Since Gutenberg invented movable type in the fifteenth century, publishing has brought books and magazines to individuals regardless of their economic background or geographic location. Recent advances in computer technology have once again made it simple for individuals to publish their political views, their art and their fantasies, but book publishing remains an industry of giants. This research examines the economic aspects of the book publishing industry.
The exact size of the book publishing industry is difficult to determine because many small publishers are privately owned and thus do not report their sales, and because the industry has become greatly consolidated in recent years with a few large publishers dominating the global market. Thus a publisher based in Germany (such as Bertelsmann) might have a significant market share in the United States, but not break down its sales in terms of geographic distribution, or even be required to report them at all if the company is privately held. According to Andre Schiffrin, an observer of the book publishing industry, more than 93 percent of American book sales come from only 20 companies despite the fact that there are more than 40,000 companies listed as book publishers in the United States (Reid, 2000, p. 21).
Despite this, industry analysts do try to estimate the size of the market. According to the Book Industry Study Group (BISG), sales of books in the United States topped $30 billion in 1999, an increase of 6.3 percent from the previous year. By 2003, BISG estimated that American consumers will spend more than $38.1 billion on books. The consumer book market was valued at $28.7 billion for 1998 with adult trade (including hardcover and paperback books) posting sales increases of more than six percent than in 1998. The mass market (including fiction) increased by 5.6 percent in 1998 over 1997, according to BISG with romance, mystery and science fiction posting si...