Reorganizing the Book Industry?
April 8, 2008 – 10:06 pm by BHI meant to get to this earlier, but HarperCollins is embarking on a new project, and it sounds interesting, if not promising (NYT):
“The idea is, ‘Let’s take all the things that we think are wrong with this business and try to change them,’ ” said Mr. Miller, 51. “It really seemed to require a start-up from scratch because it will be very experimental.”
[…] The new group is entering a difficult market for books generally. Citing economic uncertainty, the Borders Group announced last month that it was considering selling itself. Barnes & Noble also said it expected first-quarter results to be slightly down from the previous year.
Author advances and bookseller returns have long troubled the publishing industry. Best-selling authors can command advances so high that publishers often come away with slim profits, even for books that are significant successes. Publishers also sometimes offer high advances to untested authors in the hopes of creating new hits, but often those gambles do not pan out.
Ms. Friedman said the new group, which will initially publish just 25 titles a year, would offer “low or no advances.” Mr. Miller, who was most recently president of Hyperion, said he hoped to offer authors a 50-50 split of profits. Typically, authors earn royalties of 15 percent of the hardcover price for each book sold after they have paid off their advances. Many authors never earn royalties.
Jennifer Rudolph Walsh, a literary agent, said: “I’m not cynical about it, and I’m open to ideas, but I think it’s too soon to say what the validity of it is. These words seem fine and interesting, but how does it benefit the author and how do we find our readers?”
It’s good to see a firm acting so proactively. Stay tuned for more.
