Simon & Schuster had a strong third-quarter showing, although all major accounts have reported that in-store "traffic is down, and what traffics is in there seems to by buying the tried and true.... They're not buying the second book," according to CEO Carolyn Reidy.
"[T]he brands and name authors and that are landing are selling," says Reidy. She adds, "backlist is where we are seeing the dropoff and that is worrisome, obviously, because it is a very profitable part of our list." Also, "we remain optimistic that books will remain recession-proof, as everyone wants to believe, yet we are very much preparing ourselves for having to face an extremely difficult market."
More than halfway to their announced goal at BEA of making another 5,000 titles available for sale as ebooks, there was "a little bit of a delay because we're having to work through the terms" for electronic rights they did not already control. S&S proposes royalties of 15 percent of the catalog retail price of the e-book, and Reidy says "we're in the midst of some discussions" on those rates.
Parent company CBS will be discounting book value, amid a slumping market for TV and radio stations.
(See previous article for news about Random House and e-book royalties.)
Canada's Harlequin "had a solid quarter and remains on course for a good year of growth," even as the economy weakens, although "we remain concerned that the US economy could have a negative impact on Harlequin's results, but to date there is no evidence of this."
The weaker Canadian dollar makes US sales more valuable, although accounting also has the firm losing money in foreign exchange.