Big 5 Publishing-Rolling in Money, Right?

Click to read the article at Digital Book World

How Much Money The Big Publishers Actually Make

To look at publisher earnings this way is a mistake. Most books barely earn their advance back and create very little if any profit for the publishers (easy to note by listening to all the stories from published authors who don’t sell as many books as they’d.) The Big 5 houses’ bottom line is generally dependent on huge hit franchises like The Hunger Games and Harry Potter.

Reports on these franchises making a crucial difference in a publisher’s annual income are regularly seen in the trade publications. Publishing remains a high risk business with a low profit margin on almost every “product” sold. Amazon, in comparison, is not in the business of relying on book sales for profits, and has willingly lost money on discounted books in order to lure customers through the doors. This has seriously damaged the ability of publishers and booksellers, who rely solely on book sales, to compete.

About Deborah Smith

Author, publisher, partner and V.P. of BelleBooks and Bell Bridge Books NYT bestseller A PLACE TO CALL HOME, Wall Street Journal and Kindle bestseller THE CROSSROADS CAFE, also When Venus Fell, Silk and Stone, Charming Grace, and many others.
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One Response to Big 5 Publishing-Rolling in Money, Right?

  1. olivierlehe says:

    Amazon CEO Jeff Bezos created quite the stir when he announced plans for drone package delivery on 60 Minutes. However, as exciting as commercial applications for drone technology might be, the true innovation lies in Amazon once again reinventing its business model and finding new ways to create value, conduct business and get paid for it.

    The essence of business model innovation (BMI) is not a new concept. Indeed, creating disruptive new business models is at the heart of many entrepreneurial start-ups. However, in most large companies and corporations, business models take a back seat to brands. BMI should command more attention as business models, above products, services or brands, are the basis of competitive advantage in the 21st Century.
    You can read the full article about Amazon innovates to my blog: http://worldofinnovations.net/2014/06/02/amazon-innovates-with-its-business-model-not-drones/

    Like

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