Slide 1
Joseph R. Dominick
University of Georgia-Athens
© 2005 The McGraw-Hill Companies, Inc. All rights reserved.
Slide 2
Part II
Media
© 2005 The McGraw-Hill Companies, Inc. All rights reserved.
Slide 3
Chapter 6
Chapter Outline
Books
History
Books in the Digital Age
Defining Features of Books
Organization of the Book Industry
Ownership in the Book Industry
Producing the Book
Economics
Feedback
The Book Publishing Industry
© 2005 The McGraw-Hill Companies, Inc. All rights reserved.
Slide 4
History
 Early books
Hand copied by monks until 12th C
Lavishly decorated
Johann Gutenberg (1455)
Moveable metal type
First book – the Bible
Sold at Great Frankfurt Fair for 3y wages
Printing spread rapidly throughout Europe
Henry VIII required government approval
for printers
© 2005 The McGraw-Hill Companies, Inc. All rights reserved.
Slide 5
History
 Colonial America
Bay Psalm Book (1640)
Poor Richard’s Almanac by Ben Franklin
Common Sense by Thomas Paine
 Penny Press Era (early 1800s)
Book publishing industry established
Mass audiences
Libraries
New technologies
A better educated public
Harriet Beecher Stowe’s Uncle Tom’s Cabin
© 2005 The McGraw-Hill Companies, Inc. All rights reserved.
Slide 6
History
 Civil War paperback boom
“Dime novels” liked by soldiers
Pirated editions of European best-sellers
 20th Century move to commercialization
Literary agents represent authors
Publishers expand into the mass market
Financiers require profitable publishing
© 2005 The McGraw-Hill Companies, Inc. All rights reserved.
Slide 7
History
 Post WWII
Reading spurred by leisure time and income
Paperbacks return
Low prices, varied content, quality works
New channels of distribution
Dr. Spock’s Baby and Child Care
Peyton Place sells 10 million in paperback
307 mergers of publishers (1958 – 1970)
Book industry is attractive investment
© 2005 The McGraw-Hill Companies, Inc. All rights reserved.
Slide 8
Books in the Digital Age
 The eBook
Display hardware + Software + Digital content
Author-Publisher-Retailer
Market suffered setbacks
Hardware not up to standard
Not enough e-book content
Ideal for
Reference works
Travelers
netLibrary
© 2005 The McGraw-Hill Companies, Inc. All rights reserved.
Students
Slide 9
Books in the Digital Age
 Printing on Demand
Publisher creates books in digital form
Customer chooses book at a retail store
Store downloads it from publisher
Book printed at the store while customer waits
Publisher saves print and distribution costs
Ideal for low-volume, special-interest books
© 2005 The McGraw-Hill Companies, Inc. All rights reserved.
Slide 10
Defining Features of Books
 Least “mass-like” of the mass media
 Can have profound social effects
 Authoritative
 Enduring
© 2005 The McGraw-Hill Companies, Inc. All rights reserved.
Slide 11
Organization of the Book Industry
Publishers

Distributors

Retailers
© 2005 The McGraw-Hill Companies, Inc. All rights reserved.
Slide 12
Organization of the Book Industry
Association of American Publishers’ List
Trade books
University presses
Religious books
Elementary and secondary texts
Professional books
College textbooks
Book clubs
Standardized tests
Mail order publications
Subscription reference books
Mass market paperbacks
Audiovisual and other media
© 2005 The McGraw-Hill Companies, Inc. All rights reserved.
Slide 13
Organization of the Book Industry
[Insert Figure 6-1 here]
Figure 6-1 Channels of Book Distribution
© 2005 The McGraw-Hill Companies, Inc. All rights reserved.
Slide 14
Organization of the Book Industry
 Retailers
20,000 traditional book stores
Major chain stores
Barnes and Noble Borders/Waldenbooks
Online vendors
Amazon.com
College bookstores
Book clubs and mail-order sales
© 2005 The McGraw-Hill Companies, Inc. All rights reserved.
Slide 15
Ownership in the Book Industry
 Top five companies (2000)
Pearson Publishing – largest educational publisher
Prentice-Hall, Penguin, Viking
Pearson Television (“Baywatch”)
Random House – Part of Bertelsmann
Harper-Collins – Rupert Murdoch
20th Century Fox, Fox Network
Simon & Schuster – Part of CBS/Viacom
Time-Warner Publishing
Time Warner, biggest media conglomerate in world
© 2005 The McGraw-Hill Companies, Inc. All rights reserved.
Slide 16
Producing the Book
 Departments and Staff
Editorial
Works with authors and manuscripts
Production
Physical design of the book
Marketing
Sales, promotions, and publicity
General business administration
Accounting, financial forecasts, operational needs
© 2005 The McGraw-Hill Companies, Inc. All rights reserved.
Slide 17
Producing the Book
 Publishing the Book
Three sources of book ideas
Literary agent recommendations
Unsolicited manuscripts – “slush”
Ideas generated by editors
Author and editors collaborate to produce
satisfactory manuscript
Other activities include: scheduling, design,
printing, and distribution
© 2005 The McGraw-Hill Companies, Inc. All rights reserved.
Slide 18
Producing the Book
 From the Author’s View
Author submits book proposal
Cover letter and a brief description
Why the book should be published
Analysis of the potential readership market
Outline or table of contents
Sample chapter
Proposal goes to acquisitions editor for evaluation
If OK, contract is signed and author begins work
© 2005 The McGraw-Hill Companies, Inc. All rights reserved.
Slide 19
Economics
[Insert Figure 6-2 here]
Figure 6-2 Book Publishing Revenue, 1983-2002
© 2005 The McGraw-Hill Companies, Inc. All rights reserved.
Slide 20
Economics
 Publisher income
Book sales
Subsidiary rights
Book clubs
Paperback rights
Foreign rights
Reprint permissions
 Publisher costs
Manufacturing costs
Printing, typesetting, royalties to author
Operating expenses
Editorial, production, marketing, general admin
 Profit margins are 2% - 20%
© 2005 The McGraw-Hill Companies, Inc. All rights reserved.
Slide 21
Economics
[Insert Table 6-2 here]
Table 6-2 Profit-Loss Statement of Trade Hardcover with $20 List Price
© 2005 The McGraw-Hill Companies, Inc. All rights reserved.
Slide 22
Feedback
 Traditional best seller lists
New York Times
Publisher’s Weekly
USA Today
 P.O.S. information from BookScan
 Reader reviews at online bookstores
(e.g., barnesandnoble.com)
 Online purchase circles: specialized bestseller lists (e.g., amazon.com)
© 2005 The McGraw-Hill Companies, Inc. All rights reserved.
Slide 23
The Book Publishing Industry
 70,000 to 75,000 jobs nationwide
 Entry-Level
Editorial assistants
Communicate with authors
Read manuscripts
Check facts
Proofread
Write catalog copy
Sales representative
© 2005 The McGraw-Hill Companies, Inc. All rights reserved.
Slide 24
The Book Publishing Industry
 Upward Mobility
Editorial
Editorial assistant 
Assistant editor 
Associate editor 
Editor 
Senior, Managing, Executive Editors
Business
Sales representative 
President, Vice President of Marketing
© 2005 The McGraw-Hill Companies, Inc. All rights reserved.