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The Merging Trend of Publishing Houses

Posted on 2012-Nov-02

by BB eBooks Staff



The first thing that came to my mind today was the merge between Penguin and Random House. While several influential websites cover the story and provide their conspiracy theories on what will happen in the future for the publishing industry, the news coverage does predict the business trend of collaboration. This sort of seems like a throwback to the 90s with AOL/Time Warner merger.

Organizational Cost Reduction


Despite embossing their logos everywhere on the shelved books, being the sole player is not competitive enough in the wake of the eBook phenomenon. According to this overarching analysis from Forbes, the obvious reasons of the merge can boil down to the cost-reducing schemes and market share. Shared resources can effectively reduce operational and technological maintenance costs for both Penguin and Random House when the combination of their sales and staff will outperform the current competitors.

Negotiating Power


The financial status will ace their competitors out, and the stronger presence in the industry may also allow them to demand more profits from their partners. When the merge is officially complete in 2013, who can deny their global resources of marketing and distributing the books?

Vulnerability Fix


Let’s face it: major publishers are experiencing vulnerability and tough moments to fit themselves into the eBook world. Merging is seen as a quick fix to reduce their hefty costs to stay relevant but independent self-publishing gains stronger and stronger market share.


Apparently, although the merge might directly decrease the profit margin for Amazon to publish their books and the authors who tie themselves to the publishing houses, self-publishing can certainly make up for the loss and unlock the distributing channel not to solely rely upon one party’s expertise. While it is undeniable that going through traditional publishing route can guarantee some exposure to the physical market cemented by the publishers, DIY self-publishing alternative path is looking more and more attractive.

Practical How-to


There are providers of instantly accessible and downright practical sources of how to be a successful self-publisher. With author’s diverse flexibility and practical skills to fine-tune their product(s), they can globalize their homegrown works utilizing the network connection rather than begging to avoid rejection from the traditional publishing route.

Something’s Gotta Give

It remains to be seen what Penguin Random House’s marketing strategy may have in store for eBook production and self-publishing. Yet, one of their new business possibilities can be digitizing their print versions into eReader-friendly editions like the Fifty Shades of Jamie Oliver crossover. Who knows? The celebrity chef might be able to self-publish the hybrid-genre fiction based on his instructional storytelling. Something’s gotta give.

Label: eBook Industry News

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