Global Rankking of Publishing at Frankfurt Book Fair

The Global Ranking of the Publishing Industry as presented at this year’s Frankfurt Book Fair was echoed widely in professional conversations and small talk throughout the fair.

The presentation, held at the Press Centre on Wednesday 10 October 2007, brought together the editors in chief of several of the leading book trade magazines.

It was, in a nutshell, a state of the global publishing industry report, and will be updated from now on every year.

A Global Ranking of the Publishing Industry – or: Books are a genuinely European matter

Publishing today, at least in a global perspective, is not just about books and authors. It is about information, knowledge, and education. It is as much about digital publishing as about ink on paper. It is a mirror of the global balance of (economic and technological) power, yet with surprises: It is far less about US, or even Anglo-Saxon cultural predominance than one may expect, but yes, it is an American-European domain, with Asian countries only starting to become visible in the big picture. And sure, expectedly, any glimpse at global publishing will portray an industry that is currently subject to extraordinary change and even turmoil. The top 45 publishing companies worldwide combine revenues of ca. 53.5 bn Euros (or ca. 73 bn $). This is certainly not a big industry, if compared to computers, or cars. Toyota alone had sales of 179 bn $ in 2006. But as publishing (which, in our definition, includes books of all kind, scientific journals and professional information in commercially run databases, yet excludes newspapers, wire services and magazines, as well as non-publishing revenues within those companies that we have in our ranking) is at the heart of today’s information economy. It is about stuff that truly matters, as those books and electronic archives hold a fair amount of what shapes the brains and minds around the globe.

 

Within our ranking, the top 10 companies account for ca. 2/3 of the combined top 45 revenues. The overall 73 bn $ from the top 45 companies, or all publishers with revenues of more than 200 m Euros (or 250 m $) in 2006, compare to a global publishing market of ca. 80 bn $ according to a statement of the International Publishers Association (IPA) in October 2006 at the Frankfurt Book Fair. Even if the IPA definition is probably a bit more restricted than ours, it clearly shows that the publishing industry has pretty much consolidated over the past 10 years.

For more, come to our press conference at the Frankfurt Book Fair on Wednesday, 10 October 2007, at 3 pm in the Press Centre (hall 6.2) or check out the basic facts and further links here

Podcast on „Mapping English Reading Markets“ available now

Over the past several years, English language books have been given increased shelf space in traditionally non-English reading countries. As this trend continues, publishers are searching for more ways to infiltrate these new markets.

We could organize a first set of expert panels to map thsi 3 bn $ market at BookExpo America in New York in June 2007. Participants include Pascal Zimmer, Libri Germany, Francoise Dubrouille ,International Booksellers Federation, Esther Allen, Columbia University, und Peter Clifton, Ingram International.

You can listen to the panel debate at the Podcast

Well yes, it IS unavoidable to write about HP7

So today, more than 48 hours before the official release date, the New York Times publishes a first review of Harry Potter and The Deathly Hallows – and guess what, aside from, of course, not revealing the end (which, also a matter of course, everyone interested could see already for a few days everywhere on the web as reveiled by cohorts of Harry ’spoilers‘ who posted a photographed early bird copy of the book), was full of praise for the ingenuitity of Mrs. Rowling’s art of story telling:
J. K. Rowling’s monumental, spellbinding epic, 10 years in the making, is deeply rooted in traditional literature and Hollywood sagas — from the Greek myths to Dickens and Tolkien to “Star Wars.” And true to its roots, it ends not with modernist, “Soprano”-esque equivocation, but with good old-fashioned closure: a big-screen, heart-racing, bone-chilling confrontation and an epilogue that clearly lays out people’s fates.“ And, if this is not enough, here the reviewer, MICHIKO KAKUTANI, goes on: This same magpie talent has enabled her to create a narrative that effortlessly mixes up allusions to Homer, Milton, Shakespeare and Kafka, with silly kid jokes about vomit-flavored candies, a narrative that fuses a plethora of genres (from the boarding-school novel to the detective story to the epic quest) into a story that could be Exhibit A in a Joseph Campbell survey of mythic archetypes.“

Wow!

