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White Star was founded in 1984 and has become one of the major publishing houses in Italy and abroad in the sector of illustrated books. Today it boasts a catalog of over 800 titles, published in various languages.As 2022 began, the U.S. trade publishing business was dominated by what has been called the Big Five—Simon & Schuster, Penguin Random House, HarperCollins, Hachette Book Group, and Macmillan.The big 5 are, of course, Hachette, HarperCollins, Macmillan, Penguin Random House and Simon & Schuster. These companies are often seen as emblematic of the state of traditional trade book publishing in the United States.

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Escape! The Pharaoh’s Curse
Escape! The Doomed Treasure Island
Specs: 21 x 29,7 cm – 56 pages + 4 pages with stickers and 1 poster – softcover
A real escape room experience through a book: solve puzzles and riddles, collect the stickers and be guided by the big poster along all the rooms to escape from the Pharaoh’s curse or the doomed treasure island!
Are you a publisher? You want to acquire the rights for this title? Contact us at [email protected]

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Who are the 5 big publishers?

As 2022 began, the U.S. trade publishing business was dominated by what has been called the Big Five—Simon & Schuster, Penguin Random House, HarperCollins, Hachette Book Group, and Macmillan.

Which publishing company is most prestigious?

What is Big 5 publishing house?

The big 5 are, of course, Hachette, HarperCollins, Macmillan, Penguin Random House and Simon & Schuster. These companies are often seen as emblematic of the state of traditional trade book publishing in the United States.

Which publishing house pays the most?

The biggest book publishers in the world are Pearson, generating USD 6.07 billion in revenue annually. Pearson is followed by RELX Group, Thomson Reuters, and Penguin Random House on this list of publishing companies.

What is the #1 publishing company in the world?

How much does it cost to get a book published?

The Bottom Line

It usually costs between $500 and $5,000 to publish a book in the United States. A lot of that cost comes from hiring an editor, book designer services, and marketing. The average self-published book costs about $2,000 to publish and market.

How much do authors make per book?

A traditionally published author makes 5–20% royalties on print books, usually 25% on ebooks (though can be less), and 10–25% on audiobooks.

How much does it cost to publish a book with a publisher?

The average cost to publish a book falls within the $200-$2500 range and includes publishing costs such as cover design, editing, formatting, and book printing. However, it’s important to note that the publishing type you choose will also factor into the overall cost to publish a book.

Who is the best literary agent for new authors?

How do you submit a book to a publisher?

How do I get my book published?

What are the big 4 publishing companies?

Who are the big 3 publishers?

Interviews with officials of the “big three”-London-based Pearson, New York City-based McGraw-Hill Education, and Boston-based Houghton Mifflin Harcourt-suggest they’re taking different approaches.

Who are the big 5 publishers UK?

The five – Penguin Random House, Macmillan, Hachette, HarperCollins and Simon & Schuster – said they would be addressing the points raised by the BWG, which was set up by publisher Sharmaine Lovegrove, journalist Afua Hirsch and author Nels Abbey.

Who are the big 5 publishers in India?

WHITE STAR PUBLISHERS – Union Square & Co.

White Star was founded in 1984 and has become one of the major publishing houses in Italy and abroad in the sector of illustrated books. Today it boasts a catalog of over 800 titles, published in various languages. The books cover a wide range of subjects, including art, photography, lifestyle, culinary, gift, and children’s books. They publish under the imprints White Star and White Star Kids.

White Star Press: Book Publisher

It’s Your Book Most publishers will try to keep your rights forever. We’ll give them back. You also see and approve the final draft and cover art.

Professionally Edited We edit every manuscript according to the highest professional standard before it’s published.

Over the Past 25 Years, the Big Publishers Got Bigger—and Fewer

As 2022 began, the U.S. trade publishing business was dominated by what has been called the Big Five—Simon & Schuster, Penguin Random House, HarperCollins, Hachette Book Group, and Macmillan. Before the Penguin–Random House merger in 2013, that group was referred to by PW as the Big Six; if a court battle between PRH and the Department of Justice allows PRH to acquire S&S, a deal that the government blocked in Nov­ember 2021, it could shrink to the Big Four in late 2022.

