The book trade in Finland
Transcription
The book trade in Finland
Doris Stockmann Niklas Bengtsson Yrjö Repo THE BOOK TRADE IN FINLAND From author to reader — support measures and development in the book trade Figures and tables updated in December 2005 CONTENTS INTRODUCTION.............................................................................................................4 DEFINING THE BOOK TRADE.....................................................................................5 The Book ......................................................................................................................5 Book classification systems..........................................................................................5 BOOK PUBLISHING AND DISTRIBUTION ................................................................5 Published titles..............................................................................................................6 The life cycle of books ...............................................................................................13 Classics .......................................................................................................................13 Bestsellers...................................................................................................................13 BOOK CREATORS........................................................................................................14 Authors .......................................................................................................................14 Translators ..................................................................................................................14 Graphic designers and illustrators ..............................................................................14 Comics creators ..........................................................................................................14 PUBLISHERS.................................................................................................................15 Publishers today..........................................................................................................15 Major publishers.........................................................................................................15 Other publishers..........................................................................................................16 Challenges for Finnish Publishers’.............................................................................16 Published Finnish titles in international comparison..................................................17 DISTRIBUTORS AND WHOLESALERS ....................................................................18 Bookshops and other companies selling books...............................................................19 Number of bookshops.................................................................................................19 Book clubs ..................................................................................................................20 Encyclopaedia sellers .................................................................................................20 Internet bookshops......................................................................................................20 The sales structure and profitability of bookshops.....................................................21 BOOK SALES ................................................................................................................23 Paperbacks..................................................................................................................23 Sales in terms of money .............................................................................................25 Fixed-price system......................................................................................................26 The effect on Finnish bookshops of abandoning the fixed-price system ...................28 Book prices in Finland................................................................................................28 BOOK PROMOTION.....................................................................................................30 Sample stock...............................................................................................................30 Databases....................................................................................................................31 Telecommunications...................................................................................................31 Catalogues ..................................................................................................................32 Campaigns ..................................................................................................................32 Book fairs and other events ........................................................................................32 Books and the media ..................................................................................................33 BOOK CONSUMPTION................................................................................................34 Books and the consumer.............................................................................................35 Central government, municipalities and companies as book buyers..........................35 Libraries......................................................................................................................35 National Library .........................................................................................................40 Virtual library .............................................................................................................40 Literacy.......................................................................................................................41 2 GOVERNMENT SUBSIDIES FOR THE BOOK TRADE ...........................................41 Cultural administration and certain education and science appropriations ................41 Department for Education and Science Policy ...........................................................41 The Arts Council of Finland.......................................................................................42 Consultative Committee for Public Information ........................................................43 Book trade funding and subsidies...............................................................................43 Production/distribution ...............................................................................................48 Funds for promoting Finnish literature.......................................................................48 Funds for promoting literature in Swedish.................................................................48 Finnish literature translation and publication funds ...................................................49 Selective production subsidies ...................................................................................49 Purchase subsidies for low-volume quality literature ................................................49 Easy-to-Read literature promotion .............................................................................49 Grants for production of photographic publications ..................................................49 Support for publications of visual artists....................................................................50 Promoting cultural and publication activities by Sámi and other minority cultures ..50 Leisure activities and PR ............................................................................................50 Promoting creative writing and reading .....................................................................51 Finnish Literature Information Centre........................................................................51 Finnish Institute for Children’s Literature..................................................................51 State subsidies for regional arts councils....................................................................52 Organisations ..............................................................................................................52 Other subsidies ...........................................................................................................53 Direct State subsidies for creators in the book sector.................................................54 Artist pensions ............................................................................................................54 Academicians .............................................................................................................55 Artist Professors .........................................................................................................55 Grants .........................................................................................................................55 State grants to artists...................................................................................................55 Writer and translator grants ........................................................................................56 Illustrator, graphic designer and comics creator artist grants.....................................57 State grants to artists...................................................................................................57 Project grants ..............................................................................................................57 Foreign travel grants for creators in the book trade ...................................................57 Grants for children's culture .......................................................................................58 Public information grants ...........................................................................................58 Public Lending Right compensation grants and subsidies for authors and translators58 Public Lending Right Grants for Illustrators and Comic Artists ................................59 Prizes in the book trade ..............................................................................................59 Finland prizes / State Prizes for Literature .................................................................60 State Prize for Merits in Children’s Culture...............................................................60 State Prize for Foreign Translators.............................................................................61 Seesam prize for Easy-to-Read literature ...................................................................61 State public information prizes...................................................................................61 Direct support to artists from regional arts councils ..................................................62 State support for libraries ...........................................................................................62 Supporting bookshops ................................................................................................63 VAT on books ............................................................................................................63 Experiences of VAT on books ...................................................................................64 Book price development.............................................................................................64 Book sales development .............................................................................................64 3 Lowering the VAT rate on books ...............................................................................67 PRIVATE AND INTERNATIONAL SUPPORT FOR BOOKS ...................................69 Finnish Reproduction Rights Organisation (Kopiosto) ..............................................69 Radio fees ...................................................................................................................70 Foundations ................................................................................................................70 Business companies....................................................................................................71 Book trade associations and organisations .................................................................71 The Finlandia prize.....................................................................................................72 Nordic Council and Nordic Council of Ministers ......................................................72 Translation subsidies ..................................................................................................72 Nordic Council Literature Prize .................................................................................73 Nordic funds ...............................................................................................................73 DEVELOPING THE BOOK TRADE ............................................................................73 Training ......................................................................................................................73 Literary art teaching ...................................................................................................73 Writer training ............................................................................................................74 Publishing training......................................................................................................74 Bookshop training ......................................................................................................74 Library training...........................................................................................................74 Joint training...............................................................................................................75 Data and research in the book trade ...........................................................................75 Statistics......................................................................................................................75 Studies and projects....................................................................................................76 Information society.....................................................................................................76 Digital products ..........................................................................................................77 The future of books ....................................................................................................80 CONCLUSION ...............................................................................................................80 Important events in the book trade .............................................................................82 4 INTRODUCTION On March 31, 1999, the Ministry of Education invited Doris Stockmann, MBA, assisted by Niklas Bengtsson, MA, and Yrjö Repo, marketing consultant, to investigate and draft a report on the present state of the book trade and submit proposals for measures needed to strengthen the position of books in Finland. The aim is to present a comprehensive overview of the sector; however, a full, detailed study was not possible. For example, copyright and printing are only discussed briefly. The issues discussed here were debated in some twenty meetings involving organisations representing interested parties in the book trade. Most meetings were called by the rapporteur. The purpose of the meetings was to sound out the thoughts and wishes of the various interest groups. The discussions were problem-oriented, but solutions to problems were also sought. In addition to these group meetings, numerous professionals were approached or consulted. We would like to thank all the people and organisations who spared the time and effort to help the rapporteur and her assistants. The original report, Kirja Suomessa — kirja-alan tukitoimet ja kehittäminen was published in Finnish in the Cultural Policy publication series of the Ministry of Education (no. 1/2000, ISSN 1456-4645, ISBN 952-442-264-6). It includes a bibliography and a brief summary in Swedish. The diagrams and figures published in this book were updated in 2005 and are available on the Internet: http://www.minedu.fi/julkaisut/julkaisusarjat/KirjaSuomessa_v3.pdf The English version of this report is a summary that excludes certain issues of only domestic interest. The Book Trade in Finland – From author to reader – support measures and development in the book trade, was published in 2000 in the series of Ministry of Education, Department for Cultural, Sport and Youth Policy as number 11/2000. In this new Internet version the figures, tables and other information have been updated wherever possible. Some new information, tables and figures have been added and some irrelevant information deleted. All the figures have been converted from FIM at EUR 1 = FIM 5.9457 and are given in euros. Helsinki, March 2006 5 DEFINING THE BOOK TRADE For the purposes of this report, the book trade consists of all activities related to books and to comparable digital publications: content generation, publishing and distribution, readers and reading. The Book There is no unambiguous definition of what is a book. UNESCO defines a book as a “nonperiodical printed publication consisting of at least 49 pages, excluding the covers”. In the annual statistics compiled by Suomen Kustannusyhdistys (Finnish Publishers Association, SKY), all printed matter sold at 8% VAT is classified under the heading of books. Another possible approach is to define all publications with an ISBN number as books. Most book databases in Finland are constructed using the ISBN number as a unique search term. The ISBN centre at the Helsinki University Library issues ISBN numbers in Finland. In this report, CD-ROM and Internet publications comparable to books in terms of content have been included in the book trade. In Finland, the most notable publishers of CD-ROMs are also book publishers Book classification systems Finnish public libraries and bookshops use the Dewey Decimal System, with ten main classes (09) and various sub-classes. Class 8 is for fiction, all others for non-fiction. Children’s and juvenile books and schoolbooks are classified according to their subject, but a letter code is prefixed to the class number (L = children’s book, N = juvenile book, P = schoolbook for comprehensive schools, K = schoolbook for upper secondary or vocational schools). Scientific libraries use other classification systems, such as UDK or the Library of Congress Classification. The general keyword list VESA, which is available to everyone over the Internet, is an important tool for anyone classifying or searching for books. It has been translated into Swedish (Allärs — allmän tesaurus på svenska). There is no comparable keyword list in the other Nordic countries. BOOK PUBLISHING AND DISTRIBUTION Finland was part of the Kingdom of Sweden until 1809 and a Grand Duchy of the Russian Empire from 1809 to 1917. Until the late 19th century, most printed books were in Swedish, with a considerable body of books in Latin also being printed in the 17th and 18th centuries. As a legacy of the period of Russian rule 1809-1917, the Finnish national library has a significant collection of books in Russian, which, especially during the Soviet period, was an invaluable resource for scholars who had no access to the closed libraries of the Soviet Union. 6 Published titles Because of the provisions of the Freedom of the Press Act and the Legal Deposit Act, there are precise statistics on book production in Finland. Table 1a. New titles published in Finland Year 1910 1920 1930 1940 Titles 1,204 1,423 1,759 1,357 Source: Artturi Virtanen Suomen kirjakaupan ja kustannustoiminnan vaiheita Helsinki 1958 Table 1b. New titles and reprints published in Finland Year 1950 1955 1960 Titles 1,891 2,143 1,493 Source: The Finnish Publishers Association Table 2. New titles published in Finland 1963-2004 Year 1963 1973 1983 1993 1998 2003 2004 Fiction, domestic 179 241 281 271 289 386 386 Fiction, translated 279 213 245 303 352 313 331 Fiction total 458 454 526 574 641 699 717 Children's books, domestic ¨ ¨ 70 53 74 146 150 Children's books translated ¨ ¨ 243 326 635 570 680 Children's books total ¨ ¨ 313 379 709 716 830 Juvenile, domestic ¨ ¨ 39 58 72 67 73 Juvenile, translated ¨ ¨ 66 88 87 113 129 Juvenile books total ¨ ¨ 105 146 159 180 202 132 146 418 525 868 896 1,032 ¨ 49 78 46 27 30 479 513 628 1, 148 1, 543 1, 667 1, 824 1,069 1,113 1,621 2,325 3,098 3,289 3,603 Schoolbooks, comprehensive .. .. 264 169 254 290 313 Schoolbooks, upper secondary .. .. 165 117 134 Schoolbooks, other ¨ ¨ 323 264 300 258 314 Schoolbooks total 119 453 587 433 719 665 761 1,188 1,467 1, 566 2,028 2,208 6,386 2,758 9,027 3,817 6,826 3,954 4,364 8,355 8,613 2,655 3,594 8,594 11,785 12,887 24 35 64 73 12,309 91 12,977 95 Children & juvenile, total Encyclopaedias Non-fiction, other General books, total Members of P. Ass., total Other publishers Grand total # of members in Publ.Ass. 23 Sources: Statistical Yearbooks and the Finnish Publishers Association (SKY) In Table 2 The figures of the Finnish Publishers Association (SKY) members include only books - the figures of the other publishers include both books as well as booklets with 49 pages or less.Varying slightly over the years, about 80% of the books published by other than the Finnish Publishers Association (SKY) members have been nonfiction books. 