Publishing Scotland warns sector at 'risk of collapse'

Publishing Scotland has warned the sector has seen a “catastrophic” drop in income over the past few months and could be a “risk of collapse”.

In written evidence to Holyrood's Culture, Tourism, Europe & External Affairs Committee about the impact of Covid-19, the trade body said publishing had already been under pressure from high discounting before lockdown saw shops closed and literary events axed.

It said: “Sales through heritage and visitor sites are severely depleted, if not entirely gone for the 2020 season, resulting in a catastrophic drop in income over the past few months and extending into the summer. This has affected the entire publishing ecology of publishers, writers, illustrators, freelances, bookshops, and other parts of the supply chain and infrastructure.”

The report also said: “The industry is now in danger of being severely damaged by the crisis, if not at risk of collapse, and its publishers, mainly working in small independent companies, and writers and illustrators, who depend on publishers, book sales and events for income, are at significant risk.”

The body, which has members ranging from HarperCollins to indie 404 Ink, said although online sales had seen an uplift in most cases, sales in volume had not been possible without the exposure titles were given by shops and events. In Scotland, bookshops finally reopened from lockdown on 29th June.

In a survey of its members, 42% had seen sales drop by 70%-90% from lockdown onwards. Another 33% had seen a fall of 50%-70% while 5% had seen an almost complete loss of sales.

According to the poll, three-quarters of publishers expected sales to drop by 50% over the next 12 months. It showed 15% of publishers saying they would have to leave their business premises if sales continued in this way, with 5% reporting they would have to think of redundancies and cutbacks

The report also revealed Scottish book distributor Booksource had seen its income drop 65% and “was in danger” before receiving a grant from the £45m Pivotal Enterprise Resilience Fund for SMEs set up by the Scottish government.

The organisation said, because publishers work months and years in advance, “forward programmes and books to aid recovery in the future are in danger as staff are furloughed, printers are shut, and sales income dries up”.

There was also particular concern for freelances and about sales from heritage and tourist outlets, which some Scottish publishers rely on for up to a quarter of their annual sales. Members had also expressed frustration over the difficulty in getting funds from the Creative Hardship Fund.

The group said it supported a co-ordinated infrastructure fund and also recommended a digital development fund to help Scottish publishers reach new audiences.

Publishing Scotland concluded: “We will be living with the coronavirus for some time to come and it seems to us vital that we have a publishing sector at the end of this. As it stands, this sector, which punches far above its weight on the UK and international stage, is under threat."

C.e.o. of Publishing Scotland Marion Sinclair told The Bookseller a bid had now been made for funding to the Scottish Government Culture division on behalf of the publishing sector, asking for a renewal fund which includes money for digital development and help for the independent publishing sector.

She said: “Indie publishing is already rather fragile so this bid is being made in the context of the contribution that writers and publishers make to the culture of Scotland and elsewhere, and making the argument that writers, illustrators, bookshops, distributors, freelance workers etc all depend on a thriving sector. We have made such strides forward in the past 30 years in Scottish publishing that it would be a real loss if the publishing companies here — which can take years to gain experience, credibility, visibility in the market, and a backlist to support them — were to falter. The bid calls for a phased fund extending over the next 18 to 24 months as the fall-out from the virus and resulting economic decline will take time to recover from.”

The sector bid has been put together with colleagues from other creative industries and Creative Scotland following consultation with publishers and others. Publishing Scotland is also part of Culture Counts, a cross-cultural advocacy organisation that has bid for an infrastructure fund.