Many of you may have noticed the news that Amazon marked a milestone in the last three months: For the first time, sales of e-books for its Kindle device outpaced sales of hardcovers. Choices in e-reading devices are expanding, too: Kindle, Nook, iPad, Sony E-Reader, Kobo, and many more to come.
Lots of readers are asking me at book events: What does the e-book trend mean for authors? Good question. The answer is: No one really knows yet. Even so, the trend is unstoppable, and e-books are poised to play a larger and larger role in the publishing marketplace in coming years. Some analysts think e-books could constitute a third or more of book sales in just a few years. That's a massive change that will turn the publishing and bookselling worlds upside down.
Why does this matter to authors? Well, first some numbers. Authors generally rely on hardcover sales today to make a living. However, authors make a lot less on such sales than most people think. If you pay $25 for a hardcover book, the author generally earns less than three dollars from that sale. Paperback sales pay the author less than a dollar per book (a little more for the larger format trade paperbacks). Oh, and remember: This is for new books only. Authors earn nothing on used book sales.
Where do e-books fit into this equation? The compensation to the author on an e-book sale is generally about half of what the author would receive on a hardcover sale, depending on the selling price. Unfortunately, as the Amazon experience demonstrates, e-books are probably cannibalizing hardcover sales right now, because the early adopters of e-books tend to be the most passionate readers - the ones who would otherwise rush to the store to buy new hardcovers.
On the other hand, e-books can't be shared with friends as readily as hardcovers. So publishers are hoping that, in the long run, more sales of e-books will make up for smaller hardcover sales, because more readers will choose to buy their own e-copy. We'll have to wait and see if that proves true. More e-reader devices are now providing ways to share books with others, and if that trend continues, it may make it harder to achieve the larger sales that authors and publishers are counting on.
Libraries are now getting into the e-book trend, which may also have an impact on book sales. Currently, library patrons make a trade-off: You can enjoy a print book for free, but you may have to wait to read a specific book you want. For example, one reader recently wrote to me that she was number 88 on the reserve list for one copy of THE BURYING PLACE at her local library, so she went out and bought the book instead. (I like that!) However, if numerous patrons can check out an e-book from a library simultaneously - without waiting - that may mean fewer readers buying books.
The bottom line? Right now, you probably won't find too many authors who are enthusiastic about the e-book trend. That's no surprise. The current recession has been particularly brutal for authors for a simple reason: Consumers have cut way back on their new book purchases. The result is that publishers are dropping many great writers because of declining sales, and other authors may be forced to get out of the business because they simply can't make a living anymore. Given this situation, authors are nervous that e-books will cut their shrinking compensation even further.
However, e-books are here to stay, and complaining about it won't change the reality of that trend. Authors will still rely on their readers to support them, just as they've done for years. Hopefully, as the economy improves, book sales will improve, too...whether it's books on paper or books on your Kindle, Nook, or iPad.
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