Coagents as intermediaries in the book industry

Abstract

This study investigates the use of coagents in the book industry. To reach international markets, domestic publishers typically license a title’s rights to third-party international publishers, a practice known as 'selling rights’. Rights sellers can either choose to work directly in a local market or with intermediaries known as coagents. Using a data set of over 2000 international rights sales for Australian-authored titles of a major publisher, we examine whether employing the services of a coagent leads to superior outcomes as measured by the size of the advance. We find a positive relationship between the use of coagents and the size of the advance. This result is robust to a variety of contract lengths and international market conventions. The evidence suggests that, on average, coagents help secure better outcomes for authors and domestic publishers. More broadly, our study suggests that international intermediaries may play an important role in the export of cultural goods.