isthatapuguniocorn
As well as writing fiction, I'm interested in your views about the wider industry.
In the chain of author - agent - publisher - bookshops/Amazon, the big publishers seem to make the healthiest profits at the moment, smaller independent publishers less so.
Most bricks and mortar bookshops appear to struggle. UK supermarkets seem to sell at low price though I'm not sure whether these low prices still make a significant profit for them (pile them high, sell them cheap and still make a profit) or if popular books are somewhat of a loss leader like milk.
Amazon seem to be making long-term investments presumably to make larger profits when their competition has eroded. Amazon have built up a big footprint in hard format books, as well as ebooks and audio books. There were ebooks and audio before but Amazon's investment in the Kindle and Audible platforms seem to have really grown this market.
I've not seen any information about the profitability of agents. Agents don't seem to have much direct costs beyond their time and the agent industry seems to be a spectrum from large corporates/partnerships across different creative industries to small one person offices.
UK author average earnings appear around £10,000 I think according to the SoA, with a highly uneven distribution between best selling authors and the rest. There is a lot of competition amongst authors with many wanting to join and complaining when they can't get agents and publishers interested in their novels so the relatively low average earnings for an activity with lots of competition, no costs of entry except time and for something that can be done part time while still earning doing other employment perhaps isn't a surprise.
Does that seem an accurate analysis to you or where do you think it's wrong, please?
As a senior bod in a large publisher, why do you think the large publishers have currently managed to maintain their profitability when, in theory, the barriers to entry for new imprints appear so low - new authors appear willing to submit to any publisher and agent willing to look at their books; the printing and distribution parts of the industry don't appear controlled by the main publishers; and bookshops and Amazon appear open to new publishers with books that appear good enough to sell?
Looking forward, what will the main publishers be able to do to avoid Amazon damaging their business in the longer term given Amazon appear willing to invest to build a powerful position at a loss or for low profits in hard, ebook and audio book sales, enable direct publishing and willing to sign some new authors up exclusively to their own imprint somewhat bypassing publishers?
Thank you.