Publishing people! The latest @PublishersAssoc yearbook is out!
Underneath these bland headlines there is some
☕️STEAMING
🔥HOT
🍵TEA
On the state of the UK book business. Hold me, I'm going in...
publishers.org.uk/news/press-rel…
Underneath these bland headlines there is some
☕️STEAMING
🔥HOT
🍵TEA
On the state of the UK book business. Hold me, I'm going in...
publishers.org.uk/news/press-rel…
1. Export-driven growth
5% is okay growth for a mature market sector like publishing, but that 60% of revenues are exports alarms me BECAUSE BREXIT.
If we crash out without a deal, what happens to more than HALF of the book trade?
5% is okay growth for a mature market sector like publishing, but that 60% of revenues are exports alarms me BECAUSE BREXIT.
If we crash out without a deal, what happens to more than HALF of the book trade?
2. The Brexit delusion?
36% of UK book exports go to Europe (taken from @Lisa_Campbell_'s report in @thebookseller.
Nor does this take into account how much more expensive it is to be a publisher post-Brexit vote (especially illustrated) thanks to the weak ££.
36% of UK book exports go to Europe (taken from @Lisa_Campbell_'s report in @thebookseller.
Nor does this take into account how much more expensive it is to be a publisher post-Brexit vote (especially illustrated) thanks to the weak ££.
3. Preparing for Brexit?
I know we're all shitting ourselves daily about this, but I'd love to know how publishers are planning for Brexit.
Could we see major publishers move operations to overseas offices? Co-location for smaller publishers within the EU? Who knows.
I know we're all shitting ourselves daily about this, but I'd love to know how publishers are planning for Brexit.
Could we see major publishers move operations to overseas offices? Co-location for smaller publishers within the EU? Who knows.
4. Print v Digital
Tedious comparison but everyone makes it.
Total print = £3.1bn (up 5%)
Total digital = £543m (down 2%)
Consumer ebook = £139m (down 9%)
Nearly 10% drop for ebooks! That's precipitous, but it's not the whole story.
Imma explain.
Tedious comparison but everyone makes it.
Total print = £3.1bn (up 5%)
Total digital = £543m (down 2%)
Consumer ebook = £139m (down 9%)
Nearly 10% drop for ebooks! That's precipitous, but it's not the whole story.
Imma explain.
5. Why do ebook sales from *big* publishers fall every year?
Because these publishers set prices for frontlist (new) ebooks at the same (or sometimes above) hardback prices.
It all dates back to the Hachette-Amazon dispute in 2014.
theguardian.com/books/2014/nov…
Because these publishers set prices for frontlist (new) ebooks at the same (or sometimes above) hardback prices.
It all dates back to the Hachette-Amazon dispute in 2014.
theguardian.com/books/2014/nov…
6. Why are publishers so obsessed with hardbacks?
I really wish people wouldn't object-fetishise hardbacks. Publishers don't produce them because they're pretty. Hardbacks protect their business model.
I've covered this issue before.
I really wish people wouldn't object-fetishise hardbacks. Publishers don't produce them because they're pretty. Hardbacks protect their business model.
I've covered this issue before.
7. Hardback, but make it fashun
This is how the PA's CEO describes the hardback's resurgence.
Well yes, it could be about matt-laminate dustjackets.
Or MAYBE it's because there's literally a penny difference between the ebook & hardback editions of major frontlist titles.
This is how the PA's CEO describes the hardback's resurgence.
Well yes, it could be about matt-laminate dustjackets.
Or MAYBE it's because there's literally a penny difference between the ebook & hardback editions of major frontlist titles.
8. A catty side-note
I REALLY hope that Mr Lotinga is slightly more on top of his brief (as chief advocate for the UK publishing industry in Westminster) in private than he is in media interviews.
Because his commentary on UK publishing in this is basic af.
I REALLY hope that Mr Lotinga is slightly more on top of his brief (as chief advocate for the UK publishing industry in Westminster) in private than he is in media interviews.
Because his commentary on UK publishing in this is basic af.
9. The PA Yearbook is NOT GOOD for ebook sales
These figures come from submissions from PA members, and not *all* publishers belong to the PA.
