Industry operators will increasingly seek additional revenue from e-books as print continues to fall.
New York, NY (PRWEB) July 10, 2014
The Canadian Book Publishing industry experienced considerable declines during the five years to 2014. Book Publishers provide a range of services for authors including marketing, structural and grammatical editing, design and typesetting, sales and protecting intellectual property. From 2009 to 2014, industry revenue is expected to decline at an annualized rate of 5.2%. Following a 1.1% drop in 2014, revenue for the Book Publishing industry is expected to total $1.8 billion.
According to IBISWorld Industry Analyst Edward Rivera, “Decreasing leisure time and weak growth in disposable income resulted in lower book sales, especially for print books.” The decrease in print book sales is only partly being offset by increases in e-book sales; as a result, industry revenue has steadily declined since 2009. Additionally, the fall of major bookstore chains has dramatically changed the major markets for industry operators and dissolved many of their long-term contracts; the result has been decreased demand and revenue within the industry. With nonbook and online retailers increasingly becoming a more common mode of distribution, industry operators will continue to focus on e-book sales.
In the five years to 2014, profit margins for the average industry operator are expected to have decreased to 10.8% compared with 11.2% in 2009. This is mainly attributed to an increase in input prices as the world price of wood pulp, a determinant of paper prices, increased over the past five years. Industry operators have reduced their workforce and have downsized to remain profitable. For those companies with few employees, reducing wages was an unviable cost-reducing strategy, forcing them to exit the industry. Nevertheless, the steps taken by Canadian book publishers have curbed the decline of industry profit over the past five years.
“There is no indication that print sales will regain their strength, which will lead industry operators to seek additional revenue from e-books,” says Rivera. Furthermore, industry operators are facing increasing pressure from media substitutes, which will only be exacerbated by declining leisure time, effectively driving out smaller publishing companies. Over the next five years, e-book sales will mitigate some revenue loss from print books but the advent of digitized publishing will also make it easier for authors to publish their own works.
For more information, visit IBISWorld’s Book Publishing in Canada industry report page.
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IBISWorld industry Report Key Topics
The Book Publishing industry edits and designs books. Book publishers also engage in marketing activities and make distribution agreements with operators in the Book, Magazine & Newspaper Wholesaling industry. The industry includes e-book publishing, but excludes authors, who are part of the Performers and Creative Artists industry, or the Printing industry (IBISWorld report 32311CA).
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