The L.A. Times is parroting an article first reported in The Guardian:
“98 British publishers folded last year due to e-books, discounts”
The original article published November 4th in the Guardian has a headline screaming “Ebooks and discounts drive 98 publishers out of business” with a subhead of “Number of closures is 42% up on last year, as digital books and huge pressure on margins push companies over the brink” … and it’s all nonsense. Bollocks.
The quote by Anthony Cork of the accountancy firm Wilkins Kennedy included is “the rise of Amazon and other discount sellers with massive buying power means the pressure on publishers’ margins is now immense. While publishers might be able to sustain relatively small margins on a bestseller, it is much harder for niche publishers.”