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A number of publishing houses are “missing out on opportunities” because of “weak rights management practices,” a new report by Publishers’ Licensing Services (PLS) has suggested, including insufficient planning and reporting.
Of 96 UK publishing houses surveyed for the Rights Management in Publishing report, 49% said rights income had a significant impact on the profitability of their books or projects, while nearly two-thirds (63%) said this income “increases the overall value of their business”.
However, the report adds: “while some publishers run highly professional licensing operations”, others are “missing out”. Nearly half (46%) of respondents to PLS’ survey said their business does not budget for licensing income, and fewer than a third (29%) said they were “very confident” about the accuracy of their rights ownership. Just over a third (37%) agreed they could easily establish their control of rights.
Two in five (41%) respondents said their work is restricted by shortages of resourcing or investment in training, systems and other areas, three in five (61%) rights teams were not represented on their business’ board and half (51%) had “no or only occasional input into book acquisitions, despite the importance of rights in their profitability".
Moreover, fewer than a third (29.1%) of businesses were very confident about the accuracy of their rights ownership and contractual information in their business, and more than half (55.7%) were only quite confident. The report states: “While some publishers have an excellent oversight of the rights they own, others have wide gaps in their knowledge that compromise their ability to trade rights.”
PLS chief executive Sarah Faulder said: “Good rights management makes a big difference to publishers’ income, but our research shows that in many businesses it doesn’t get the attention it deserves. For relatively modest investment in training and resources, and better use of the skills of rights professionals, publishers can increase their profitability, improve their reputation among partners and make their business more attractive to investors. This report makes a very strong case for every publishing leader to make rights management a strategic and operational priority.”
The report highlights five takeaways: that rights can be traded to generate valuable revenue that increases a publishing business’ profitability and value; that financial planning and reporting that takes account of rights can help to identify and unlock new revenue opportunities; and that clear oversight and professional management of the rights a publisher holds can substantially increase revenue from them.
Furthermore, it says giving rights professionals more input into acquisitions and greater representation at board level can grow sales and profitability and that investment in rights management, training and communications will all yield greater returns in licensing revenue. The full report can be read here.