7 The number of books published by other publishers was calculated by subtracting the number of titles reported by the Finnish Publishers Association from the total. Only the output of members of the Finnish Publishers Association is discussed. The precise breakdown by genre of books published by other publishers is unknown. Fiction includes prose, poetry and plays. The published number of titles of encyclopedias means the individual parts of different series published in that particular year - not the whole series. In the statistics of 1963 and 1973 the children’s and juvenile books were lumped together, as were all schoolbooks. “Other schoolbooks” includes the schoolbooks of both the upper secondary school as well as the vocational schools in 1983 and 1993 and in 1998-2004 only the schoolbooks of vocational schools. The number of schoolbooks in the 1970s primarily increased because of the shift from the parallel school system to the comprehensive school system. The number of titles of the children’s books grew after 1993 for two reasons. After the VAT was amended 1 June 1994, one could classify the children’s picture and activity books as books unlike earlier. At the same time the last large children’s books publishers became members of the Finnish Publishers Association (SKY). Table 3. New books published by members of the Finnish Publishers Association 1978-2004 Year Fiction, domestic Fiction, translations Children's books, domestic Children's books, translations Juvenile, domestic Juvenile, translations Encyclopaedias Other non-fiction General books, total Schoolbooks, comprehensive Schoolbooks, upper secondary Schoolbooks, other Schoolbooks, total 1978 61 64 58 81 60 71 ¨ ¨ 68 1988 54 57 61 75 49 42 41 63 57 1998 60 58 69 75 84 70 70 65 66 2000 60 58 50 82 68 61 38 69 68 2002 58 51 52 73 59 58 61 65 63 2003 59 54 56 76 66 66 29 66 64 2004 52 51 53 80 73 57 73 63 62 31 27 25 22 24 25 29 ¨ 30 32 24 24 27 ¨ 35 52 48 33 55 52 33 57 43 30 53 45 30 54 48 34 55 ¨ 33 Grand total 55 Source: The Finnish Publishers Association Table 4. Domestic new titles published by members of Finnish Publishers Association, SKY 1978-2004 Year 1978 1988 1998 2000 2002 2003 2004 Fiction 32 33 31 29 47 28 28 Poetry and drama 12 14 19 8 14 12 9 Children’s books 15 15 9 5 17 13 9 7 6 3 2 9 4 7 Juvenile Source: The Finnish Publishers Association 8 Figure 1. Fiction, titles published 1963-2004 including new titles and reprints 800 700 600 500 400 300 200 100 0 641 526 458 454 527 651 721 633 574 671 699 717 443 04 20 03 20 02 20 01 20 00 20 99 19 98 19 19 93 88 19 83 19 78 19 73 19 19 19 68 327 63 Titles Fiction, tiles published Source: The Finnish Publishers Association VAT was lowered from 22% to 12% on 1 June 1994 and from 12 % to 8 % on 1 January 1998 and seems to have had some impact on the number of titles published. Figure 2. Children's books, new titles published 1963-2004 Children's books, titles published 1 200 1061 Titles 1 000 868 800 578 600 418 917 1003 959 1032 896 525 413 400 200 132 114 146 19 63 19 68 19 73 19 78 19 83 19 88 19 93 19 98 19 99 20 00 20 01 20 02 20 03 20 04 0 Source: The Finnish Publishers Association In the VAT reform of 1994, children’s picture books, baby books and activity books were classified as books, which was previously not the case. 9 Figure 3. Non-fiction, new titles published 1963-2004 2 000 1 800 1 600 1 400 1 200 1 000 800 600 400 200 0 1 589 1 723 1 793 1 798 1 692 1 694 1 854 1 226 1 002 479 451 513 549 677 19 63 19 68 19 73 19 78 19 83 19 88 19 93 19 98 19 99 20 00 20 01 20 02 20 03 20 04 Titles Non-fiction, titles published Source: The Finnish Publishers Association In the early 1970s, the number of non-fiction titles increased due to the large body of opinionforming books prompted by social changes in the previous decade. In the late 1980s, there was a considerable increase in the number of computer books published. The VAT reform of 1994 increased non-fiction publishing too. Growth in the late 1990s was spurred by continued economic growth and by books on the Internet and the information society. Figure 4. Schoolbooks, new titles published 1963-2004 Schoolbooks, titles published 766 800 719 657 700 761 725 644 665 587 600 453 500 Titles 787 457 433 400 300 200 216 119 100 0 1963 1968 1973 1978 1983 1988 1993 1998 1999 2000 2001 2002 2003 2004 Source: The Finnish Publishers Association The number of titles increased in the 1970s due to the introduction of the comprehensive school system and in the 1980s due to the conversion of the upper secondary school into course-form 10 teaching. Changes in the curriculum have also impacted the number of schoolbook titles published. Figure 5. New titles published in Finland 1963-2000 Publ. Ass. New titles published in Finland Other 14000 12000 titles 10000 8000 6000 4000 2000 0 1963 1968 1973 1978 1983 1988 1993 1998 1999 2000 2001 2002 2003 2004 Source: Statistics Finland, Yearbooks and the Finnish Publishers Association Table 5. Finnish titles available, by publisher Publishers Titles/publisher 1000500-999 200-499 50-199 10-49 1-9 Total 1999 8 12 26 101 385 4, 455 4, 987 2001 2005 7 10 23 108 392 4,432 4,972 9 9 24 124 438 4,942 5,546 Source: Kirjavälitys Oy files, September 1999, January 2002 and September 2005 Table 5 shows that the number of big publishers with more than 1,000 titles has grown while that of medium sized publishers has decreased because of mergers, The number of the available domestic book titles in September 1999 was about 62,000 and at the end of December 2001 67,000. 65,000 titles were available on 5 September 2005 of which 6,311 were in Swedish. The numbers of titles are based on the information received from the publishers concerning which titles are available in stock and which are available through the bookshops. Finns buy a variety of books. For example, the book wholesaler, Kirjavälitys, delivered 52,189 books to bookshops just before Christmas, 17 December 2001, comprising 4,232 different titles. About half were titles, which sold over one hundred copies. Two thirds, on the other hand, were those of which less than five copies were delivered. 11 In October 2004, a comparison was made of the composition of book sales in two bookshops. A small bookshop in the country sold at least one copy of each of 391 book titles during the month, and a medium-sized bookshop in a medium-sized town sold at least one copy of each of 527 titles. Table 6. Books translated from various languages into Finnish 1980-2003 1980 1985 Original 447 520 English 167 124 Swedish 84 96 German 48 43 French 26 22 Norwegian 47 26 Russian 16 11 Italian 21 10 Danish 3 6 Spanish 100 48 Other 959 906 Total 46.6 57.4 Engl. % Source: Cultural statistics 2003 1990 940 184 128 92 34 40 28 30 20 67 1 563 60.1 1995 1 196 213 135 105 22 20 40 29 16 81 1 857 64.4 2000 1 433 186 128 111 18 21 29 29 25 126 2 106 68.0 2001 1 219 177 131 125 19 27 17 16 18 113 1 862 65.5 2002 1 301 201 111 109 21 18 17 14 19 117 1 928 67.5 2003 1 182 233 90 110 54 26 33 8 19 132 1 887 62.6 Figure 6. Books translated into Finnish 1980-2003 Translated books 2500 Books 2000 Other French 1500 German Swedish 1000 English 500 0 1980 1985 1990 1995 2000 2001 2002 2003 Source: Cultural Statistics 2003 The status of English has risen constantly over the period examined. A booklet is a printed publication with fewer than 49 pages — according to the UNESCO definition, such publications are not books. 12 Table 7. Literature translated into Swedish in Finland 1980-2003, by original language Original language 1980 1985 1990 1995 2000 2001 2002 2003 51 86 103 105 78 74 84 78 Finnish 1 2 2 1 3 3 1 1 English 4 1 6 3 7 1 4 1 Other 56 89 111 109 88 78 89 80 Total Source: Cultural Statistics 2003 Table 8. Translated literature published in the Nordic countries 1997, 1999 and 2003 by original language Swedish Danish Norwegian * Finnish Icelandic ** English Scandinavian German French Other languages % % % % % % % % % % % % % % % -97 -99 -03 -97 -99 -03 -97 -99 -03 -97 -99 -03 -97 -99 -03 76 74 73 9 10 10 4 4 3 5 6 4 6 6 10 68 70 70 15 13 15 6 7 5 5 4 6 6 6 6 71 73 66 16 14 19 4 4 4 3 3 3 6 6 8 67 69 63 14 11 16 6 7 5 5 5 6 8 8 10 51 57 58 23 23 23 3 2 4 4 4 4 19 14 11 Continued Translated titles # # 1997 # 1999 2003 Swedish 2,511 2,514 2,542 Danish 2,694 3,287 2,752 Norwegian* 1,960 1,901 2,220 1,847 2,211 Finnish 1,887 Icelandic** 393 405 445 * Preliminary data ** The latest Icelandic statistics are from 2000. Sagas translated from ancient Icelandic are included in translations into Icelandic from other languages Source: Nordcom (Statistics Denmark, Helsinki University Library, National and University Library of Iceland/Statistics Iceland, National Library of Norway/Medianorway, Royal LibraryNational Library of Sweden) Scandinavian languages are Danish, Icelandic, Norwegian and Swedish, about 80 % of books translated into Finnish from Scandinavian languages are from Swedish the second biggest is from Norwegian and is currently a little over 15 %. There has been a boom in translated thrillers from both Swedish and Norwegian. In Denmark, translations from Scandinavian languages include books translated from Faroese. In Iceland, translations from ‘other languages’ include translations of sagas from Norse; these account for over 10% of all translated titles. English is the dominant source language in all countries, though its share is lowest in Finland and Iceland. 13 The life cycle of books The life cycle of a book from the perspective of the greater public can be measured by how long the book is available in any well-equipped bookshop immediately or by ordering. The continuous availability does not alone depend on how old the book is, but on its demand and on the publisher. If there is sufficient demand, the book will live for a long time in the form of new editions. Normally general books are available for 3 years after that they are put on sale by the publisher. The Print-on-Demand technique has made it easy to publish new editions of books. However, books first published decades ago are generally available only randomly in antiquarian book shops, or in libraries. A handful of domestic classics are the exception to this rule. A new trend has been that Finnish publishers recently have increased the number of paperbacks published. A bookshop may not stock all available books, but can order them for a customer and deliver them in a couple of days. The availability of a book will become limited, but does not stop when the publisher announces it to be sold out. It can be bought in a used book shop or borrowed from the library. Once a book is printed it will not completely disappear because many copies were originally printed, at least in the hundreds and the deposit system consisting of 6 copies of new books and other published material that are distributed to various libraries also guarantees the availability of all book titles published in Finland. . There are, however, books, which may be destroyed, for example, for reasons connected to the quality of the paper or other technical reasons. Likewise, there are some books of which only a few copies are known to exist. It is considered important to preserve such books in readable condition, for example, for researchers. One solution to preserving the content of books is to transfer into digital form. Only the National Library so far digitalises old books in Finland. Classics The availability of classic titles is affected by in two ways. Either a print run has been sold out, or a certain classic has not been translated into Finnish. Classics are constantly published in both Finnish and Swedish even though this is often not commercially viable. There are some translation grants available for translations that publishers may apply for. Bestsellers Bestsellers are heavily marketed and given the best locations in bookshops; they decrease the shelf space available for other titles. In terms of volume, the top dozen or so bestsellers may account for a larger proportion of total books sold than in the 1960s. Still, the number of titles published and in print has constantly increased. Revenue from bestsellers has been used to cover the costs of titles with low sales projections. A Finnish publisher cannot concentrate on bestsellers alone. While it is possible to select only successful foreign titles for translation, only a few Finnish authors attain widespread success with their first books. 14 BOOK CREATORS Authors According to a generally accepted definition, an author is someone who has published at least two works. Finlands Svenska Författareförening (Society of Swedish Authors in Finland, FSF), Suomen Kirjailijaliitto (Union of Finnish Writers, SKL), Suomen Nuorisokirjailijat (Association of Finnish Writers for Children and Youth, SNK) and Suomen Näytelmäkirjailijaliitto (Finnish Society of Dramatists, SNKL) state in their membership requirements that an applicant will generally be expected to have published two works of fiction that fulfil the quality criteria of the organisations. The membership requirements of Suomen Tietokirjailijat (Society for Non-Fiction Authors, STK) are not as stringent as those of the fiction-oriented associations. One published work qualifies for membership of the STK; this work may be a dictionary, a schoolbook or a work of non-fiction for the general public. The work does not even have to be a printed book; a CDROM or a cassette is equally valid. Photographers are not classified as non-fiction authors except as a member of an encyclopaedia committee. Translators In Suomen Kääntäjien ja Tulkkien Liitto (Finnish Association of Translators and Interpreters, SKTL), translators of both fiction and non-fiction belong to the same section. Graphic designers and illustrators In this context, by ‘graphic designers’ we mean actual graphic designers and layout designers, not graphic artists. Different studies place graphic designers and illustrators variously in fine arts, in crafts and design or outside the arts community altogether. In the Finnish grant system, graphic designers and illustrators have been regarded as belonging to crafts and design ever since the National Council for Crafts and Design was founded. Illustrators can belong to three unions in Finland: Grafia, Freelance graphics designers or Illustrators ry founded in 2002. Comics creators Comics creators include those who draw, write, translate and letter comics. Grants to comics creators have largely fallen within the purview of the National Council for Crafts and Design since the early 1990s. To qualify for membership of Sarjakuvantekijät (Comics creators), applicants must practice creating comics professionally or as their own business. The membership requirements state that graphic designers and writers must have published at least one album, translators must have published at least two albums, and letterers must have produced three albums or a comparable volume of newspaper strips. 15 PUBLISHERS The first book publishers in Finland were, in the 17th century, the Academy (University) of Turku, the Dioceses of Turku and Viipuri, and Bishop Johannes Gezelius the Elder of Turku. Book publishing began in earnest in Finland in the early 19th century. Finland’s oldest existing publisher, Suomen Pipliaseura, was founded in 1812. Another old existing publisher, Suomalaisen Kirjallisuuden Seura (Finnish Literature Society), was founded in 1831. In 1858, nineteen publishers founded the Finnish Publishers Association to promote the publishing and distribution of books in Finland. Publishers today In 2005 the Finnish Publishers Association had 100 members. All major commercial publishers belong to the Publishers Association. They account for about 33 % of new titles and 50% of all titles published in Finland and for about 90 % of the sales volume. In 2004 the share of the book sales of the ten largest publishers of the Publishers Association members in euros was 80.5 % and 79.5% of the number of copies sold. The publisher register maintained by the ISBN centre at the Helsinki University Library contains some 4,600 publishers. In addition, 1,000-1,500 individual ISBN codes are annually granted to private individuals and small organisations “for one-time use”. Major publishers The biggest book publisher in Finland measured by the extensiveness of the operations, as well as by turnover, is SanomaWSOY Group. Its operations consist of publishing and delivering newspapers, publishing and printing magazines, publishing and printing books, electronic communications, retailing and cinema activities. The share of the book publishing activities in the group’s turnover in 2004 was about 10 %. The group publishes text books in addition to Finland also in the Netherlands and Poland. Most of the book publishing is concentrated in the subgroup built around WSOY, founded in 1878, which in addition to book publishing, also is involved in printing and book club activities. Starting from 1 January schoolbooks will be a separate division. Part of the publishing activities of children´s and juvenile books of SanomaWSOY and book club activities connected with it, including books based on Walter Disney characters, takes place within the framework of Sanoma Magazines Finland. In addition to book publishing and printing, as well as book club activities, Otava-Kuvalehdet Oy publishes and prints magazines. Otava, founded in 1890, is responsible for book publishing in the group. Gummerus founded in 1872 as a publishing company has book publishing and book printing departments. Apart from the dictionaries and books connected with language studies, Gummerus does not publish textbooks as such, but concentrates on general literature. 16 Tammi Group is part of Bonnier Media Group and includes two smaller publishing houses as well as a children’s book club in addition to the main publisher Kustannusosakeyhtiö Tammi. The turnover is almost entirely from book publishing. Valitut Palat - Reader´s Digest is part of the Reader’s Digest Group and publishes Valitut Palat magazine, as well as books and music recordings, in Finland. The largest Finnish Swedish publishing houses are Schildts and Söderström & C:o, with Schildts also publishing books in Finnish. Söderström & C:o co-owns, with some Finnish culture funds, Atlantis publishers in Sweden and the owner of Schildts partly owns Alfabeta publisher in Sweden. Other publishers Non-commercial publishers publish two thirds of the annual new book titles, but most of the publications are such that they are not actively marketed. The publishers include universities, polytechnics, public administration units, research institutions and private associations. Not to mention self-publishing by private individuals. Challenges for Finnish Publishers’ The potential market is small – about five million Finnish speakers and 300,000 with Swedish as their mother tongue. All Finns over the age of 7 can, however, read books, newspapers and magazines. According to the research Suomi lukee (Finland reads) 2003 86 % of the 15-74 yearold Finns had during the past four weeks read books and 75% had during the past 12 months bought at least one book. Publishers have also been able to adjust their operations to the opportunities a small language area can offer. The largest Finnish publishers are today multifaceted media companies. This can be seen as a problem – does book publishing get enough attention inside the company? On the other hand, it can be seen as strength – as synergy brought on by the know how of multifaceted content production and its distribution. The field of publishers is not static but alive. During the past twenty years, several new publishing houses have been established. At the same time small but growing publishing houses have been incorporated into bigger ones. By incorporation the larger one has generally been looking for growth and the smaller one has obtained additional resources which a growing business particularly needs. Only one large publishing house, Tammi, has moved to foreign ownership. On the other hand, WSOY has also branched out abroad, especially its textbook publishing operations. Publishers are worried about the decline of reading by and to children, which can detract from their readiness to read books when they grow up. In the 1990s, the trend seemed to be that adolescents read less fiction than before. On the other hand, studies have not shown conclusively that literacy has declined or that the overall volume of reading has decreased. For example, according to the research Suomi lukee (Finland reads) 15-19 year-olds bought and also presumably read more books in 2003 than in 1995 or 1989. In this age group, the number of those who bought more than 10 books a year had clearly grown and the number of those who did 17 not buy any books at all had decreased. Suomi lukee research does not reach those under 15, but according to some other media user studies, even their reading interests have not significantly decreased. Library acquisitions have been important for minor publishers, in terms of both purchases and publicity, and the decrease in book acquisition funds in the 1990s has had a severe impact on them. Such publishers, particularly those publishing in Swedish, consider bestseller-oriented marketing and sales to be a threat to the availability of a broad range of titles. Minor publishers have found it increasingly difficult to get bookshops to stock their titles in recent years. Because of the small language areas print-runs of books published are small see Tables 9 and 10. The print-runs of books published in Swedish are much smaller than those in Finnish. Table 9. Average print runs of new books published 1994, 1999 and 2004 Category Fiction, domestic Fiction, translated Poetry and drama, domestic Poetry and drama, translated Childrens' books, domestic Childrens' books, translated Juvenile, domestic Juvenile, translated Non-fiction Total 1994 3,520 6,272 1,500 1,250 6,016 5,992 3,676 3,979 3,347 4,035 1999 3,753 5,434 1,364 1,688 3,492 8,806 3,918 4,823 2,925 4,574 2004 3,742 4,156 1,347 1,294 4,073 8,032 3,863 2,992 2,716 4,045 Source: The Finnish Publishers Association Table 10. Average print runs of new editions 1994, 1999 and 2004 Category Fiction, domestic Fiction, translated Poetry and drama, domestic Poetry and drama, translated Children’s books, domestic Children’s books, translated Juvenile, domestic Juvenile, translated Non-fiction Total 1994 3 302 3 464 2 667 1 500 3 833 4 702 2 696 3 094 4 473 3 946 1999 2 975 3 357 2 077 1 667 3 492 5 305 1 941 4 028 2 681 3 176 2004 1 845 1 721 1 467 250 3 099 4 214 2 111 2 144 3 073 2 694 Source: The Finnish Publishers Association Although titles published by members of the Finnish Publishers Association only account for 55% of new titles published, they account for 90% of all Finnish books sold. Published Finnish titles in international comparison Literature has had a major impact on Finnish culture. All adults in Finland are literate; public libraries have a wide selection of books and charge no fees for borrowing. Literature is available to everyone, even those who do not want to or cannot afford to buy books. 