Saturday, December 5, 2020

Changes In Publishing 2020 - 2021 by Maggie Lynch

Wow! 2020 has been quite a year. I’ve heard from authors who have had their most successful year ever because of the pandemic and people reading more. I’ve also heard from authors who have had the worst year ever because of the pandemic and people reading less. 

How can they both be right? Genre, distribution, types of books they distribute (ebook, print book, audiobook). The one thing I know about publishing is that it is not even across genre and product type. Even if everything else is equal, genre definitely has its ups and downs based on what is happening the real world.

As I gathered my research for predicting changes in publishing for 2021, I realized that data on the impact of the pandemic is limited. Most of the reporting I could find reflected only through May. This is typical as statistical analysis is time consuming and relies on reporting from many entities. Because we haven’t had this kind of pandemic for a century and comparing publishing statistics from 1920 to now would be ridiculous. But the data we do have is pretty remarkable. 

My predictions are based on a review of both 2019 data and early 2020 data. The good news is that indie authors will likely receive the most rewards from the changes in publishing—moving primarily to digital media during the pandemic. How long that will last will depend on how or if traditional publishers will adapt their pricing and availability to compete better in the digital market.

As always there is more to report than page space. I’ve narrowed them to four big changes: 1) the impact of the pandemic on book products; 2) the rise in sales of subscription services across the board; 3) International sales expanding at a higher rate than U.S. sales; and 4) Artificial Intelligence (AI) continues to make a major difference in 2021.

Pandemic Impacts

While millions of people have been limited to their homes and economies faced a major downturn, each person has been looking to kill boredom. For those that aren’t spending ten hours a day on social media, they had to turn to something else. For some that means streaming Netflix or Prime Video. For others it is listening to audio. For many it has been reading. Even though book readers may have preferred print, they found it hard to come by with bookstores closed and even Amazon delivery of print books delayed when they put delivery of “essential products” first. In the case of bestselling books, people often waited more than a month to get the book delivered.

That boredom was instead cured by ebooks and audiobooks that were easily downloaded to phones, tablets, and sometimes desktop computers. I believe the pandemic has advanced the uptake of digital media by at least five years. 

As of May 2020 the Association of American Publishers (AAP) reported revenues for hardbacks down 18.5%, and paperbacks down 16.9% on a year to date basis. On the bright side ebook and audiobook revenue was up. Ebooks up by 39.2%, and audiobooks up by 22%. Again, these were comparisons to the same period in 2019.

Audiobooks continue to be a double-digit revenue generator year over year. As of May 2020, audiobook sales were up 27% compared to the same time last year. Who are these audiobook listeners it seems that the majority of them (57%) are under the age of forty-five. Edison Research national survey of American audiobook listeners ages 18 and up all increased their listening in terms of the. Number of audiobooks. The most popular audiobook genres continue to be mystery/thriller/suspense.  

A 2019 survey by Edison Research reported that half of all Americans over the age of 12 listened to an audio book in the past year. Fifty percent of the listeners were below the age of 45. The average number of audiobooks listened to in a year was eleven.  That is higher than the average number of print books or ebooks read in the U.S. which was six and four respectively. 

Libraries have also been a major part of ebook and audiobook purchases during the pandemic. As they closed their doors many libraries changed their budgets to allow more digital download media to be purchased, and that meant decreasing the budget for print. Some very large systems were already undertaking a major overhaul of library space in light of more digital collections, now using the space for artisan showings and things other than books that could be borrowed—including a variety of recorders, power tools, museum or park passes, musical instruments, and many more. 

Though many people my age (baby boomers) are reluctant to give up print, once they have downloaded three or four ebooks or audiobooks they are quickly hooked on the ease of access as well as the significantly reduced price (except for bestsellers). In addition, the younger generation—those under 40 years old—grew up in a digital world and the majority were never attached to print books. Do you remember the rise of Wattpad? A free writing and reading platform that used to be the indie bestseller creator? Most of that group is hitting 30 years old now. They learned to read online and have been among the major  consumers of ebooks and audiobooks. Given the movement toward climate and resource conservation, I really don’t see print books remaining except as unique collections of antiques or very special books. 

