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Falling book prices could force authors to abandon their keyboards

Date

Books are central to our lives, yet the outlook for authors, their readers and Australian literary culture has never been more bleak.

Illustration: Andrew Dyson

Illustration: Andrew Dyson

The internet and e-books were meant to signal the death of the physical book. That didn't happen. The plight of authors is another matter. As they face a perfect storm of relentless commercial pressures and repeated attacks by the federal government, the outlook for authors and their readers, and for Australia's literary culture, has never been bleaker.

Recent surveys in Britain, the United States and Australia have revealed a serious slump in the income that authors receive from their writing. In Australia, authors have seen their average income from writing decrease from about $22,000 in the early 2000s to less than $13,000 in 2015. For many authors, that means they can no longer earn a livelihood from their work. It's particularly worrying for young writers, who may abandon their craft altogether. And that's bad news for readers, who could miss out on the work of our future Tim Wintons and Richard Flanagans.

It's come to this partly because of market pressures. The advent of Amazon provides part of the answer. It carved out an almost monopolistic space for itself by selling books at a loss. The company has rarely made a profit, with its shareholders seemingly content to finance the remorseless expansion of this retail behemoth. The assumption behind their patience is that Amazon will one day be able to use its market power to raise prices and reap the resulting profits. In the meantime, authors have been the victims of their strategy.

Australian author Peter Carey has won the Booker Prize twice. Nobody should expect that books will be written in ...

Australian author Peter Carey has won the Booker Prize twice. Nobody should expect that books will be written in Australia at a rate and a quality to satisfy readers unless authors can be assured of receiving a reasonable return for their labour. Photo: Steven Siewert

It's not only because of Amazon that there has been a drop of about 30 per cent in the average price of books in Australia. The collapse of Borders and Angus and Robertson saw their place taken by discount department stores, like Target, Big W and Kmart, which added to the downward pressure on prices. As prices fall, so too do the royalties paid to authors. And the effect has been exacerbated by publishers reducing their print runs and consequently reducing the advances they pay to authors. The arrival of digitisation and e-books might have been expected to benefit authors, but the benefits have mostly flowed to publishers and to the Amazons of the world.

The crisis being experienced by authors because of the distortions of the book market has been exacerbated by the recent actions of the federal government. Many of the great works of recent Australian literature have come to readers courtesy of fellowships provided to authors or subsidies to publishers by the federally funded Australia Council. There were never enough fellowships and they were not generously funded, but they ensured that readers were able to enjoy some great Australian stories that otherwise might never have been written. That has all been put at risk by a series of savage cuts that Tony Abbott and Malcolm Turnbull made to the Australia Council, which is the major provider of funds for Australian literature.

Now Malcolm Turnbull has declared that he wants to remove the restrictions on the parallel importation of books, which has prevented for decades the dumping of overseas editions onto the Australian market where a local edition is already in print. It's presently the subject of an inquiry by the Productivity Commission, which has previously favoured lifting the restrictions, arguing that it would force down the price of books. The previous Labor government refused to accept its earlier report, conscious of the damage that dumping would do to authors and readers by undermining the economic basis of the Australian publishing industry.

The arguments for keeping the restrictions in place are even more compelling now. Since the previous Productivity Commission report, and despite the restrictions remaining in place, market forces have forced down the price of books anyway. Apart from that, we have witnessed the experience in New Zealand, where similar restrictions were removed. Despite promises to the contrary, it didn't cause the average price of books to fall. But it did cause New Zealand publishers to lose a valuable part of their business, which forced them to cut back their staff and reduce the number of New Zealand titles they produced. As a result, New Zealand authors were denied outlets for their work and readers were denied access to New Zealand stories. Overseas publishers were the only ones to profit.

Books have survived many challenges to their existence over the past century, and they are sure to survive the latest ones. But nobody should expect that books will be written in Australia at a rate and a quality to satisfy readers unless authors can be assured of receiving a reasonable return for their labour.

Governments of both political persuasions have long recognised the centrality of books to our culture, to our economy and to our sense of who we are as a people. They inform us, they feed our imagination, they help to bind us together as a nation, whether it's the novels of Richard Flanagan, the poetry of Les Murray or the history books of Les Carlyon. It's ironic that a prime minister who claims to champion creativity and innovation should be leading the assault on authors and their readers.

David Day is a historian and biographer, and chairman of the Australian Society of Authors.

10 comments so far

  • "The collapse of Borders and Angus and Robertson saw their place taken by discount department stores ... "

    What is glossed over here, and in most other articles on this topic, is why the bookshops collapsed. I would argue it was lousy service. The stores were filled with countless books but not the ones I wanted. If I went in to buy a particular title that was not in stock, it could be ordered but was never delivered in less than a month. Plus it meant another trip to the bookshop with attendant parking problems and costs to collect the purchase when it finally arrived - after someone had remembered to let me know it was in.

    Commenter
    MJM
    Date and time
    February 09, 2016, 1:15AM
    • The main threat is to established authors who publish using traditional models. Authors now can bypass publishers. Instead of placing publishers in control,where of course they will favour their income over the authors, authors need to take ownership and control their own publication process.

      Today's environment, more than ever, has given authors the tools to avoid publishers. Of course you need to be careful about placing all your reliance on one platform (Amazon), but price isn't the only reason Amazon is successful. Amazon also gives people what they are after.

