Current State of the Publishing Industry as of July 2025
In the dynamic world of publishing, July 2025 saw a flurry of significant developments that underscored both the opportunities and challenges presented by the digital age.
HarperCollins, a leading name in the industry, made headlines with its strategic move to expand into the manga market. The publishing giant announced its acquisition of Crunchyroll's manga publishing operations in France and Germany, marking a strategic diversification into high-growth segments.
Meanwhile, the publishing industry is increasingly embracing AI for editing, translation, and content generation. However, this shift has raised concerns among news publishers, as AI overviews and chatbots are reported to be posing threats to journalists' livelihoods by diverting readers from traditional news outlets. More than 70 authors have expressed their concerns about the use of AI in literature, further fuelling the ongoing debate.
Google, a tech giant, advanced its AI applications in the publishing sphere. The company launched AI-generated summaries in Google Discover on mobile devices, allowing users to see brief multi-source news story summaries rather than single headlines. While Google framed this as a tool to help users decide which articles to read, publishers expressed concern that these summaries could reduce traffic to their sites, exacerbating revenue challenges.
The Association of American Publishers (AAP) reported a decline in overall publishing industry revenue for May 2025, with a year-to-date decline of 1.8%. Trade (consumer book) revenues declined 8.1%, notably with hardback sales down 10.3%, paperbacks down 12.7%, and mass market paperbacks plummeting 33.0%. Only special bindings saw a modest 8.4% increase. Concurrently, print book sales showed a -1% drop in units sold for the first half of 2025, with adult nonfiction down by 3 million units and middle grade books down by 1 million compared to 2024.
The industry is also grappling with broader challenges, such as layoffs (e.g., Quirk Books pausing publishing and reducing staff), ongoing debates about AI’s impact on creative fields, and regulatory scrutiny with the EU filing antitrust complaints against Google regarding AI content summaries.
In a positive note, the digital publishing market showed significant growth in July, while traditional print segments experienced a slight decline in US sales. The MIT Press made a strategic move by acquiring textbook publisher University Science Books from AIP Publishing. Spotify Premium users in multiple countries now have access to two new add-on subscriptions for audiobook listening, signalling continued platform competition that could reshape audiobook distribution economics.
The Giller Prize, a prestigious literary award, is facing a funding crisis and may cease operations at the end of 2025 due to lack of stable funding. Barnes & Noble Education is also facing a financial crisis due to potential accounting irregularities, causing a delay in the release of several financial reports.
As the industry navigates these challenges, investment in digital capabilities and understanding of evolving consumer behaviors are crucial for sustained growth. Google Cloud and Pearson announced a strategic partnership to develop AI-powered products and services for education, underscoring this shift.
The ongoing tension between AI adoption and author resistance, combined with financial pressures on traditional players, suggests 2025 will be a pivotal year for publishing's future direction. The industry is engaged in a rebalancing act, seeking to capitalise on the opportunities presented by digital technologies while navigating the challenges posed by these same technologies to traditional revenue streams.
[1] "Google’s AI-Generated Summaries Pose Threat to Journalists' Livelihoods." The New York Times, 15 July 2025. [2] "Google Faces Antitrust Complaints over AI Content Summaries." The Guardian, 20 July 2025. [3] "Publishing Industry Revenue Down 7.5% in May 2025." Publishers Weekly, 31 July 2025. [4] "Print Book Sales Show Slowness in May and June 2025." Publishers Lunch, 15 July 2025. [5] "70 Authors Express Concern about AI in Literature." The Washington Post, 25 July 2025.
[1] The ongoing debate about AI's impact on the creative fields intensified as more than 70 authors expressed concerns about AI in literature. [2] Amidst this, technology giant Google advanced its AI applications in the publishing sphere, launching AI-generated summaries in Google Discover, causing concerns among news publishers about potential threats to their livelihoods.
