About 98 publishers in the UK have shut their businesses during the last year, up 42% compared to 2011, as huge retail discounts and advanced digital business models, such as Ebooks, squeeze their profit margins.
The affected publishers include Enid Blyton’s publisher from the 1930s to the 1960s, Evans Brothers, and Panos London, according to a new report compiled by accountancy company Wilkins Kennedy from Companies House reports for the year ending 31 August 2013.
The bulk of the publishers who shut shop are associated with book businesses also include publishers of newspapers, journals, periodicals and directories.
Wilkins Kennedy partner Anthony Cork was cited by the Guardian as saying that the growth of the internet has accelerated a dynamic that started with the end of the Net Book Agreement.
"The rise of Amazon and other discount sellers with massive buying power means the pressure on publishers’ margins is now immense," Cork said.
"While publishers might be able to sustain relatively small margins on a bestseller, it is much harder for niche publishers."
According to UK Publishers Association, the growth in sales of ebooks, priced at about £3 or less than £5.50 for a paperback, has also damaged the publishers’ margins.
In 2012, UK consumer ebook sales reported 134% growth to £216m, but the print sales dropped by 1% to £2.9bn, denoting that consumer ebook sales currently stand for 7.4% of overall sales of book publishers.