The shape of trade publishing in 2022 began forming just weeks before PW turned 125 in 1997. In December 1996, the Penguin Group, backed by parent company Pearson, acquired the Putnam Berkley Publishing Group from its parent company, MCA. Pearson paid $336 million for Putnam, which had sales of $276 million. With that acquisition, Penguin’s trade revenue hit $871.5 million in 1997.

Simon & Schuster: Setting the stage

In 1998 two other huge deals set the stage for the future of trade publishing in 2022. In PW’s 125th year, Simon & Schuster was at the height of its publishing power. Through years of acquisitions that began in 1984, supported by parent company Gulf+Western (which was renamed Paramount Communications in 1989), S&S had grown into a publisher with revenue of more than $2 billion; the company was a major player in the trade, education, professional, and reference publishing segments. That all changed in 1998 when its new parent company, Viacom, sold all but S&S’s trade subsidiary to Pearson and the equity firm Hicks, Muse, Tate. (Pearson paid a total of $4.6 billion for the S&S assets, and sold the reference, business, and professional groups to Hicks, Muse for $1 billion, leaving Pearson with a bill of $3.6 billion for the school, higher education, and international groups.)

The S&S trade group, which had sales of about $650 million in 1998, moved to CBS when Viacom split its operations into two separate companies, Viacom and CBS in 2006. In 2020, when Viacom and CBS reunited, S&S became part of the newly formed ViacomCBS, which quickly put the publishing house up for sale.

Looking at PW’s coverage of the breakup of S&S in 1998, there were questions even then whether S&S would fit within a company whose focus has ranged from growing its advertising businesses to expanding its streaming services. The sale of S&S was put on hold for years when S&S became part of CBS, but its divestiture became inevitable once CBS and Viacom merged for a second time.

From the time it became a standalone publishing company at Viacom in 1998 and being sold by Viacom in 2020, S&S made only a select number of acquisitions, buying its Canadian distributor, Distican, in 2002; the Christian press Howard Publishing in 2006, and the independent publisher Adams Media in 2016. Rather than acquisitions, S&S has focused its growth efforts on internal initiatives, including starting a host of imprints, international expansion, and broadening its distribution business. In 2021, it had sales of $993 million.

Penguin–Random House: Shifting strategies

S&S’s strategy in the 1980s and ’90s of building a publishing powerhouse in different industry areas fit into a tactic embraced by a number of companies in that era—a strategy that gradually fell out of favor as publishers, or the parent companies that owned them, decided to focus on individual segments. In 1996, HarperCollins sold its educational properties to Pearson. In 2012, Pearson itself chose to leave the trade market when it agreed to merge Penguin with Random House, selling its final stake in PRH in 2020. In 2021, HC took advantage of Houghton Mifflin Harcourt’s decision to focus on the learning technology space by acquiring HMH’s trade division for $349 million.

The creation of HMH was the result of one of the most tortured acquisition processes in recent publishing history. Before 2007, HM and Harcourt Brace (which for many years had been known as Harcourt Brace Jovanovich) were separate companies with large educational publishing businesses and smaller trade operations. In 2006, investor Barry O’Callaghan’s Riverdeep company bought HM, and a year later O’Callaghan paid $4 billion to acquire the educational and trade publishing assets of Harcourt Brace to form HMH. In 2012, with O’Callaghan gone from the company, HMH filed for Chapter 11 bankruptcy. Shortly after HMH emerged from bankruptcy, it went public in 2013 and had its share of problems navigating the changing educational publishing marketplace. It came as no surprise when HMH decided to put the trade division up for sale in late 2020, nor was it surprising that HC bought it in May 2021.

