Updated: 07/08/2009

The Print Media

Books

Part  IV

Present and Future

Now that we've put some of the major issues in book publishing into a historic perspective, we can look at some present and future issues.

Yearly world book sales are estimated at up to 30-billion dollars.

The so-called "Six Sister" conglomerates in book publishing are Bertelsmann, CBS Corporation, Hachette, News Corporation, Pearson and Verlagsgruppe.

In the United States the six large publishers, all with offices in New York, are

1. Random House, Inc.
2. Penguin Putnam Inc.
3. HarperCollins
4. Holtzbrinck Publishing Holdings
5. Time Warner
6. Simon & Schuster, Inc.

Four of the six are foreign owned.

Beyond these there are 3-400 medium-sized publishers and 86,000 small publishers.

• California has six times the number of small publishers than any other state.

• Half of the high income small publishers earned over $1 million in 1997 working out of home offices an average of 40-hours week.  They published an average of seven titles each.  Most of these publishers earned about $400,000 a year.
  
  
• It takes an average of 531 hours to produce a book—422 hours for fiction, 550 hours for nonfiction.
  
  
• Other than writing costs, small publishers spend most of their fiction title development budget in graphic design and illustrations.
  
  
• Advertising consumes most of the small publisher’s marketing costs (36.5% for fiction titles, 29.8% for nonfiction titles).

The Book Publishing Process

Let's look at the book publishing process.  

If you are an aspiring author you need to know that today most of the larger book publishers refuse to look at unsolicited manuscripts. They simply don't have the time or resources to sort through the mountain of manuscripts they would receive.

Instead, they rely on submissions from trusted agents who represent established or highly promising authors. Thus, the first hurdle authors can have is to interest a respected agent to represent them.

For representing an author agents receive 10 to 15% of the royalties that are paid to the author  — assuming, of course, that the book is published and is successful.

Royalties paid to authors by the book publisher range from 10 to 15 percent of the selling price of the book. For example, if an author receives a $3 royalty on each book sold, the agent would receive 30 to 45 cents on each book. 

Although it is said that given enough time almost everyone can produce one novel, agents are looking for writers who have demonstrated that they are dedicated writers  — writers who over a period of time will keep producing quality work.

A good agent knows the literary field, as well as the needs and predispositions of specific publishers. An agent can also provide important guidance to an author.

To ensure their own success and credibility with publishers agents understandably want to represent authors with a track record of success. Barring that, they look for authors that are well known to start with. Occasionally, they will take a chance on an unknown author who either evidences exceptional talent or is in a position to tell a unique story.

So far we've been talking about large publishers with the resources to distribute and promote books  — both critical elements in a book's success.

When dealing with smaller publishers authors may propose a book idea directly to publisher's acquisitions editor. The acquisitions editor works for a publisher and is responsible for finding new projects and acting as a liaison between authors and publishers.

The typical book proposal consists of a book outline and one or more sample chapters. In technical fields and with textbooks the acquisitions editor will typically have this material reviewed by paid experts in the field before making a final decision.

If a decision is made to publish the book, an in-house editor (who guides the overall project) and a copy editor (who catches writing errors and gets the manuscript ready for typesetting) will be assigned to follow the manuscript to publication.

In the case of novels that seem to have real potential the acquisitions editor and agent may negotiate subsidiary rights, or the right to make a film based on the book, or to sell products based the book's concept or characters. For successful books the profits from subsidiary rights can exceed those for the actual book.

Books In Today's Life

In addition to representing the world's most extensive record of ideas and information, books provide us with enjoyment and relaxation.

For example, during her lunch break this office worker can escape into the spy world of author John LeCarre.

Unlike TV or movies, books allow us to use our imagination when we "see" the characters and situations depicted. We can mold them according to our personal tastes and inclinations.

Books are also highly "portable"; we can stuff a paperback novel in a pocket or purse, in case we need to pass some time at an airport, during a lunch break, or while taking a bus or subway to work.

We can go back and reread segments or skip over parts that don't interest us. We can even mark passages to study or savor at a later time.

Books have been around for centuries, and although each new media innovation may cut into reading time, it is doubtful that any will be able to take the place of books. But, of course, when it comes to the effect of innovation, people have learned the hard way, "never to say never." For example, there are now electronic books, which we'll take up later later in the chapter.

Today's Book Publishers

As we've previously noted, from 1970 to the present we've seen major consolidation in book publishing.  Today, book publishing is primarily run by media conglomerates that may also own film studios, magazines, newspapers, and broadcast outlets.

