Digital distribution makes things worse, part 1

Page one, WSJ, unintended consequences of the e-book:

It has always been tough for literary fiction writers to get their work published by the top publishing houses. But the digital revolution that is disrupting the economic model of the book industry is having an outsize impact on the careers of literary writers.

Priced much lower than hardcovers, many e-books generate less income for publishers. And big retailers are buying fewer titles. As a result, the publishers who nurtured generations of America's top literary-fiction writers are approving fewer book deals and signing fewer new writers. Most of those getting published are receiving smaller advances.

"Advances are down, and there aren't as many debuts as before," says Ira Silverberg, a well-known literary agent. "We're all trying to figure out what the business is as it goes through this digital disruption."

Much as cheap digital-music downloads have meant that fewer bands can earn a living from record-company deals, fewer literary authors will be able to support themselves as e-books win acceptance, publishers and agents say.

Cool facts:

A new $28 hardcover book returns half, or $14, to the publisher, and 15%, or $4.20, to the author. Under many e-book deals currently, a digital book sells for $12.99, returning 70%, or $9.09, to the publisher and typically 25% of that, or $2.27, to the author.

The upshot: From an e-book sale, an author makes a little more than half what he or she makes from a hardcover sale.

The lower revenue from e-books comes amidst a decline in book sales that was already under way. The seemingly endless entertainment choices created by the Web have eaten into the time people spend reading books. The weak economy also is contributing to the slide.

"We aren't seeing a generation of readers coming along that supports writers today the way that young people supported J. D. Salinger and Philip Roth when they were starting out."

Go ahead, buy that Kindle: You'll help insure that 'popular' culture is all that's left...