Penguin’s New Business Model: Exploiting Writers

Penguin’s parent company Pearson has announced the purchase of Author Solutions for $116m – news which has shocked writers, especially given Author Solutions’ long history of providing questionable services at staggering prices.

Author Solutions are the dominant player in the self-publishing services market – via their subsidiaries such as Author House, Xlibris, iUniverse, and Trafford – and had been looking for a buyer for several months. According to the press release, Author Solutions will be folded into Penguin, but will continue to operate as a separate company. Penguin’s CEO John Makinson stated:

“This acquisition will allow Penguin to participate fully in perhaps the fastest-growing area of the publishing economy and gain skills in customer acquisition and data analytics that will be vital to our future.” Read More…