Subscription Services Dominate Sales Worldwide 

Subscription Services are on the rise, and have increased by double digits during the pandemic. All aggregators are reporting nearly 50% of all sales are to subscription services. This is both in ebooks and audiobooks. 

In the Bookwire report mentioned above for Europe digital sales during the lockdown, they also mentioned a 37% rise in people signing up for new digital ebook and audiobook subscriptions. How does this breakdown by subscription service?

·       In terms of worldwide reach, ScribD is in 194 countries. Though they had a difficult start when Amazon challenge them with Kindle Unlimited only a year after startup, they stuck with it and hit 1 million subscribers at the beginning of 2019. They reported a 36% rise in the first half of 2020.

·       Amazon’s KDP Select for authors (Kindle Unlimited for readers) is still the largest membership at an estimated 10 million subscribers in the eleven countries it serves. They are certainly the dominant subscriber service in the U.S. and the U.K. However, major publishers have mostly refused to sign up their front list, and most everywhere else in the world they far outpace Amazon KU subscriptions in those countries. In addition, authors are forced to choose between exclusivity to participate in KU vs going with many other subscription services that have no exclusivity.

·       In 2017 Kobo introduced the Kobo Plus Subscription model in Belgium and the Netherlands as a pilot. They were primarily concerned about piracy and tracking. It did so well they launched in Canada at the beginning of 2019 and launched in France this year. With a membership of approx. 170,000 they are not in the range of other subscription services. However, given their worldwide reach in retail books, it is possible they will grow more quickly over the next few years.

·       Sweden’s Storytel hit 1 million subscribers in June 2019. In the first half of 2020 they reported subscriber growth of 38% and streaming revenue growth of 45%. They were also able to raise over $96 million dollars in new funding, showing a strong vote of confidence in the unlimited subscription model. They are major service in 16 countries, including: Bulgaria, Denmark, Finland, Iceland, India, Italy, Mexico, the Netherlands, Norway, Poland, Russia, Spain, Sweden, Turkey, the United Arab Emirates, and Singapore. Along with ScribD it is their purpose to become larger than Kindle Unlimited for the rest of the world outside the North America. They have 40 additional countries on the radar and may use recent fundraising to accomplish that quickly. 

In short, though western publishing has not embraced subscription services, this is a huge opportunity for indie publishers—particular those looking to grow their market share. It is true that the royalties per unit are less (based on how far readers read in the book), but the discoverability is very high with more people trying your books and, if they like it, reading the whole thing. ScribD is still a full royalty pay when the full book is read. Unlike Amazon KU which averages about 30% of unit sales royalties when the full book is read. Furthermore, no one except Amazon requires exclusivity. 

International Sales Increase at a Faster Rate Than U.S. Sales 

I think most American’s tend to really think U.S. centric in terms of sales and readers. Interestingly, U.S. readers are not the most readers in the world. Many are above us in terms of daily book reading habits as this graphic from Statista shows in 2017. 

For a larger graphic with more details go to the Global English Editing World Reading Habits which takes several Statista reports and breaks it down into more details. Including which were the most popular books read in various countries. 

Though the U.S. began at the leading edge of ebook technology and people regularly online, we are no longer in the lead in terms of innovation and certainly not the lead in terms of the number of people online. Partly that is due to simple population numbers, but also the per capita number of readers in other countries are a lot higher than in the U.S. 

One book-centric expert on this is Mark Williams, Editor in Chief of The New Publishing Standard (TNPS) which focuses on the Worldwide Market in print and ebook. 

“Today there are just shy of 4.7 billion people online, many in places you’d least expect. The USA is not the biggest. In fact, it comes in at only third place, behind China (854 million internet users) and India with 560 million people online. The USA has 312 million online and no room to grow.” –Mark Williams 

I’ve heard some people say, “Sure they have internet but that doesn’t mean they are readers or spend money purchasing books.” The world’s biggest book fairs prove this wrong. In Egypt. 3.5 million people attended their Bookfair this year. The Algeria, Iran, Sharjah (UAE) and Kolkata (India) International Book Fairs each attracted over 2 million visitors in 2019. The Riyadh (Saudi Arabia), Baghdad (Iraq), Buenos Aries (Argentina), Bangkok (Thailand), Havana (Cuba), Colombo (Sri Lanka), New Delhi (India), Muscat (Oman), Hyderabad (India) and numerous other international book fairs each attracted over 1 million visitors in 2019. 