By the fact that, sitting in Vienna, Austria, I am in no position to walk over to some New York book store and pick up the book way before official delivery, as the NYT seems to have done, I can only humbly hint at that magic that HP has brought to the book world. I wrote a small piece about this in Perlentaucher, in German, and these are the main thoughts:

For sure, HP will have changed the world of publishing and book retail like no single book before, but with pretty mixed results for various actors:

1. We learned over the past few weeks that studies on reading habits of youth point out that even kid who absorbed high level doses of HP won’t necessarily read other books as well;

2. While a few, like JK Rowling herself and her original publisher Bloomsbury (very deservedly, I think), wholesalers and some marketers earned a lot of money, but for many others it was more of a rollercoaster, or playing at a casino, with the highest risk due to sky rocketing fees for every right sold that could be attached to HP

3. Those mega marketing pipelines that have been build around HP for over 10 years are ready for more fuel now – and nobody will care, if that is to benefit books, or games, or whatever – so it is not necessarily a winning scheme for book lovers

4. Small indie book stores all over the place are likely not to get rich, due to discounts, or even, in countires with fixed book prices like Germany, Austria, France, a first tsunami comes with the (flexibly priced) original English language edition, which will be a hard reality check to pricing discipline everywhere, bringing up my next point;

5. English original editions have learned to fly across language barriers as if they traveled on broomsticks, which is good, I guess, as it show’s people’s ability and readiness to go for what they want, and depend less on those established content channels, but which brings ever more competition to the established, if you wish ‚old fashioned‘ book trade;

6. From now on, even if that is not entirely new either, there will be ‚books‘ – and those other books, meaning, those rocketing to the sky, on a global scale, and those many many other titesls that travels slowly, to limited readerships, and honestly, we shouldn’t expect that those completely diverging entities can live under one and the same economical parameters, meaning: I am deeply sceptical if for these many books (and their publishers, and the related enthousiastic book sellers) one will expect to earn money.

About saying ‚me‘ differently

I was really puzzled when I realized the amount of interest (and feedback) I had the other day with a piece written for Publishers Weekly about how autobiographies are classified in different ways in the AngloSaxon world, and in the rest of Europe:

While Americans and Brits expect writers of autobiographies to say the truth, somehow, in France, Spain or Germany, those same books are routinely classified as fiction.

Think of German Nobel laureate Gunter Grass’s autobiography „Peeling the Onion“, which was released last week and promoted with a talk between Grass and Norman Mailer in New York, a book reveiling the fact of Grass, the moralist, having been a member of Nazi Waffen SS as a youth, which of course was listed as fiction in Germany last year. Or even more stunning, John Grisham’s The Invisible Man, an essay against the death penalty – again read as a book of fiction in Europe due to the author being a writer of novels primarily. 

One of my interview partners for the piece, Bernhard Fetz, a Vienna-based researcher with the Austrian National Library, and a specialist in the genre, pointed to a pretty  complex set of traditions beneath the odd differences in classification, as he told me:

„The differences of perception go back to antagonistic traditions in philosophy and cultural history: While Germany, or France, have a mostly idealist tradition in culture, Britain, and hence the U.S., have always had a more pragmatic approach. Essays by Jean-Jacques Rousseau, or Goethe, always combined factual accounts with personal intuitions and selfreflections of the author, giving autobiographies also a political angle by defining a life story as exemplary for a nation. The Anglo-Saxon tradition was instead much more and much earlier influenced by science, and therefore supposed to rely on facts, and less on intentions, Fetz says.

Amazing, I think, and you understand why reading the same book in different cultural surroundings may provide a very different read (and understanding) indeed!

My loss

I don’t need to tell you more than the fact that I lost almost my entire virtual capital on the betting scheme for the Ingeborg Bachman award (see previous post), while the crowd at large narrowed their focus in an impressive curve steadily onto the winner Lutz Seiler (hence giving up in continuous, yet opportunistic – oh yes! – moves on its initial hero who was PeterLicht, a writer performer who wouldn’t reveil his face to cameras).

