Click to read the article at Digital Book World
To look at publisher earnings this way is a mistake. Most books barely earn their advance back and create very little if any profit for the publishers (easy to note by listening to all the stories from published authors who don’t sell as many books as they’d.) The Big 5 houses’ bottom line is generally dependent on huge hit franchises like The Hunger Games and Harry Potter.
Reports on these franchises making a crucial difference in a publisher’s annual income are regularly seen in the trade publications. Publishing remains a high risk business with a low profit margin on almost every “product” sold. Amazon, in comparison, is not in the business of relying on book sales for profits, and has willingly lost money on discounted books in order to lure customers through the doors. This has seriously damaged the ability of publishers and booksellers, who rely solely on book sales, to compete.