Let’s compare that to the U.S. largest book fair, the New York Book Expo.  Attendance in 2019 was approximately 20,000 people. Slow to move to the virtual platform they changed dates of the expo three times 2020 and then cancelled altogether, setting a spring 2021 date. 

On the other hand, the UK’s 10-day Hay Festival from Wales quickly pivoted from in-person to online in April-May, drawing an online crowd in excess of 500,000 proving that literary events can be just a mouse click away. Also Big Bad Wolf pivoted from in-person events in 12 countries to online events with millions of books sold at each. Big Bad Wolf sells English-language books to Thailand,  Indonesia, Sri Lanka, The Philippines, Cambodia, South Korea, the United Arab Emirates, Pakistan, Myanmar, Taiwan, Singapore and Malaysia. The final online event was in November in Malaysia, their home country. Its four-day online sale extended to eight days because of the online traffic. They started with 1.5 million buyers online.   

How important are international sales? Consider that Penguin Random House opened an exclusive ebook store on Amazon in order to reach India’s 500 million internet users. 

“We are witness to, and participants in, a digitally-driven, global renaissance quite unprecedented in human history. Don’t let it pass you by while you obsess over one company and one or two markets.”Mark Williams, The New Publishing Standard. 

Artificial Intelligence (AI) Continues to Scale, Lowering Production Costs for Everyone 

Last year I talked a bit about AI inroads to publishing. There are many ways AI is being used regularly already. Some of these we may take for granted, not realizing it uses some type of AI. 

Research:  Publishing, especially in academia, involves tremendous amounts of research. Databases going online, journals online have cut this down over the past three decades. AI helps with this process by going through huge amounts of data in a matter of seconds and providing valuable results based on author, journal, keywords, phrases. 

Finding your target audience: Crafting your content to appeal to your target audience will take your published work to the next level. In addition to the help of SEO tools now available to indie authors (e.g., Yoast SEO for Wordpress sites), there are other AI-enabled tools that try to predict the behavior of your intended audience. This is especially true in advertising platforms like Facebook, Twitter, Google when you select targeted audiences. It is also available to individuals through tools like Publisher Rocket which does comparisons of competitor books, authors, sales, keywords, and categories. There is still more development in this area but the predictive abilities are much more robust than even three years ago. 

Automating routine tasks: Publishers and distributors regularly use AI to detect false or plagiarized content, recognize statistical errors, identify repetitive-sounding texts, fact-check key areas of published work and a lot more. These tasks traditionally require a lot of manpower. Combined with the data mining, this task alone lets authors publish larger amounts of data. 

Editing Text: Proofreading and formatting has long been available in a variety of software applications that indie authors can use. Even within formatting software, like Vellum, there is proofreading based on spelling and grammar. These tools allow you to fix errors in grammar and context. In the case of formatting, software provides specific style guides that ensure there is a consistent look and feel throughout a book. 

All of the above is already available, and has been available with software programs developed using AI tools. They will continue to get better as the tools learn. But the biggest development I’m following and am really excited about is the continued AI translations of text. Already, Google has an app for phones that can translate conversations in real time. If I encounter a Spanish speaking person, I can ask the app to translate spoken words to English and it will do it nearly simultaneously. It won’t be perfect but it will be understandable. This reminds me of Star Trek translators from the 1960s finally coming to fruition. 

Translating Books with AI 

Of course, translating books is a more difficult step. In spoken language you can get away with small mistakes because the other person isn’t expecting perfection and makes sense of your speaking from body language and gestures. However, books are the ultimate form of language nuance and context. In addition, the role of “voice” is critical. That means the translation is much more exacting. 

