[This is the preface to the newly published "The Business of Books" by
Andr� Schiffrin, who was chairman of the very distinguished Pantheon Press
until it was bought by Si Newhouse Jr.'s Random House. After it was gutted,
it was sold to the highest bidder. Under Schiffrin, Pantheon Press
published people like Studs Terkel, Noam Chomsky, Gunnar Myrdal, Eric
Hobsbawm and E.P. Thompson and always made money.]

WHEN RANDOM HOUSE bought the venerable publisher Alfred A. Knopf in 1960,
the story was reported on the front page of the New York Times. Its
appearance caused the attorney general�s office to call Bennett Cerf, the
head of Random House. On learning that the total value of the merged houses
was under $55 million and that their combined share of the market did not
reach even r percent of total sales, the official expressed surprise that
the story should have been given such prominence. Just the other week a
similar story made the front page of the Times and other papers around the
world. AOL�s purchase of Time Warner was given full headline treatment, and
no one doubted that the $65 billion deal was a major turning point in the
history of corporate control of communications. On this occasion, however,
the attorney general�s office was not on the phone, and every indication
suggested that the deal would go through, unhindered by antitrust litigation.

One had to search far into the story to see the small part book publishing
played in the AOL purchase, $1.1 billion to be exact. Book publishing, with
total annual sales of $23 billion in the United States, is becoming
increasingly engulfed in a corporate media structure, where individual
companies are worth more than the entire book market. (The AOL purchase
price was more than seven times the value of all books sold in America last
year. Publishing is rapidly becoming a minor part of the overall
communications industry.)

Hardly a week goes by without a new takeover or amalgamation. In the last
few months, HarperCollins, owned by Rupert Murdoch, purchased the remnants
of the Hearst publishing effort � a move that brought William Morrow and
Avon Books into the American holdings of News Corporation. Two months after
the takeover, HarperCollins dismissed eighty of Morrow�s two hundred
employees. The announcement of plans for shared warehousing and other
facilities led many to predict Simon & Schuster�s absorption into
HarperCollins as well. On the other side of town, the German firm of
Bertelsmann began the process of consolidating its vast holdings, firing a
large number of major executives and assimilating overlapping parts of its
empire. Bertelsmann also began negotiations to merge its book clubs under
the general direction of The Literary Guild, with the Book-of-the-Month
Club now owned by Time Warner. Today, five major conglomerates control 8o
percent of American book sales. In 1999, the top twenty publishers
accounted for 93 percent of sales, and the ten largest had 75 percent of
revenues.

Time Warner, which owns Little, Brown and Company as well as the
Book-of-the-Month Club, is the largest of the media conglomerates, with
close to $31 billion in sales. It is followed by Disney, whose publishing
house is Hyperion, with $24 billion, and now Viacom/CBS, which still owns
Simon & Schuster, with nearly $19 billion. Bertelsmann earns $16 billion,
34 percent of which comes from the United States, and all of which derives
from publishing and music. Murdoch�s News Corporation is the smallest of
the big five, with $14 billion, of which HarperCollins accounts for a mere
$764 million.

These media empires have grown very rapidly. In 1988, Disney took in less
than $3 billion a year, primarily from its films and amusement parks; Time
only $4 billion; and Warner just $3 billion. Viacom did a paltry $600
million worth of business just twelve years ago. The growth of these giants
is due largely to takeovers that have left very few publishing houses
independent, as we shall see.

Now that virtually all of American life is affected by the seemingly
never-ending growth of large corporations, it is fair to ask how much all
of this matters. Is what we are witnessing truly something new or merely a
variation on an old theme? Will it change fundamentally the way we read and
what books are available to us? After all, some seventy thousand books were
published in the United States last year. Is that not enough for every
conceivable taste?

Large publishers have always been with us. And looking back to the
nineteenth century, we see substantial book sales then, too � numbers that,
in proportion to population, are often greater than today�s. But the story
of publishing is much more than a list of sales figures. The important
questions are what was being published, what choices were available, and
what new ideas, whether in fiction or nonfiction, were being offered to the
public. The story also raises issues about the relationship of high culture
to mass audiences during a still-evolving industrialization. How were the
book houses themselves transformed and what was the effect of the changes
on people working in publishing?

It would have been helpful in writing this book if extensive research were
available to document the specifics of these changes. Unfortunately, very
few general histories of American publishing exist and these are generally
broad surveys. There are a few memoirs � surprisingly few�a handful of
biographies of famous American and British publishers, and a few corporate
histories. Some, like Eugene Exman�s book on Harper�s, are admirably frank
and fascinating; others are more in the nature of public relations
exercises. For the most part, this book is based on my own experiences in
publishing. I have also spoken with a large number of my colleagues, both
in the United States and abroad, about how their careers have been altered
by the changes in the industry.

