The overheads of running a publishing company can be too much, especially during a recession or pandemic. If a publishing company is required to pay rental expenses or own a building, the operating expenses can add up drastically. During tough times, most people are more likely to cut expenditure for buying books than other expenses. Trade publishers and small publishing houses find it difficult to survive during tough economic challenges. The pandemic became a health scare for the world and it placed most publishing houses in jeopardy.
Some publishers have questioned the necessity to work from an office after being able to work from home during the pandemic. Permanent staff is not necessary anymore for most publishers. Freelancers are hired from online platforms like Fiverr and Upwork. This is an opportunity or incentive to help publishers to cut off wasteful expenditure. It will result in more revenue streams and a higher royalty percentage for content creators. Most content creators are educating themselves about the publishing industry through YouTube and other online platforms.
Self-publishing services models are viable options for most publishers. As a result of the pandemic, more people have had more time to write and read. This has made self-publishing a viable option for authors who wouldn’t have the time to learn about the self-publishing platforms that are readily available to them. Self-publishing and e-commerce stores through people’s blogs or websites are viable options that can create money for content creators. Electronic books (e-books) are more popular than ever before. Textbooks and learning materials have been made more accessible through websites. The process of restocking has been unpredictable due to lockdown restrictions.
Diversification is important, not just within genres, but for income generation purposes. For publishers to remain sustainable, they have to diversify their income streams. It’s not enough for book publishers to focus only on publishing books. YouTube, podcasts, and other online platforms are ways that book publishers can build new audiences. Publishers have to think like entrepreneurs that can make any form of content expand beyond the book. Trade books, hardcovers, and e-books are not enough to sustain a publishing house.
Bricks and mortar retailers and publishers have been forced to be more creative with how they utilise their floor space. Downsizing for office space and retail space was evident before the pandemic started. In South Africa, Edcon’s financial struggles have impacted one of the top book retailers, CNA. In Southgate, CNA has moved to be in the same space as Edgars. Exclusive Books closed their branch in Mandela Square, which didn’t make financial sense, since there is a branch in Sandton City, less than a kilometre away. While some small to medium-size publishers have parted ways with some imprints. As a result, some publishers’ and retailers’ income streams are limited. Smaller publishers have been battling to make more money before the pandemic started. The pandemic was the nail in the coffin for most publishers and retailers.
One of the positive aspects of the pandemic is that online courses are more popular. Content creators have been more creative as they have made content by using platforms such as Udemy and SkillShare to sell content that is typically available through books. These multimedia platforms allow people to learn by using videos, written words, and audio to facilitate a more in-depth learning experience. Selling directly to the customers is something that teachers and industry experts have capitalised on during the pandemic.
More people were forced to upgrade their online skills to work from home or change careers during the pandemic. Therefore, publishers need to become direct sellers to give more value to their customers. The missed opportunity when it comes to content extension is something that publishers have to look at with more curiosity than they ever did in the past.
Since most publishers outsource cover designers, editors, proofreaders, and marketing consultants. It’s worthwhile to assess how publishers can save money through the way they run their businesses. At the same time, the lack of face-to-face interaction can be depressing for some. It’s not normal for people not to have interaction that separates the home from work, especially for those with children. Access to the internet is also a widespread obstacle for people who can’t afford it or who live in neighbourhoods with poor network connections.