18 Figure 7a. Published titles per 1000 inhabitants in 1999 Published book titles per 1,000 inhabitants 7 6.6 6 5 4 2.7 3 2.6 2.6 2.3 1.9 2 1.6 1.5 1.4 1.2 1.2 1.1 1 1.1 1.0 1.0 ai n Sw ed en * Be lg Cz iu ec m h * Re pu bl ic No rw ay Li th ua ni a Hu ng ar y Au st ria * Sp Lu xe m bo ur g * * UK ia Es to n nl an d Fi m ar Sw k it z er la nd De n Ic el an d * 0 Continued Figure 7b. Published titles per 1000 inhabitants in 1999 Published book titles per 1,000 inhabitants 7 6 5 4 3 2 1 0.9 0.9 0.9 0.8 0.7 0.6 0.6 0.6 0.5 0.5 0,5 0.4 0.4 0.4 0.3 0.2 0.2 0.1 G Ne er th ma n er la y * nd s *1 La ) Po t vi rtu a ga l Fr * a Bu nc lg e ar i Sl a * ov ak ia I Be taly la ru s Cr * oa ti Po a la n G d r e M ac e ce ed on Ro ia m an i M ol a do Ru v a ss ia * US A Uk * ra in e 0 Source: Finnish Mass Media 2004 Statistics Finland DISTRIBUTORS AND WHOLESALERS The main distributor and wholesaler in Finland is Kirjavälitys Oy, a wholesaler jointly owned by publishers and bookshops. Booksellers can order books from all regular publishers in Finland from Kirjavälitys.. The database of Kirjavälitys Oy, contains nearly 100,000 titles, while the range of titles in stock runs to some 22,000. Over 65,000 of the titles in the register are Finnish books. The rest comprises calendars, maps, sheet music, audiovisual products and CD-ROMs. Kirjavälitys collaborates with the Helsinki University Library in maintaining the FinnBooks 19 database, which is discussed below on page 32. The customer register of Kirjavälitys contains about 4,900 book suppliers, and in 2004 the company bought books from about 3,000 publishers. The company handles about 30% of all books sold in Finland. Book sales account for 90% of its turnover, the rest comprising sales of maps, calendars, CD-ROMs and services. A publisher and a bookshop can obtain special services as required, for instance distributing campaign purchases and price marking products.. Other distributors are WSOY Kirjakeskus, which primarily supplies books by publishers belonging to WSOY Group and Tammi Group and KustannusTaito Förlagssystem Finland Ab, which supplies mainly books by Swedish language publishers. BOOKSHOPS AND OTHER COMPANIES SELLING BOOKS Until 1970, nearly all books except for encyclopaedias were sold by bookshops. The fixed-price system for books was dismantled and the sale of books deregulated in 1971. Department stores and supermarkets made up most of the new sales points. The number of sales points for books peaked in the mid 1970s. Number of bookshops A ‘bookshop’ has been defined in various ways at different times, but the number of general bookshops (also considered bookshops by customers) has progressed as follows: Table 11. Bookshops in Finland 1859-2005 1859 1900 1950 Year 16 56 624 Bookshops Source: The Finnish Booksellers Association 1965 788 1990 423 2000 358 2002 319 2005 318 Table 12. Bookshops in Finland in 2005 Group Info bookshops Kipa bookshops Kirja-Q bookshops Unaffiliated Suomalainen Kirjakauppa Akateeminen Kirjakauppa S-kirjakaupat Total Ownership Independent Independent Independent Independent Chain Chain Co-operative Bookshops 44 63 13 93 61 6 38 318 Staff approx. 300 130 30 150 800 400 50 1870 Turnover 2004 million € 60 16 6 12 130 90 16 330 Share of Books % approx. 60 55 60 50 70 70 60 67 Source: The Finnish Booksellers Association The number of bookshops has declined in the 1980s and 1990s, but no more so than in any other specialist trade. Further decrease, while not desirable, is probable. At present, most general bookshops are members of the Kirjakauppaliitto (Booksellers Association). 20 The oldest specialist bookshops are the Christian bookshops, of which there are 28 in 25 small and medium-sized towns. Of the other 102 specialist bookshops carrying a limited selection, 61are in the Helsinki Metropolitan area; the rest are distributed over 18 locations. Most specialist bookshops have a low turnover. Printel dominates the market for comprehensive school schoolbooks with a market share of about 50 %. BTJ Kirjastopalvelu, which mainly provides information systems, furniture and other equipment for libraries, is also one of the largest suppliers of books to libraries. Since 2004 this company has been one of the biggest sellers of comprehensive schoolbooks. Finland has about 60 antiquarian book shops of which earn more than half of their turnover from books. Antiquarian book shops are usually small companies with one or two employees. Book clubs There are about 12-16 book clubs in Finland depending on how a book club is defined. In 2005 they had about 600,000 members. If one eliminates double members it is estimated that some 500,000 Finns belong to at least one book club. All major book clubs are owned by publishers or their subsidiaries. However, the big clubs sell books from several publishers. In 2004 the book clubs sold 49 million euros (at consumer prices including VAT) worth of books, which is 9.9% of book sales. The biggest book clubs are Suuri Suomalainen Kirjakerho (The Big Finnish Book Club), the oldest one founded in 1969, which is a subsidiary of Otava and Uudet Kirjat –kerho (The New Book Club) which is a department of WSOY. These two book clubs have over 50% of the book club sales. Encyclopaedia sellers Encyclopaedias are, in practice, sold at a fixed price. Over 90% of them are sold by independent or telemarketing companies and book representatives employed by publishers. Bookshops have never been a significant player in the sales of encyclopaedias in Finland. As far as we know, sales of encyclopaedias per capita have been and still are higher in Finland than anywhere else in the world. Internet bookshops In December 2005, there is one general bookshop in Finland which sells books only through the Internet. All major bookshops and bookshop chains, as well as several special bookshops and used book shops, also sell through the Internet. Other important sellers are book clubs and publishers. According to the information available the sales of printed books on the Internet in Finland in 2004 was 15-20 million euros calculated in the consumer prices with VAT included, 3-4% of the total book sales. 21 The sales structure and profitability of bookshops The number of bookshops has, from the beginning of the 1970s to the beginning of the 1990s, decreased and in 1999 the bookshops´ share of the book sales was only about 35.6%. Even though the number of bookshops has continued to decrease, their market share has, however, started to grow. Beginning in 2000 the book sales of bookshops has grown quicker than the total book sales and in 2004 their share of the bookshop sales had risen to 39.1 %. The share of books in bookshop turnover was 55% in 1997, but in 2004 had risen to 67 %. Bookshops in Finland have books as their major product line with the second biggest product line being stationary. Small bookshops may have other product lines like cosmetics, toys, photos etc. Table 13. Sales structure of bookshops1998-2004 by turnover categories Turnover: Year 1998 1999 2000 2001 2002 2003 2004 below 170 000 € Books Other 52 48 50 50 50 50 53 47 46 54 50 50 53 47 170 000 – 350 000 € Books Other 60 40 60 40 58 42 58 42 58 42 56 44 59 41 350 000 - 600 000 € Books Other 59 41 61 39 58 42 57 43 62 38 57 43 59 41 Turnover: Year 1998 1999 2000 2001 2002 2003 2004 600 000 – 1 350 000 € Books Other 50 50 55 45 57 43 60 40 60 40 62 38 62 38 above 1 350 000 € Books Other 55 45 57 43 59 41 61 39 65 35 66 34 68 32 Books 55 57 58 60 64 65 67 Total Other 45 43 42 40 36 35 33 Source: Report by Statistics Finland for the Finnish Booksellers Association The profitability of bookshops has been systematically researched since 1994. With the share of books in turnover growing, the gross margin of the bookshops has also improved. The most obvious reason for the development is that the bookshops have lost low margin sales like those to libraries and comprehensive schoolbooks to municipalities. At the same time, shop sales have grown and the bookshops have improved their pricing strategies. Even though the bestsellers are sold with rather a small margin, the gross margin of other books has been improved. The Finnish Booksellers Association currently estimates that the gross margin for books and other products is about the same. The bookshop purchase price is often based on a discount on the publisher’s recommended price; this discount generally depends on the number of copies purchased at a time. The recommended price is not mandatory. Some publishers sell at net prices and it is up to the bookseller to price the book. Because of the tough price competition, the largest-volume sales (bestsellers and library sales) have the lowest profitability. There is virtually no profit margin in selling schoolbooks for comprehensive schools, and most bookshops have in fact dropped them. 22 Products other than books are purchased at net price. The producer or importer sets no recommended price, and the consumer prices for these products are also not as stable as those of books. The Booksellers Association commissions an annual study on the profitability of bookshops. For a specialist shop to be profitable, its operating margin should be at least 10%. Only about one quarter of all bookshops manage this. Table 14. Most frequently used profitability indicators in the book trade 1994-2003 Gross margin % Year Lower quartile Median Upper quartile 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 23.9 24.3 23,1 22.0 22.8 23.2 22.0 23.5 23.5 24.9 27.3 26.6 26.0 26.3 27.0 27.6 27.0 27.5 28.7 28.9 31.5 31.6 30.9 31.4 32.4 33.1 31.9 32.7 33.2 35.1 Operating margin % Total Lower quartile Median Upper quartile Total 27.6 27.9 28.2 28.1 32.4 29.4 30.3 30.8 31.4 32.0 2.0 3.0 2.6 3.3 3.5 2.9 2.8 2.7 3.6 2.9 5.3 6.4 7.2 6.6 6.9 6.7 6.1 6.3 6.6 7.3 10.6 12.2 11.8 11.6 11.4 11.0 10.8 10.4 11.4 11.4 4.3 5.6 5.7 6.0 5.8 6.1 6.7 7.0 7.4 7.5 # of book -shops 166 171 166 171 176 176 172 167 169 162 Source: Report by Statistics Finland for the Finnish Booksellers Association The gross margin is the difference between the actual purchase price and the actual sales price. The operating margin is the gross margin less all expenses except financing expenses, financing income and direct taxes. Table 15. Medians of indicators in the book trade 1994–2003 Year No. of bookshops Turnover 1 000 € Gross margin % Operating margin % 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 166 171 166 171 176 176 172 167 168 162 225.4 228.8 228.8 225.4 232.1 227.1 237.2 236.6 241.1 243.9 27.3 26.6 26.0 26.3 27.0 27.6 27.0 27.5 28.7 28.9 5.3 6.4 7.2 6.6 6.9 6.7 6.1 6.3 6.6 7.3 Degree of selfsufficiency % 19.2 18.1 35.3 35.5 30.4 34.3 34.0 38.7 41.7 42.0 Stock turnover Quick Ratio 3.5 3.9 3.9 3.9 3.8 4.1 4.0 4.2 4.1 4.0 0.7 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.4 0.5 Source: Report by Statistics Finland for the Finnish Booksellers Association 23 BOOK SALES Data on book sales in Finland are based on the annual Finnish Publishers Association statistics, which cover about 85% of overall book sales. The volume of sales by publishers not belonging to the Finnish Book Publishers Association is estimated at 2 million copies, while foreign books are estimated to sell 1 million copies; the grand total is thus about 30 million books. Table 16. Copies of books sold by members of the Finnish Book Publishers Association 1963-2004 in 1000s Year Fiction Children & Juvenile Encyclopaedias Non-fiction General books, total Lower grade schoolbooks Upper level schoolbooks Other schoolbooks Schoolbooks, total Grand total # of publishers participating 1963 2,816 1,097 ¨ 2,427 6,340 ¨ ¨ 1973 3,628 1,733 ¨ 4,131 9,492 ¨ ¨ 5,530 11,870 23 12,653 22,145 24 1983 3,496 2,778 ¨ 4,486 11,578 8,177 .. 3,465 11,642 23,220 35 1993 3,801 2,876 948 5,807 13,432 3,877 .. 2,456 6,333 19,765 64 1998 4,601 7,266 503 6,500 18,870 4,297 1,845 1,204 7,346 26,216 73 2003 4,456 7,557 338 7,322 19,673 4,405 1,615 790 6,810 26,484 91 2004 5,015 7,377 266 7,544 20,202 4,407 1,448 696 6,551 26,753 95 Source: Annual statistics of the Finnish Publishers Association Paperbacks Books classified as paperbacks have long been published in Finland, but their visibility in the book market essentially improved when the four large publishers - Gummerus, Otava, Tammi and WSOY –founded Taskukirja Loisto in 2001. Loisto started to publish paperbacks, in accordance with the international standard, of the earlier published, bestselling hardbacks. The purpose was to quickly increase the number of available paperback titles and to create a real paperback market in Finland. In addition to Loisto, both other shareholders in it and other publishers also publish paperbacks in their own name. In the annual statistics of the Finnish Publishing Association the statistics on paperbacks have been compiled separately since 2002. Accurate information is unavailable from previous years, but an estimated 700,000 copies of paperbacks were sold in 2000 and about one million copies in 2001. Table 17. Paperbacks sold 2002-2004 Published titles Sales in 1,000 copies 2002 303 1,290 2003 234 1,321 Source: Annual statistics of the Finnish Publishers Association 2004 307 1,409 24 Figure 8. Number of copies by the members of the Finnish Book Publishers Association 19632004 Sales of books in 1,000 copies 30 000 1,000 copies 25 000 20 000 15 000 10 000 5 000 Schoolbooks Non-fiction 0 1963 1973 1983 1988 1993 1998 2000 2001 2002 2003 2004 Children's books Fiction Source: The Finnish Publishers Association Finland underwent a severe depression in the early 1990s, which was at its worst in 1993. However, the depression significantly affected only public, mainly municipal, book acquisitions. Purchases of comprehensive schoolbooks nearly halved and acquisitions to public libraries decreased significantly. Book purchases by consumers were hardly reduced. Also the number of books borrowed from the public libraries stayed the same, even though new titles were no longer as quickly available. Lowering the VAT rates on books on 1 June 1994 also stimulated other book sales, but the sales of children’s and juvenile books grew strongly in particular, as the lower VAT rates changed the fact that the picture books, baby books and activity books, which had been sold earlier as paper products, were now categorised as books. The sales growth was also affected by the start of the upswing in the economy. The comprehensive school reform in the 1970s introduced schoolbooks in new subjects and changed the structure of schoolbooks. The number of separate books has since been reduced for both pedagogical and financial reasons. The temporary increase in sales of books for upper secondary school in the early 1980s was due to the shift to course-form upper secondary school and the concurrent curriculum revision. More books than usual were needed in the transition phase. 25 Figure 9. Number of copies sold by the members of the Finnish Book Publishers Association 1963-2004 Other schoolbooks Sale of schoolbooks in 1,000 copies Comprehensive level 16 000 1,000 copies 14 000 12 000 10 000 8 000 6 000 4 000 2 000 0 1978 1983 1988 1993 1998 1999 2000 2001 2002 2003 2004 Source: The Finnish Publishers Association Sales in terms of money At the request of the Booksellers Association, Statistics Finland has surveyed the volume of book sales at consumer prices (including VAT) per distribution channel for 1997-2000. The figures include all books, even foreign books sold in bookshops. Figure 10. Sales of books by distribution channel at retail prices including VAT Sales of books in 2004 (496 million €) Other 9% Antiquarian bookshops 1% Bookshops 39% Book clubs 10% Specialised stores 10% Department stores, supermarkets etc. 14% Publishers' direct sales 17% Source: The Finnish Booksellers Association and Statistics Finland 26 Table 18. Book sales by distribution channel at consumer prices incl. VAT 1997-2004 Distribution channel Bookshops Department stores & supermarkets Other retail sales Retail sales, total Specialised distributors Direct sales by publishers Book clubs Other direct sales Direct sales & book clubs Other distribution channels New book sales Antiquarian & second hand bookshops Total book sales 1997 142,750 1999 147,900 2001 168,700 39,800 40,400 14,500 197,050 35,600 87,000 41,900 2,400 131,300 19,250 383,200 2002 177,500 2003 182,500 2004 194,100 44,000 41,200 43,000 48,200 22,900 211,200 44,800 78,600 46,200 7,400 132,200 22,000 410,200 23,700 236,400 51,600 76,200 50,700 8,000 134,900 25,300 448,200 25,100 243,800 58,300 83,600 48,300 7,100 139,000 27,200 468,300 24,200 249,700 55,300 85,300 46,600 3,800 135,700 32,300 473,000 23,300 265,600 51,700 85,100 49,000 5,800 139,900 31,500 488,700 4,350 5,000 5,200 5,700 6,200 7,300 387,550 415,200 453,400 1.5 474,000 479,200 1.1 496,000 3.5 4.7 4.5 Change from previous year % Source: The Finnish Booksellers Association and Statistics Finland Table 19. Book sales by distribution channel at consumer prices incl. VAT – market share 1997-2004 Distribution channel Bookshops Department stores & supermarkets Other retail sales Retail sales, total Specialised distributors Direct sales by publishers Book clubs Other direct sales Direct sales & book clubs Other distribution channels New book sales Antiquarian & second hand bookshops Total book sales 1997 36.8 1999 35.6 2001 37.2 2002 37.4 2003 38.1 2004 39.1 10.2 9.7 9.7 8.7 9.0 9.7 5.7 52.7 9.4 22.4 10.8 0.7 33.9 4.9 98.8 8.8 54.1 10.8 18.9 11.1 1.8 31.8 5.3 98.7 8.2 55.1 11.4 16.7 11.1 1.8 29.8 5.6 98.9 8.5 54.6 12.3 17.5 10.1 1.5 29.3 5.8 98.8 8.0 55.1 11.5 17.8 9.7 0.8 28.3 6.7 98.7 7.5 56.3 10.4 17.2 9.9 1.1 28.2 6.4 98.4 1.2 1.3 1.1 1.2 1.3 1.5 100.0 100.0 100.0 100.0 100.0 100.0 Source: The Finnish Booksellers Association and Statistics Finland Fixed-price system Finland has free pricing in the book trade, meaning that while the publisher can set a recommended price for a book; a retailer is free to sell that book at any price he wishes. Many European countries follow the retail price maintenance system, or fixed-price system, where retailers are obliged to sell books at the prices determined by the publishers. See Table 14. 27 The fixed-price system was introduced in Finland with the bookshop regulations of 1908, and was abandoned at the beginning of 1971. This was due to the competition legislation enacted in the 1960s, whereby the determination of consumer prices was transferred from the producer to the retailer. Book trade organisations in other countries hoped that Sweden and Finland would reintroduce the fixed-price system when joining the EU. Before accession, the Finnish Publishers Association and Booksellers Association analysed the pros and cons of the fixed price system by gathering data on the possible impact of the system on the number of titles published and book sales, and any other effects it might have. It was found at the time that returning to the fixed-price system was not a realistic option. The bookshops and publishers voiced their opinion at a meeting with representatives of the Ministry of Education. The Society for Non-Fiction Authors (Suomen Tietokirjailijat) was in favour of free pricing, while the Union of Finnish Writers (Suomen Kirjailijaliitto) and the Society of Swedish Authors in Finland (Finlands Svenska Författareförening) preferred the fixed-price system. Statistics show that the number of titles published and the volume of books sold have increased in Finland since deregulation. Some of this increase may be due to technical statistical reasons, but evidently there has been some actual growth. Table 20. Free and fixed prices on books in some countries in Europe FIXED PRICES Law Austria France Germany Greece Italy The Netherlands Portugal Spain FIXED PRICES Year of Adoption 2000 1981 2002 1997 2001 2005 1996 1975 FREE PRICES Agreement Denmark 1) Hungary Luxembourg Norway Slovenia Source: European Booksellers Federation 1) free prices are being discussed 2) Officially, trade agreement. In practice free market 3) The possibility of getting an RPM is being considered 4) The possibility of getting an RPM is being considered 5) German speaking part Belgium 2) Cyprus Czech Republic 3) Estonia Finland Iceland Ireland Latvia Lithuania Poland 4) Sweden Switzerland 5) UK 28 The effect on Finnish bookshops of abandoning the fixed-price system In 2004 books comprised 67% of the turnover of the bookshops and good 60% of the gross margin. Because of the tough competition between the bookshops, as well as against the other distribution channels, bestsellers are sold with a smallish gross margin, but free pricing on the other hand, makes it possible to achieve a better gross margin than with a fixed price with most of the book titles. The gross margin of backlist books bought for campaigns is good for especially large bookshops. The most conspicuous product of free pricing is the use of special offers. Great numbers of copies, but of only a few titles, are sold at deep discounts. Less visible but significant in terms of profitability are the major discounts granted on schoolbooks for comprehensive school and books sold to libraries. Not all the effects of free pricing were easy to predict. Deregulation was a factor in the emergence of book clubs and in the appearance of bookstalls at more department stores and supermarkets. Also, publishers were no longer required to observe their own recommended prices in direct sales. Free pricing is also one of the key precepts of online book sales. In countries with the fixed-price system, bookshops account for about 60% of all book sales. In countries with free pricing, the market share of bookshops is much lower: in Finland, it was 39.1% in 2004. Book prices in Finland No accurate data are available on actual book prices and changes thereto because of free pricing. The only available information is the average recommended price of books sent for sample stock, which reflects consumer prices quite well. In 1990-2000 the book prices have been based on the list prices given by the publishers which in free pricing do not precisely describe the real consumer price of books. Some of the books have been sold in bookshops at a slightly higher price than the list price and some, especially bestsellers, at a clearly lower price than the list price. In book clubs, all the books are cheaper than the list price given by the publisher. The real price paid by the consumer has been on the average more or less lower than the list price. The drop in average price in 1993 is partly due to fewer expensive non-fiction titles being published and sent for sample stock when the recession hit. The drop in 1994 was due to the VAT reform, while the clear increase in 1995-96 was due to labour costs and rising paper prices 29 Figure 11. The average price of new books included in the commission system 1989-2001 Average priceof books in euros 25,0 20,0 17.8 18.9 1989 1990 20.0 20.8 19.6 18.6 1993 1994 21.8 21.9 22.5 23.2 21.4 22.5 1996 1997 1998 1999 2000 2001 19.7 euro 15,0 10,0 5,0 0,0 1991 1992 1995 The change of the average price compared to the previous year 1989 1990 1991 1992 % % % % + 11.3 + 6.0 + 4.1 + 5.5 Source: Kirjavälitys Oy 1993 % - 5.5 1994 % - 5.1 1995 1996 1997 % % % + 5.7 + 8.5 + 1.9 1998 % + 0.5 1999 % + 3.1 2000 % + 2.3 2001 % - 2.6 The price index based on the recommended process is no longer available as two of the major publishers use only net prices. Since 2001 Statistics Finland has collected prices from bookshops and the department stores´ book departments, as well as from the brochures of the book clubs. Both normal priced and offer priced books have been included and the sample describes better than before the real prices paid by the consumer. Figure 12. Book price index and consumer price index 1990-2004 (1990 =100) Book price index and consumer price index, 1999 = 100 Book price index Consumer price index 130 125 Index 120 115 110 105 100 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Source: Statistics Finland 30 The publisher’s share of a book sold at the consumer price including VAT in a bookshop at the normal price, is about 45 %, the writer’s share 10%, the bookshop’s share slightly under 40% and the VAT is 8%. A bookshop receives a larger than normal discount from the publisher for bestsellers, because of the larger purchase batches, but gives the consumer a discount of 10-25 % (sometimes even larger) off the normal sales price. Thus the publisher is left with about 40%, the author about 10% and the VAT is still 8% of the real consumer price of a bestseller with VAT included. The bookshop’s share of the price of the bestseller is from just under 20 % to a good 30 % depending on the size of the discount given to the consumer. BOOK PROMOTION Promotion includes all marketing and advertising undertaken by the publisher, bookshops and other booksellers. Indirect promotion includes the author’s public appearances other than those organised specifically for promotional purposes by the publisher or a bookshop. Sample stock The sample stock system balances the risk between publisher and bookshop and guarantees an extensive range of titles for bookshops to display. The publisher sends one copy of most new titles of general books to each of the bookshops in the system free of charge. The bookshops are required to display this copy and to place an order for a replacement copy immediately if the sample copy is sold. Once the sample stock period is over, the publisher requests bookshops to return the sample books. Any copies left unreturned are billed to the bookshop. To avoid returns some publishers offer the sample stock books at a highly reduced price to the bookshops. According to the agreement, a bookshop must always have at least 80% of the current sample stock titles available. The average sample stock period for a book is slightly over a year. Bookshops are divided into three sample stock categories based on their annual sales of general books. On November 11, 2005, the situation was as follows: Sample stock category 1 Sample stock category 2 Sample stock category 3 114 shops 65 shops 75 shops Sample stock category 1 Sample stock category 2 Sample stock category 3 Target amount of titles 5 000 titles 3 500 titles 2 000 titles Real number 5 329 titles 4 210 titles 2 886 titles In all, bookshops had about 1.1 million copies belonging to publishers on their shelves; their total value in consumer prices was about 25 million euros. 