I want to describe a small but, I hope, indicative part of this story.
focusing on how American publishing has changed over the last half century.
I will begin in the early 1940s, when my father, Jacques Schiffrin, helped
to found a small exile publishing house in New York called Pantheon Books,
which, in the twenty years of its independent existence, brought much
European writing to the United States. For reasons I�ll describe later, I
found myself unexpectedly following in his footsteps. In the thirty years I
worked at Pantheon I saw both the achievements and failures of independent
publishing and its ultimate disappearance as a major force. The
developments of recent years have shown that the Pantheon story was not as
unique as many initially thought. It is of interest as an early example of
a pattern that has now become commonplace.

Before starting at Pantheon, I worked for one of the large American
mass-market paperback houses, the New American Library, which was owned and
inspired by the British company Penguin Books. This experience informs my
understanding of the transformation of mass-market publishing, particularly
in the United States and Britain, something I consider to be an important
chapter in the history of mass culture. A decade ago, after leaving
Pantheon, I started a small, independent, public-interest publishing house,
The New Press, whose first years suggest a possible alternative to the
increased conglomerate control of publishing.

IN EUROPE and in America, publishing has a long tradition as an
intellectually and politically engaged profession. Publishers have always
prided themselves on their ability to balance the imperative of making
money with that of issuing worthwhile books. In recent years, as the
ownership of publishing has changed, that equation has been altered. It is
now increasingly the case that the owner�s only interest is in making money
and as much of it as possible. It is widely assumed today that approaches
employed lucratively in the entertainment industry will yield similar
results when applied to publishing. The standards of the entertainment
industry are also apparent in the content of best-seller lists, an
ever-narrower range of books based on lifestyle and celebrity with little
intellectual or artistic merit.

In the first half of the twentieth century, the assumption that most people
only want diversion did not always hold sway (though both George Orwell�s
1984 and Aldous Huxley�s Brave New World, written in the 1930s and 1940s,
were most perceptive in envisaging such a society). This was a time when
many publishers clearly saw it as their mission to reach a large audience
through serious work. During World War II, publishing shared in the
mobilization of the population, aiming to support the war effort as well as
entertain soldiers and wearied production workers. This sense of optimistic
civil engagement persisted until the beginning of the Cold War, when
publishing largely followed the lead of other media in drawing the battle
lines in an increasingly polarized world.

The end of the Cold War has not had a beneficial intellectual influence on
publishing or, indeed, on any of the other media. We have lost much of our
curiosity about the communist world and the Third World, curiosity that
once provided raw material for a great many important books. But we have
seen the development of a new ideology, one that has replaced that of the
Western democracies against the Soviet bloc. Belief in the market, faith in
its ability to conquer everything, a willingness to surrender all other
values to it � and even the belief that it represents a sort of consumer
democracy�these things have become the hallmark of publishing.

It is safe to say that publishing has changed more in the last ten years
than in the entirety of the previous century. These changes are most
obvious in English-speaking countries, which are in many ways models of
what is likely to happen in the rest of the world in the coming years.
Until quite recently, publishing houses were for the most part family owned
and small, content with the modest profits that came from a business that
still saw itself as linked to intellectual and cultural life. In recent
years, publishers have been put on a procrustean bed and made to fit one of
two patterns: as purveyors of entertainment or of hard information. This
has left little room for books with new, controversial ideas or challenging
literary voices.

More about this process will be found later in this book, but for now it is
worth noting just how large the business has become. The media industries
are vital to the American economy; they are second only to the aircraft
industry in generating the nation�s exports. Given the major role that the
military has had in developing and maintaining American aviation, it may be
said that media products are the largest civilian export. Some 50,000
entities are still recognized by the Library of Congress as publishers.
About 5 percent of those, or 2,600, are substantial enough to be recognized
by the Association of American Publishers, the trade association. In 1998
close to 2.5 billion books were sold in the United States � far more than
in any other Western country � earning some $23 billion. But sheer size
does not guarantee diversity of content. On the contrary� more and more of
the books published duplicate each other. And although the United States�
title output (70,000 new books a year) looks impressive at first glance, it
is actually lower per capita than many other countries�. An equal number of
books is published in England, which has one-fifth of America�s population.
France, with a population roughly a quarter of the U.S.�s, issues 20,000
titles, while Finland produces 53,000, of which 1,800 are fiction.

If we look back into America�s past, it�s surprising to see how much
healthier book publishing used to be. In the 1940s, for example, an average
issue of the New York Times Book Review was sixty-four pages long, twice
the length of the current Sunday section. Hundreds of publishing houses had
books reviewed and advertised in those pages. The infrastructure of small
publishing houses and independent bookstores and book clubs that existed in
the 1940s was capable of reaching a very large audience effectively. The
changes of recent decades have not been motivated by the need for higher
efficiency or greater effectiveness. They have come about through a change
of ownership and purpose.

