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Random House Memo

Random House Memo - 3 Impacts of Consolidation 1 How is...

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MEMORANDUM TO: Isin Guler FROM: Josh Kahn DATE: October 27, 2008 RE: Random House Memo The purpose of this memo is to Value Distribution in Publishing Value Chain Exhibit 6b gives gross profits for individual hardcover book title: 25% is royalties, 25% is fixed and printing costs Merits to Consolidation 1) Economies of scale in printing (all under one roof) 2) More control over distributors/retailers a. Could compete better with places like B&N that were setting up in-house operations
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Unformatted text preview: 3) Impacts of Consolidation 1. How is value distributed among the various players in the publishing value chain? 2. What are the merits to consolidation in book publishing? How large or small are these benefits? 3. In your opinion, are there reasons to believe that consolidation has a deleterious impact on the quality or variety of books being offered? Is the impact of consolidation on product variety any different here than in other industries?...
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