[Link] No one buys books

Everything we learned about the publishing industry from Penguin vs. DOJ.

By Elle Griffen

In 2022, Penguin Random House wanted to buy Simon & Schuster. The two publishing houses made up 37 percent and 11 percent of the market share, according to the filing, and combined they would have condensed the Big Five publishing houses into the Big Four. But the government intervened and brought an antitrust case against Penguin to determine whether that would create a monopoly. 

The judge ultimately ruled that the merger would create a monopoly and blocked the $2.2 billion purchase. But during the trial, the head of every major publishing house and literary agency got up on the stand to speak about the publishing industry and give numbers, giving us an eye-opening account of the industry from the inside. All of the transcripts from the trial were compiled into a book called The Trial. It took me a year to read, but I’ve finally summarized my findings and pulled out all the compelling highlights.

I think I can sum up what I’ve learned like this: The Big Five publishing houses spend most of their money on book advances for big celebrities like Britney Spears and franchise authors like James Patterson and this is the bulk of their business. They also sell a lot of Bibles, repeat best sellers like Lord of the Rings, and children’s books like The Very Hungry Caterpillar. These two market categories (celebrity books and repeat bestsellers from the backlist) make up the entirety of the publishing industry and even fund their vanity project: publishing all the rest of the books we think about when we think about book publishing (which make no money at all and typically sell less than 1,000 copies).

But let’s dig into everything they said in detail.

Read the full article: https://www.elysian.press/p/no-one-buys-books

For a response to this article, check out this link: https://countercraft.substack.com/p/yes-people-do-buy-books

[Link] How the Paperback Novel Changed Popular Literature

Editor's Note: An oldie but a goodie.

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by Anne Trubek

Classic writers reached the masses when Penguin paperbacks began publishing great novels for the cost of a pack of cigarettes

The story about the first Penguin paperbacks may be apocryphal, but it is a good one. In 1935, Allen Lane, chairman of the eminent British publishing house Bodley Head, spent a weekend in the country with Agatha Christie. Bodley Head, like many other publishers, was faring poorly during the Depression, and Lane was worrying about how to keep the business afloat. While he was in Exeter station waiting for his train back to London, he browsed shops looking for something good to read. He struck out. All he could find were trendy magazines and junky pulp fiction. And then he had a “Eureka!” moment: What if quality books were available at places like train stations and sold for reasonable prices—the price of a pack of cigarettes, say?

Lane went back to Bodley Head and proposed a new imprint to do just that. Bodley Head did not want to finance his endeavor, so Lane used his own capital. He called his new house Penguin, apparently upon the suggestion of a secretary, and sent a young colleague to the zoo to sketch the bird. He then acquired the rights to ten reprints of serious literary titles and went knocking on non-bookstore doors. When Woolworth’s placed an order for 63,500 copies, Lane realized he had a viable financial model.

Lane’s paperbacks were cheap. They cost two and a half pence, the same as ten cigarettes, the publisher touted. Volume was key to profitability; Penguin had to sell 17,000 copies of each book to break even.

The first ten Penguin titles, including The Mysterious Affair at Styles by Agatha Christie, A Farewell to Arms by Ernest Hemingway, and The Unpleasantness at the Bellona Club by Dorothy Sayers, were wildly successful, and after just one year in existence, Penguin had sold over three million copies.

Read the full article: https://www.smithsonianmag.com/arts-culture/how-the-paperback-novel-changed-popular-literature-11893941/

[Link] Penguin Random House Will Distribute Marvel Comics to Comics Stores

by John Maher

In a move that will likely transform the distribution of comics periodicals in North America, Penguin Random House Publisher Services has reached an agreement with Marvel to distribute its periodical comics and graphic novels to the comics shop market, also known as the direct market.

The two companies have signed an exclusive, worldwide multi-year sales and distribution agreement for Marvel’s comics—including individual issues, trade collections, and graphic novels both newly published and backlist—to the direct market. PRHPS officially begins its distribution to direct market retailers for Marvel titles on October 1. The move marks a major change in the U.S. comics distribution market, which Diamond Comic Distributors has long dominated.

PRHPS will offer Marvel comics to retailers on nonreturnable wholesale terms. The comics shop market is a network of about 2,000 independent retailers around the country that traditionally bought their inventory from Diamond Comics Distributors, the largest distributor of periodical comics in North America. Direct market retailers generally buy most of their stock nonreturnable at wholesale prices. Comics shops sell a mix of periodical comics, graphic novels, prose books and pop culture merchandise.

Marvel’s new agreement with PRHPS follows the unexpected departure of DC from Diamond in 2020. The new distribution agreement means that the Big Two of American superhero comics—Marvel and DC—which are also Diamond’s two biggest accounts as well as pillars of the direct market, have left Diamond Comics Distributors. It is unclear how this will impact Diamond and the comics shop market going  forward but it does mark the end of Diamond's dominance of periodical comics distribution.

Read the full article: https://www.publishersweekly.com/pw/by-topic/industry-news/comics/article/85890-prhps-will-distribute-marvel-comics-to-comics-stores.html