Bertelsmann steps up

The other seminal deal in 1998 was in March, when Bertelsmann astounded the industry by announcing its intention to acquire the U.S.’s largest trade publisher, Random House, from Advance Publi­cations, owned by the Newhouse family. Bertelsmann had been slowly but steadily building its book business in the U.S. and through a number of acquisitions was the owner of Bantam Doubleday Dell (as well as the Doubleday Direct book club business) when it bought Random House. No purchase price was disclosed, but the two companies were estimated to have had combined revenue of $1.4 billion to $1.7 billion that year.

News of Bertelsmann’s intention to acquire RH brought similar reactions to those in 2012 when the RH-Penguin deal was announced and later in 2020 when PRH’s plans to buy S&S were announced. According to PW in its Mar. 30, 1998, issue, amid “an initial reaction of shocked disbelief, a flurry of concerns were raised, particularly by authors and agents, who feared a diminution of the competitive marketplace, a watering down of the Random group’s role as one of the more literary, tradition-minded publishers, and an even tougher time ahead for quality midlist titles, as opposed to high-budget glamour books with targeted readerships. There were also fears expressed, particularly among staff members of the two huge houses that will now be merged, over likely duplication of functions and resulting job losses.”

“ “We would like to play a role in shaping the future of the book publishing industry.” —Peter Olson, following Bertelsmann’s purchase of Random House in 1998. ”

In response, Peter Olson, who would lead the new RH, told PW the editorial autonomy and independence of the various imprints, on which the Random group in particular had always prided itself, would be maintained. Olson also noted that as other large media companies abandoned trade publishing or books altogether, Bertelsmann would be increasing its commitment. “The book business has been and always will be a core business for Bertelsmann, be it through direct marketing, online retailing or trade book publishing,” he said, adding, “All three businesses will be run at arm’s length from each other.” Olson noted that Bertelsmann planned to continue investing in the book business; “We would like to play a role in shaping the future of the book publishing industry,” he declared.

Though Olson left RH in 2008, Bertelsmann has indeed played a key role in creating the modern American trade publishing market, under the leadership of Markus Dohle. In 2012, Bertelsmann and Pearson announced their plan to combine Penguin and Random House in a deal that would give Bertelsmann a 53% stake in the new publisher while Pearson would have a 47% stake. The deal was completed on July 1, 2013, and over the next several years Bertelsmann gradually bought out Pearson’s PRH share. In 2021, PRH had worldwide revenue of more than $4.5 billion, with about $2.6 billion generated in the U.S.

Prior to the Penguin deal, Random House had made a series of smaller acquisitions in the U.S., acquiring the audiobook company Listening Library in 1999, the children’s book publisher Golden Books in 2001, Rough Guides in 2002, the religious press Multnomah in 2006, and Ten Speed Press in 2009. Following the Penguin deal, PRH bought Sasquatch Books, a distribution client, in 2017, acquired the assets of Rodale Books in 2018, and in 2019 took a 45% stake in the independent publisher Sourcebooks.

HarperCollins emerges

The move that was the major catalyst to allow HarperCollins to grow into the U.S.’s second-largest trade publisher occurred in 1987 when News Corp

bought Harper & Row. A year later, H&R became a major factor in religion publishing in the U.S. with its purchase of Zondervan. In the next major event, in 1989, News Corp bought U.K.-based William Collins, and the following year H&R and William Collins were merged to form Harper-

Collins. Over the course of the last 25 years, HC has added companies in both the U.S. and U.K., as well as making acquisitions in some other countries as well. Bolstered by those deals, HC’s total revenue was over $2 billion (including about $23 million coming from the HMH May 2021 purchase), with an estimated two-thirds of its revenue coming from the U.S.

In the U.S., HC made three major acquisitions between 1997 and its purchase of the HMH trade division last year. In 1999, the company acquired Morrow and Avon from the Hearst Corp., a deal that added roughly $210 million and propelled HC into its current status as the country’s second largest trade publisher. Also in 1999, HC added two other companies, the pioneering African American publisher, Amistad Press, plus the literary house Ecco Press.

Its next major move came in 2011 when HC secured its place as the country’s largest religion book publisher with the purchase of Thomas Nelson for $200 million. The deal did not actually close until 2012, after a government review of the purchase, which examined how large a share of the religion publishing market the combination of Zondervan and Nelson would command. The deal was approved without HC needing to make any divestitures.

