While more book titles are published each year, the fact remains that the world of book publishing presents a high degree of risk. Forecasting book sales is exceptionally difficult, and from 25-50% of printed books are never sold.
In fact, most book titles are out of print, or back listed. So, while the industry publishes more titles each year, it sells fewer copies of each title annually and the average revenue per title continues to decline. Over the last 20 years the number of adult Americans who regularly read literature has also declined by about 18%.
At the retail level, book selling is rapidly consolidating among major chain stores. Book buyers are also shopping on the internet in ever increasing numbers.
As a link in the book publishing supply chain, printing and finishing used to account for about 28-30% of the total value of the business.
Today, however, printers are getting increasingly squeezed and by 2007 will earn only 22% of the industry’s revenue.
The books being written by the booming online blogger community represent another fast-emerging market. In increasing numbers, these online authors are either self-publishing their works or being picked up by mainstream publishers.
