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Posts Tagged ‘publishing industry’

A blog post has been going around lately, in which Hugh Howey (bestselling author and book industry watcher) attempts to debunk some myths about publishing. Specifically, he addresses the standard tropes that the fast growth of the e-book market is  (a) materially damaging publishers, and (b) decimating the independent bookstore market.

His post (which is a good read) pulls together simple graphics from sources such as The New Republic, Bloomberg, and Harper Collins’ own PowerPoint slides, and lays it out clearly.

  • Publishers are making more money from e-book sales than from hardcover sales.
  • Independent bookstores are thriving in this post-Recession economy.

As evidence of the first item, Howey shows how the profit margins publishers enjoy from e-book sales is nearly twice the margin provided from hardcovers. Publishers’ profits are not on the MSRP of a book of course, but on the wholesale cost of the book. So, in the graphic I’ve linked to on the right, keep in mind that the 41% and 75% profit figures are based on the publisher’s share of the MSRP (which are $13.72 and $10.49, respectively). (more…)

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