The major ones include Paramount Publishing, Reader's Digest Association, Time Publishing Group, Random House and HarperCollins.

Since they are conglomerates, they can take advantage of the synergy between their holdings. For example, a book can be picked up by one of their film studios and then promoted on their broadcast outlets and publications.  

To promote the book, authors may be interviewed on their radio and TV stations, and book chapters or reviews may be included in one of their periodicals.

As an example, the Star Trek movies are made by Paramount Pictures, which is part of Paramount Publishing. Since Paramount Publishing is also a book publisher, they have published numerous Star Trek books  — selling about 70-million copies. In addition, they have also created Star Trek CD-ROM's.

One of the most successful book-movie combinations has been the The Da Vinci Code, which, despite a somewhat questionable premise and vocal opposition by conservative religious factions, was a best selling book for several years,

It was subsequently made into one of the most successful movies of the era. (Note photo.)

Departments and Staff

Most book publishing companies have four divisions:

editorial, which primarily involves dealing with the authors.  This includes selecting the manuscripts and with the help of reviewers, editors, and proofreaders, preparing the manuscripts for publication


production, which encompasses the basic design of the book, including the selection of type, paper, format,  layout, cover, typesetting, and binding
 
marketing, which involves sales and promotion


general administration, which includes accounting, order processing, bill payment, and long-range financial forecasts

The Impact of TV and the Internet

Television has greatly aided the book publishing business. Today, almost all books -- especially non-fiction books -- are promoted on TV by authors. News-interview shows often center on an author and his or her new book. Books that would otherwise languish in anonymity, rather consistently see a boost in sales after one of these TV interviews.

 The Internet has both helped and hindered the book publishing business.

While the Internet has stolen some available free time of potential readers, it has also introduced readers to new avenues of interest. Through outlets such as Amazon.com it has opened up a direct link to book sales.

Rather than travel to a bookstore, potential buyers can sit at home and with a few mouse clocks check prices for new and used versions of the book they are considering. Before they order a book they can also read what other buyers think of it.  If they decide to buy and read the book, they can then publish their own review.

Since these Internet outlets can stock millions of books, buyers don't have to worry about not finding what they are looking for at their local bookstore.  If the book is out of print, (which means that new copies are no longer available from the publisher), it can generally be found at one of the many associated used book dealers  — generally at a fraction of the original price.

And, while there is an added cost of postage for on-line Internet sales, the discount that is often available may cover the postage. The major disadvantage, of course, is that you generally have to wait a week or so before receiving the book.

Electronic Books

A few publishers and even some well-known authors are putting their works on the Internet where they can be read  — for a fee. Although this can save $100,000 or more on book production costs, the revenue from this form of publication has yet make it an attractive business.

In 2006, major computer manufacturers introduced personal electronic tablets that can display pages from scores of books. Amazon.com and Sony were the initial leaders in this field.

As the readers of these modules know, the Internet and electronic displays provide the opportunity for animation and even film clips and sound files. Plus, when new information becomes available, electronic materials can be updated within a few days, or even a few minutes. Since books typically spend a year or so in production, parts of them can be out of date even before they are published.

Amazon's Kindle, the most popular electronic book systems to date, is shown on the left.

This device can't be stuffed in a back pocket or small purse like a paperback can, but is has some significant advantages.

It can hold several thousand complete books. It remembers where you left off reading each book and will start at that point when you bring up the book again. 

It allows you to "bookmark" pages within the book and bring up those sections again. You can collect and store sections of readings for later reference.  It has a built in dictionary for words you aren't familiar with.  It allows you to adjust the size of the text on the screen. It will even "read" pages for you out loud in either a male or female voice at a speed you select.  

The unit acts as a simple Internet browser (no computer required) and you can download available Kindle books in about a minute. Although some books are free, most are about $10.00, which still makes them cheaper than most hardcopy versions.

You can get (for a fee) daily versions of the day's newspapers and magazines. The incorporated rechargeable battery will get you through a week's reading or more.

On the downside, the basic unit is expensive -- $200+ for the smaller of two screen sizes -- and the screens show only black and white images. Unlike some cell phones, the Kindle does not incorporate the advantages of touch screen navigation.

Other manufacturers, such as Sony and Panasonic, are competing for this market, so these shortcomings may soon be overcome. 

Will electronic books take the place of hard-copy, paper books? 

Right now many people who grew up with them prefer the "feel" of traditional books.  But the younger generation, which is used to reading text on computers and even on cell phones, may start preferring the many advantages of electronic books.