31 Databases The FinnBooks database maintained by Kirjavälitys Oy contains the major bibliographical and commercial data on all books in print published in Finland. FinnBooks is primarily designed as a tool for bookshops. The database also contains descriptions of books, such as blurbs and cover images, and a wide variety of search functions including keywords. The database covers 100,000 (including books, calendars, maps, AV-products, CD-ROM etc.). About 12,000 new titles are added to the database every year. The database is used in CD-ROM form in about 110 bookshops and 100 libraries. Kirjavälitys updates the database constantly with information received from publishers and the Legal Deposit office of the University of Helsinki. In 2005, the database was updated 11 times. Kirjaväylä is the on-line version of the database and is used by 280 bookshops and 100 libraries. The Helsinki University Library maintains the FENNICA database, which contains information on every book ever published in Finland. Its bibliographical information is more complete than that of FinnBooks, but does not contain availability or pricing data. The Fennica database has slightly over 657,000 titles, with about 23,000 new ones added every year (19,000 are book titles). Kirjavälitys and the Helsinki University Library co-operate so that Kirjavälitys sends the advance information they get about the books to the University and receives information, from the University about such books that the publisher has not, for one reason or another, sent information on directly to Kirjavälitys. BTJ Kirjastopalvelu maintains AllFons database, the bibliographical information of which is of national bibliography standard, but the commercial information is more limited than FinnBooks. Public libraries maintain their own databases in which collections of one or more municipal libraries in co-operation have been gathered. For example, the city libraries of Espoo, Helsinki, Kauniainen and Vantaa have founded a joint database, HelMet (www.helmet.fi), where one can find the collections of these libraries. Telecommunications National applications are needed for the international Electronic Data Interchange (EDI) standard created for the book trade to function. In Finland, publishers, distributors and bookshop chains set up a voluntary group; Book-EDI in the early 1990s to ensure frictionless communications at least between Finnish parties. In 1997, both scientific and general libraries joined the group. Book-EDI is a good example of how a new standard that can be used by the whole book trade has been established at quite low cost. The biggest benefits of the system are saving time and fewer mistakes, when information is just put into the system once and then can be used by the partners. All major publishers, bookshops and companies providing logistics use the same EDI standard to transfer data among them. The functions in use are product data, order, delivery note and invoice. 32 Catalogues All major publishers release their own catalogues, in most cases separately for autumn and spring releases. These catalogues are distributed mostly to bookshops and libraries. Some small publishers have joint catalogues. The Vuoden Kirjat (Books of the Year) catalogue published annually by the Finnish Book Publishers Association covers at least all new publications by member publishers. In 2005 44,000 copies of the catalogue were printed, of which 1,000 were distributed to public libraries and 12,000 were handed out to visitors at the Helsinki Book Fair, the remaining 41,000 copies were distributed by the bookshops to their customers. The Board of the Swedish Cultural Foundation in Finland and the Föreningen Konstsamfundet (Society of Fine Arts) publish Den finlandssvenska bokkatalogen (Catalogue of Finnish books written in Swedish). Den finlandssvenska bokkatalogen is a significant effort to boost Finnish literature in Swedish. Its print run was 120,000 copies in 2005. Bookshop chains publish their own catalogues sporadically, the most important ones being the Christmas catalogues and the book sale catalogues in January. Campaigns The February book sale has been a traditional joint campaign by publishers and bookshops. Until the early 1990s, all bookshops sold the same titles at the same prices in the book sale. Nowadays selections offered are determined by each bookshop separately. A special feature is that a considerable number of the books are sold through the catalogues distributed by the bookshops and are ordered in advance, before the campaign starts in the bookshops. World Book Day, known in Finland Kirjan ja ruusun päivä (Book and Rose Day), has been celebrated in Finland since 1997. This campaign involves publishers, bookshops, libraries and schools. The date of the sales campaign has been moved to May, when it is warmer and sales of books can be arranged out-doors - the main event takes place in the Esplanade Park in Helsinki. Other recent campaigns worth mentioning are 1000 vuotta — 100 kirjaa (1000 years — 100 books), an important book was presented each weekday morning on breakfast TV. A reading promotion campaign for children was Kirjaseikkailu (Book adventure) arranged for children in 2001 and Lukuleikki (Reading game) for children below school age took place in 2005. Book fairs and other events The Turku Book Fair is organised annually in early October and the Helsinki Book Fair at the end of October. Both are events meant for the general public where in addition to the packed programme, the booksales play an important role. The first Turku Book Fair was arranged in 1992. In 2005 the Turku Book Fair had 20,564 visitors. The Helsinki Book Fair has been organised annually since 2001. In 2005 there were 47,499 visitors. Antiquarian bookshops also take part in both fairs. 33 The oldest of the present national public events in the book trade is the Vammala antique literature days, which have been arranged since 1985 annually at the turn of July. The annual number of visitors is around 20,000. In addition, numerous smaller-scale but locally important book events are arranged in different parts of Finland. The City of Helsinki has launched a project aimed at Helsinki being nominated the World Book Capital City in 2008 or soon after. The nomination will be granted by UNESCO. Books and the media There is no reliable overall statistical material or study on media publicity of books and any changes therein. Otava Publishing has collated data on press coverage of titles they have released. The number of press articles on books has increased in recent years if we consider all articles (not only reviews) and all printed periodicals (magazines as well as newspapers). Any book written by or about a celebrity or politician easily gets publicity. Also, many periodicals publish selected lists of new releases in spring and autumn. Literature gets the most attention in the culture pages of the major dailies, followed by music and fine arts. The different radio channels also have many programmes about literature. The interest of TV in books has varied over time. There have been special programmes covering literature by interviewing experts as well as ordinary people. In any case, literature and books get a great deal of attention in the media in relation to their relevance to the national economy. # Figure 13. Number of articles written about books published by Otava Publishing 1975-2004 articles Reviews and articles about books published by Otava reviews 12000 10000 8000 6000 4000 2000 Source: Kustannusosakeyhtiö Otava (Otava Publishing) 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995 1994 1993 1992 1991 1990 1989 1987 1985 1983 1981 1979 1977 0 34 BOOK CONSUMPTION Book consumption here means buying a book. The sales in euros have been calculated at consumer prices with VAT included, and describe precisely how much money has been spent on books by consumers. Table 21. Book purchases in Finland 2004 Book category General books Schoolbooks for comprehensive school Other schoolbooks Total 1,000 copies 23.2 4.4 2.1 29.7 Share % 78 15 7 100 Million euro 390 55 50 495 Share % 79 11 10 100 Source: The Finnish Booksellers Association An estimated 2 million books from publishers not belonging to the Finnish Book Publishers Association and an estimated 1 million foreign books have been added to the sales of member publishers of the Finnish Publishers Association. In terms of money, consumers bought about 70% of all books sold: EUR 273 million worth of general books and about EUR 45 million on schoolbooks. Figure 14. The sales of books by target group in 2004 Sales of books by target group Public libraries 5% State etc. 4% Scientific libraries 3% Companies 7% Schools 11 % Consumers 70 % Source: Statistics Finland, the Booksellers Association and the author's estimate 35 Books and the consumer Finland reads 1995, 1998 and 2003 is a survey undertaken by Taloustutkimus Oy, which is a privately-owned market research institute. The study is the most recent thorough study of how Finns between the ages of 15 and 74 buy books other than schoolbooks and textbooks. A summary of Finland reads 2003 is available at www.skyry.net/pdf/finlandreads.pdf. Central government, municipalities and companies as book buyers In 2004, Finnish municipalities spent 55 million euros on schoolbooks for comprehensive schools and 25 million euros on books for public libraries. The various central government agencies and State-owned companies are estimated spend some 55 million euros on book purchases annually. Scientific libraries spent about 15 million euros on book purchases in 2004; the share of foreign books was notably high. Libraries Finland’s first public library was founded in 1794. A public library is a statutory service to be provided by the local authority. The basic function of a library is to assemble a collection of literature and make it available to all. A library must also ensure that it stocks books that are out of print. Finns are the most prolific library users in Europe. In 2004, 109.8 million items were checked out, 79.5 million of which were books: this breaks down to 30 books for each borrower, or 15 books each for every single person in Finland. According to the Suomi lukee (Finland reads) 2003 study, those who bought the most books also used the library the most. Nearly all public libraries offer users free Internet access. A tangible testimonial to the international reputation, which this policy has earned, came in the form of the Access to Learning prize granted to the Helsinki City Library by the Bill & Melinda Gates Foundation in July 2000 for promoting the use of the Internet. When library appropriations were reduced, the easiest and quickest way to save money on expenditure was to decrease purchases. Most libraries have aimed at continuing to acquire as many new titles as possible. The shortened life span of books is a problem for libraries just as much as for book buyers. It may be difficult to replace a damaged or missing book only a few years old. The number of libraries is decreasing, but co-operation and rationalisation has enhanced their operation. According to new government plans for the libraries, the local authorities would be required to organise their library and information services for local residents so as to also cater to the needs of educational institutions. The purpose of this is to improve the poor condition of school libraries; however, it is not stipulated whether a school library should actually be in the school building itself or at the public library. 36 Figure 15. Number of items acquired by the public libraries 1988-2004 Other Books Library acquisitions 3 000 1 000 copies 2 500 2 000 1 500 1 000 500 0 1988 1993 1995 1997 1999 2000 2001 2002 2003 2004 Source: Ministry of Education: Library statistics Table 22. Books and other material in the public libraries 2001–2004, 1 000 copies Grand total 2001 11,905 14,595 26,500 8,403 1,532 9,935 36,435 769 37,204 1,692 573 409 74 4 539 3,291 40,495 2002 11,852 14,705 26,557 8,623 1,498 10,121 36,678 783 37,461 1,761 577 442 85 13 437 3,315 40,776 2003 11,885 14,755 26,640 8,655 1,484 10,139 36,779 807 37,586 1,842 578 469 94 33 371 3,387 40,973 2004 11,854 14,787 26,641 8,661 1,477 10,138 36,779 824 37,603 1,896 574 480 98 74 300 3,422 41,025 Books by language Finnish Swedish Other languages 32,017 2,622 1,796 32,267 2,613 1,798 32,381 2,593 1,805 32,344 2,592 1,843 Year Fiction, adult Non-fiction, adult Total, books for adults Fiction, children Non-fiction, children Total, children’s books Total, books Sheet music and score Grand total for books Music recordings Other recordings Videos CD-ROM DVD Other Other than books, total Source: http://tilastot.kirjastot.fi 37 Figure 16. Number of books and other material in public libraries per capita in 1995 Number of books in public libraries per capita 8 7.2 7 7.1 6.1 6 4.7 5 4 3.3 3.2 3 2.9 2.7 2.3 2 1.7 1.6 1.6 1.5 1.4 1.4 1 0.9 Ita ly Au st ri a G re ec e UK Fr Lu a xe nce m bo ur g Sp ai G er n m an y Fi nl an d Ic el a De nd nm ar k No rw ay Ire la n Sw d ed e Be n Ne lgiu m th er la nd s 0 Source: Statistical Yearbook UNESCO 1998 Figure 17. Number of books and other material per capita in public libraries in the Nordic countries in 2003 Number of books and other publications per capita in 2003 10 8 6 4 2 Other publications 0 Books Finland Iceland* Denmark Sweden Norway * the figures for Iceland are from 2001 Lähde: NORDICOM = Nordic Information Centre for Media and Communication Research www.nordicom.gu.se 38 Table 23. Number of loans in 1000 copies from public libraries 2001–2004 Year Fiction, adult Non-fiction, adult Total, books for adults Fiction, children Non-fiction, children Total, children’s books Total, books Sheet music and scores Grand total, books Music recordings Other recordings Videos CD-ROM DVD Other Other than book material, total Grand total 2001 23,914 23,148 47,062 23,936 3,354 27,290 74,352 1,255 75,607 8,918 1,976 5,635 663 59 8,287 25,538 101,145 2002 24,826 23,704 48,530 26,554 3,339 29,893 78,423 1295 79,718 9,550 1,966 5,981 676 270 8,458 26,901 106,619 2003 25,304 24,048 49,352 26,524 3,276 29,800 79,152 1,324 80,476 9,562 1,981 6,152 719 686 8,575 27 ,675 108 ,151 2004 25,084 24,073 49,157 27,295 3,093 30,388 79,545 1,344 80,889 9,573 2,003 5,860 731 1,796 8,589 28, 552 109, 441 Continued By language Finnish Swedish Other 70 292 3 107 2 953 72 222 3 130 3 061 72 888 3 161 3 102 73 363 3 151 3 031 Source: http://tilastot.kirjastot.fi Figure 18. Number of books borrowed from public libraries in 1997 Number of books in public libraries per capita 8 7 6 5 4 3 2 7.2 7.1 6.1 4.7 3.3 3.2 2.9 2.7 2.3 1.7 1.6 1.6 1.5 1.4 1.4 Source: Statistical Yearbook UNESCO 1998 Ita ly A us tr ia G re ec e U K Fr Lu a xe nce m bo ur g S pa in G er m an y Fi nl an d Ic el an d D en m ar k N or w ay Ir el an d S w ed en B el gi N um et he rl an ds 1 0 0.9 39 Figure 19 Number of books borrowed per capita from public libraries in the Nordic countries 2003 Numbers of books borrowed per capita 25 20.8 20 13.6 15 8.6 10 8.0 5.5 5 0 Finland Denmark Sweden Iceland* Norway * The figure for Iceland is from 2001 Source: NORDICOM = Nordic Information Centre for Media and Communication Research www.nordicom.gu.se Finland has perhaps the best and most advanced public library system in the world, and it is also used a great deal. Despite decreasing acquisition rates in recent years, public libraries still maintain very good collections. One in two Finns borrowed something from a public library at least once during the year. New purchase funding for scientific libraries, particularly university libraries, is inadequate and fluctuates from year to year more than with the public libraries. When funding is reduced, it is easier to cut down on book purchases, which are one-off items, in favour of continuity in the form of subscriptions to journals and publication series. Journals may place a burden on resources in that a library may subscribe to both the printed and the online version of a journal. The proportion of digital material in library purchases and collections is constantly growing. Foreign books account for a considerable share of book purchases by scientific libraries. Scientific libraries are of negligible importance as book buyers to nearly all Finnish publishers, with the exception of publishers of scientific literature. University libraries in Finland have a special problem in that there are many students in Finland studying in several languages. Currently, the libraries cannot cope with the demand for material. This development is worrying. In order to rectify the situation, libraries have tried to rationalise their work, increasing co-operation and division of duties. The central government has subsidised subscriptions to journals online rather than in printed form. The national electronic library (FinELib) manages the subscriptions and user rights centrally. The shift to online products is in many ways justified, but there are technical problems in their use and archiving, and not all users like them. However, their use is growing. 40 Table 24. Number of books and other printed material in the scientific libraries acquired in 1993–2004 Year Books 1 000 € Periodicals 1 000 € Total 1 000 € 1993 5,550 10,175 16,028 1995 5,432 8,325 13,758 1997 7,333 10,125 17,458 1998 7,888 10,613 18,501 1999 9,402 12,698 22,436 Year 2000 2001 2002 Books 1 000 € 8,806 9,536 8,166 Periodicals 1 000 € 11,207 11,655 8,954 20,013 21,191 17,120 Total 1 000 € Source: Cultural Statistics 2003, http://yhteistilasto.lib.helsinki.fi 2003 8,859 7,607 16,466 2004 8,585 7,243 15,828 National Library According to the current Legal Deposit Act printers must submit six copies of every title printed as free copies. Two of these go to the Helsinki University Library, which is Finland’s National Library. For historical reasons, the library has a significant collection of literature in Russian. One of the main themes of the National Library Strategy 2000-2003 is to have libraries, both scientific and public, form a national and partly international network. This would enable them to cut down on overlapping functions and allocate resources and their division of labour as feasibly as possible. Collating, classifying and archiving electronic material is a new task that requires a lot of resources. The Legal Deposit Act is going to be revised among other matters it is planned that it would also cover electronic material. Virtual library A virtual library is a collection maintained by a designated party where one can borrow ebooks. By an ebook one means a book-like, specified content entity separate from other material available on the Internet, and electronic magazines offered by university libraries. The first experiments to found such a collection were made at the end of the 1990s, but strictly speaking the operations can be said to have started not later than 2003 when www.ellibs.fi selling ebooks and the University of Helsinki Student Library started to co-operate. In October 2005 there were about 300 virtual libraries in operation in Finland, including both scientific and general libraries. The operational model of a virtual library, as far as borrowing such material that has a copyright holder, is at least for the time being, the same as when dealing with printed books. Technically virtual material (ebook) could have an unlimited number of borrowers simultaneously. Due to the copyright issues the number of simultaneous borrowers, however, must be limited to the number of purchased licenses. Currently, most of the ebooks are parallel versions of the printed books. 