Currently, there are a variety of highly respected AI translation tools available to the nonfiction market that are used regularly by large businesses (e.g., legal, medical, and translation for general sales). AI has become 90% or more accurate for these market segments. In general, translation of nonfiction, particularly technical or expert-based nonfiction, is quite good. It tends to be more formal and uses terms that have already been translated thousands of times in journals or scientific publications. 

Where AI still needs more development is in learning the nuances of language, that are so embedded in good fiction or narrative nonfiction. For example, the use of pronouns, possessives, and personal plurals are all problematic in many languages. That is because of the relationship of people and the formal or informal language used within the story or nonfiction is different than it is in English. Where we may have one word, like “you,” other languages change that word based on the relationship of the speaker to the reader or a character in a fiction book. Then, of course, there are the difficulties of fiction language—particularly metaphor and simile, as well as idioms in humor. I’ve written a blog about this recently, Lost in Translation: A look at the viability of AI translation. The article describes in greater detail how AI works for translation and where authors can capitalize on it, as well as the important role of a human translator and/or editor. 

In terms of indie author accessibility to AI translation, there are two that are affordable. One is DeepL ($9/month for up to 5 books/month). You can load the entire book at once and get back the entire translation within a minute. They have most of the world languages available. 

The other is Google Translate online (free). You can copy and paste up to 5,000 characters, including spaces (about 600 words) at a time. Not only is this very time consuming, but you have to then copy the translation and paste it into a new document making sure the chapters and spacing are all done correctly. It appeared to me that the more words I copy and pasted, the less accurate it became as there was no relationship to the previous words to learn the context. For me, using Google Translate is not a viable option. 

I don’t think that AI translation will ever equal human translators. However, I do believe that we are close now, and in three more years it will be even better. I do think it is at the point where I can get a solid draft that can then be edited by a human translator. The good news is that cuts costs in half. Instead of the typical $5,000 for a 75K word book, translation editing costs between 30% and 50% ($1,500 to $2,500) depending on the language, the country, and the individual editor. 

Based on Publishing Changes What Might Your 2021 Prep List Look Like? 

·         Make sure your website is the best it can be. Take advantage of SEO software to increase discoverability as much as possible.

·         Freshen your online book descriptions and your author bio everywhere you can, taking advantage of keywords, categories, snippet descriptions and the like.

·         Check your email signature and clean out your inbox.

·         Consolidate to-do lists. Do the things you’ve been putting off (software updates, saving things to backups, security checks), especially the digital maintenance work that, if things go bad, could really impede your ability to promote a book or even exist.

·         If you aren’t already, consider expanding your international reach through aggregators and subscription services.

·         Begin thinking about translation and if it makes sense to you. You might begin small, with a novelette or novella and see how it plays. If you want to know where to start, consider German, Italian, Spanish, and French in that order.

Maggie Lynch is the author of 26+ published books, as well as numerous short stories and non-fiction articles.  Her fiction tells stories of men and women making heroic choices one messy moment at a time. 

She is the founder of Windtree Press, an author publishing cooperative with 23 authors and over 250 titles. She is also the owner of POV Author Services, a business dedicated to helping indie authors succeed in the business of writing and publishing. 

You can learn more about her and her career at:



peggy jaeger said...

Maggie - a big thank you for this article!!! it is filled with sososo much valuable information to us indie authors. I am one of those people who have had one of the worst sales years since the pandemic started and most of my titles are digital first. I think subscription services and audiobooks are a valuable way to get our work out there and after reading this, I am more confident that is the way I will lean in 2021 with marketing.
Again, thank you for this fabulous and valuable info.

Judith Ashley said...

Another winner! I always learn so much in this post. I have made a commitment to update my digital information by year's end. It seems December is flying by so I may not be completely finished, but I will be well on my way.

Maggie Lynch said...

Peggy, you are not alone in terms of sales being down this year. I think the usual downward pricing pressure has been even hire. That means that books over $3.99 are struggling unless you were already a bestselling author. Given you are with Wild Rose Press, I don't know if subscription services are available to you with those books. Most trad publishers do not distribute in that way. The other thing is libraries and what ways your publisher distributes to them. Most publishers are distributing to Overdrive but primarily with the one purchase full price method. You might ask your publisher if they have considered distributing library books via the click per borrow method (similar to subscription retail models). The payment per checkout is less (about 10% of library book price) but once your book is checked out more than 10 times you are making even more money. This is the model of services like Hoopla and Bilbiotecha which has been adopted by many libraries along side the Overdrive system.