In a surprising move, in 2014 HC acquired Harlequin for C$455 million. Headquartered in Toronto, but with offices in many overseas countries, Harlequin had sales of about C$400 million in 2013. HC CEO Brian Murray noted that with one deal, “we have greatly expanded our international footprint.”

From AOLTWBG to Hachette

Today’s Hachette Book Group began to be formed in 1989–1990 when Time Inc., the parent company of Little, Brown (as well as the since closed Time-Life Books, and Book-of-the Month Club, which was sold), merged with Warner Communications, parent company of Warner Books. When the mammoth deal was completed, the book operation was combined into the Time Warner Trade Publishing group. On Jan. 1, 2002, the book group’s name was changed to the AOL Time Warner Book Group following the merger of AOL and Time Warner, a deal considered one of the worst in corporate history. The merger generated a huge amount of debt that AOLTW tried to pay down, in small part, by looking to sell its book publishing properties in 2003. No deal materialized then, but in April 2006 the French conglomerate Lagardère bought the Time Warner Book Group for $537.5 million (TWBG had estimated 2006 sales of $510 million).

Since it has become part of Lagardère, the Hachette Book Group has made six significant acquisitions, beginning in 2013 with the purchase of about 1,000 adult titles from Disney’s Hyperion imprint. In 2015, the company added Black Dog & Leventhal, followed in 2016 by the purchase of the publishing division of the Perseus Books Group, which had sales of about $100 million. In 2018, HBG acquired the Christian book house Worthy Publishing, and added more than 1,000 children’s titles in a deal with the Disney Book Group in 2020. In 2021, HBG made its biggest acquisition, buying the Workman Publishing Group, which had 2020 sales of $134 million, for $240 million. In 2021, the U.S. and Canada accounted for 28% of Lagardère’s 2021 revenue of €2.6 billion ($2.9 billion at current exchange rates).

Holtzbrinck Becomes Macmillan

The final member of what is still the Big Five, Macmillan Publishers, has largely stood pat in terms of acquisitions over the past 25 years. Macmillan is owned by the German media company Holtz­brinck, which first entered the American trade market in 1985 when it acquired Holt, the trade division of Holt, Rinehart & Winston. Nine years later, it upped its presence in the U.S. with the purchase of the prestigious literary house, Farrar, Straus and Giroux. Its biggest move in terms of size, however, came in 1995, when it acquired the Macmillan Group, which included St. Martin’s Press, Tor, Nature, Macmillan, and the U.K.’s Pan Macmillan. Its lone major acquisition in the trade area since 1997 was the 2001 purchase of Audio Renaissance, a deal that moved Macmillan into the audiobook publishing business.

Holtzbrinck augmented its lean acquisition strategy by backing internal growth, particularly in expanding its presence in children’s publishing through the Macmillan Children’s Publishing Group. On the adult side, it has added important imprints including Flatiron Books in 2014 and Celadon Books in 2019.

Though its U.K. trade business has always operated under the Macmillan brand, in building its trade publishing business in the U.S., Holtzbrinck placed its companies under the Holtzbrinck label since the Macmillan name in America had been owned by Pearson following its 1998 purchase of the Simon & Schuster educational and professional group, which included various Macmillan properties. In fall 2007, Holtzbrinck acquired rights to the Macmillan name in the U.S. for both its trade and college businesses.

Below, more on the top publishers in the industry.

Publishing’s Big Five Today (But Do Stay Tuned)

A steady flurry of mergers and acquisitions has dominated the book publishing sector since the 1990s, although for the moment, the next big M&A move—PRH purchasing S&S—is on pause.

Ranking America’s Largest Publishers

Anyone even remotely interested in book publishing knows who the Big Five trade publishers are—if not necessarily in what order they rank. For the record, Penguin Random House sold the most units through NPD BookScan outlets last year, followed by HarperCollins. Simon & Schuster was in third place; last week, S&S reported that its worldwide revenue was $767 million in 2016, down 1.8% from 2015. The Hachette Book Group was #4 in units sold in 2016, a total that includes units from the Perseus Books Group, which Hachette bought last March. Macmillan rounded out the top five.