41 Literacy In Finland today, everyone over the age of seven can read and write. Books are available to everyone, either to buy or to borrow at the local library. The school system guarantees literacy for all. Promoting reading, which is important for maintaining literacy, is constantly stressed, libraries playing an important role in addition to schools and the home. The subject heading ‘mother tongue’ in comprehensive schools and upper secondary schools was changed to mother tongue and literature in 1999. According to the PISA research carried out in the OECD countries in 2000, the literacy of Finnish 15 year-olds was the best compared to the peer group. Finnish girls were distinguished as especially good readers. Even though 15 year-old Finnish boys were good readers compared to all the others of the same age group, Finnish girls were clearly better. Finnish girls at 15 were already nearly as good readers as adult women. The boys´ literacy instead clearly improves even after the age of 15. According to the renewed PISA research in 2003 the literacy of the young people in Finland was still the best in the OECD countries. GOVERNMENT SUBSIDIES FOR THE BOOK TRADE Cultural administration and certain education and science appropriations The book trade comes under the Ministry of Education in Finland, since there is no separate Ministry of Culture. The development of the book trade is influenced by both the Department for Education and Science Policy and the Department for Cultural, Sport and Youth Policy within the Ministry, since scientific and non-fiction books are supported mostly by the former and fiction by the latter. In addition to the education, science and culture administration of the Ministry of Education, the book trade is also subsidised by independent arts councils and other subsidiary bodies. The Academy of Finland and the National Board of Education are subordinate to the Department for Education and Science Policy, while the arts councils are subordinate to the Department for Cultural, Sport and Youth Policy. Department for Education and Science Policy The Department for Education and Science Policy of the Ministry of Education supports the book trade through university teaching and research appropriations, Academy of Finland appropriations and National Repository Library appropriations. Support for non-fiction is partly discussed under Funding and support for the book trade, because it is comparable to support for the arts and because they are subsidised from appropriations of the Department for Cultural, Sport and Youth Policy. The budget for the Department for Education and Science Policy for 2004 contained five items designating, funding for schoolbook development and literature support. An appropriation of 18.4 million euros meant for the operational expenses of the Department of Education, part of which was allowed to be used to develop teaching material and produce Swedish and teaching 42 material with a limited circulation. 258,000 euros of the appropriation was reserved to produce Sámi teaching material and which was given as a subsidy to the Sámi Parliament of Finland. An appropriation of 253,000 euros was granted out of the international co-operation appropriation to support publications meant for international dissemination. Part of the Finnish lottery funds (75.7 million euros) meant for advancing science was also used for translating and printing scientific literature, as well as for expenses of studies, clarifications and publications supporting science. The joint expense accounts of a university institute include an appropriation (8.8 million euros) for research, development and publishing activities, which is partly meant to pay teaching material expenses. In the item concerning the creation and acquisition of certain works, EUR 350,000 was allocated to book projects. This appropriation is intended for expenses in creating and acquiring multi-volume historical works and biographies. The Arts Council of Finland Finnish cultural and arts policy is based on the 1967 Promotion of the Arts Act, which came into force in 1968. At that time, seven national councils for the arts and their coordinating body, the Central Arts Council, were founded. The system is collectively known as the Arts Council of Finland. Eleven provincial arts councils were also founded; their functions are now performed by the thirteen regional arts councils. The national and regional Arts Councils have a maximum of eleven members. The Government appoints the members of national councils, while the relevant provincial State office appoints the members of the regional arts councils, having consulted various arts organisations and institutions. The term of members of the Central Arts Council, the national councils and the regional arts councils is three years, and the same person can serve a maximum of two consecutive terms. The chairmen of the national councils and six other members appointed by the Government comprise the Central Arts Council. At present, there are nine national arts councils.1 Their duty is to monitor, promote and support their respective fields. They are expert organs subordinate to the Ministry of Education and the Central Arts Council, participating in the planning and implementation of arts and culture policy through statements, submissions and grants. The National Council for Literature awards grants to writers of fiction, including playwrights and translators. The National Council for Theatre supports Finnish drama. The National Council for Crafts and Design also awards grants to book creators: graphic designers, illustrators and comics creators are eligible for various grants. In addition to artist grants, creators may gain funding from subsidies for crafts and design production. Also, the National Council for Photographic Art subsidises books through subsidies for the production of photographic publications. The Children’s Culture Division is an expert organ of the Central Arts Council. Its purpose is to strengthen and promote children’s culture. It makes proposals to the Arts Council on grants and awards for children’s culture. 1 The National Council for Cinema, the National Council for Literature, the National Council for Visual Arts, the National Council for Theatre, the National Council for Architecture, the National Council for Music, the National Council for Crafts and Design, the National Council for Dance and the National Council for Photographic Art. 43 Consultative Committee for Public Information The Consultative Committee for Public Information was founded in 1972 as an expert organ of the Ministry of Education. Its purpose is to promote the dissemination of information through proposals, initiatives and statements. It awards public information project grants, makes proposals regarding the State Prize for Public Information and draws up lists of non-fiction titles that qualify for purchase subsidies for low-volume quality literature. The Consultative Committee for Public Information appointed by the Ministry of Education consists of a chairman and ten members who can only serve a single three-year term. Book trade funding and subsidies Most of the subsidies for the book trade come from national lottery funds, like most State arts appropriations (about 90%). In the 1990s, national lottery funds were also used for statutory State expenditure such as maintenance of the museum and library system, leaving a relatively smaller share for discretionary arts promotion. In 2004, the Ministry of Education subsidised libraries with of EUR 104 million, of which about EUR 62 million came from lottery funds. Table 13 shows the distribution of lottery funds. 44 Table 25. National lottery funds distributed to the arts 1998-2004 2001 Film Music Visual arts Literature Drama Crafts and design Dance Architecture Photography Museums Subsidies to cultural history museums Special subsidies to specialised museums Statutory state subsidies to museums Museum and heritage organisations Statutory state subs.to theatres &orchestras State subsidy for the expenses of the renovation loan management of the Finnish National Theatre Statutory state subsidies to local authority cultural functions Finnish National Theatre Finnish National Opera Subsidies to the National Opera for extra pensions Arts promotion funds to regional art councils Art council's administrative expenditure etc. Artist grants, PLR compensation grants Facilities acquisition, renovations etc. Other arts promotion Subsidies for conservation and repairs Statutory state subsidies to libraries Direct state subsidies to libraries State Prizes for artists Compensation grants to visual artists Recordings & sheet music PLR compens.grants Public Lending Right Grants for Illustrators Cultural policy sector research Audiovisual content production Storage of art and museum artifacts Development of copyright systems Some art centres Subsidies to the Alvar Aalto Academy National cultural events Subsidy to the Art Council information centre Children’s culture centres Central Arts Council for support of children’s culture and multi-art activities, as well as for international subsidies for arts Total Source: Arts councils’ annual reports 2002 2003 11,268,600 11,268,600 1,961,100 1,980,000 1,513,700 1,514,000 1,295,000 1,338,000 1,488,500 1,490,000 341,400 341,000 428,900 432,000 336,400 308,000 361,600 362,000 15,957,300 13,801,000 445,700 - 2 ,367,000 446,000 470,900 536,000 36,671,900 36, 548,000 2004 12,563,000 14,663,000 1,980,000 2,280,000 1,514,000 1,814,000 1,338,000 1,738,000 1,590,000 1,990,000 341,000 391,000 532,000 732,000 338,000 388,000 362,000 437,000 13,945,000 12,868,000 2 ,367,000 2 ,567,000 446,000 521,000 536,000 636,000 36,852,000 26, 866,000 - - 5,993,400 5,993,000 7,063,900 7,896,000 7,896,000 8,418,000 23,378,100 1,513,700 4,120,600 1,261,400 8,473,800 2,421,900 3,758,500 925,000 72,906,600 3,206,200 336,400 672,800 84,000 24,051,000 1 ,514,000 4,121,000 1,169,000 8,320,000 2,422,000 3,944,000 925,000 75,802,000 3,382,000 336,000 841,000 84,000 135,000 2,943,000 1,081,000 - 25,565,000 3,420,000 873,000 3,569,000 925,000 62,195,000 3,382,000 336,000 841,000 84,000 135,000 2,973,000 1,081,000 406,000 29,225,000 3,920,000 2,373,000 2,379,000 925,000 59,361,000 3,382,000 336,000 841,000 120,000 50,000 250,000 400,000 520,000 80,000 500,000 135,000 3,473,000 1,481,000 806,000 - - 1,116 600 134,550 2,943,300 1,047,800 2 ,847, 000 - 212,782,950 217,690,600 191,232,000 187,982,600 45 Appropriations for each branch of the arts are distributed annually from national lottery funds. In 2001, FIM 7.7 million (EUR 1.3 million) of the arts subsidy appropriations from this source was allocated to literature. This allocation was further distributed as Table 20 shows. Table 26. Appropriations for literature from national lottery funds 2001-2004 Undivided appropriation Purchase subsidies for low-volume quality literature Writers’ organisations Translating and publishing Finnish literature Finnish Institute for Children’s Literature Promoting fiction in Finnish and Swedish Selective production subsidies Promoting creative writing and reading Projects in literature 2001 504,600 218,600 230,400 84,100 32,000 94,200 131,200 - 2002 26,110 504,570 233,780 230,420 84,100 31,960 95,870 131,190 - 2003 26,110 600,440 233,780 230,420 84,100 31,960 -* 131,190 - 2004 35,000 800,000 275,000 253,000 90,000 50,000 185,000 50,000 * The selective production appropriation was combined with the appropriation for the purchase of low-volume quality literature. Source: Central Arts Council State subsidies to the book trade can be divided into five categories according to their target: production and distribution subsidies; leisure activity and publicity subsidies; literary society subsidies; artist subsidies; and other book trade subsidies. Subsidies from the Ministry of Education’s Department for Education and Science Policy have been partly covered above with regard to teaching materials, but the subsidies for non-fiction writers and books are here grouped with arts subsidies because these go together and because the former are also funded from the arts appropriations from national lottery funds distributed by the Department for Cultural, Sport and Youth Policy. State subsidies for literature are often understood to refer to fiction only. State literature subsidies were about EUR 7.6 million in 2004, including not only fiction but also photographic publications, publications of visual arts, cultural activities and publications by Sámi and other minority cultures, drama premieres, the State Prize for Foreign Translators and the various subsidies for non-fiction as shown in Table 15. In relation to the State budget and the Ministry of Education budget, book trade subsidies form a minor item; in 2004, the State budget was EUR 37.1 billion, and that of the Ministry of Education EUR 6.1 billion. 46 Table 27. State subsidies to the book trade 1997-2004 Appropriation/subsidy Production/Distribution -promoting Finnish literature -promoting Swedish literature -appropriation for translating and publishing -selective production subsidy -purchase subsidy for low-volume literature -Easy-to-Read literature subsidy -subsidy for photographic publications Support for publications of visual artists -subsidy for cultural and publishing activities by Sámi & other minority cultures Total Hobby/PR -promoting creative writing and reading -projects in literature -Finnish Literature Information Centres -Finnish Institute for Children's Literature -State subsidy for regional arts councils Total Organisations - subsidies to writer's associations -subsidies to writers' associations for international activities Undivided appropriation Total Other subsidies -national cultural events * - other arts promotion ** Total Artists -artists' pensions -academicians -artist professors and artists grants -premiere subsidies to playwrights -project, travel & children's cultural grants *** -public information grants ¨PLR compensation grants + -Public Lending Right Grants for Illustrators -Finland prizes -State Prize for Merits in Children's Culture -public information prizes -artist subsidies for regional arts councils Total Total for all above subsidies * includes only literature events 2000 2001 2002 2003 2004 70,600 52,150 230,400 71,500 52,150 230,400 72,000 50,960 72,000 50,960 82,500 58,750 230,420 230,420 253,000 94,200 504,600 42,050 50,450 168,200 94,200 555,000 42,050 50,450 168,200 95,870 504,570 42,050 59,000 - 600,440 42,050 59,000 - 800,000 50,000 65,000 4,000 168,000 168,000 172,800 1, 044,450 1, 095,750 1.222, 870 1,222,870 1 486,050 131,200 282,550 84,100 43,900 541,750 497, 850 131,190 356,500 84,100 59,200 630, 990 131,190 298,000 84,100 49,300 562, 290 185,000 50,000 364,000 90,000 51,200 740,200 218,650 218,650 233,780 233,780 275,000 25,650 29,000 144,000 14,400 14,400 218, 650 218, 650 26,110 274, 290 26,110 274,290 35,000 324,400 48,800 50,450 99,250 126,150 50,450 176, 600 70,100 68,000 138,100 109,500 68,000 177,500 75,500 68,000 143, 500 .. - .. - .. - .. - .. - 1,544 200 109,300 131,200 282,550 84,100 ,676,000 1,491,970 1,552,570 1,575,830 109,300 111,480 134,480 214,500 52,800 77,050 75,700 67,300 2 ,323,500 2 ,369,950 70,000 92,100 73,000 100 ,000 84,500 100,000 2,411 500 2 ,552,700 2,557, 700 15,000 50,000 50,000 42,050 42, 050 53,600 89 ,400 55,800 8,400 8,400 7,000 5,600 12,000 33,650 58,850 68,000 68,000 68,000 202,500 209,620 252,510 213,720 4,400, 500 4, 417,300 4,540,270 4,888 260 4,942,050 6,498, 400 6 603 350 6,806, 520 7,125, 210 7,636,200 47 * *This covers only the Sibelius Collected Works project, not subsidies for organisations or societies. *** This does not include grants to graphic designers and illustrators. State subsidies for literature are often understood to refer to fiction only. According to Kulttuuritilastot 1999 (Cultural statistics 1999), State literature subsidies were about FIM 32 million (EUR 5.4 million) in 1997, when in fact the real figure was FIM 37 million (EUR 6.2 million), including not only fiction but photographic publications, cultural activities and publications by Sámi and other minority cultures, drama premieres, the State Prize for Foreign Translators, the State Prize for Merits in Children’s Culture for book illustrators and the various subsidies for non-fiction as shown in Table 15. In relation to the State budget and the Ministry of Education budget, book trade subsidies form a minor item; in 1997, the State budget total was FIM 187 billion (EUR 31.6 billion), and that of the Ministry of Education FIM 26 billion (EUR 4.4 billion). 48 Production/distribution Figure 20. Government subsidies to the book trade: production/distribution 2004 Grant for production/distribution in 2004 (1.5 million €) Grants for production of fine art's publications; 4000 Sámi, etc. subsidies; 172800 Promotion of Finnish literature; 82850 Grants for production of photographic publications; 65000 Promotion of literature in Swedish; 58750 Translation of Finnish literature; 253000 Easy-to-Read literature subsidies; 50000 Purchase subsidies; 800000 Source: Ministry of Education Funds for promoting Finnish literature Funds for promoting Finnish literature, which have been awarded since 1909, are awarded by FILI, the Finnish Literature Information Centre. The funds are used for subsidising translations of fiction and non-fiction into Finnish. Funds for promoting literature in Swedish Funds for promoting literature in Swedish have been awarded since 1923. The appropriation was created because during the Depression the position of Swedish-language publishers grew weaker, fewer books were published and the import of books from Sweden diminished as the exchange rate of the Swedish krona rose. However, the real reason for setting up this funding system was the need to translate fiction and non-fiction from Finnish to Swedish. Lately, the support for translations from Finnish has decreased, since their need is negligible as Swedish-speaking Finns generally also speak good Finnish, and joint Nordic funds are available to support translations from one Scandinavian language to another. 49 A committee of FILI, the Finnish Literature Information Centre distributes the funds in cooperation with scientific and literary societies based on quality criteria to support useful literature that could not otherwise be published. Finnish literature translation and publication funds Funds for translating and publishing Finnish literature are awarded by FILI, the Finnish Literature Information Centre. Subsidies can be granted for translations of and publicity concerning Finnish literature (in Finnish, Swedish or Sámi). Apart from project and travel grants for foreign translators, grants are also awarded to foreign publishers and publications promoting Finnish literature. Selective production subsidies Selective production subsidies for publishers were available from 1989 to 2002. Recipients are selected by the Book Foundation founded by the Ministry of Education and the Finnish Publishers Association. The preparatory organ was the production subsidies committee, with three expert members appointed by the Book Foundation. In 2003 the selective production appropriation was combined with the appropriation for the purchase of low-volume quality literature. Purchase subsidies for low-volume quality literature The purchase subsidies for low-volume quality literature, awarded since 1985, were initially awarded to libraries in municipalities with a population of less than 9,000, but since 1998 the system has covered all municipalities in Finland except for the autonomous region of Åland. The purchase subsidies are drawn wholly from lottery funds appropriations for arts support, even though the subsidies are used for purchasing both fiction and non-fiction. Easy-to-Read literature promotion The Easy-to-Read literature subsidies are awarded by Easy-to-Read book work group of the consultative committee of Selkokeskus. Such subsidies have been awarded since 1990 to publishers, writers, illustrators, translators and researchers. Subsidies can also be awarded for adapting existing works to Easy-to-Read language. Grants for production of photographic publications Since 1982, the National Council for Photographic Art has been awarding grants for production of photographic publications intended to promote and improve the level of photography in Finland. Such grants can be awarded to an individual photographer or a group. 50 Support for publications of visual artists The National Council for Visual Arts has granted support for publications of visual artists since 2004. Only part of the support for publications is aimed at books, as the support for publications is also granted for making periodicals, exhibition publications, catalogues, Internet sites, DVD recordings, portfolios, as well as for documentation and printing expenses. Promoting cultural and publication activities by Sámi and other minority cultures Subsidies for cultural and publication activities by Sámi and other minority cultures are awarded by the Ministry of Education. Most goes directly to publishers to support publication. Since 1994, the funds for promoting Sámi culture have been awarded directly to the Sámi Parliament, which distributes them further. This measure is intended to give the Sámi cultural autonomy. Leisure activities and PR Figure 21. Government subsidies to the Book Trade: Hobby/PR 2004 Subsidies to leisure activities and PR in 2004 (0.7 million €) State subsidies to regional arts councils; 51,200 Finnish Institute for Children's literature; 90,000 Finnish Literature Information Centre; 364,000 Source: Ministry of Education Promotion of reading and writing; 235,000 51 Promoting creative writing and reading The National Council for Literature has awarded funds for promoting creative writing and reading to literary organisations, societies and institutions since 1996; until 1995, the Ministry of Education decided on these State subsidies. The funds are intended for maintaining and developing writer training and for promoting literacy and reading as a leisure activity. About half of the reading and writing funds (EUR 95,000 in 2004) are used annually to support Lukukeskus-Läscentrum, a society whose main task is to maintain and promote reading as a leisure activity. Nuoren Voiman Liitto, which focuses on author and writer training, receives the next largest subsidy, EUR 30,000 in 2004. Other organisations have received considerably smaller subsidies, from EUR 1,000 – 5,000. In addition to the monies for the advancement of creative writing and reading, the National Council for Literature has had its own appropriation since 2004 for one-off projects. This appropriation was 50,000 euros in 2004. Finnish Literature Information Centre FILI - the Finnish Literature Information Centre, founded in 1977, is financed mainly from public funds and maintained by the Finnish Literature Society. The purpose of the Centre is to promote Finnish literature (in Finnish, Swedish and Sámi) abroad, to translate literature and to promote publication. The Centre is involved in several bilateral and multilateral cultural agreements and literary projects in exchange programmes. The Finnish literature translation grants awarded by the Literature Information Centre are intended for translation of and publicity on Finnish literature. Foreign translators and publications promoting Finnish literature can apply for these grants. Foreign translators and authors of books on Finland can also apply for project and travel grants. Finnish Institute for Children’s Literature The Finnish Institute for Children’s Literature was founded in 1978. It is maintained by a charitable society, and a support fund was set up in 1992. The duties of the Institute include storing children’s and juvenile literature and research and illustrations in the field, promoting research on literature and illustrating, and publicity. The Institute has a publication series of its own for research and non-fiction in the field, and its regular publications include Onnimanni, a quarterly journal for children’s and juvenile literature. Since 1993, the Institute has awarded the annual Onnimanni Prize for work raising the status and significance of children’s and juvenile literature. Apart from the Ministry of Education, the Institute is supported by the City of Tampere, the regional Arts Council of Häme and several private foundations and funds. 