Over the past few months there have been many articles written about the closure of bookshops across the country. What hasn’t been reported as much is the closure of publishers. The Guardian recently reported, that 98 UK-based publishers have gone out of business over the past year, which is 42% more than the year previous. And it is not just book publishers which have been closing, but newspaper, journals, periodical and directory publishers have also closed down over the past year.
It is thought that with pressure from the internet and online retailers such as Amazon, independent publishers in particular are struggling to make profits as margins are made smaller to compete with discounting on books. Digital piracy is also a problem for publishers, as well as being able to locate secondhand books at the click of a button. It is this latter issue which has threatened niche academic and educational publishers. Sites such as Amazon Marketplace has made it much easier for people to get their hands on textbooks, for example, and whilst this may be good news for students, it is not so great for the publishers who do not receive anything.
These statistics outline one of the main causes of publishing house closures:
Growth in sales of ebooks, whose average price is £3 or less, compared with £5.50 for a paperback, has also undermined publishers’ margins. UK consumer ebook sales rose by 134% to £216m in 2012, while print sales fell by 1% to £2.9bn, meaning that consumer ebook sales now represent 7.4% of book publishers’ total sales, according to the UK Publishers Association.
From these figures, it clearly shows that ebooks are only accounting for around 7% of book publishers’ sales. When you compare £216 million ebook sales to £2.9 billion print book sales, I think it’s safe to say that print is still the alpha male in this industry.
Although it still doesn’t stop the fact that many businesses are closing, including the Evans Brothers (the publisher who published Enid Blyton’s works 1930-1960). It is also suggested that one of the other reasons for publishing houses closing is due to the end of the Net Book Agreement in 1997 (an arrangement first established in 1899 which allowed publishers to set a fixed retail price for their books and thereby refused to sell stock to retailers who discounted their products). A couple of years ago, The Guardian wrote that it was time to bring back the Net Book Agreement. While this is a point to consider, it is difficult to suggest what is best for the industry, as bringing it back would mean consequences to booksellers, for example. These vicious circles of possibilities and events revolve around the fact that change is sadly inevitable. We are still in a time where change is continuous and where it can also be a good thing. It’s just knowing how to adapt to change that businesses must bear in mind in this day and age.