What is more of a mystery is which is the sixth-largest trade house. The company that finished behind the Big Five in 2016, based on unit sales made at retailers that report to BookScan, was Scholastic.

The company had 33 titles hit PW’s Children’s Frontlist Fiction bestseller list last year, including the top-selling print book of 2016: J.K. Rowling’s Harry Potter and the Cursed Child, which sold 4.4 million units. And, while a number of books on the list were Potter-related, a host of other books did well in the year, including new books in the company’s Baby-Sitters Club Graphix line. In all, Scholastic’s trade sales (which excludes book fairs and clubs) were $318 million in the 12-month period ended Nov. 30, 2016.

In seventh place was Disney, another children’s publisher that had a good run with bestsellers last year, particularly in the frontlist fiction category It had 25 books reach the Children’s Frontlist Fiction bestseller list, led by six Star Wars titles and six books by author Rick Riordan.

Houghton Mifflin Harcourt, which last week reported sales of $165.6 million in its trade division in 2016, was #8 on the units-sold list. Workman was in ninth place. Among its titles that sold more than 100,000 print copies last year were Atlas Obscura: An Explorer’s Guide to the World’s Hidden Wonders (which sold about 172,000 copies through BookScan outlets) and What to Expect When You’re Expecting (which sold more than 138,000 copies). Claiming the 10th spot on the list was Sterling, the publishing subsidiary of Barnes & Noble.

Publishers in the 11th through 20th places were a mix of independent presses (such as Norton, Kensington, Chronicle, Sourcebooks), divisions of larger companies (Dover, owned by LSC Communications), children’s publishers (Candlewick), and religion houses (B&H Publishing, Tyndale). John Wiley’s #12 spot on the list reflects sales of its business books and other trade-oriented titles to general retailers, rather than its educational materials.

Both Dover and Sterling continued to do well with adult coloring books in 2016, although sales in the category cooled compared to 2015. B&N said that because of strong adult coloring book demand, sales of Sterling titles to retailers other than B&N were almost 22% higher in fiscal 2016 than in fiscal 2015.

B&H occupied the 19th spot on the ranking due in part to strong sales of Fervent, which sold about 306,000 units last year, and The Battle Plan for Prayer, which sold approximately 157,000 copies.

Largest Trade Publishers By Units Sold, 2016*

Rank Publisher 1 Penguin Random House 2 HarperCollins 3 Simon & Schuster 4 Hachette Book Group 5 Macmillan 6 Scholastic 7 Disney Publishing Worldwide 8 Houghton Mifflin Harcourt 9 Workman 10 Sterling 11 John Wiley and Sons 12 Abrams 13 Dover 14 Candlewick 15 W.W. Norton 16 Kensington 17 Chronicle 18 Sourcebooks 19 B&H Publishing 20 Tyndale House

*Based on purchases made through outlets tracked by NPD BookScan

* This ranking and article were updated on July 31 after NPD discovered that it had double-counted unit sales of Sourcebooks’s young adult titles. Eliminating the double-counting dropped Sourcebooks from 10th to 18th place on the ranking.

What Big 5 Financial Reports Reveal About Traditional Publishing

This post examines the latest quarterly financial reports from the big 5 book publishers and tries to draw some conclusions from the data. The big 5 are, of course, Hachette, HarperCollins, Macmillan, Penguin Random House and Simon & Schuster. These companies are often seen as emblematic of the state of traditional trade book publishing in the United States.

In April 2015 Publishers Lunch (firewall) took a stab at calculating the overall U.S. book publishing market share of the big 5ers (using Association of American Publishers data). (With qualifiers) the report listed:

Penguin Random House 37%

HarperCollins 17.5%

Simon & Schuster 11.7%

Hachette 9%

Macmillan Not estimated

If we slot Macmillan in at 5%, that’s over 80% of the U.S. trade publishing pie. Sounds a bit high, but it reveals the swath these companies cut.

