From The Digital Reader:
Indie authors, as well as outside pundits like Data Guy, have been saying for years now that self-published authors are a threat to the livelihood of the legacy publishing industry.
The Bookseller has a story this morning on a new report from Enders Analysis which basically repeats some of the facts uncovered by the Author Earnings Report over the past few years.
To date, self-publishing has become a fairly large presence in the e-book sector, but the impact on the publishing industry as a whole has been more limited. Self-publishing represents a significant but separate books market, with low prices, focused on series within genre categories. Readers are more sensitive to price than reputation and read in high volumes. In March, we analysed the 100 top-selling e-books on Amazon US, and found that 40 were self-published. These had an average sales price of $2.41, compared to $6.23 for all other books (and $9.10 for e-books from the “Big Five” publishers). Sixty-five per cent of the self-published titles we examined were romance or erotica, with a further 22% falling under sci-fi or fantasy, usually with a strong romance theme as well.
. . . .
The report then goes on to say that self-pub would be a serious threat to legacy publishers if it could break out of the ebook market and conquer print, and that’s mostly true. Print is still the majority of the trade market and it’s dominated by legacy publishers.
But the report’s conclusion is also wrong. Authors are finding that they can make more money even trapped in the ebook market than they could if they signed with a legacy publisher.
And almost as importantly, there’s also the perception that authors can make more on their own. That buzz, whether it’s true or not, is keeping authors from signing with publishers.
And that’s the real threat, the one which Enders Analysis doesn’t see coming. It doesn’t matter if there’s more money in print if legacy publishers can’t recruit the authors to write the books to sell in the print market.
And from what Data Guy told me at DBW 2016, legacy publishers aren’t signing authors like they used. He said that the Big Five are still getting on the best-seller lists, but they’re not adding new names to that list nearly as fast as the indie part of the market.
Link to the rest at The Digital Reader and thanks to Fiona and others for the tip.