1) With close to 50% market share, the power PRHSS would have to fundamentally change the character of the book industry would be immense.
2) While the arguments in the court case in the US are focused on major authors and royalty advances, a more profound and revolutionary change could be quite possible.
3) The company could decide to bypass retail bookstores and sell exclusively online, direct to readers. Discounts to wholesalers and booksellers would be eliminated. The great majority of bookshops would disappear overnight.
4) Specialist library suppliers would be an exception.
5) PRHSS could gain significant competitive advantages from such a radical move. By eliminating the costs of retail distribution (close to 45% of gross revenues) they would be able to lower book prices to consumers, pay higher author royalties, and add significantly to their profitability.
6) Of course they would need to invest heavily in improved online customer search and ordering processes, and warehouse and delivery systems, in order to cope with the additional demand, but publishers are needing to do much of this now anyway.
7) For book buyers the major negative would be the elimination of the joy and advantage of browsing, attending launches and author events, and conversing with experienced booksellers.
8) Even though the rapid growth of online shopping is effecting virtually all industries, giving power to one publisher to fundamentally undermine retail bookstores would be disastrous.