This post contains lots of provisos (in additional detail at the end of the post). None of the five companies is standalone; they’re all part of much larger enterprises, most not publicly traded, and so none report their financial results with a lot of detail. Some are more transparent than others, but none could be described as forthcoming. Amazon reveals few details about books sales, and Apple the same, so why would we expect these behemoths to be any different? That said, some information is made available, mostly quarter by quarter, with an annual summary. Here we go, alphabetically:

Hachette

The Hachette Book Group is part of Hachette Livre which is part of Lagardère Publishing which is part of the Lagardère group, “a global leader in content publishing, production, broadcasting and distribution.” It is a publicly-traded company, headquartered in Paris, France. By coincidence (not) it’s run by a guy named Arnaud Lagardère. To give you an idea of what a modern publishing conglomerate looks like, half of Lagardère’s sales are in its Travel Retail division, comprising stores offering “Travel Essentials, Duty Free & Fashion, and Foodservice.”

Lagardère Publishing contributed 31% of sales and 49% of profits in 2015. The U.S. and Canada accounted for 25% of the publishing division’s sales. Our neck of the woods is even less important to the other three divisions at Lagardère. For all the foofaraw about scope and scale, it’s interesting to see that in 2015 the company published only 900 adult books and 250 for young readers. The self-publishing community emits that many titles on a quiet afternoon.

On July 28 the company disclosed its Q1 results. Publishing sales are recorded just for Lagardère Publishing as a whole, though percent changes are footnoted for the divisions. When all is said and done “revenue came in at €970 million” (U.S. $1.08 billion), which Lagardère described as “stable.” In the U.S. there was a “6.6% decline in activity”.

Most of these companies blame the relative paucity of bestsellers when there’s a sales drop (it’s never management’s fault, or the long-term strategy), and so this decrease “was attributable to a less intensive new release schedule than in first-half 2015.”

Nonetheless there were “strong profitability gains in the US.” This was a result of “disciplined cost management.” What, pray tell is “disciplined cost management”? An example could be spotted in June, 2014, when the “Hachette Book Group laid off nearly 30 people, or close to 3% of its U.S. workforce.”

HarperCollins

HarperCollins is the “second-largest consumer book publisher in the world” (after Penguin Random House). The company issues 10,000 new books each year and has a backlist (both print and digital) of over 200,000 titles. All of this through 120 imprints, each of them as unique as a snowflake.

Some people hold their nose near HarperCollins because it’s part of News Corp, which sounds a bit like Evil Corp, but is different. News Corp is part of the personal fiefdom of Rupert Murdoch, which also includes 21st Century Fox, which owns Fox News, an organization currently in the news itself. No doubt about it, Murdoch’s a controversial guy. But you can’t blame children for their parents. If you did you’d never buy another book from Simon & Schuster (see below).

As noted in News Corp’s last annual report (2015) book publishing represented 19% of company sales and 26% of EBITDA*. Two-thirds of News Corp’s sales are from newspapers, including the Wall Street Journal and the New York Post.

News Corp’s Q3 report, released in May, revealed that HarperCollins sales decreased by $44 million, or 11%. That’s a big hit.

Publishers Weekly looked behind the data. The foreign currency shortfall was $6 million. The ebook sales hit has a convoluted reasoning: In 2015 ebooks sales were 22% of the total, in 2016 ebook and audio together accounted for 21% of sales. You do the impossible math.

More striking is the revelation around the bestseller burden. The report includes one of those “blame it on the bestsellers” statements. The decrease, it said, was “due to lower revenues from American Sniper by Chris Kyle and the Divergent series by Veronica Roth.” The company’s actual legal SEC (Securities and Exchange Commssion) filing says that the loss of revenue in the quarter from both authors was $29 million!

As I intimate above, while I think that publishing management might apportion too much blame to a dearth of new bestselling titles when there’s a dearth of sales, there’s no question that publishing is a hit-driven business (in this respect similar to both the movie and the music businesses). Let’s look at the numbers in more detail.

