The All-Party Parliamentary Group on Publishing: Call for Evidence RESPONSE FROM THE INDEPENDENT PUBLISHERS GUILD
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1 The All-Party Parliamentary Group on Publishing: Call for Evidence RESPONSE FROM THE INDEPENDENT PUBLISHERS GUILD 1 ABOUT THE INDEPENDENT PUBLISHERS GUILD 1.1 Membership The Independent Publishers Guild (IPG) was founded in 1962 as an association for independent publishers in the UK and Ireland. It has more than 600 members, ranging from long-established international publishing brands to cutting-edge start-ups and SMEs. IPG members publish in every sector of the industry, including trade, children s, education, academic, professional and numerous specialist areas. Membership is currently the highest in the IPG s history a reflection of both our value to the industry and the vibrancy of independent publishing in Role The IPG exists to help its members become even better publishers and businesses. We provide a wide range of popular events and resources, including two major annual conferences, a Skills Hub portal of training and professional development resources, extensive networking opportunities, awards, bulletins, business support helpline and collective stands at international book fairs. 1.3 About this submission This submission to the All-Party Parliamentary Group on Publishing is partly based on surveys of members, including one conducted in March 2018 and one shortly after the EU Referendum in July While the IPG cannot speak for all its members, we seek to address some of the issues currently faced by the independent publishing industry in the UK. 2 ABOUT INDEPENDENT PUBLISHING 2.1 Value Independent publishing is one of the most creative, innovative and entrepreneurial sectors of the UK s creative industries. It makes an enormous contribution to the cultural, educational, academic and professional life of the country. The IPG s membership is extraordinarily diverse and wide-ranging, enhancing every conceivable sector and niche of UK book and journal publishing. 2.2 Scale The 2017 Harbottle & Lewis Independent Publishing Report for the IPG estimated that our publishing members have a combined annual turnover of around 1.1 billion. This does not represent the totality of the independent sector s value, since not all independent publishers are members are the IPG. 1
2 Independent publishers have flourished in recent years, despite multiple challenges to the market. Analysis by the Bookseller and Nielsen BookScan at the start of 2018 calculated that independent publishers increased their sales through UK retail channels by 2.7% in 2017, compared to overall growth of just 0.2%. 2.3 Location The rich diversity of independent publishing is reflected in the locations of the IPG s member companies. In contrast to the country s largest publishers, based almost exclusively in London, independent publishers operate across the whole of the UK. From the northern reaches of Scotland to the far south west of England, independent publishers are truly representative of the UK s breadth of cultures. There are particularly vibrant communities of independent publishers in cities including Oxford, Manchester, Leeds and Edinburgh, and other SMEs in far-flung rural locations. Many are important employers in their regions, and they give voice to writers from regions of the UK who are badly under-represented by London-based publishers. 2.4 Cultural contributions Independents are among the UK s boldest and forward-thinking literary publishers. Books published by IPG members have won the Man Booker Prize for Fiction in each of the last three years, and in six of the last ten. Independents published nine of the 13 books on the longlist for the 2018 Man Booker International Prize, and have won numerous literary awards over the last year. This demonstrates independent SMEs willingness to take risks on books that might otherwise not be published, and to bring under-represented voices from the UK and overseas to the attention of readers. 2.5 Educational and academic contributions Independent publishers make vital contributions to the UK s educational and academic sectors. They include companies publishing important resources for teachers and pupils in primary schools, while independent university presses and other academic publishers are integral to research and learning across the sciences, humanities and arts. The role of independents is particularly significant in niche subjects, which are often underserved by larger publishers. 2.6 Innovation As publishing adopts new digital technologies, independents have proved to be among the UK s most innovative and ambitious. More than two thirds (70%) of all titles published by IPG members are now available in digital formats. From ebooks to apps to digital retail and subscription platforms, independents have been at the cutting edge of digital adoption. 3 BREXIT 3.1 Attitudes Independent publishers were overwhelmingly opposed to Brexit. Ahead of the EU Referendum, an IPG survey indicated that more than nine in ten of our 2
