I was sent this link today by the US media investment bankers DeSilva and Phillips. It is an in-depth review of mergers and acquisitions activity in the media sector. They conclude that:
“the year 2006 has turned out to be not merely strong, but also a year of extraordinary deal-making in both quality and quantity. A dollar volume of $20.5 billion in media transactions makes 2006 the strongest year since 2000, and close in volume even to that year’s total.”
Within the report they predict that there will be trends towards the privatisation of public companies and the acquisition of US media companies by Europeans on the back of improved European economis and a strong euro. They also predict that 2007 will be even more active than 2006.
It is, of course, great to know that we are involved in an industry with so much activity. The trouble is that all this wheeling and dealing comes with significant costs - lawyers, bankers, accountants, disruption, redundancies, strategy consultants, headhunters, stockbrokers. At the same time the industry needs to invest more in transforming its activities from print to digital and customers are demanding ever better value for money. Somewhere there is a mismatch.
On a more parochial level it is remarkable that a blog I did recently about independent bookselling in the UK has generated 24 comments and quite a deal of heat addressed at publishers, supermarkets, Internet booksellers, and the Booksellers Association and its executives. It's good to see the debate and I understand the fears and concerns of independent booksellers. I do wish, however, that some of the commentators would try to understand the issues facing those they attack.
Publishers owe it to their authors to maximise sales of their books. In the 21st century this must involve sales through supermarkets, through Amazon, through chain bookshops as well as through traditional independent booksellers. The value chain and costs for each of these channels is different and complex. Publishers don't grant higher discounts than they need to and they certainly want to see the continuance of as many routes to market as possible.
Supermarkets need to serve their customers. Part of that service involves the supply of books as well as magazines, food, clothes etc. They also need to offer best value. They can achieve this by being able to sell very large quantities efficiently and that is certainly the case with best selling books. Publishers would be seen as very elitist if they didn't see the supermarket shopper as a potential customer for books.
Amazon and other Internet booksellers have generated new sales for authors by the re-invigoration of the 'long tail', by sophisticated algorithmic market research, and by heavy investment in customer service, technology and marketing.
The BA tries to represent all those organisations who sell books in the UK and Ireland. To shun certain booksellers because they are not 'independent' or 'traditional' would be daft. Of course it must be difficult for its executives to satisfy all its members all the time but that's true of every organisation from the local Parish Council to the United Nations. I think the BA gives booksellers a fantastic service and deserves 100% support from all interested in the security and development of the book market.