52 State subsidies for regional arts councils Regional arts councils support leisure activities and PR in the book trade by awarding funds to writers’, literary, library and cultural societies. The Ministry of Education allocates appropriations for regional arts councils to use at their discretion for State subsidies, artist grants and provincial artists. In 2004, EUR 3.9 million was allocated in the Ministry of Education budget for regional arts councils to spend on arts promotion. In that year, the regional arts councils supported literary organisations with EUR 51,200. Organisations Figure 22. Government subsidies to the book trade: Writers’ organisations in 2004 Grants to writers' organizations in 2004 (0.3 million €) Subsidies to writers' organisations for international activities; 14,400 Other subsidies to organisations; 35,000 Regular subsidies to writers' organisations; 275,000 Source: Ministry of Education Writers’ organisations receive State subsidies both for their normal activities and for international activities. These subsidies help maintain nationally significant writers’ organisations and artist’s associations that safeguard the social and financial interests of their members. Subsidies to writers’ organisations for normal activities and international activities are awarded by the Ministry of Education on submission from the National Council for Literature. In addition to these subsidies, the International Relations Division of the Ministry of Education has subsidised various projects by writers’ organisations. 53 Other subsidies State subsidies for national cultural events are decided by the Ministry of Education based on submissions from the Central Arts Council. The national councils for the arts make proposals to the Arts Council regarding national cultural events to receive funding. The Ministry of Education’s Department for Cultural, Sport and Youth Policy also occasionally supports the book trade from the budget item headed ’other arts promotion’. These funds go to a range of organisations and societies for use in book projects. Figure 23. Government subsidies to the book trade: Other subsidies in 2004 Other grants in 2004 € 143,500 Other arts promotion; 68,000 National cultural events; 75,500 Source: Ministry of Education 54 Direct State subsidies for creators in the book sector Figure 24. Government subsidies to the book trade: Authors 2004 Total subsidies to authors in 2004 (4.9 million €) State prize for foreign translators; 10,000 Public information prizes; 68,000 Finland prizes; 67,800 Artist subsides for regional Arts Councils; 213,720 Artist professors & artist grants; 1,575,830 PLR compensation grants, illustrators; 50,000 PLR compensation grants, authors; 2,557,700 Grants for playwrights; 214,500 Project, travel & children's culture grants; 84,500 Public information grants; 100,000 Source: Ministry of Education Direct State literature subsidies came to EUR 4,942,050 in 2004, including the grants and awards by regional arts councils. Artist pensions Supplementary artist pensions are paid out of the appropriations of the Ministry of Finance. The national councils for the arts process pension applications from their respective fields, rank them and submit a proposal with explanations to the Central Arts Council, which further submits a proposal to the Ministry of Education. Supplementary artist pensions are awarded to a creative or performing artist in recognition of meritorious work. Although artist pensions are not coordinated with other pension schemes, the financial status of the recipient is taken into account when awarding a full or partial artist pension. In 1992, an amendment was made to the conditions of awarding artist pensions whereby the wealth and income of the applicant must be taken into account when awarding the pension. In the same year, the number of artist pensions to be awarded annually was reduced from 65 to 35. In 2005, the full artist pension was EUR 1,118 per month. An artist pension is taxable income. 55 Academicians The title of Academician may be bestowed on a particularly meritorious artist by the President of the Republic on submission from the Central Arts Council. There are eight academicians at the moment; literature is represented by the authors Paavo Haavikko, appointed in 1994, and Veijo Meri, appointed in 1998. Artist Professors Appointments to a post of Artist Professor are made by the Central Arts Council on submission from the national councils for the arts. The candidate must be an exceptionally distinguished artist in order to be appointed Artist Professor; he or she is required to undertake creative artistic work in his or her field, for example by lecturing in educational institutions or by teaching young artists. Artist professors are paid a monthly salary; in 2005, this was a minimum of EUR 2,883 per month, possible earlier accumulated increments increase the salary. Grants State grants to artists State grants to artists related to the book trade are awarded by the Central Arts Council, the National Council for Literature and the National Council for Crafts and Design. The annual grant system for writers and translators is complemented by the Public Lending Right compensation grants awarded by the Ministry of Education; these may be equivalent to the annual grant in size. The grants are tax-free; in 2005 they were EUR 1, 236 per month. Grant applications from writers and translators are processed by both the National Council for Literature and the Board for Public Lending Right Compensation Grants. Artist grants are awarded for artistic work, studies in Finland or abroad, or further training. In awarding artist grants, the Central Arts Council and the national councils must take language and regional factors into account. Efforts have been made to strengthen the position of young artists: the Central Arts Council ensures that of the various artist grants at least 30 one-year grants are awarded to young artists or artists starting their career. According to the old Artist Grants Decree, the national councils distribute the following artist grants to the book trade each year: for writers, 19 one-year, 9 three-year and 5 five-year grants; for translators, 4 one-year and 2 three-year grants; for craftsmen and designers (which includes comics creators and illustrators), 5 one-year, 3 three-year and 1 five-year grant; and for critics, 5 one-year and 1 three-year grant. The critics’ grants are awarded by the Central Arts Council on submission from the national councils. In addition to the national councils’ grants, the Central Arts Council has granted 10 five-year artist grants to artists in various fields since 1996. According to an amendment to the Decree, the 56 number of these five-year grants went up to 20 from 2001 and they will go up to 30 from 2006. The Central Arts Council awards these grants on submission from the national councils. From the beginning of 2001, artist grants have no longer been fixed in periods of one, three or five years; a grant period may be anything from six months to five years. However, the awarding procedure will ensure that the average grant period will be no shorter than before. The Central Arts Council will decide the number of grant years to be awarded for each field each year. Each national council will have the same number of grant years available to award as before, meaning that, for instance, the National Council for Literature had 81 grant years to award writers and translators from the beginning of 2001. Writer and translator grants Writers and translators are awarded artist grants, project grants, children’s culture grants, travel grants and Public Lending Right compensation grants. The overall situation is shown in the table below. Artist grants have been awarded since 1970. Apart from the one-year, three-year and five-year grants mentioned above, between 1982 and 1995 the Ministry of Education also awarded 10 fifteen-year grants to artists in various fields. Currently, only five-year and fifteen-year grants include a pension contribution. Although the five-year grants awarded by the Central Arts Council since 1996 partly make up for the loss of fifteen-year grants, the grant situation for writers and translators has deteriorated in the 1990s for two reasons: the number of applicants has increased steadily throughout the decade, and the Public Lending Right compensation grant system, which complements the State artist grant system, is based on library acquisition appropriations and has thus steadily declined in the 1990s. Table 28. Writer/translator grants applied for and awarded in 2004 Grant Total # of applications* Literature applications % Total grants awarded* Writer/ Translator Grants awarded % Artist grants 1992 310 16 226 48 21 Project grants 1534 141 9 241 20 8 Children's culture grants 354 45 13 131 11 8 Travel grants 802 42 5 412 25 6 PLR compensation grants 1229 919** 75 878 696** 79 Total # of applications 5911 1457 25 1888 800 42 Total # of persons applying 5077 891 18 2076 717 35 * Total for writers and translators of fiction and non-fiction 57 ** NB Actually, the table shows the number of applications received (not the number of applicants) and the number of grants awarded (not the number of grant recipients); one person may well have applied for and been awarded several grants (e.g. an artist grant and a travel grant). The number of actual people involved is thus less than the 750 given here. Source: Research unit of the Central Arts Council Illustrator, graphic designer and comics creator artist grants The artist grants for illustrators, graphic designers and comics creators are awarded by the National Council for Crafts and Design to a wide variety of artists. However, there is no set division of funds among the various branches of crafts and design: graphic arts, comics, glass and ceramics design, industrial design, furniture and interior design, metalwork, handicrafts and other crafts. State grants to artists State grants to artists related to the book trade are awarded by the Central Arts Council, the National Council for Literature and the National Council for Crafts and Design. The annual grant system for writers and translators is complemented by the Public Lending Right compensation grants awarded by the Board for Public Lending Right Compensation Grants subordinate to the Central Arts Council; these may be equivalent to the annual grant in size. The grants are tax-free; in 2005, they were EUR 1,236 per month. Project grants According to the Act on State Artist Grants, an appropriation equivalent to at least 50 State artist grants shall be distributed annually as project grants mainly to artists. A project grant may be awarded to an artist or a group for implementing a project, covering work expenses, covering performing, presentation or publication expenses or for research. The Central Arts Council awards project grants on submission from the national councils. Foreign travel grants for creators in the book trade Artists in the book trade may apply to the Central Arts Council for foreign travel grants. There are also Nordic travel grants available to writers and translators. The Arts Council travel grants are intended to cover travel expenses only for artists and art experts. Such grants will be awarded to persons actively representing Finland for projects that are artistically significant in themselves or significant for the field of art in question. Nordic travel grants for writers and translators are awarded based on a joint Nordic agreement concluded in 1970 whereby each Nordic country selects recipients of grants to travel to all other 58 Nordic countries. Since 1999, these grants have been awarded by the National Council for Literature. Grants for children's culture Grants for children's culture are awarded by the Children’s Culture Division of the Central Arts Council after consulting the relevant national councils. Grants for children's culture are awarded to support the work of people, groups or organisations who promote children’s culture. The field of art, language and regional factors are taken into account. Public information grants Since 1973, the Consultative Committee for Public Information has awarded public information grants to support popular works of non-fiction and public information projects. These grants are primarily intended as work grants. Public Lending Right compensation grants and subsidies for authors and translators Public Lending Right (PLR) compensation grants and subsidies for authors and translators used to be awarded by the Ministry of Education, but from the beginning of 2001 they have been awarded by the Board for Public Lending Right Compensation Grants subordinate to the Central Arts Council. The Board is divided into fiction and non-fiction divisions. PLR compensation grants and subsidies are meant to support creative work and to aid ageing writers and translators. The applicant’s illnesses and financial difficulties may be taken into account when awarding subsidies. In order to qualify for a grant, the creator must have published at least one work, except for dramatists, who must have had a play performed. These grants are not awarded to writers or translators of scientific studies, schoolbooks or comparable works. Fiction includes prose (novels and short stories), poetry, drama, aphorisms, children’s and juvenile books, picture books with high-quality text and comics. The act on some grants for writers and translators was amended in 2002 so that the Public Lending Right Grants and Subsidies can be granted to those writers and translators ”who live or have lived permanently in Finland and whose literature work enriches the Finnish cultural life”. Before the amendment, only writers and translators writing in Finnish, Swedish or Sámi, who lived or had lived permanently in Finland, could get these grants and subsidies. The grants are divided between fiction and non-fiction with the ratio 90% - 10%. About 10% of the grants in both groups are reserved for translators. The size of the actual grants varies from a few hundred euros to the equivalent of the State one-year artist grant. In the 1980s, grants were awarded as two-year or three-year grants, requiring the recipient to work almost full-time as an artist. 59 Figure 25. Public Lending Right compensation grants to authors 1990-2005 Public Lending Right grants, million € 3,5 2.9 3 2.9 2.9 2.6 2.6 2,5 2.4 2.3 2.4 2.3 2.3 2.4 2.3 2.6 2.4 2.6 2.6 2 1,5 1 0,5 05 20 04 20 03 20 02 20 01 20 00 20 99 19 98 19 97 19 96 19 95 19 94 19 93 19 92 19 91 19 19 90 0 Source: Ministry of Education The total amount of PLR compensation grants and subsidies is determined by the book acquisitions of public libraries in the preceding calendar year: it is 10% of the value of the book acquisitions. Although PLR compensation grants and subsidies exist to compensate writers and translators for their works being available for free in libraries, the grants are not based on lending levels. The idea of the Public Lending Right compensation grant system is based on the principle of copyright law, but it functions as a component part of the State support system for writers and translators. Because the PLR compensation grant system is linked to the book acquisitions of public libraries, it was hit by the recession. The amount distributed peaked in 1991, when EUR 2.9 million in grants was distributed to fiction and non-fiction. The grants reached a nadir in 1996 with EUR 2.3 million. Public Lending Right Grants for Illustrators and Comic Artists The Central Arts Council's Subcommittee for Public Lending Right Grants for Illustrators and Comic Artists has given out grants to illustrators for working since 2003. The grants were meant for illustrators, whose works have been published in books, as books or in other media and for comic artists, whose works have been published as comics or as albums or in other media. Prizes in the book trade The first State Prizes for Literature were awarded for scientific, fiction and popular books in 1865. It was not until 1898 that the prizes became an annual award; at that time, an appropriation of 5,000 marks was provided by Imperial Decree to reward fiction in Finnish and Swedish. 60 Finland prizes / State Prizes for Literature The Ministry of Education has awarded Finland prizes since 1993, replacing the previous State Prizes in various fields of the arts. State Prizes were earlier awarded for artistic merit by the national councils for the arts. State Prizes for Literature were awarded annually for fiction, translated fiction and children’s and juvenile books. Also, in 1974-78 prizes for merit were awarded to foreigners translating Finnish literature. Due to cuts in the State budget, the prize appropriation of the national councils for the arts was axed when the Finland prizes were set up. However, since 1995 the national councils have had an allocation from the Finland prizes appropriation; the prizes awarded from this have been smaller than those awarded by the Ministry of Education. In 1999, the Ministry of Education allocated FIM 1 million from State Prize funds to the Central Arts Council. At the same time, the State Prize system was reinstated. The Central Arts Council decided that the State Prizes would be EUR 12,700 in size and that the national councils themselves would decide who gets them. Two prizes were given to the National Council for Literature to distribute, one for translators and one for writers. The national councils may also make submissions to the Central Arts Council regarding the three extra State Prizes. The present Arts Council and national council State Prizes can be awarded to an artist, a group or an organisation active in the field of the arts. The State Prizes of the national councils are in recognition of work done over the preceding three years or for a long and distinguished career in the field. In 1999, the Ministry of Education allocated EUR 152,500 for Finland prizes. The Finland prizes are awarded by the Minister of Culture, assisted by a panel of representatives from various fields of the arts. This prize money was used for nine prizes of EUR 16,800 for various distinguished artists, two of whom were authors. In the 2000s, Finland prizes have been granted to writers one to three annually. In 2005 an individual Finland prize was EUR 20,000. State Prize for Merits in Children’s Culture The State Prize for Merits in Children’s Culture can be awarded to an artist, a group of artists, an organisation active in children’s culture or another organisation. It is awarded in recognition of work over the preceding three years benefiting children’s culture. Long and distinguished work to promote children’s culture may also qualify as grounds for the prize. The national councils for the arts and the Ministry of Education’s Children’s Culture Division make an annual submission on the recipient of the State Prize for Merits in Children’s Culture to the Central Arts Council, which awards the prizes. State Prizes for Merits in Children’s Culture have been awarded since 1981. Initially, three to seven artists or groups were given the prize; since 1992, there have been one or two recipients annually. 61 State Prize for Foreign Translators The State Prize for Foreign Translators has been awarded since 1974 by the Ministry of Education on submission from the Finnish Literature Information Centre. It is awarded in recognition to a foreign translator for promoting Finnish literature. Table 29 Foreign translators receiving the State Award for Translators Year 1990 1991 Sum € 6 700 .. 1992 1993 1994 1995 1996 1997 .. 6 700 6 700 6 700 8 400 13 400 1998 1999 2000 2001 2002 2003 2004 8 400 8 400 8 400 8 400 10 000 10 000 10 000 2005 10 000 Source: FILI, the Finnish Literature Information Centre Translator(s) Philip & Timothy Binham Anu Pyykönen-Stohner & Friedbert Stohner Herbert Lomas Kerstin Lindqvist Jean-Luc Moreau Jesús Pardo Anselm Hollo Nöste Kendzior & Gisbert Jänicke Joan Tate Jelka Ovaska Novak Lars Huldén Stefan Moster Helena Idström Anne Colin du Terrail Viola Parente-Capková & Antonio Parente Camilla Frostell Seesam prize for Easy-to-Read literature The Easy-to-Read working group of the Ministry of Education awards the Seesam prize for promoting Easy-to-Read literature. Prize recipients are usually given a wooden pirunnyrkki (a sort of traditional three-dimensional puzzle in wood), but in 1999 a cash prize of EUR 847 was granted. Currently, the prize is EUR 1,000. State public information prizes The State public information prizes were first awarded in 1968. The Consultative Committee for Public Information has submitted proposals for prize recipients to the Ministry of Education since 1972. The prize is awarded for popular science publications in the preceding year; works qualifying for the prize include literature, electronic media, new media, entire magazines or articles. 