In fact we know about the impressive likelyhood of such crowds to demonstrate their collective wisdome since the mid / late 1990s when similar betting schemes proved to be usually more successful e.g. in predicting the outcome of general elections.

But what does that mean to all of us experts, in one field or another! Hélas, aren’t we happy to be asked for our insights every once in a while nevertheless? Lucky us.

Those literary values – revisited

Over dinner – or, if you prefer, during the past hour or so – I lost roughly 10 percent of my literary capital.

Initially, I had 5000 $, provided by Riesenmaschine, a Berlin based fancy blog, to bet on the outcome of what is still probably the strangest annual event in literature in the German speaking sphere, the Ingeborg Bachmann Reading and Award: One and a half dozen of mostly young writers (young= 1 to 3 books published, on average) read an unpublished chapter before a jury of literary critics (and these critics have also nominated the authors – so they also compete, sort of) and an interested audience in arena like setting. The reading authors are – sometimes pretty harshly – reviewed live, in front of the audience and TV cameras (yes, the entire event is broadcast live by a public culture channel in Austria and Germany), and at the end, one is declared the year’s Ingeborg Bachmann winner, and a few more get additional awards and recognition – or, if they crash, they can nosedive their career.

The event is the most hated literary encounter for over 2 decades now, and still alive, and everybody who wants to be somebody in literature, goes there, ready to get badly hurt, or, like in a lotery, become the unlikely winner against all the odds.

This year’s novelty is that you can bet on the winner online, in some stock market mimikry scheme: You get 5000 virtual bucks, can invest and divest and have fun at not really any real risk.

The betting scheme is provided by Zentrale Intelligenz Agentur, or ZIA, basically an agency full of nerdy, funny, yet very professional Berlin based text workers (from PR texts to – yes, you bet – Bachmann award winning literature, as their Kathrin Passig won last year’s award with prose just perfectly targeted at that jury so that everyone was startled, both by the text and by the cold blood of its author who deliberately calculated her shots – at the jury, the audience, the entire set up).

The ZIA – which mocks, of course, CIA – also earlier proved its strong understanding of the internet, by organizing virtual audiences to the effect of lobbying successfully for their favourite participant for the ‚Audience Award‘ for three years in a row!

Well, and this year, as all awards had been taken home already in the past by ZIA, they opted for calibrating the entire thing with their virtual Bachmann stock exchange.

Ever curious, I took my 5000 ZIA $ and will try my luck / skill / insight, or whatever – and keep you posted till the end which is scheduled for July 1st. Stay with us and see if I win.

Is ‚publishing‘ just about books? Not exactly!

We proudly announce the birth of our new baby – the Livres Hebdo Global Ranking of the Publishing Industry, or the first reliable list of all publishing groups from around the globe with revenues of over 200 million Euros or 250 million dollars.

For almost 10 months, we were researched, tracked down data and people helping us, kept checking and cross checking numbers and sources, in order to produce a list of the top 45 groups, plus many of their major sub-divisions and sometimes even regional break down figures, plus an ample documentation on who is doing what exactly.

 And guess what, we did not find only books.  Almost the contrary is true, as the top 5 include only 1 and a half traditional ‚trade publishers‘, with Pearson’s Penguin division (Pearson being #2), and with Bertelsmann (#5).

 The world’s biggest houses are Reed Elsevier, Pearson, Thomson, Bertelsmann and Wolters Kluwer.

Take also note that the top 45 groups account for a turnover of ca. 52 billion Euros – with almost half of it from non-Anglo-Saxon corporations. This compares to the number of 80 billion dollars (or 60 billion Euros) for all of global publishing, according to last year’s estimate by the International Publishers Association IPA. Or, our 45 ranked publishers account for a really hefty chunk of our industry.

