My last blog post (Rising eBook Sales = Declining Revenues) was on the book industry’s declining profits due to the lower price of ebooks.
After writing that post, I learned that major publishers are getting creative in finding ways to increase their revenue.
Three large general market publishers, Hachette Book Group, Penguin, and Simon & Schuster have announced that they will launch an online website to promote and sell their books. This new website, Bookish.com, will launch in mid-July and be geared toward “connecting readers with books and authors.” However, the site will sell books (both ebooks and print books) directly to the public.
Bookish.com appears to be a strategy on the part of these publishers to sell more books directly to the reading public, cutting out the middle-man. Why? Because publishers are looking for ways to increase their revenue in a falling market.
With ebooks netting less revenue than print books, publishers are looking for ways to increase the amount of money they keep from each sale. What better way than to cut out the middle-man and sell directly to the public!
For each book (especially ebooks) that these publishers sell directly to the reading public, they retain more of the retail price by selling directly. When books are sold through retailers, less revenue ends up in the publisher’s pocket, because the retailer and the distributor have to take their cut.
I wonder what other new ideas the large publishers will come up with to increase revenue in these evolving times.