62 Direct support to artists from regional arts councils Regional arts councils support creators in the book trade directly with artist grants, project grants, prizes and the provincial artist system. The regional arts councils have awarded one-year artist grants since 1975; in 1984, they also began awarding three-year and five-year grants. In 2004, when the regional artist subsidies was EUR 3.7 million, literature received the third largest share (12%) of the artist grants of regional arts councils after visual arts (25%) and music (17%). The job of a provincial artist includes guiding and advising professional and amateur artists. In 2005, the salary of the provincial artists was EUR 2,100 + possible earlier accumulated increments; the appointment is for a minimum of two and a maximum of five years. State support for libraries Both the Department for Education and Science Policy and the Department for Cultural, Sport and Youth Policy support libraries. The former supports the National Repository Library, whose task is to store and lend material transferred from scientific and public libraries. The Department for Cultural, Sport and Youth Policy is responsible for most library subsidies. Various library appropriations represent most of the State support for the book trade. Statutory state subsidies for libraries have been paid exceptionally out of lottery funds since 1995. In 2004, EUR 62 million from lottery funds was used to fund the statutory state subsidies for libraries. The division of the lottery funds into physical education, youth work, science and arts defined by the distribution ratio act gradually transfers the libraries´ shares of the lottery funds to be directly financed by the State budget. This means more financing for those receiving subsidies from the lottery funds. The act originally from 2001 was first applied in 2004. According to the latest parliament plan, removal of the appropriations to the libraries will be speeded up from the original ten-year transition period to eight years. The change in basic funding has affected the libraries; payment of an earmarked State subsidy directly to the libraries was discontinued in the 1990s. Towards the end of the decade, the provision of library services has increasingly fallen upon local authorities. Table 30. Ministry of Education subsidies to libraries 2002-2004 (Subsidies paid from national lottery funds are in italics) Appropriation National Repository Library operating costs Statutory state subsidies to libraries (as per the Act on the Financing of Education and Culture) Assistance to library organisations State subsidies and assistance for running costs of public libraries State subsidies for the setup costs of public libraries Total appropriations Total appropriations paid from national lottery funds Source: Ministry of Education 2002 1,251,000 2003 1, 468,000 2004 1,494,000 3,554,573 58, 599,034 58, 971, 639 3,382 000 44,504,000 6,074,882 95,577,455 38, 929,573 3, 382,000 28, 718,000 5 ,999,542 103,343,576 61, 981,034 3, 382,000 28,663,000 6,000,000 104,260,639 62,353,639 63 Supporting bookshops The fact that the number of bookshops is decreasing limits the customer’s options in choosing a place to buy books and compare the level of service. Online bookshops, book clubs and other remote sales are not feasible for everybody as a replacement for bookshops. In the long run, the lower availability of bookshop services may cause a decline in buying books and reading. Becoming a bookseller is expensive regardless of whether one sets up a new company or buys an existing bookshop. Apart from the necessary competence, about EUR 250,000 in start up capital is required. This is more than the capital required for many other types of specialist shop. The sample stock system can be considered a form of subsidy, but gaining access to it requires a guarantee that usually has to be provided as a bank guarantee. No other forms of subsidy are available for someone wishing to go into the bookselling business. Apart from the normal sources of funding, prospective entrepreneurs may apply to the Stateowned Finnvera a specialised financing company, which can augment the entrepreneur’s capital and other funding. Finnvera requires a lower level of guarantee than banks, but it does require a corporate study before granting a loan. On the other hand, banks trust Finnvera, and gaining additional funding can become easier after that. A guarantee is demanded in exchange for the sample stock, particularly important for bookshops. Most often the question is about a real, bank guarantee or bank deposit. From the beginning of 2005, it has also been possible to arrange the guarantee as security insurance. The role of the Booksellers Association as the instigator of the arrangement was significant. VAT on books In 1941, a sales tax of 4-9% was introduced in Finland. Certain products such as”foodstuffs important for public nutrition”, newspapers and magazines were excluded from the tax, but not books. At the beginning of 1951, sales tax was raised to 10-20%, but ”real literature” was excluded from the tax. However, it proved difficult to define just what qualified as ”real literature”. Thus, for ”administrative reasons”, all books were again subjected to sales tax as of 1 January 1964. Periodic but fruitless attempts were made to exclude books from sales tax. As Finland contemplated joining what was then the EC in the late 1980s, it was known that one condition of membership would be the introduction of value-added tax (VAT). The book trade joined forces in a pressure group including organisations of publishers, bookshops, writers, libraries, printers and printing employees. Some major bookshops held a ’tax-free sales’ day to demonstrate to consumers how much cheaper books would be if they were exempt from sales tax. A number of enlightened politicians were also involved. Calculations were made of the effect on the national economy of the removal of sales tax from books. Both central government and local authorities are purchasers of books, and for those sales tax simply meant moving money from one pocket to another. Finland moved from sales tax to VAT on 1 June 1994. The general VAT rate was set at 22%, with other rates at 17%, 12% and 6%. Magazine and newspaper subscriptions and most services 64 were excluded from VAT. Books were taxed at 12%. At the beginning of 1998, the 6% and 12% tax rates were combined into a new 8% tax rate, which also applied to books. Experiences of VAT on books The transfer to VAT and a lower tax rate for books took place without undue difficulty. The Act on Value-Added Tax considers that books do not include ”publications manufactured in some other way than printing or a comparable process”, ”periodical publications”, or ”publications containing mostly advertising”. The contents of a book must be ”legible or observable without technical equipment”. Problems were caused by combination products, for instance those containing a book and a cassette or a book and a disk or CD-ROM; here, the law requires application of both the 22% and the 8% tax rate and to quote two different prices, even though the products are never sold separately. Book price development The Finnish Publishers Association and the Booksellers Association recommended to their members that the consumer should benefit from the lowering of the tax rate that came into force on 1 June 1994. And this did indeed happen. Book sales development A report published by the Finnish Consumer Agency on bookshop prices in Helsinki showed that ”the decrease in VAT has lowered book prices by 8% on average”. Book prices dropped clearly in 1994 and remained more or less the same in 1995. Prices were also affected by numerous other factors, such as the price of paper, which in certain years after the tax cut rose by 25% a year. In terms of copies, the sales of general books excluding encyclopaedias and library sales grew strongly in 1994-1996, after the lowering of the VAT rate (figure 26). At least part of the growth can be assumed to have been caused by the drop in prices due to the tax cut 65 Figure 26. Million copies of general book sold excluding sales of encyclopaedias and sales to libraries 1991-2004 Total number copies of general books sold Non-fiction Children & Juvenile Fiction 25 million copies 20 15 10 5 0 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Source: The Finnish Publishers Association and Statistics Finland Figure 27. Million copies of fiction books sold excluding sales of encyclopaedias and sales to libraries 2001-2004 Fiction, number of copies sold 10 9 8 7 6 5 4 3 2 1 0 4.5 4.3 4.0 4.0 2001 2002 2003 Source: The Finnish Publishers Association and Statistics Finland 2004 66 Figure 28. Million copies of Children’s and Juvenile books sold excluding sales of encyclopaedias and sales to libraries 2001-2004 Children's and Juvenile books, number of copies sold 10 9 8.7 7.4 million copies 8 7.0 6.8 2003 2004 7 6 5 4 3 2 1 0 2001 2002 Source: The Finnish Publishers Association and Statistics Finland Any change in VAT has virtually no effect on the sales of schoolbooks or encyclopaedias. It also has no impact on library purchases, since the State reimburses the local authority for the VAT in the prices. These should thus be deducted from overall sales in estimating the impact of the lowering of the VAT rate. Figure 29. Million copies of non-fiction books sold excluding sales of encyclopaedias and sales to libraries 2001-2004 million copies Non-fiction, number of copies sold 10 9 8 7 6 5 4 3 2 1 0 6.7 2001 6.5 2002 6.7 7.0 2003 2004 Source: The Finnish Publishers Association and Statistics Finland 67 Lowering the VAT rate on books Table 30. Sales of general books excluding sales to libraries and sales of encyclopaedias 19882004 in million € Sales of general books excluding sales to libraries and sales of encyclopeadias 180 160 140 111 milj. € 120 100 80 75 84 90 84 128 123 131 117 119 137 144 147 149 155 85 60 40 20 19 88 19 90 19 91 19 92 19 93 19 94 19 95 19 96 19 97 19 98 19 99 20 00 20 01 20 02 20 03 20 04 0 Source: The Finnish Publishers Association The lower VAT rate has also improved the competitive position of Finnish bookshops with regard to foreign Internet bookshops. A company based in an EU Member State and exporting books to Finland must register in Finland if the value of exports exceeds EUR 33,000 per year, including Finnish VAT. If a company has not registered in Finland, customs will not charge an individual for VAT on an item costing less than EUR 105, because in such a case the VAT would be less than EUR 8, which according to the rule need not be collected. Exempting books and comparable products from VAT altogether would be a significant boost for the book trade. Also, tax exemption would remove the competitive edge of foreign bookshops, particularly Internet bookshops. There are experiences of previous tax cuts: it is known that the price of books will go down and sales will grow. The net State income from VAT on books can be calculated as follows. Book sales in Finland in 2004 were 496 million euros. Applying the 8% VAT rate, the gross income from VAT on books is 39.7 million euros. However, VAT paid by the State itself and by local authorities should be deducted at about 8 million euros, since these purchases account for about 20% of total sales. Company purchases account for about 7% of total sales; they can deduct the VAT they pay; 2.8 million euros from their VAT payments. Thus, the State gets a net income from VAT on books of 28.9 million euros in 2004, which is the sum that the State would lose in case Finland had 0% VAT on books as subscriptions of newspapers and magazines have. 68 Some European countries, for example Britain, have a 0% VAT rate on books, although their language areas are considerably broader than that of Finland. When entering the EU Britain made an agreement that books could be taxed at 0%. EU has listed books as products that may be taxed at a lower VAT rate. Most countries in Europe use a lower VAT rate for books. Of the EU counties Denmark is the only exception with 25% VAT on books. See Table 31 . Table 31. The VAT rates on books and the general VAT in the EU countries and in Norway & Switzerland 2005 Country Denmark Slovakia Austria Slovenia Finland Germany Sweden Belgium Netherlands France Hungary Czech Republic Portugal Latvia Lithuania Malta Estonia Cyprus Greece Italy Spain Luxembourg Switzerland Norway Poland Ireland UK VAT on books General VAT rate 25 19 10 8.5 8 7 6 6 6 5.5 5 5 5 5 5 5 5 5 4.5 4 4 3 2 0 0 0 0 25 19 20 20 22 16 25 21 19 19.6 25 19 21 18 18 18 18 15 19 20 16 15 6.5 24 22 21 17.5 Source: European Booksellers Federation 69 PRIVATE AND INTERNATIONAL SUPPORT FOR BOOKS Finnish Reproduction Rights Organisation (Kopiosto) In the 1970s, permission to copy publications had to be sought from both creators and publishers. In 1978, organisations from various fields founded the Finnish Reproduction Rights Organisation (Kopiosto) to simplify the permission procedure and prevent copyright infringements based on illegal copying. Creators and publishers are represented in Kopiosto by 44 member organisations. Kopiosto is a copyright society whose remit is to monitor the development of copyright and legislation, submit proposals to develop legislation and assist members in copyright matters. Creators and publishers have authorised their organisations to safeguard their interests, and these organisations have further transferred their authority to Kopiosto. The work of Kopiosto is based on the Copyright Act and the authorisation of 46,000 creators and publishers for Kopiosto to grant permission to copy works. Kopiosto grants permission for photocopying, taping of radio and TV programmes, use of such recordings and distributing radio broadcasts by cable. Kopiosto issues photocopying permits to educational institutions, public administration, companies and other organisations. These photocopying agreements entitle the parties to limited copying of Finnish and foreign material. Copying fees are distributed through member organisations to creators as grants and prizes, and to publishers mainly as direct compensation. Copying fees consist mainly of fees paid by educational institutions. The total for copying fees was in 2004 EUR 8.9 million, of which 67% came from educational institutions, 18% from public administration and 15% from trade and industry. The trend in copying fees from 1990 to 2004 granted to publishers’, writers’ and other organisations is shown in Figure 28. Figure 31. Compensation for copying in million euros, 1990-2004 Compensation for copying in million € 6 4.8 5 4.4 4 3.5 3 2 1 1.3 0,9 1.5 1.5 1.8 1.9 2.1 2.3 2.3 2.5 2.1 0.8 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Source: Kopiosto 70 Figure 32 displays the combined Kopiosto fees by organisation, showing that 78% of the fees go to the Finnish Publishers Association and the Finnish Association of Non-Fiction Authors. The Finnish Publishers Association redistributes part of this income to publishers and uses some of the money for the Finlandia prizes. Figure 32. Total amount of compensation for copying to different associations, 1990-2004 Compensation for copying total for the years 1990-2004 Finnish Association of Translators and Intepreters 3% Other associations 24 % Finnish Publishers Association 39 % Finnish Association of Technical Science Publishers 3% Finnish Publishers of Music 4% Grafia 4% Finnish Association of Non-fiction Writers 23 % Source: Kopiosto Radio fees The Finnish Broadcasting Company (YLE) has an agreement on fiction performance fees with the Union of Finnish Writers and the Society of Swedish Authors in Finland. The Union of Finnish Writers distributes radio fees to Finnish writers writing in Finnish, while the Society of Swedish Authors in Finland distributes radio fees to Finnish writers writing in Swedish and to Nordic writers. This fee system is of little significance to the livelihood of Swedish-speaking Finnish writers, since most of the fees distributed by the Society of Swedish Authors in Finland go to the other Nordic countries. In 2004, the Union of Finnish Writers received EUR 36,910 in radio fees, while the Society of Swedish Authors in Finland received EUR 56,000. Foundations A study of foundations supporting the arts conducted in 1993 and 1997 examined 234 independent cultural and arts foundations. Only 13 of these (5.6%) focused on literature. However, in 1997 funding for literature was awarded by 19 foundations, some of them active in several fields of the arts. 71 The study showed that support for literature from foundations increased from EUR 0.4 million in 1993 to EUR 0.8 million in 1997. Literature was the third most frequently supported field of the arts after music and visual arts, receiving one tenth of all subsidies, grants and prizes awarded by foundations. Table 32. Support from major private foundations to the book trade 1998-2003 Svenska Kulturfonden Swedish Cultural Foundation Suomen Kulttuurirahasto Finnish Cultural Foundation The Foundation of Jenny and Antti Wihurin Föreningen Konstsamfundet Society of Fine Arts (for publications) The Foundation of Alfred Kordelin (for translating fiction) The Foundation of Alfred Kordelin (for fiction) Total 1998 1999 2000 2001 2002 2003 126.0 123.4 134.7 269.9 171.0 239.5 282.9 322.0 433.5 726.9 802.0 859.9 220.8 287.3 312.8 412.9 398.2 397.0 203.0 234.0 277.0 312.0 274.0 835.0 23.5 17.7 25.1 26.9 18.0 18.0 78.2 113.5 129.5 143.0 143.4 143.0 934,4 1097.9 1,312.6 1,891.6 1,806.6 2,492.4 Source: Cultural Statistics 2003, Statistics Finland Business companies According to the work (2005) by Pekka Oesch Yritysten tuki taiteille 2003 ja tuen muutokset 1993–2003 the support by industries to literature was 47,614 euros in 2003 or 1.6% of the total subsidies (2,944,597 euros). Most of the subsidies for literature (38%) came from the category other fields of operations and the second most was literature supported by the wholesale and retail trade (27%). In both categories the support was given by a single business. Businesses in insurance as well as transport, storage and telecommunications did not support literature in 2003. Oesch´s research is based on a sample of 1,245 businesses of which 540 were large businesses and 705 small or medium businesses. Mostly the businesses supported music (52%, viewed by the field of art, visual arts (45%) and dramatic arts (36%). Literature was in seventh position (12%) after museums (17%), cinematic art (13%) and cultural inheritance (13%). Primarily the businesses supported literature in 2003 through sponsorship (71% of the support). 15 % was for marketing co-operation, while literature foundations, funds and societies, as well as art institutes, were given 10 %. Only 1 % was for literature acquisitions. Book trade associations and organisations Associations and organisations in the book trade award grants and prizes to creators in the field. The funding for these comes mainly from Kopiosto fees, but the Society of Swedish Authors in Finland, for instance, is responsible for awarding grants from small independent funds. In 1998, the Finnish Association of Non-Fiction Writers awarded EUR 995,250 in grants; the Finnish 72 Association of Translators and Interpreters EUR 73,291 and the Union of Finnish Writers EUR 56,000. The Finlandia prize The largest literary prizes in Finland are the Finlandia prizes for fiction, non-fiction and children’s literature. They are EUR 26,000 each and are awarded by the Book Foundation of Finland. The Book Foundation of Finland was founded by the Ministry of Education and the Finnish Book Publishers Association in 1983. The funding for the prizes comes from Kopiosto fees paid to publishers and the Society for Non-Fiction Authors. The Finlandia prize for fiction was first awarded in 1985, followed by the first Tieto-Finlandia (non-fiction) in 1989 and the first Finlandia Junior in 1997. Nordic Council and Nordic Council of Ministers The Nordic Council was founded in 1952 as a co-operative organ for the parliaments and governments of Iceland, Norway, Sweden and Denmark. Finland joined in 1955. The autonomous regions of Åland, the Faroes and Greenland also participate in the Council’s work. In 1971, the Nordic Council of Ministers was founded as an intergovernmental body that makes submissions to the Nordic Council, implements its recommendations and reports on the results of co-operation. The Nordic literature and library committee (NORDBOK) was subordinate to the Nordic Council of Ministers, which appointed it to develop and reinforce Nordic co-operation in the field of literature and between libraries. NORDBOK has subsidised Nordic writers’ courses, Nordic translation seminars and various literary projects. Library subsidies have been available for organising courses, seminars and research projects that have joint Nordic significance. In June 2005, the Nordic Council of Ministers decided to reform Nordic cultural co-operation. In connection with the reform, among other things, NORDBOK was discontinued, but the activities of the discontinued committees and institutes continue through Nordic theme programmes. Translation subsidies In 1973, the Nordic Council of Ministers decided to introduce an experimental measure of translation subsidies for quality literature, intended for translations from one Nordic language to another. In 1990s, funding was also awarded to translations of Nordic works into the languages of the Baltic States and Russian. The support was also awarded for translating Baltic and Russian literature into Nordic languages. Translation support has been regularly awarded since 1977, with about 150 applications approved annually. The subsidy is paid to the publisher. During the last few years, grants were also awarded to private individuals, who translated from Latvian, Lithuanian and Estonian into Nordic languages. In 2005 the Nordic translation support was NOK 2.3 million (EUR 296,000). The translation support of the Nordic languages, Baltic languages, as well as Russian language was DKK 500,000 (EUR 68,600). 