According to recent figures, there has been a 42% increase in publishers entering insolvency over the last 12 months. The accounting firm, Wilkins Kennedy, reported that 98 publishers went bust this year, compared to 69 last year. 100 year old publisher, The Evans Brothers, was sadly one of the companies affected; they were the original publisher of the famous children’s author, Enid Blyton.
The cause behind the sharp fall in publishers is undoubtedly the impact of eReaders and discounted booksellers like Amazon Marketplace and supermarkets. Consumers now have easy access to ebooks and discounted second-hand books, generally offered at a fraction of the price compared to traditional booksellers. Partner of Wilkins Kennedy, Anthony Cork, commented ‘The rise of Amazon and other ‘discount’ sellers with massive buying power means the pressure on publishers’ margins is now immense’.
Ebook sales reached £216 million in 2012, an increase of 134%. While printed book sales stood at £2.9 billion in the same period, sales actually fell by 1%. Ebooks are caching up rapidly and there is no sign of this changing anytime soon.
It‘s no surprise that the publishing industry is dramatically changing. There will always be ongoing need to restructure businesses to incorporate online media and ensure there is a digital presence.
If your company is struggling, please contact us on 0800 9700539 and speak to one of our insolvency experts.