Book publishers and exclusive agents

The book industry saw substantial growth in 2000/01, with increases in revenues, sales and the number of new titles issued. Book publishers and exclusive agents recorded revenues of more than $2.4 billion in this period.

The 672 firms active in Canadian book publishing recorded revenues of more than $2.4 billion in the 2000/01 fiscal year, up 9.4% from the previous survey results in 1998/99 and a 20.0% increase from 1996/97.

Many new titles entered the Canadian marketplace in 2000/01. Book publishers produced 15,744 new titles and reprinted 12,053 existing titles, an increase of over 13% from 1998/99 and over 47% from 1996/97. Textbooks and trade books each accounted for a third of the production.

Two other developments marked a reasonably strong year for the industry. First, sales from exports increased at twice the pace of domestic sales. Secondly, the share of sales made by foreign-controlled book publishers jumped.

While foreign-controlled firms represented 4% of the 672 companies, they accounted for 46% of total book sales that year. This was up from 43% in both 1996/97 and 1998/99.

Overall, publishers and exclusive agents in Canada generated a pre-tax profit of $167.8 million, or 6.9% of revenues in 2000. Two years earlier, pre-tax profit was $137.4 million, or 6.2% of revenues. However, only 56% of firms showed a profit in 2000/01.

Foreign-controlled firms accounted for $82.8 million of pre-tax profits, just under one-half the total. These firms employed nearly one-third of all full-time employees and had 35% of the industry payroll.

Publishers and agents employed 8,635 full-time and 1,638 part-time employees. They paid out $423.1 million in salaries, wages and fees to employees, contractors, consultants and other outside workers.

Profitability significantly lower for Canadian publishers

Profitability for Canadian-controlled publishers was significantly lower in 2000/01 than it was for their foreign-owned competitors.

Canadian-controlled firms generated a pre-tax profit of $85.0 million in 2000/01, or 5.5% of revenues. On the other hand, their foreign competitors generated a pre-tax profit of $82.8 million, or 9.5% of revenues.

Two-thirds (67%) of foreign-controlled publishers showed a profit, compared with just 56% of their Canadian-owned counterparts.

Domestic sales for foreign-controlled publishers also rose at a significantly faster pace than those for Canadian firms.

Canadian-controlled publishers and exclusive agents had sales in Canada of $968.5 million in 2000/01, up 1.3% from two years earlier. Foreign-controlled firms showed much greater growth, with sales in Canada rising by 15.8% to $846.2 million.

Overall, Canadian-controlled publishers generated 64% of total revenues for the industry in 2000/01, down from 66% in both 1996/97 and 1998/99.

Exports grew at twice the pace of domestic sales

Sales from exports increased at twice the pace of domestic sales from 1998/99 to 2000/01, according to the survey.

In 2000/01, the industry sold products in Canada worth $1.8 billion, up 7.6% from two years earlier. However, sales from exports reached $154.8 million, up 16.2%. The large majority of these export sales, $133 million, was generated from sales of publishers' own titles. The United States continued to be Canada's biggest foreign market.

Exports by foreign-controlled firms almost doubled to $8.4 million, while exports by Canadian-controlled firms rose 13.6% to just over $146.4 million.

The language of titles had a direct and obvious effect on the accessibility of markets for books. For English-language publishers, 78.8% of their export revenues were earned in the United States. For French-language publishers, France accounted for 63.5% of export sales, and the United States for 15.6%.

Canadian publishers earned an additional $313 million from the sale of books printed and sold outside of Canada.

Growth in titles for foreign-controlled publishers mainly in textbooks

Foreign-controlled companies published 2,208 titles in 2000/01, up from about 1,800 two years earlier. These titles represent just 14% of those published in Canada in 2000/01; however, this is a greater proportion than in 1998/99, when they represented 13% of titles available.

The largest increase for foreign-controlled publishers was in sales of their own titles, which grew to 47% of their book revenue, compared to 31% in 1996/97 and 33 % in 1998/99. The increase came primarily from the sale of textbooks.

Canadian-authored children's and trade book titles growing

Overall, Canadian authors are major players in the book industry in Canada, involved in about 72% of new titles published. In particular, the textbook market has become a stronghold for Canadian authors; they were involved in the creation of 98% of all new textbooks.

Foreign authors were the main players in mass-market paperbacks, as only 15% of these types of trade books had domestic origins.

Coming up the middle were trade publications and children's books, of which Canadians authored 61% and 66% respectively.

Exclusive agents accounted for nearly half of book sales

Of the total of 672 book publishers and exclusive agents in 2000/01, 515 were publishers only and 45 were strictly exclusive agents. A total of 112 firms combined both activities. About 78% of exclusive agents were Canadian-owned.

Although less than one-quarter of firms were involved in some form of exclusive-agency activity, their sales accounted for 47% of the $1.8 billion in sales revenue earned in Canada.

Government grants have an effect on the bottom-line

Canadian-controlled publishers received $48 million in government grants in 2000/01, which represented about 56% of their pre-tax profits of $85.0 million.

Definitions, data sources and methods: survey number 3105.

Selected information from the Survey of Book Publishers and Exclusive Agents is now available in table format (87F0004XDB, $50; 87F0004XPB, $50). These tables include breakdowns by province, language of publisher and country of control. Custom tabulations are available on a cost-recovery basis. A summary of the data up to 1996/97 appears in Canada's culture, heritage and identity: A statistical perspective (87-211-XPB, $31).

The first release of financial results for the book publishing industry, as defined by the North American Industry Classification System (NAICS 5511130) will be released next month by the Service Industries Division.

For general information, or to order standard or custom tabulations contact Client Services (1-800-307-3382; cult.tourstats@statcan.gc.ca). To enquire about the concepts, methods or data quality of this release, contact Tom Gorman (613-951-3498; fax: 613-951-1333; tom.gorman@statcan.gc.ca), Culture, Tourism and the Centre for Education Statistics.