According to Publishers Lunch (paywall) American Sniper sold 851,000 copies in all of 2015 and the movie tie-in added another 355,000. The list price is $9.99 for the paperback. There are two Kindle editions, one at $9.99 and an enhanced version at $7.99 (with the predictable result that on Amazon the paperback is $1.50-$3.50 cheaper than the Kindle editions).**

Assuming, for argument’s sake, that HarperCollins receives roughly half of that amount for each copy sold, the total 2015 print sales for the book were just over $6 million. Assuming that the ebooks are selling at about industry average ratios, around 25%, ebook sales would add roughly 300,000 copies to the pool.

By last year the Divergent titles had already fallen off the bestseller lists: their sales crested in 2014. Still, there are four titles in the series, plus a boxed set: between them they’d probably have been a top bestseller.

The four Divergent titles retail for $12.99 each in paperback, or $29.98 for the set. The Kindle editions vary from $6.99 and $7.99 to $9.99 for Allegiant (with the predictable result that the paperback is $2 cheaper on Amazon than the Kindle edition).

So what’s the average revenue per title for these bestsellers? Let’s be generous and go with $7.50 per. To drop $29 million in sales in three months there would have to be a drop of at least 5 million unit sales. I don’t see it. What am I missing?

Macmillan

Macmillan is part of the Holtzbrinck Group, which is owned by Georg von Holtzbrinck GmbH & Co. in Stuttgart, Germany. It’s a privately held family business and releases very little financial data. In 2014 Macmillan Publishers contributed 42% of total Holtzbrinck revenue, and North America accounted for 39% of the total. But the rest of the revenue comes from STM (Scientific, Technical, and Medical) and textbook publishing, which have very different dynamics than trade publishing. So it’s all-but-impossible to meaningfully interpret the little financial data the company releases. Publishers Weekly provided an overview of those finances in a mid-2015 article. Let’s move on.

Penguin Random House (PRH)

If trade publishing was a grade 5 classroom Penguin Random House would be the bully. As Publishers Weekly describes the company it publishes 15,000 new titles from 250 imprints annually and employs 12,500. Random House and Penguin were separate companies until 2013 when their respective owners Bertelsmann and Pearson agreed to a merger owned 53%/47% respectively. Each organization reports aspects of the company financials (at different times of the year). Bertelsmann is a private company, controlled by Germany’s Mohn family, although it publicly discloses some financial data. PRH comprises 22% of Bertelsmann sales. Pearson meanwhile is a public company, widely owned, focused solely on education.

Pearson reported its 2016 first half-year results on July 29. The news, as has become the norm for Pearson, was not good. Sales declined 7% (or 11% at a constant exchange rate) and operating income by 80%. Pearson is in the middle of a companywide restructuring “aimed at simplifying its operations”, kindof like Hachette’s “disciplined cost management.” It’s in the midst of eliminating 4,000 jobs worldwide. The body count currently stands at 3,450.

Pearson said that Penguin Random House sales were up slightly in the first half, though it doesn’t expect that to hold till year end. It notes “reduced demand for ebooks.”

Bertelsmann’s last report of revenues at Penguin Random House (the year-end report for 2015) noted an 11.8% increase “mainly as a result of positive exchange rate effects and higher printed book sales.” Top line earnings* increased by 23.2, attributable largely to “savings from the largely completed integration of Penguin and Random House” i.e. eliminating “redundant” staff and operations.

In Bertelsmann’s May report for the first quarter of 2016 “organic growth” was 2.7% though no figures were provided for PRH.

Simon & Schuster

Since 2006 Simon & Schuster (S&S) has been part of CBS Corporation, though how it got there reads like a pocket history of publishing mergers and acquisitions in the 20th century. CBS Corporation is controlled by Sumner Redstone through National Amusements, which also controls Viacom (while, “controls” doesn’t mean “owns”; “controls” does mean control). The stories swirling around Sumner Redstone these days make Rupert Murdoch look like a boy scout.

S&S publishes over 2,000 titles annually from 35 imprints, including Pocket Books and Scribner.

