A sociologist discusses the major issues facing the publishing industry:

One year ago I interviewed John B. Thompson in the Rail about the state of the publishing industry. Thompson is a Cambridge University sociology professor, and his 2010 book Merchants of Culture: The Publishing Business in the 21st Century was the result of more than five years of talking to editors, publishers, writers, and agents in the U.S. and the U.K. about the rapid changes in the traditional structures of book publishing. Given that these transformations have only continued, I thought it worth checking in with Thompson a year on. An updated second edition of Merchants of Culture will be published in March by Penguin (U.S.) and Polity (U.K.)…

[Thompson:] There are two major developments that are having a profound effect on the publishing industry today and that are creating a situation of deep uncertainty about the future. The first is the continuing economic crisis that has metamorphosed since then into a deeper and more pervasive recession and that has created a tough economic climate for publishers and booksellers. Retailers are often operating on tight margins and reduce their liabilities by ordering less and stocking more cautiously. Booksellers will return more books to publishers in order to reduce the amount of capital tied up in unsold stock. But even these measures may be insufficient as many retailers have been and will be forced out of business. And when retailers close, publishers lose shop windows to display their books and are faced with substantial write-offs for bad debts. This further depresses profit margins that were already under pressure from static or declining sales. It’s an economic snowball effect…

Well, it’s the intensification of a surge in e-book sales, especially in the U.S. While physical book sales are static or declining for most publishers, e-book sales are surging ahead—it is one of the only areas today where trade publishers are seeing serious growth. And the growth is startling: For most U.S. trade publishers e-books accounted for 1 percent or less of overall revenue in 2008. In 2011 the figure is likely to be between 18 and 22 percent (possibly even higher for some houses). And, interestingly, the biggest shift from print to digital has been in commercial fiction, especially genre fiction like romance, science fiction, mystery, and thriller. For fiction as a whole, e-books accounted for around 40 percent of overall sales for some large trade houses by mid-2011. But in some categories of genre fiction and for some authors the percentages were even higher—60 percent for some categories like romance, and even up to 80 percent for some authors. Narrative non-fiction has also seen a significant but smaller shift to digital. Anything more complicated—such as books that use color, like art books or children’s books—has so far lagged far behind. This change is already forcing the key players in publishing to reconsider their positions. Practices that have become settled conventions in the field are suddenly opened up to scrutiny, and players who have interacted amicably for years suddenly find themselves locking horns in new conflicts where the rules are no longer clear (as happened, for example, when Random House and Andrew Wylie clashed over Wylie’s decision to launch Odyssey Editions). To what extent the game of trade publishing will actually be transformed by this development remains, at this stage, unclear. Much will depend on how quickly and effectively the key players are able to adapt to the new information environment that is emerging around them. We are living through a revolution of sorts, and one of the few things you can say for certain about a revolution is that when you’re in the middle of one, you have no idea where and when it will end.

New technology means that a lot of people need to adapt, producers and readers included. Two additional areas I wish Thompson had commented on here:

1. It would be interesting to hear more about publishers and other actors are trying out some new ideas in order to make money off e-publishing. Amazon now has a publishing wing. Are the major publishers really shifting major resources and people to this or are they trying to hold the line? Do the recent commercials on TV and radio for books (examples from James Patterson here and here) represent these publishers continuing to hold to the old model? How much overlap is there between the e-book and traditional publishing world?

2. Thompson talks a bit about the future role of books. I’d be interested in hearing more about whether how the “long tail” phenomenon and growing e-book sales in certain genres will change larger cultural meanings and understandings. Not so much whether books will matter (I think they still will) but how they matter. Will popular e-books really only matter if a movie gets made or the author makes it to a popular daytime talk show? What books will become “classics”? Fifty years from now, which books will form a “canon” for this era?