In the 1850s, Harper�s boasted that "literature has gone in pursuit of the
millions, penetrated highways and hedges, pressed its way into cottages,
factories, omnibuses and railway cars and become the most cosmopolitan
thing of the century." Popular novels like those of now-forgotten Mary Jane
Holmes sold some 2 million copies, and were reprinted in batches of 50,000
� this when the country�s population was one-twentieth of what it is now.
James Hart�s very useful history, The Popular Book: A History of America's
Literary Trade, is filled with figures that are astonishing by today�s
standards. Books not only had enormous sales but exercised powerful
influence. One of the most famous opinion-changers, Uncle Tom's Cabin, sold
500,000 copies in its first months and 300,000 in its first year (the
equivalent of 6 million copies today), galvanizing public opinion against
slavery. Miners in the gold fields of California would pay twenty-five
cents, a considerable sum in those days, to borrow the book overnight. The
works of Henry George, the economic theorist who argued for a "single tax"
on the increased value of property, sold tremendously well: 2 million of
his famous Progress and Poverty, 3 of the others. These books not only
attracted a vast readership, but, like Edward Bellamy�s famous utopian
novel, Looking Backward (which sold over a million copies around 1900 in
the United States and England), inspired social movements. Discussion
groups and clubs were created throughout the country to put the ideas in
these pages into action.

Many of the most popular books at the turn of the nineteenth century are
now considered literary classics. The books most widely borrowed from
public libraries were by Sir Walter Scott, Charles Dickens, Leo Tolstoy,
William Makepeace Thackeray, Nathaniel Hawthorne, James Fenimore Cooper,
Edward George Earle Lytton, and George Eliot. During the 1920s, often
thought of as a period of Babbitt-like uniformity, a widespread debate
raged in intellectual circles on the dangers of conformity and indeed on
the very idea of best-sellers. Sinclair Lewis refused the Pulitzer Prize
for Arrowsmith, objecting to the concept of a best book or author, a
critique that was echoed widely in the press. The Book-of-the-Month Club,
in its early days, found its editorial choices subject to criticism from
intellectuals, a debate followed in detail in Janice Radway�s A Feeling for
Books.

Through the 1920s and 1930s, some of the most widely read books were highly
critical of the ethos of their time. Sinclair Lewis�s Main Street sold
400,000 copies in 1920; Lytton Strachey�s Queen Victoria sold 200,000.
Similar demand for serious work existed in Europe. Buddenbrooks by Thomas
Mann sold over a million copies in Germany alone, where Erich Maria
Remarque�s All Quiet on the Western Front achieved equivalent sales.

With the coming of World War II, readers turned to more political books. In
1940, Adolf Hitler�s Mein Kampf was a best-seller, as were the "Inside"
books by John Gunther and Ernest Hemingway�s For Whom the Bell Tolls, set
during the Spanish Civil War, which had sold a million copies by 1946.
William Shirer�s Berlin Diary sold 500,000 copies in 1941 and Wendell
Wilkie�s programmatic One World sold a million. Americans started reading
books by Walter Lippmann and Sumner Wells, by former ambassadors such as
Joseph Grew (Japan) and Joseph Davies (Russia), whose Mission to Moscow
became a notorious Hollywood film. In addition to the millions of books
bought by civilians, 119 million paperbacks were distributed free in
special editions for the armed forces.

It�s only in the period immediately after the war that we begin to see
America�s reading hitting the doldrums. A study published in 1949 under the
auspices of the Social Science Research Council9 showed that reading was
falling into a predictable pattern. Of the twenty top fiction best-sellers
in 5947, only one author had not been on a previous list. The most popular
authors that year were a veritable honor roll of middlebrow culture: Frank
Costain, whose Black Robe had sold 5.3 million in the previous year,
Kenneth Roberts, Somerset Maugham, Samuel Shellaburger, A. J. Cronin, James
P. Marquand, James Hilton, and Frank Yerby, whose Little Foxes sold 1.2
million. (Only John Steinbeck and Sinclair Lewis offered somewhat more
demanding fare.) The movie tie-in to Duel in the Sun by Nevin Busch sold a
phenomenal 2.3 million. The nonfiction best-seller lists were dominated by
equally middlebrow and popular titles, including Will Durant�s Story of
Philosophy, Hendrik Van Loon�s The Story of Mankind, and the omnipresent
Dale Carnegie�s book about making friends and influencing people, which
sold over a million copies in hardcover and over 2 million in a Pocket
Books paperback edition.