3 members favoured remaining in the EU. The Harbottle & Lewis Independent Publishing Report found that only 4% of members think they will be better off as a result of Brexit. 3.2 Impact on sales The fall in the value of sterling since the EU Referendum has had both positive and negative impacts on independent publishers. Some IPG members have reported that the favourable exchange rate has helped them to increase exports to Europe, North America and elsewhere in the short-term. We discuss the impact of Brexit on exports in more detail below. It is hard to measure the impact of Brexit on domestic sales. Independent publishers increased their sales in 2017 (see above), but any Brexit-related impacts on the UK economy, and the confidence and spending of consumers, would clearly present a challenge to the publishing and book retail sectors. 3.3 Impact on costs The majority of IPG members book production costs have risen since the EU Referendum significantly in some cases. Many publishers source printing, paper and other pre-publication services from overseas, and are therefore vulnerable to any exchange rate fluctuations. It has also become more expensive for UK publishers to secure rights from overseas publishers and agents. 3.4 Impact on staff Many independent publishers are alarmed about the impact of Brexit on the freedom of movement of workers. IPG members employ talented staff from EU countries, and uncertainty about their future status in the UK is an unwelcome deterrent to both these and prospective employees. Similarly, any restrictions to freedom of movement may reduce publishers ability to move staff between international offices. 3.5 Impact on the Digital Single Market Brexit also raises uncertainty about the future of the UK s participation in the EU s Digital Single Market. Independent publishers had broadly welcome this initiative as an opportunity to promote their rich variety of cutting-edge digital content and services in EU member states. They would welcome assurances that they will be able to play an active part in the Digital Single Market as it evolves. 3.6 Impact on cultural exchange Independent publishers are at the heart of the UK s cultural exchange with other countries. Their close collaboration with overseas publishers and authors ensures that UK readers enjoy access to a wide variety of literature in translation from around the world. By exporting books and selling rights, they also help UK authors to access global markets. EU-related grants have supported some publishers translations, and we hope that this important work can continue to be adequately supported. 3
4 3.7 Impact on academic publishing Brexit has particular implications for academic publishers, and we discuss these in more detail below. 4 EXPORTS 4.1 Scale Through both export sales and rights, independent publishers are very active internationally. The 2017 Harbottle & Lewis Independent Publishing Report found that IPG members generate an average of 29% of their sales from outside the UK. Four in five (83%) members export books, and they make a ninth (11%) of their turnover from rights sales. The UK is the world s biggest exporter of physical books, and SMEs are a major but sometimes forgotten contributor to the diversity of these exports. 4.2 Markets UK publishers are well established in mature export markets including Europe and North America, and are achieving growth in emerging territories including China, India and other Asian countries. 4.3 Impact of Brexit As outlined above, there is concern that Brexit may increase the costs and complexity of exports. Independent publishers currently enjoy close trading relationships with European countries, and wish to see them continue after the UK leaves the EU. They are anxious that trading with EU countries does not incur additional customs duties or administrative costs, and does not now suffer from increased administrative burdens and higher cost of travel. Any additional costs and red tape would compromise independent publishers abilities to invest in their publishing and staff. Brexit also casts unwelcome doubt on the ability of UK publishers to secure English-language rights to books sold in EU countries. Changes to trading arrangements may open up the market to publishers from the US and other English-speaking territories, and so damage UK publishers exports. 4.4 Support Publishers would value any and all support for increasing their exports, including tax and other financial incentives and practical help to identify and investigate potential new markets. Grants from the Department for International Trade to attend overseas book fairs have been useful to some independent publishers, and an extension of this programme would be welcomed. Like most businesses, independent publishers would appreciate clarity on the UK s post-brexit trading arrangements as soon as possible. Many IPG members would be very pleased to see the UK remain in the European Single Market and Customs Union, in order to keep barriers to export to an absolute 4
5 minimum. Publishers currently enjoy fair and smooth access to European markets, and we would like to see post-brexit trading remain as close as possible to arrangements that were in place prior to the EU Referendum. 5 COPYRIGHT AND INTELLECTUAL PROPERTY PROTECTION 5.1 Current protection Our recent survey of IPG members indicates that independent publishers are broadly satisfied with the level of copyright and Intellectual Property protection in the UK. Some publishers dislike some exemptions from copyright, especially under the Fair Use principle, but across the sector there is general agreement that the copyright framework maintains a fair balance between the needs of the creators of content and the users of it. Independent publishers value the support of industry bodies including Publishers Licensing Services and the Copyright Licensing Agency in supporting collective licensing of content and promoting the importance of copyright. 5.2 Piracy Like all publishers, members of the IPG experience piracy of their content, both in the UK and overseas. They use a variety of methods to combat piracy, including third-party takedown service providers, but do not have the resources to monitor and action every instance of infringement. They would welcome any initiatives from government and internet service providers that could increase protection and deter pirates, especially those operating illegal file-sharing platforms. 5.3 Future protection Brexit presents an opportunity for the UK to commit to a rigorous framework of copyright law that protects publishers and other creators of intellectual property and provides strong safeguards against infringement and piracy. As the UK negotiates its withdrawal from the EU, we urge the government to ensure that copyright protection remains at least as robust as it is now. Any changes to the IPG policy environment should consider the legitimate interests of publishers both large and small, whose interests may not always coincide. Publishers would also value any campaigns or initiatives to educate people about copyright and remind them of its importance in the creation of all artistic and educational content. 6 EDUCATION AND RESEARCH 6.1 Independent publishers contributions Across schools, colleges, universities and other institutions, independent publishers make an enormous contribution to education in the UK. They publish into niches of education that are under-served by larger publishers, and have been notable innovators in the provision of content for new methods 5
