• Big-5 publishers are massively reliant on their most established authors to the tune of 63% of their e-book revenue.
• Roughly 46% of traditional publishing’s fiction dollars are coming from e-books.
• Very few authors who debut with major publishers make enough money to earn a living—and modern advances don’t cover the difference.
• In absolute numbers, more self-published authors are earning a living wage today than Big-5 authors.
• When comparing debut authors who have equal time on the market, the difference between self-published and Big-5 authors is even greater.
In this report, we will also reveal how e-book earnings represent roughly 64% of a traditionally published fiction author’s income, and therefore why authors should focus less on statistics geared toward publisher earnings and trade bookstore sales and consider their own incomes instead. Finally, we will tackle the difficult question of just how many authors are earning a living wage today. The results are sobering.
This final chart reveals a startling insight: If the Big 5 hadn’t signed a new author since 2009, and simply released new works from their long-established authors, they would still be making 63% of the e-book revenue that they are making today. Ownership of backlist and long-tenured authors is quite clearly big publishing’s most powerful commodity.