This is marketing research on the Book Publishing industry and can include information on the background, market structure, definitions, competitors, trends and developments of book publishing and is related to other topics such as publishing, printing, media, newspapers and periodicals.

Table of Contents

Table of Contents

1 Background 
2 Market Structure 
3 Market Metrics 
4 Industry Players 
5 Recent Trends and Developments 
6 Sources

Background

Growth in disposable personal income coupled with higher levels of educational attainment pushed the receipts of the U.S. book publishing industry to record heights as the millennium closed. Publishers’ revenues were spurred by more tax revenues being used to fund schools and libraries and the expansion of technical and professional occupations resulting from growth of the U.S. economy.

The dynamics of electronic commerce have created an invaluable marketing and distribution tool for U.S. publishers but also have contributed to a one-third decline in the number of domestic bookstores. The nation’s book publishers have increased their product mix, adding audio books, CDs, and Internet-only materials to their traditional reliance on the paper product. A more global perspective is evident at U.S. publishing’s managerial levels, with mergers and acquisitions and licensing and marketing opportunities increasingly being determined by international considerations.

Market Structure

Total receipts of the world’s book publishing community at the turn of the century (1999) were estimated at $120 billion. Publishers in the United States accounted for about 21 percent of this total, or almost $25 billion, with approximately 60,000 new titles or editions issued in that year. The huge American book market has become a magnet for major foreign publishing houses. Imports of books by the United States increased at an average annual rate of 6 percent in the period 1992–1999, and the 1990s saw an influx of foreign firms — primarily British, Dutch, and German — merge with or acquire U.S. book-publishing companies. English language publications dominate the international trade in books, which has witnessed rapid growth as a result of expanding Internet use.

The U.S. book publishing industry consists of approximately 2,700 firms with 8,000 establishments whose estimated value of shipments of $19 billion adjusted for inflation in 1999 was accomplished through the efforts of 85,000 employees. This has grown to about $25 billion currently. The nation’s largest firms are generally in or near New York City, but publishers can be found in every region and urban area. Most book publishing establishments are small, with well under 20 employees, and few, if any, have their own printing plants.

The book publishing business in the United States is remarkably steady and predictable. There are currently about 3,000 publishing firms. The number of establishments has remained consistent over the time period covered.

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This is not a large industry, but it has managed to hold its share in the economy. Reflecting the consistency in number of players in the business, employment has remained steady at slightly under 90,000 workers in the U.S.

The lack of movement in the business has resulted in a fairly concentrated industry. Consolidation has been occurring and the 4 largest firms now account for over 40% of industry revenues. There are smaller, regional publishing houses spread across the country, but the largest 50 players are responsible for over four-fifths of all industry revenues.

Concentration of Revenue by number of firms in the industry is as follows:


Total Number of firms       Revenue as % of all firms in the industry

4 largest                                  40.7%
8 largest                                  55.2%
20 largest                                 72.7%
50 largest                                 81.0%

Market Metrics

Growth since 2000 has been up only slightly. The strength of the economy mid-decade has given a slight boost to revenues in the book publishing industry. Margins in the industry are average, but the key players have seen a broad range of results (see Profit Margin figures in table below)

Industry Players

These are major players in this market, but it is not an exhaustive list of all key firms.

Revenues, Net Income and Market Capitalization are expressed in US$ Millions.

Recent Trends and Developments

Favorable demographics have had a positive impact on the U.S. book publishing industry. The U.S. population has grown, increased its level of education, accumulated more disposable personal income, and increased its propensity to buy and read books. Over the past two decades, the population increased 44.7 million, and school enrollment 10.0 million. The percentage of the U.S. population completing 4 or more years of high school rose to an estimated 83 percent — 226 million - in 1999 from 67 percent — 153 million — in 1980. The percentage of college graduates reached an estimated 25 percent — 68 million — of the population in 1999 from 16 percent — 36 million — in 1980. Disposable personal income on a per capita basis and adjusted for price increases grew to over $21,000 in 1999 from $14,867 in 1980. Book publishers’ receipts through mid-decade are projected to increase in constant dollars at a compound average rate of 2 percent.

A series of positive demographic and economic factors are expected to support growth of the U.S. book publishing industry over this 5-year period. Continued expansion of the U.S. economy in this time frame, yielding more disposable personal income, should underpin publishers’ receipts. The overall domestic market for U.S. books will grow as the U.S. population expands by 11.4 million.

Since no growth will take place in the number of U.S. persons under age 45 (growth in the number of persons under age 25 will be negated by a decline in the number of persons in the age group 25 to 44), all this growth will be in the age group of persons 45 or older, a demographic segment with a strong propensity to read. Educational enrollments should increase by 1.8 million at elementary and secondary schools and 0.6 million at the college and university level.

Enrollment growth is expected to be accompanied by more tax funds allocated to education by states and municipalities. Tax revenues are expected to increase funding levels for U.S. school and public libraries, specifically benefiting publishers of juvenile books. Exports of U.S. books should increase as a result of strong economies overseas, more familiarity with publications in the English language, greater use of the Internet as a marketing tool, and improved copyright conditions abroad.

Sources

• Most Current US Government Sources