Publishers Prepare For Coming Demand For Ebooks

Posted on September 8, 2000

Publishers are showing an unprecedented level of interest in electronic books, though logistical concerns remain and consumer demand for ebooks has yet to catch up with the attention the format is getting within the industry, according to Trade Book Publishing, 2000: Analysis By Category, the latest research report from Simba Information Inc..

Publishers' concerns center on issues of security, readability and distribution. But these issues are being addressed, both by individual companies and in cooperative industry-wide efforts -- opening the way for fast growth of the consumer ebook market in the near future, according to the report.

Meanwhile, the growing number of people using PCs in their homes and offices drove sales of consumer computer books up 10.6% to $798 million in 1999, making computer books the fastest growing segment of the U.S. consumer publishing industry, according to the report. Last year's increase continues a streak of brisk growth that has resulted in a 59.6% rise in revenues for the segment since 1995.

Despite this fast growth, computer books are only the fourth largest consumer book segment, ranking behind religion, romance and business. Religion, the largest category, accounted for 11.2% of the consumer book market, with revenues that increased 2.3% to $1.21 billion, while romance, the second largest segment, made up 11.1% of the consumer book market, after growing 2.1% to $1.2 billion. Sales of business books, the second fastest growing segment, increased 8.9% to $862 million.

The report also shows how consolidation is continuing to reshape the consumer book industry, as leading publishers acquire some of their biggest competitors, shrinking the number of major players left in the market. One vivid example of the effects of the consolidation trend is that 80% of the books on the New York Times bestseller lists in 1999 were published by just five houses.