They also don't account for the huge Kindle Direct Publishing market.
So ebooks aren't dead. We just see this.
These figures come from submissions from PA members, and not *all* publishers belong to the PA.
They also don't account for the huge Kindle Direct Publishing market.
So ebooks aren't dead. We just see this.
10, Whither children's?
It irritates that children's book sales reached £341m in 2017 (that's a big chunk of the consumer market) and it doesn't get serious analysis.
👏ALTOGETHER👏NOW👏CHILDREN'S👏PUBLISHING👏IS👏NOT👏A👏FOOTNOTE👏
It irritates that children's book sales reached £341m in 2017 (that's a big chunk of the consumer market) and it doesn't get serious analysis.
👏ALTOGETHER👏NOW👏CHILDREN'S👏PUBLISHING👏IS👏NOT👏A👏FOOTNOTE👏
11. Audio
This bit is SUPER IRRITATING. In its report, the PA doubles down on its estimate that the UK audiobook market is worth £31m.
Which is plain wrong.
This bit is SUPER IRRITATING. In its report, the PA doubles down on its estimate that the UK audiobook market is worth £31m.
Which is plain wrong.
12. We need a better estimate for the size of the audio opportunity
Audio delivers consistent double digit growth in the UK (mainly thanks to Audible), but it operates as a black box. And the PA isn't helping.
Audio delivers consistent double digit growth in the UK (mainly thanks to Audible), but it operates as a black box. And the PA isn't helping.
13. Shocking ignorance of how audio actually works.
This quote from Mr Lotinga is.... a lot.
i. The head of the UK's trade association just called Audible a monopoly (a term that has a specific legal definition in the EU) which feels like an important policy statement.
This quote from Mr Lotinga is.... a lot.
i. The head of the UK's trade association just called Audible a monopoly (a term that has a specific legal definition in the EU) which feels like an important policy statement.
14. Audible is about scale not margin
It's pretty clear that Mr Lotinga doesn't understand how Audible's business model works. It's a scale not a margin business. Most Audible users pay £7.99 a month in return for an audiobook download.
It's pretty clear that Mr Lotinga doesn't understand how Audible's business model works. It's a scale not a margin business. Most Audible users pay £7.99 a month in return for an audiobook download.
15. Audible is about introducing people to audio, not pricing them out of it
Based on Audible's Companies House figures, I estimated that Audible has grown the pool of regular audiobook buyers from c. 100,000 in 2010 to 500,000 in 2016
Based on Audible's Companies House figures, I estimated that Audible has grown the pool of regular audiobook buyers from c. 100,000 in 2010 to 500,000 in 2016
16, Audible is about growth at the expense of profit
Audible has posted losses since 2010. This is an Amazon strategy. It reinvests money into growth.
Raising prices (per Lotinga's comments) is a protective rather than growth strategy.
Audible has posted losses since 2010. This is an Amazon strategy. It reinvests money into growth.
Raising prices (per Lotinga's comments) is a protective rather than growth strategy.
17. Have you talked to publishers about this?
Lastly if you talk to publishers about Audible, their biggest gripe is that they give away expensive audio content too cheap. Those huge one-off retail prices on the website ARE RECOMMENDED RETAIL PRICES.
Lastly if you talk to publishers about Audible, their biggest gripe is that they give away expensive audio content too cheap. Those huge one-off retail prices on the website ARE RECOMMENDED RETAIL PRICES.
In summary....
UK publishing is in good health, because of...
🌍 World exports
📚 The use of hardbacks as a strategic moat
🎧 The rise of audio
💱 Defensive use of ebook pricing
But horribly at risk from Brexit
UK publishing is in good health, because of...
🌍 World exports
📚 The use of hardbacks as a strategic moat
🎧 The rise of audio
💱 Defensive use of ebook pricing
But horribly at risk from Brexit
At times like this you want really good people with a strong grasp of the underlying business to advocate for your industry.
I sincerely hope the quality of advocacy is better informed & more nuanced than I've seen in this report.
Thank you!
I sincerely hope the quality of advocacy is better informed & more nuanced than I've seen in this report.
Thank you!