      Why should an author spend years soliciting publishers for meagre royalties when they can publish themselves and receive between 30 and 70% royalties and retain all their rights?

      Commenter
      Craig
      Location
      Victoria
      Date and time
      February 09, 2016, 5:52AM
      • Angus and Robertson and Borders collapsed because of terrible management by Redgroup, not because the book market was so bad. Every time I read this I think of how happy the Redgroup management must feel, to have persuaded everyone it wasn't them.

        Commenter
        treef
        Date and time
        February 09, 2016, 8:54AM
        • "It's particularly worrying for young writers, who may abandon their craft altogether."

          That's why I stopped. I had a choice, live poor for the rest of my life as a writer with the associated income stress on my wife, or focus the energy I was devoting to writing into a job that would actually make money. You can't just go home and not study these days for many jobs, so, there goes that spare time.

          Ah well.

          Commenter
          Tim the Toolman
          Date and time
          February 09, 2016, 9:31AM
          • Australian publishers and writers need some form of assistance to survive.

            We would all like to buy the next J. K. Rowling (for example) for under $10 but the profits made from large print runs of international authors allow Australian publishers to take the higher degree of risk associated with publishing new Australian authors in a market that is much smaller than the UK, USA etc.

            Australian writers fulfill an essential cultural function associated with self-reflection and goal setting (the same of course applies to German writers writing about Germany, and any other country). Look at the impact a novel such as The Slap has had upon the debate about the type of nation we are. These conversations are essential for cultural growth.

            The comments about “avoiding publishers” are somewhat misinformed. Publishers play an important role of fostering new talent. Yes one can self-publish, and be self-satisfied to see one’s brand new novel on Amazon but some investigation as to the amount of money that a self-published author actually makes per e-book sold simply justifies the point of this article – authors will not make enough money to live on if one relies on Amazon after our publishing industry is crippled.

            See:

            Amazon predatory pricing –

            http://www.newyorker.com/magazine/2014/02/17/cheap-words

            Amazon price structure for Indie authors -

            http://andrewhy.de/amazons-markup-of-digital-delivery-to-indie-authors-is-129000/

            Commenter
            Woody
            Date and time
            February 09, 2016, 9:37AM
            • Good piece. As an author, I'm finding it increasingly difficult to justify the mountain of time and creative energy that goes into creating a manuscript, because the return simply isn't there - not just financially but in terms of anybody actually ever getting to see the finished novel.
              But let's go back to financially: I spent 20 years off and on, creating my last book, and have written other novels that took at least a decade. Of the $24.95 cover price, I get 10 per cent, and that's then taxed, bringing my collect per book to roughly $1.80-1.90 from each sale. In what other industry does the creator - and this is pure, from thin air out of imagination and finally into a manuscript creation - receive such a paltry cut of the sale price? Imagine a car company creating an entirely new car, crafting it, selling it for $24,950 and getting roughly $1800 of that.
              If Australia/the Federal Government?anybody is serious about nurturing original Australian stories, why not make the first $20,000 or even $30,000 earned from a novel tax-free? I read recently that Richard Flanagan was pretty close to having to call it quits because he couldn't live off book royalties. Richard Flanagan! What hope do the rest of us have?

              Commenter
              Nick Place
              Location
              Richmond
              Date and time
              February 09, 2016, 10:03AM
              • Loved your article today in 'The Age'. I agree with all of your comments regarding publishing and lack of support in Australia. I have been pestering my local libraries to have a special section for Australian authors, however, have yet to see it unfold. I love good fiction and we have really talented authors here in Australia and I love reading fiction in an Australian setting. I struggle to find good fiction instead of the mindless violent American crime novels and stupid stories about vampires and other mindless rubbish. Thank you for speaking up about this important issues.

                Commenter
                Jo
                Date and time
                February 09, 2016, 10:25AM
                • It would be fairer to say that authors' incomes are falling as a result of changes in the balance (some positive and some negative) between price pressure by retailers like amazon, declining readership in terms of books per person, much larger aggregate markets due to globalisation, and simply too many books being written.

                  In past times, even recent history, you could keep up with new books through reviews and your own reading, but this is no longer possible. The supply side is just as responsible as the other factors.

                  Commenter
                  JR
                  Date and time
                  February 09, 2016, 10:38AM
                  • I hate being the elephant in the room but maybe authors are going the way of the dodo because of the rubbish that you read these days. Maybe ?

                    Commenter
                    RidgeyDidge
                    Location
                    Vic
                    Date and time
                    February 09, 2016, 10:57AM
                    • RidgeyDidge, I think that's just too much of a blanket statement. Like saying all TV shows are rubbish, or all feature films are bad. All paintings are terrible ... I could go on.
                      Of course there is brilliant writing happening, as there has always been. It just gets a much shorter shelf-life to find an audience, has to hustle against all the franchise crap and international marketing budgets that dominate book shop promo spaces, and has to somehow navigate past the marketing departments of publishers, maybe even more than it has to interest the publishers/editors.
                      It's there, just harder to find.
                      I just finished the Pulitzer Prize winning 'All the light we cannot see' and it was spectacularly written - if you're looking for somewhere to start.

                      Commenter
                      Nick Place
                      Location
                      Richmond
                      Date and time
                      February 09, 2016, 11:38AM

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