At this time, most publishing houses still belonged to the people who
started them; only a few had grown into publicly held companies. To be
sure, the majority of publishers in the United States and Europe were
interested in profit as well as literature. But it was understood that
entire categories of books, particularly new fiction and poetry, were bound
to lose money. It was assumed that believing in authors was an investment
for the future and that they would remain faithful to the publishers who
had discovered and nourished them. Poaching authors from other firms was
not considered fair play. Overall, trade publishers reckoned they would
lose money or at best break even on their trade books. Profit would come
from subsidiary rights � sales to book clubs or paperback publishers.

Even some of the mass-market publishing houses were trying to broaden the
boundaries, to seek new readers, and to raise general levels of literacy
and knowledge. The most notable of these was the New American Library of
World Literature, where I began my own work in publishing. NAL was
initially the American branch of the British Penguin, to whom its general
approach to publishing owed a great deal. Penguin was the most successful
and influential of the early mass-market publishers, and its policies were
emulated throughout Europe and the Americas. Started in the 1930s by a
practical businessman called Allen Lane, it hired a number of talented and
dedicated chief editors, among whom was V. K. Krishna Menon, later to
become India�s controversial and committed ambassador to the United
Nations. As has been widely discussed, notably in Richard Hoggart�s The
Uses of Literacy, Penguin set out to provide the British reading public not
only with the best in contemporary fiction but with a range of substantial,
educative titles as well. In its Pelican series, Penguin commissioned an
impressive range of original work on science, the social sciences, and even
the history of art. For the most part, these books had a markedly
progressive slant and were often closely linked to the politics of the
British left at the time, although they were aimed at a mainstream audience
and did not have any particular party bias. Penguin set out to create
histories of each of the major countries, books on contemporary public
affairs, and a whole range of titles that provided information and ideas
for the majority of English people, who had no access to education beyond
the age of sixteen. (In 1957, when I was a graduate student at Cambridge
University, 83 percent of English youngsters left school at that age.)
Penguin�s success was a major force in English society in the 1930s and
1940s and helped to create the support that lead to an overwhelming Labour
victory at the end of the war.

Those on the left were not the only ones concerned with the problems of
reaching a mass readership. The battle for that audience was a hard-fought
one, a story yet to be explored in the literature of publishing. The
British chain of bookstores and newsstands, W H. Smith, which began in the
1850s, maintained control over the kinds of books for sale to the general
public with a stern conservative eye. Even as late as the 1960s, Smith�s
attracted notoriety for banning mildly subversive journals such as Private
Eye and keeping a close watch on what might reach susceptible readers.

The great French publishing and distribution monopoly of Hachette followed
the early British example carefully and set up a similar chain of
bookstores, also based on newsstands, in the country�s major railway
stations. But since France in the 1850s was still very much a dictatorship,
Hachette had to promise that it would not distribute anything that the
government might dislike and specifically that it "would ban all
publications which might excite political passions as well as any writings
contrary to morality." These included Ernest Renan�s Life of Jesus, the
writings of socialists, other works that might encourage the subversion of
public order, and any books suspected of libertine tendencies.

One of the ways around this conservative control of book chains was finding
alternative channels of distribution. This was done successfully in Britain
by the Left Book Club, created by the popular publisher Victor Gollancz.
Collancz�s titles were often aligned politically with the Communist Party.
George Orwell�s early books, such as The Road to Wigan Pier, were published
by the Left Book Club while some of his other works, including Homage to
Catalonia, were rejected by its editorial board because of their
justifiably harsh criticism of Russia. (These were published by more
independent leftist publishers, in this case Secker & Warburg.) But in
spite of its party-line adherence, the Left Book Club enlisted some fifty
thousand members and supplied hundreds of thousands of scholarly and
important studies to a vast population. The works of Edgar Snow, such as
Red Star Over China, came out under this imprint, as did major books
explaining the rise of German fascism and the coming conflict in Europe.
Such books would sell in the tens of thousands at prices very close to
Penguin�s and helped to create a well-informed vanguard of public opinion
on the left. Today such titles are issued in tiny university press editions
at prohibitively high prices because of the assumption that a mass audience
simply does not exist for them. But the experience of the 1930s, clearly
helped by the general political impetus of society at the time, showed that
a very large audience could be engaged with demanding books on political
issues that often must have seemed very far from the daily cares of most
readers. Gollancz, a highly energetic and effective propagandist, reached
beyond his primary market. One paperback by John Strachey, Why You Should
Be a Socialist, sold 300,000 copies at two pence each. In 1938, seeing the
possible onset of war, Gollancz went further still in search of an
audience, publishing anti-Nazi leaflets for free distribution, one in a
printing of 2 million, and another of 10 million.

But Gollancz and the broad range of intellectuals trying to stop Hitler
would not succeed. The blitzkrieg soon saw German troops occupying most of
Europe, bringing extensive and horrific changes and driving a number of
refugees from Europe to the United States. 


Louis Proyect
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