S&S accounted for less than 6% of CBS sales last year, and an even smaller percentage of operating income. The year ended with sales just slightly above 2104, all of that because of a strong fourth quarter, attributed in part to bestselling titles from Stephen King (The Bazaar of Bad Dreams) and Donald J. Trump (Crippled America: How to Make America Great Again).

CBS’s second quarter financial report, released July 28, 2016, provided up-to-date S&S data. “Publishing revenues for the second quarter of 2016 were $187 million compared with $199 million for the same prior-year period,” the report notes, while operating increased slightly (4%) from $25 million to $26 million year-to-year. With revenue down by $12 million where did they find the extra profits? Some of that good ol’ disciplined cost management, in this case “lower production, selling, and inventory costs.”

Publishers Lunch reported (paywall) that Simon & Schuster CEO Carolyn Reidy said the sales drop was “purely (bestselling) title related.”

Conclusion

Author Earning reports are an essential complement to this post as they analyze the broader publishing landscape (on Amazon) that includes other small/medium publishers and the indies. Its May report shows that the big 5’s share of Amazon ebooks unit sales has declined from nearly 40% of total units sold at February 2014 to roughly 23% at May 2016. Their share of gross sales has dropped by a quarter in the same period. (There’s much more in the 16,000 word report.)

There’s a striking bit of news from Publishers Weekly on July 28: On the Apple iBooks Bestseller list the preceding week, five of the top ten titles were self-published, including three of the top five. It strikes me as a milestone.

What are we to say about this state of affairs? After many years of growth the big 5 are now reporting sales and profits mostly flat or declining. They’ve pared expenses through layoffs and consolidation, and my sense is that there’s not much more paring that can be done.

What seems inevitable is another merger or acquisition. In late 2012 HarperCollins (News Corp) and Simon & Schuster discussed a merger. News Corp had also considered a cash offer for Penguin before the Random House merger. There’s no obvious reason for Lagardère to dump Hachette or for Holtzbrinck to drop Macmillan. That leaves S&S as the most attractive prey, followed by HarperCollins. Expect something soon.

Notes

If you’re interested in the finances of the publishing industry, in particular those companies which report publicly, you need a subscription to Publishers Lunch, not Publishers Weekly (PW). PW mostly just reports the financials as reported in press releases. It doesn’t dig deep. You need to be very interested: a Publishers Lunch subscription is $275/year. Therefore all of the best stuff at Publishers Lunch remains behind the paywall, though I’ve used some of its analysis to inform my reporting in this post. I’ve tried to pull accurate summaries from the sometimes complex financial reporting, but keep in mind that financial data doesn’t always like being generalized.

* I’m using “top line earnings” as a proxy for EBITDA, which is earnings before interest, taxes, depreciation and amortization.

** There’s a unbelievably bad metadata mess for this book on Amazon. There are three different landing pages for the book, under ASIN: B006LA6IW2, ASIN: B005GFPZYK, and then ISBN-10: 0062238868 (without an ASIN). There’s a fourth for the “Memorial Edition” of the book (ASIN: B00CO4GO7I).

The Kindle features differ. There’s a plain old Kindle edition for $9.99 ($13.49 for the “Memorial Edition”), and a “Kindle Edition with Audio/Video” for $7.99. When you’re on the page with the $9.99 Kindle edition and click on the paperback you’re taken to a page featuring the enhanced Kindle edition for $2 less. I’ve never seen a major bestselling title so badly cataloged on Amazon. If I was planning to buy the book I’d be scratching my head trying to figure out what the heck to buy, and why the paperback is so much cheaper than the Kindle ebook.

Books by White Star Publishers

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Publisher: White Star Publishers

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whitestar_publisher Publisher Publications

White Star publisher

IT

White Star was founded in 1984. In just a few years, it became one of the most renowned publishing houses in illustrated books on both the national and global scales. Today it boasts a catalogue of over 800 titles for both children and adults. Books are published in a variety of languages and distributed directly in six countries (Italy, France, Germany, the United Kingdom, the United States & Canada).

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