Number of publishers forced out of business shows sharp increase The rise of ebooks and pressure from important retailers to discount titles are forcing increasing numbers of British publishers out of business, according to research by Wilkins Kennedy, the accounting firm . Ninety-eight publishers of books, periodicals and other materials became insolvent in the year to the end of August 2013, the accountants found, after analysing data from Companies House. That figure is up from 69 in the year to August 2012, and 36 the year before that. IN Media The figures emphasise how the digitisation of commerce and reading present both a challenge and an opportunity to publishers across the fragmented sector, making it easier to reach out to readers but also more difficult to make money from them in a crowded market. "The rise of Amazon and other "discount" sellers with massive buying power means the pressure on publishers" margins is now immense," said Anthony Cork, partner of Wilkins Kennedy. Most of the insolvencies were small businesses - including Evans Brothers Limited, the company that first published books by children's writer Enid Blyton. It eventually moved into educational materials and closed in September 2012. But while the buying power of Amazon might force book publishers to sell at lower prices, it also "provides a route to market for smaller players that find it difficult to get their books stocked" by high-street retail chains, said Angus Phillips, director of the Oxford International Centre for Publishing Studies. He noted that many of the insolvencies mentioned in the study do not deal in books, but offer products such as magazines and business-to-business titles that are hard-pressed in areas such as advertising. "The last few years have seen some tough trading conditions, with consumer spending very sluggish and difficult conditions on the high street," said Richard Mollet, chief executive of the trade body the Publishers Association, which covers books and academic journals. But the overall picture for the sector is one [which allows] for some optimism. Mr Mollett said UK revenues for his part of the sector were up by 3.3 per cent in 2012. There are about 2,500 such publishers in the UK - many of which are microbusinesses, for whom self-publishing poses the greatest threat, he said. In 2012 Britain published 2,450 books per million people - more than any other country, according to a recent study by the International Publishers Association. Boutique publishers enjoy some advantages over medium-sized rivals, said Tom Chalmers, chief executive of Legend Press, the independent UK book publisher. "Margins are hard, but for a small publishing company, there is less overhead once you're out there," said Mr Chalmers. He said his nine-person company avoids having to print and to warehouse a huge amount of stock, and can be more sharply focused in exactly how they choose to market fewer titles.