Changing the Landscape

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,, 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. 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.


2 thoughts on “Changing the Landscape

  1. I think that the three big pubs starting this are trying to reinvent the wheel. I could go into detail on this, but here’s a link to an article that says it better than I could:

    Still, if it results in lower prices it may be a worthwhile venture. The agency model for e-books is a clear demonstration that they just don’t get it. I was looking on Amazon for the Kindle version of The Corruptable, by Mark Mynheir; the Kindle version was priced higher than the print version. I declined to buy it.


  2. Thanks for sharing that blog post Andy. I agree with what the author was said. I also don’t buy the line about consumers needing one place to learn about new books, etc. That is why I believe these publishers are setting this site up to sell books directly and keep more profits. This post is a follow up to my post on Monday on “Rising eBook Sales = Declining Profits” where I discussed that issue.


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