This has been the year of reorganization and cost cutting at the major magazine media publishing houses. Time Inc., Hearst, and Rodale have all streamlined their operations by tearing down the walls between brands. Now, Condé Nast has begun to put similar plans in motion. Last week the company announced the hiring of Jim Norton as its new chief business officer. Norton’s hire is an effort to unify all revenue operations under his leadership. That’s certainly not the aggressive strategy shift Time Inc. introduced when it eliminated the publisher role in order to shift sellers to specific categories, but it is a pivot away from the siloed revenue operations that previously existed at Condé. For the storied publisher, that change is just a starting point. Yesterday, WWD first reported CEO Bob Sauerberg sent out a company memo informing staffers that the company was moving forward with unifying the creative (photo and design), research, and copy teams across its brands. click Read More below for more of the story
The Association of American Publishers (AAP) issued its StatShot Annual Report for Calendar Year 2018 today, which concludes that the U.S. book publishing industry generated an estimated $25.82 billion in net revenue, representing 2.71 billion units. All figures represent publishers’ net revenue from tracked categories (trade, higher education course materials, preK-12 instructional materials, professional books, and university press), in all formats, from all distribution channels. These are not retailer/consumer sales figures.
Publishing revenue for trade books (fiction, non-fiction, and religious presses) increased slightly (1.5%) to $16.19 billion in 2018. Since 2014, publisher revenue for trade books, the industry’s largest category, has increased by about $760 million.
Some highlights from the report:
•Non-fiction books (both adult and children’s & young adult) experienced the largest percentage revenue growth for publishers over the past five years. Adult non-fiction revenues grew 22.8% and children’s & young adult non-fiction revenues grew 38.5% from 2014 – 2018. Unit sales for adult non-fiction and children’s & young adult non-fiction grew 20.9% and 17.8%, respectively, over the same five-year period.
•For the second consecutive year, publisher sales to online retail channels exceeded sales to physical retail channels with sales to online retail at $8.03 billion and sales to physical retail at $6.90 billion.
•Publisher revenue for adult fiction was flat (0.4%) at $4.40 billion in 2018, while children’s & young adult fiction grew slightly (1.6%) to $3.72 billion.
•Religious presses revenue grew 14.7% in 2018 to $1.22 billion with 75.7% of the revenue coming from print formats.
•Unit sales for fiction for children’s & young adults declined by 0.8%, while non-fiction for children’s & young adults increased by 0.4%. Publisher revenue for children’s & young adult fiction has grown by 1.6% to $3.72 billion and non-fiction has increased by 11.9% to around $730 million.
•Downloaded audio remained the fastest growing format, with 28.7% year-over-year revenue growth from 2017 to 2018 and 181.8% revenue growth over the past five years (2014 – 2018).
•Within online retail channels, 45.1% of publishers’ sales were trade print formats, 24.5% were eBooks, 14.5% were instructional materials, 13.7% were downloaded audio, and 2.2% were physical audio or a different format.
more detail at: https://newsroom.publishers.org/book-publisher-revenue-estimated-at-258-billion-in-2018/