Good Luck in 2021!

Maggie Lynch said...

Judith, keeping digital information and SEO up to date is so critical in this online world where discovery is driven by sales and links. I hear you on it taking time too. Believe me, I am behind myself in keeping things up to date. It is a never-ending battle, but it helps to schedule the updates on some regular basis (e.g., quarterly or every six months) so you don't fall behind--especially if you have more than a few books available.

I'm very hopeful about 2021. As readers see more reason for hope and getting back to normal, I think we will see them buy more books that reinforce that. Right now readers are bifurcated. One group is longing for escape because the real life world is scary. The other isn't reading books that they deem "too escapist" because they don't believe the accurately reflect or provide a way to deal with this moment in time.

Keep up your good work on getting your digital world organized and updated, and staying in contact with your readers and it will make a big difference in 2021.

Lynn Lovegreen said...

Very interesting--thanks, Maggie!

peggy jaeger said...

Maggie -t hanks for the advice. Since I'm a hybrid author I've been able to put my self pubbed stuff in subscriptions services, so that's a nice little bump in profits. Like i said, this was a great article and I shared it with all my writing peeps.

Luanna Stewart said...

Wow, Maggie, so much to think about! I've been a proponent of selling globally and your data solidified my belief. Thanks for that to-do list for the New Year. You reminded me of a few tasks I've been putting off.

M. L. Buchman said...

Grrr! Now I have to think differently about my Future Post for next week because you already covered these key points so well. Grrr! :)

Joan Ramirez said...

Maggie is outstanding. A wealth of knowledge to apply.
Joan Ramirez

Maggie Lynch said...

Thanks for your comments, everyone.

Luanna, I have a list to execute as well. It's my December thing.

Matt, LOL. I think those of us who track trends and publishing changes probably have several points of agreement. I'm sure that whatever you have will be amazing. You are always on top of things. There were several more I would have liked to say but didn't have the space for.

Joan, Thank you for your support. We all have special knowledge to share. It is a matter of finding the best ways to share it that is the key.

Diana McCollum said...

Hmmm! I commented yesterday but don't see it! Thanks for sharing all your knowledge with us Maggi. There's so much to do and remember when writing and publishing. Thanks again. Have a nice Sunday.

Madelle Morgan said...

Maggie, Thank you so much for your valuable post. I am about to dip my toes into the audiobook market. Those stats were so instructive. Every indie romance author should take note of the subscription and foreign market opportunities you point out!

All the best for 2021.

Robin Weaver, Author said...

Wow, Maggie. What a great post. YOur knowledgebase never ceases to amaze me. Hope you have a fabulous holiday season.

Maggie Lynch said...

Thank you Madelle, Robin, and Diana for stopping by. I'm glad you found the article interesting.

Diana, I did want to address your comment about "There's so much to do and remember when writing and publishing." Sometimes I know that can feel overwhelming. The key is to choose one thing at a time to work on. Work on that one thing until you get it going and it's second nature. Then tackle the next one.

When I started publishing it was hard enough just consistently figuring out how to get my books loaded to the various places, get all the metadata in just right, and let everyone know about it. For the first three books or so that is all I did because it was all I could handle. (Especially since I was working a full time other job then). Then I tackled growing my email list and learning all about just that. That was nearly a year to learn how to do that well and grow my list to 12K. That was all I concentrated on.

Each year has had one major thing and, if I could fit it in, I'd dabble with other things. I know everyone wants to be able to do it all right now and make a million dollars this year. Unfortunately, it doesn't work that way. So, pick what your major thing is for 2021 and then pick one other that you will "dabble" in. Maybe it won't be quite so overwhelming.

Thanks gain everyone for your support. It makes my heart sign when I know people can get at least one thing out of a post that is helpful to them in their journey.