Fall 2012 issue of Horizons

MEDIA & ENTERTAINMENT

paperback revolution. Major publishers were first concerned that paperback, much cheaper, reprints would kill their sales of existing inventory; full-priced hardcover books. However, as more competition entered the market, offering a quality product at a bargain-basement price became increasingly challenging, leading to a 1969 New York Times Review article titled “Is the Paperback Revolution Dead,” after the quality of books declined and readers shied away. In the early `80s, as baby boomers reached child-bearing age, sales of children’s books exploded. Similar to the paperback revolution, expansion was fast and furious and led to books of mediocre quality. This, combined with the recession, cut book sales in half and challenged many publishers, because retailers returned unsold inventory for credit. In the 1990s, large book sale chains proliferated, offering browsing areas, coffee bars, special events such as book signings, and children story hours.

retailers followed. This had a significant impact on not only the distribution channels but the method by which authors were published. Publishers began to face unprecedented competition from software and communications companies entering the electronic publishing market. In 2012, people are as likely to download a book on a mobile electronic device as they are to grab a book off the shelf. But brick and mortar shops have yet to disappear from American culture. Creative ways of generating demand such as increasing the number of live events that bring readers into their stores, expertise, and transformation with the digital age such as offering e-books through their websites have helped brick and mortar shops stay with times. Summary A reflection of the publishing industry over the last sixty years shows the battles that have been fought by newspaper and book publishers. The digital revolution of the industry is here to stay but may be just another phase in the natural evolution of a resilient industry.

In the late 1990s, online book selling such as Amazon.com emerged, and the large

RubinBrown’s Media & Entertainment Services Group We serve individuals and organizations of all sizes throughout the broadcast, cable, publishing and entertainment industries.

Larry Rubin, CPA – St. Louis Partner-In-Charge Media & Entertainment Services Group 314.290.3338 larry.rubin@rubinbrown.com

Todd Pleimann, CPA – Kansas City Managing Partner, Kansas City Office 913.499.4411 todd.pleimann@rubinbrown.com

Jessica Sackman, CPA – St. Louis Manager and Director Media & Entertainment Services Group 314.290.3308 jessica.sackman@rubinbrown.com

Greg Osborn, CPA – Denver Managing Partner, Denver Office 303.952.1250 greg.osborn@rubinbrown.com

page 38 | horizons Fall 2012