Profits at HarperCollins take a dive
Hot off the press from this article at Publishers Weekly, HarperCollins, like most of the US, is struggling to keep its head above water. With the economy already in the tank, consumers just aren’t buying books like they once did. Here’s in part what the article said:
Revenue fell from $330 million to $315 million. Profits were also hurt by higher returns and a decline in distribution income.
As a result, according to the article, the publishing giant is going to have to cut expenses when and where they can. While it doesn’t specifically mention it, I imagine printing, storing and distributing books are a massive part of any publisher’s budget.
According to CEO Brian Murray, not even cost-cutting measures will do much to help profits until consumers (you and I) start buying books again:
All of its cost cutting measures, however, won’t mean too much unless
consumers start shopping again. The only books that have been selling
well since mid-summer are the big titles, Murray said, such as The Story of Edgar Sawtelle. Murray said there has been no indication that store traffic has picked up since the quarter closed September 30.
Most US retailers are projecting doom and gloom for this holiday shopping season, so HarperCollins and others will probably have to ride out the storm like everyone else. Where’s a new Harry Potter book when you need one?
Ebook Angle?
Being ever the ebook evangelist that I am, I’m always looking for the ebook angle in stories like these. If it is true that printing and shipping add up to a large amount of a publisher’s budget, ebooks pretty solve those problems right away – no printing costs and distribution is as cheap and easy as a simple download from the internet.
Taking that a step further, consumers would also greatly benefit from ebooks as well. Not having to go to a physical store means no driving, no gas (gas prices are lower, but still pretty darn high), and no hassle. I love downloading ebooks and loading them onto my iPhone. It’s simple and something I do in the privacy of my own house (don’t want anyone seeing my buy those trashy romance novels).
However, publishers can publish as many ebooks as they want, but it won’t do a bit of good until a larger segment of the reading population accepts ebooks as a viable alternative to print. There are still a majority of readers who are very resistant to ebooks, preferring the tactile pleasures of a physical book (I kind of agree with this, on a certain level – it’s hard to beat buying a crisp new book!).
Related posts
- HarperCollins to make book excerpts available on iPhone
- HarperCollins goes green with online catalog
- A Publisher’s Dilemma: Responsibility Vs. Profits
- EPUB Standard coming to a Sony Reader near you!
- What will happen if publishers insist on higher ebook prices?
Read More: Publishing News