The definition of ‘publishing’ as used on the ranking includes book publishing (trade, STM, education, etc.), book clubs, other closely related activities (e.g. retail or distribution), relevant database publishing (e.g. professional information) and journals. It excludes however newspaper and consumer magazine publishing.

I suppose these numbers, and what’s in them at a closer look, will trigger some debate, even more so as over the next weeks, the ranking will be co-piublished, aside from the French Livres Hebdo, by Publishers Weekly (US), Buchreport (Germany), Svensk Bokhandel (Sweden) and Publishing Today (PR China).

On stealing – and debate – in book country

Roughly a week ago, at this year’s BookExpo America, I ran into a smiling Rüdiger Salat, the person in charge of all things bookish at Holtzbrinck. He was beaming as he had just returned from the Google booth  where, together with Richard Charkin, the CEO of Holtzbrinck’s Macmillan publisher, they had grabbed two of Google’s laptop computers that were sitting there, unguarded, and returned them only when a nice Google employee asked if those were theirs – doing so in an analogy to what Google does, according to him, to publishers by scanning copyrighted books from libraries.

When Charkin bragged about the story in his blog, expectedly, he triggered quite a controversial debate, spanning from ethical questions (like: Should CEO’s act like High School grads) to the fine print of copyright law and the general discussion on Google’s digitization of books from libraries and their understanding of how to handle Intellectual Property Rights of out of print books, an exchange that even made it into the NYT.

Being not a lawyer, I have the feeling that Lawrnece Lessig’s analyses of the ’stealing‘ issue is probably a pretty straight forward comment on the legal side of it.

Personally, I am more interested in the ‚interactive‘ or ‚performative‘ perspective of the somewhat surprising occurence: I think it is great to move that stubborn and redundand IPR/Google/publishers debate as far away from the lobbyist / lawyer / corporate communication routine where it got stuck.

Go for it from a user’s perspective: The next time you (or your kids) get sued for illegally ‚grabbing‘ some stuff from the Internet, call it e.g. an experimental, yet recognized industry practice. Or think of the unholy controversy on open access and scientific publishing: It is probably just too simple to think that all academic exchanges can be fitted either into the costly scientific publisher’s baskets, or set up their open archives, yet with no money for the authors.

I guess what Charkin so convincingly demonstrated, is just this: We need more experiments in the rights sphere, and less legal cases. So I am just gratefully and curiously looking forward to his upcoming test runs indeed!

Bookmarkets – where’s the limit?

At BookExpo America, I could set up and launch a debate on the „Internationalisation of English reading„, or a funny 3 bn $ market niche that so far got little attention by book folks aside from the few online and wholsalers who are actively increasing their revenues from it.

Anyone exploring a major book store in Europe can see how the ‚foreign language‘ section (as they used to call it when ‚foreign‘ was still considered to draw a clear line of separation between ‚us‘ and some ‚other‘) has expanded over the past few years. Yet hardly anyone has so far tried to make sense out of it, in terms of business, culture, or personal convenience for readers like you and me.

Many funny things occur in that niche:

1. It doesn’t exist in the first place, at least if you look at the general trade statistics. Yet, as Pascal Zimmer of Libri could show at our debate,  if you consider the sales of any major wholesaler, and dig up data from within their warehouses, you see how tremendously the niche is growing. You can, of course, also just look at many readers (I am a good example myself) to realize that reading the ‚original‘ has become pretty popular in no time.

2. For some reading markets, like Scandinavia or the Netherlands, this even turned into a substantial problem, at least as far as translations are concerned, e.g. from English into Swedish or Dutch, as Lasse Winkler from the Swedish book trade magazine Svensk Bokhandel told us, as the imports aggressively compete with those translations.

3. In major corporations, this competition between several language versions unavoidably became part of a sales strategy, as explained by Richard Kitson of Hachette / Hodder Headline UK, as his company routinely adds to the domestic sales of UK fiction bestsellers over 100.000 (!) more exported copies across Europe alone, and guess what, of course these export markets are the same into which translation rights for the same title have been sold.

I put some material at my website, with more on this exciting and likely also controversial subject to come.

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