work." It is a "hard balance to strike," and he remarked that Audible's model is a "quasi-subscription model." To consumers, because they're paying a fixed amount per month, it is a subscription; on the author side, it is not a subscription.
Touching on plans for S&S going forward, Karp said the company is "looking at things much more internationally than ever before." His hope for S&S, "and the reason I wanted to appear here, was to show all of you, and to say out loud really loudly and clearly, that S&S wants to be an international publisher."
In response to a question about contending with the rising cost of doing business, Karp said: "If you're asking me whether we're planning on making cuts, the answer is no. We're not planning on making cuts. We're planning on growing." --Alex Mutter