6 of digital learning. They are central to the UK s position reputation as a global leader in academic research. And they are integral to the maintenance of a literate and educated population who enjoy reading. 6.2 Funding The success of independent publishers in the education and academic sectors is very closely tied to government funding for schools and Higher Education. Budget cuts present the biggest single challenge to their ability to serve pupils and teachers, and their capacity to invest in future educational content. Independent publishers call for proper and sustained long-term funding for all primary and secondary schools and Higher Education in the UK. 6.3 Impact of Brexit Brexit has had two significant impacts on independent academic publishers: around funding and freedom of movement. EU programmes have hitherto been an important source of research funding, strengthening the UK s position as a world leader in many fields. Any reductions in funding as a result of Brexit will compromise publishers contributions to rigorous academic publishing and debate. We urge the government to ensure that cuts in research funding are minimized and mitigated. Academic publishers also benefit from the large numbers of overseas students attending UK universities and colleges. Any changes to the status and freedom of movement of EU nationals and to universities scholarships and bursaries risk reducing the number of students choosing the UK for their studies. This would compromise publishers ability to serve all university students and academics. 6.4 Open Access Open Access has been an important development in academic publishing, and independent publishers have responded with innovative new models of making their content accessible to more readers. Membership of the EU has allowed the UK to exert influence over the Europe-wide development of the Open Access model, and Brexit casts uncertainty over its future role in academic research and publishing. We hope the government will ensure that the needs of publishers are paramount in the evolution of Open Access post- Brexit. At the same time, recent Open Access policy statements from HEFCE and UKRI pose real challenges for many small and independent publishers, and it is vital that proper dialogue is established if the world-class status of academic research generated from the UK, and the world-class status of academic publishing based in the UK the two are relational and not coincidental is to be retained. 6
7 7 LITERACY AND ACCESSIBILITY 7.1 Support of literacy Independent publishers are among the UK s most important contributors to literacy. Independents are particularly strong in children s books, and lead the industry in the promotion of diversity and exposing children to different cultures and beliefs. 7.2 Accessibility of books Independent publishers strive to make content available to as many users as possible, including the visually and physically impaired. They would welcome further funding to support the adaptation of content in various ways so that books can be accessible to all. 7.3 VAT Print books are zero-rated for VAT in the UK, and this contributes greatly to the accessibility of publishers content. However, ebooks currently attract the full rate of VAT an anomaly that compromises access to reading on digital platforms. The majority of IPG members would like to see digital content benefit from the same zero-rating that is afforded to print books, and Brexit negotiations present an opportunity to achieve this. 7.4 Bookselling Independent publishers are passionate supporters of their counterparts in independent bookselling as well as specialist chains. They are active in numerous initiatives including World Book Day and Independent Bookshop Week. In common with bookshops and the Booksellers Association, independent publishers would value greater support for high street booksellers, especially via a fairer rates system. They would also welcome initiatives to regenerate UK high streets through tax breaks and other incentives, and equitable taxation across the book retail sector. 7.5 Libraries In common with most publishers, IPG members have observed the prolonged series of closures of public libraries with dismay. They would like to see far greater recognition from government of libraries value to literacy, culture and education, and more adequate, sustained funding from local authorities for the public library service. 7.6 Support of independent publishers Independent publishers are at the heart of UK publishing. They are integral to the promotion of literacy and accessibility to books, journals and research, and are leaders of innovation and change in publishing. The IPG would welcome acknowledgement of our members enormous contributions to the UK s economy, culture and education; a full appreciation of the distinct issues facing SMEs and start-up publishing businesses in 7
8 particular; and any measures that can further enhance the outstanding work of independent publishers. The IPG would be pleased to provide any further evidence to the All-Party Parliamentary Group on Publishing on request. Please contact or call Bridget Shine Chief Executive, IPG March
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