73 Nordic Council Literature Prize The Nordic Council Literature Prize has been awarded annually since 1962. In 2005, the prize was DKK 350,000 (EUR 47,000). Nordic works of fiction published during the previous two years (Danish, Norwegian, and Swedish) or four years (other languages) are eligible for the Prize. The Prize is awarded by a ten-member expert committee with two members each from Denmark, Finland, Iceland, Norway and Sweden. If necessary, further members from the Faroes, Greenland and the Sámi are invited to join. Nordic funds The Nordic Cultural Fund and bilateral funds support Nordic cultural co-operation. To qualify for a grant from the Nordic Cultural Fund, a project must involve at least three Nordic countries. Recipients of grants are usually organisations and societies. Bilateral funds — the Icelandic-Finnish Cultural Fund, the Finnish-Norwegian Cultural Fund and the Finnish-Danish Cultural Fund — promote extensive cultural and social cooperation and mutual awareness between their respective countries. They award mainly travel grants. The Finnish-Swedish Cultural Fund, on the other hand, awards general grants, cultural grants, translator grants and artist-in-residence grants. DEVELOPING THE BOOK TRADE Training There are both trained professionals and autodidacts in the book trade. There is no appropriate academic degree for prose writers, poets or comics creators. Literary art teaching Statutory basic education in arts outside the formal education system is given in literary art as in other fields. According to legislation that came into effect in 1992, basic education in arts education lays the foundation for entering vocational and higher arts education. Organising basic education in arts is the responsibility of the local authorities; it is intended primarily for children and adolescents. There were 18 literary art education units in 2004, with 814 art education. 560 pupils were involved, and two full-time teachers and 28 part-time teachers were employed in literary art teaching. 74 Writer training There has only been writer training for about 20 years, if the teaching given in comprehensive and upper secondary schools is excluded. The State subsidises writer training through the regional arts councils and through creative writing appropriations and reading appropriations The most extensive writing course at the university level is given by the Open University writer training programme at the University of Jyväskylä. The basic and subject studies are done at the Open University, but since autumn 2002, it has been possible to do the advanced studies in the Department of Literature of the University of Jyväskylä. Creative writing can also be learnt at the university level in the dramaturgy department of the Theatre Academy of Finland, the University of Turku, as well as the University of Helsinki and Åbo Academy continuing education centres. Publishing training The joint Publishing Training Committee of the Finnish Publishers Association and the Association of Publishing Editors organises courses primarily for publishing editors, suitable in part also for heads of publishing or editing and for small publishers. There is no university-level publishing training in Finland. Bookshop training The Booksellers Association and the Marketing Institute have jointly organised basic training for booksellers for nearly 30 years. The professional title for a bookseller is librist. Upon graduating, students receive a certificate of their librist’s qualification and, having passed a proficiency test, a certificate of Further Qualification of Shop Assistant. In recent years, bookshop IT content has been increased in librist training. The Booksellers Association and Suomen Liikemiesten Kauppaopisto – ATK-Instituutti (SLK – Finnish Business College) jointly organise a special vocational degree of trade manager applied to the book trade, which will prepare those who already work in the trade for running a bookshop and becoming an independent entrepreneur. The Continuing Education Centre of the University of Jyväskylä has organised the three-year Kirjakauppa 2000 (Bookshop 2000) training programme subsidised by the Ministry of Education and the European Social Fund, in which 60 people from 41 companies have participated. The largest bookshops and voluntary chains organise internal training, aiming at both exploiting the strengths of the chain and improving professional skills in general. Library training University-level library training is given at the Departments of Information Studies at the Universities of Tampere and Oulu and, in Swedish, at Åbo Akademi University in Turku. 75 Polytechnics also provide library training. Under the new education system, the polytechnic basic business degree includes an information and library services training programme, which will begin in autumn 2000 at the earliest. The most important place for further training is the Continuing Education Centre of the University of Tampere, which specialises in IT training specifically for libraries. The Finnish Library Association and the Finland’s Swedish Library Association offer specialist training for their members. Joint training There is a need for further and complementary training for everyone in the book trade. The logistics chain of content production, storage, distribution and use is constantly changing. The smooth functioning of this chain requires a degree of co-operation greater than ever. It is increasingly important for all parties to speak the same language, use the same terms for the same things and realise that they do not have to do everything themselves. The work of other people can and should be used according to jointly agreed rules, as long as the copyright of content producers is respected. 12 students have graduated from the University of Jyväskylä Book-MBA programme 1999-2003. Data and research in the book trade Training is not enough; research from a variety of perspectives is also necessary for development. The studies and statistical reviews published by the Central Arts Council and used for this report are essential source documents. Current information on book publishing, bookselling and reading is collated annually from the Finnish Publishers Association, the Helsinki University Library and public libraries. Research data is mainly generated by universities, the National Consumer Research Centre and commercial market research companies. Starting from 1994 the Booksellers´ Association has had made an Indicator study measuring the operations and profitability of a bookshop which is carried out by the Statistics Finland. Turku School of Economics and Business Administration has since 1990 compiled Economic Statistics of the Graphic Arts Industry, in which, for example, the book publishers have been examined as a separate group. Statistics The annual statistics of the Finnish Publishers Association cover an estimated 90% of all Finnish books sold. The Helsinki University Library records all titles published. Statistics Finland combines these two sources of information. Since 1997, the Booksellers Association has commissioned a report from Statistics Finland on book sales by distribution channel, based on the company register and VAT data. The Ministry of Education collects data for library statistics from the public libraries annually; these include information on library collections, acquisitions and lending figures. The National 76 Unit of Electronic Library Service at the Helsinki University Library collects similar data from scientific libraries. Maintaining these statistics is important for an overview of the publishing, sale and use of books. There is a clear need for statistics in the field of cultural activities, and two important works have recently been released: Cultural statistics 2003, Statistics Finland and Finnish Mass Media 2004, Statistics Finland. Comparison of book trade statistics between countries is problematical, which is true of comparing statistics in general. Work is needed to develop international standards. Digital products and e-commerce are potential new subjects for statistics now their sales volumes are growing. Studies and projects Books and their future, particularly the effects of digitalisation on the trade and its actors, have been studied by several researchers in recent years. The Continuing Education Centre of the University of Tampere produced Finland’s contribution to the New Book Economy BIS project. This concentrated on the impact of digitalisation on the book trade. The summary report of the research programme mapping out the future views in the book trade KIRJA 2010 - kirja-alan kehitystrendit was completed in 2001. The summary report can be read in English at www.jyu.fi/nykykulttuuri/Kirja2010/book2010.pdf The government has made plans and designed programmes to develop the cultural industry. Particular attention has been given to bringing content production to the same high level as basic IT competence. A training and research strategy meeting the requirements of the information society has also been drawn up. These projects are also important to the book trade, even if they do not focus specifically on books. Information society The information society can be defined as a state of existence where a significant amount of work is to generate, convey and exploit information. The information society can also be simplified as environs, where business carried out by personal meetings, correspondence or phone, can be handled through the information networks. In 2005 over 60 % of the 15-79 year-old Finns used the Internet at least once a week. More than every second household has an Internet connection and more than half of them are broad-band connections. All the schools have computers, which are also used in instruction. It is possible to use the Internet free in practically all public libraries. Most Finns are able to conduct business through the information network. A significant number of adults know how to conduct business through the information network. Some who have the opportunity and the know-how to use the Internet to conduct business, prefer, however, to use the traditional methods. 77 Service through the information networks has advanced furthest in banking where two significant information security questions have been solved successfully and satisfactorily. Clients rely on private matters not becoming known to a third party and that the parties can reliably recognise each other. Opportunities to conduct business with authorities through the Internet have grown significantly during the past few years. Internet shopping has grown in recent years. Products of the information society include, online versions of newspapers and magazines, ebooks, virtual libraries lending out ebooks and while services are provided free through the Internet at first, at least some services will charge a fee. While aiming at the information society that there is a conflict to some extent when the same content printed, enjoys in most EU countries, including Finland, a discounted VAT rate, the digital version, both as a recording and online, does not qualify for the discounted VAT rate. Digital products One can consider the digitalisation of conveying information as an essential part of the information society, just as that earlier conveyed in a printed form. CD-ROMs and DVDs on which great expectations were placed towards the end of the 1990s, have not established themselves as a publishing form for a book, but the ebooks – mainly the non-fiction and science books - solely distributed on the Internet are quickly becoming increasingly common. So far only a few ebooks are independent works, nearly all are parallel versions of printed books. The online net versions of newspapers and magazines meant for the general public are also mainly parallel products of the print versions. Scientific journals have advanced furthest in online publishing. There is no long experience of digital recordings remaining viable. Possible threats to content preservation are, for example, temporary high temperatures, mechanical damage and strong magnetic fields. Due to changes in technology some of the recordings made at the beginning of the computer age are already unreadable, because there is no equipment for reading them. Some of the recordings, on the other hand, cannot be read or can only be read with difficulty, because programs used to make them are no longer in use. 78 Figure 33. Number of digital books and other book-like products published 1995-2004 Audiovisual products Offline-products Online-products Number of products 1000 881 900 numbers of procucts 800 700 600 538 500 424 402 353 384 400 333 318 283 300 200 100 522507 470 130 170 127 69 59 2 4 1995 1996 394 289 184 101 207 186 134 65 127 65 11 0 1997 1998 1999 2000 2001 2002 2003 2004 Source: The Finnish Publishers Association One must secure the preservation of contents that are only in the form of documents on a server, for example, ebooks, so that the information is on several servers functionally independent of each other or as back-up copies in some recording. While programs are being further developed, the content must also be produced in a form that new programs are able to read. It is possible to receive and read the digital content by a computer, by equipment developed especially for reading, by mobile phones, MP3 players, digital television or equipment that is still on the drawing board. Content application suitable for all the different equipment is not particularly difficult technically, but it is a cost that must be taken into account. The number of titles of electronic publication products categorised as books published by the members of the Finnish Publishers Association is given in Figure 33. 79 Figure 34. Net sale of Digital books and other book-like products 1994-2004, in 1000 € excluding VAT 1995-2005 Sales of electronic products in 1,000€ (classified as books) Online-products Offline-products Audiovisual products 14000 12000 1,000 € 10000 8000 6000 4000 2000 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Source: Finnish Publishers Association Technological development produces new tools and ways of conveying information to others. Even in producing content in digital form some thought should be given to how permanent this content is intended to be. How can we safeguard the preservation of at least one original copy that can be used or copied with tools available years in the future? What should be stored on CDROM or DVD, and what should only be provided online? In Finland, provisions for multimedia recordings are being added to the Legal Deposit Act, so they will be defined as equivalent to books. However, at present the VAT rate is the higher one – 22 %. How should content be shaped so that it is feasible to receive it through a digital TV, computer, mobile phone, ebook or other media? It is already technically possible to implement ‘Book on demand’, but little use has been made of the possibility to print single copies or short print runs. The main issue in ‘Book on demand’ is the management of digital material and the financial interests and rights inherent in it, starting with copyright protection and the assessment of copyright remuneration. 80 The future of books A printed book is easy to carry. The ebook and other digital media will not replace the book or printed matter in general, but they will doubtless find a niche alongside them. Nearly every adult prefers a printed book to digital content in a digital device. Today, many children get acquainted with the monitor screen before the printed page. Will these children feel more at home with a digital display device when they grow up? In the near future books will retain their position alongside other media of communication and entertainment, although its relative importance in the time and money spent by people will decrease. The market for printed books will not grow significantly. Some companies in the field will diversify into new media publication and selling. Content production and digital printing will enable the release of titles to smaller target groups at reasonable prices. A published book need never go out of print unless the author or publisher so decides. It will become easier to update works of non-fiction. CONCLUSION During the past decade, the share of consumers as book buyers has significantly grown, because of the shift in the distribution of financial responsibility between the local authorities and the central government and because of the recession in the 1990s, the municipalities have cut their expenditure. Book acquisitions by public libraries have dropped by 32% in ten years. Acquisitions of books and other material by scientific libraries have also decreased as basic funding for universities has been reduced. The purchases by businesses and other communities have not significantly grown. A book’s stay in the sample stock of an average bookshop’s basic collection has shortened from a good two years to just over a year during the last decade. This easily gives the impression that the book´s life cycle would have significantly shortened, even though this is not necessarily the case. The truth is that special methods must be used to try to sell quicker than normal a poorly selling book. On the other hand, a book with a natural demand will be re-printed – more often as a paperback. The official languages of Finland are spoken by very few people (Finnish by 4.8 million, Swedish 300,000 and Sámi less than 2,000). Therefore, the number of copies in a book’s printruns are small, with a few exceptions. For the same reason, there are few writers in Finland, who earn their living by merely writing books. Language and literature are historically linked to national identity and cohesion in Finland. The first Finnish literature prizes were awarded from Senate funds in 1865 for a scientific work, a work of fiction and a work of ‘popular appeal’. Since then, State support for the book trade has increased in scope. In 2004, the Ministry of Education subsidised libraries by EUR 104.3 million. Support for book acquisitions in particular has a positive impact on the entire book trade. Direct State subsidies to creators in the book trade were EUR 4.9 million in 2004. The largest single allocation, nearly EUR 2.6 million, was for Public Lending Right grants for authors and 81 translators. However, since these are linked to the volume of book acquisitions by libraries, they have declined considerably in the 1990s. Nevertheless, the future of the printed book in Finland seems bright. The numbers per capita of titles published, books sold and books borrowed from libraries are high by international comparison. The average level of education is rising, and studies show that this makes people more eager to buy and read books. The development of digital content and reading devices and the enthusiasm with which Finns are adopting new communications technologies present a challenge to the printed book as a medium. The book trade must be prepared to meet this challenge by making use of the potential of the new technology. However, the future of books and the book trade is wholly dependent on future readers. Will they continue to feel that a book is by far the simplest, least disturbance-prone and individual conveyance for information and enjoyment? Carita Nyström, author: “When I open a book and begin to read, not only my intellect and imagination are engaged; the reading is in itself a highly physical action where my various senses work together. My eyes capture the words on the paper, my ears hear — even if only in my head — the sound of the words, my nose smells the scent of the paper and ink, perhaps of glue or leather, my fingers feel the texture of the paper (soft or coated) and the binding (soft or hard). “Reading is a very individual, even intimate action, but a reader is also part of the largest audience for any art form. And this is not all — the reader is also a member of, and justifies the existence of, a wide infrastructure of authors, publishers, libraries and booksellers.” 82 Important events in the book trade Year 1458 1488 1620 1640 1686 1725 1794 1829 1831 1835-36 1848 1858 1865 1866 1870 1885 1897 1903 1908 1908 1919 1919 1927 1939 1941 1948 1951 1961 1964 1964 1968 1990 1992 1994 1995 1997 1998 1999 2001 2001 2003 Event Gutenberg prints the Bible Finland’s first book, the Missale Aboense, is published The bookbinder Michell Panther founds Finland’s first real bookshop in Turku The Academy of Turku, Finland’s first university, is founded Literacy is made compulsory by church law The clergy are charged with holding catechetical meetings to inspect reading skills Finland’s first public library is founded in Vaasa Copyright is first provided for in Finnish legislation in the Printing Decree Finnish Literature Society founded — oldest publisher of general books in Finland Publication of Elias Lönnrot’s Kalevala (National epos of Finland) Publication of J.L. Runeberg’s Fänrik Ståhls sägner (Tales of Ensign Ståhl); vol. II 1860 The Finnish Book Publishers Association (SKY) is founded The first State Prizes for Literature are awarded The four-year primary school system is set up. The School Library Act is enacted. Publication of Aleksis Kivi’s Seitsemän veljestä (The Seven Brothers) The Society of Swedish Literature in Finland is founded The Union of Finnish Literary Writers, later the Union of Finnish Writers, is founded The Finnish Retail Bookshop Association, later the Finnish Booksellers Ass., is founded Bookshop regulations and retail price maintenance are introduced The Finnish Librarians’ Union, later the Finnish Library Association, is founded The Society of Swedish Authors in Finland is founded Kirjavälitys Oy is founded as a wholesaler for the entire book trade The first specific act on copyright is enacted Frans Eemil Sillanpää receives the Nobel Prize for literature Sales tax is introduced on a variety of products including books The sample stock system in its present form is introduced Books are exempted from sales tax The new Copyright Act is enacted The Act on Promotion of Economic Competition comes into force Books again subject to sales tax The Act on Promotion of the Arts comes into force; the Central Arts Council, the national councils for the arts and the provincial arts councils are founded Finland’s first book club — Suuri Suomalainen Kirjakerho — is founded Retail price maintenance is discontinued in the book trade The Finnish Reproduction Rights Organisation (Kopiosto) is founded The first Finlandia prize is awarded to Reino Paasilinna for Yksinäisyys ja uhma (Loneliness and defiance) New Competition Act — the Finnish Book Publishers Association and Booksellers Association abandon recommended trade terms The first Turku Book Fair takes place Fennica CD-ROM database introduced Sales tax becomes VAT; VAT on books drops from 22% to 12% Finland joins the EU, term of copyright protection extended from 50 to 70 years The first World Book Day is celebrated VAT on books drops from 12% to 8% Universities of Helsinki and Tampere begin to accept dissertations in digital form The EU Copyright Directive is passed The first Helsinki Book Fair takes place Kirjavälitys buys Libri distribution and a merger takes place 2005 Parliament passes a revised copyright law based on the EU Copyright Directive 1968 1971 1978 1984 1988