Skip to main content

Why U.S. Publishers Seek e-Book Salvation



The Amazon Kindle e-reader and online e-bookstore has spawned a paid e-publishing content marketplace that has grown in the past two years. But, is this truly the profitability salvation that print publishers had hoped for?

Competition from other device makers -- such as Apple -- promises to further stimulate what is already one of the most dynamic areas of the digital content ecosystem.

Sales of e-books have grown steadily since the format first appeared in the early 2000 time frame. The Association of American Publishers (AAP) estimated that U.S. net sales to its 85 member publishers totaled $169.5 million in 2009 -- up 176.5 percent from the 2008 figure of $61.3 million.

In fact, revenue for 2009 was the highest ever, and the percentage gain was the greatest since e-books started producing a profit.

"Currently, most e-book volume comes from Amazon.com's Kindle Wireless Reading Device sales," said Paul Verna, eMarketer senior analyst. "But it is unlikely that Amazon.com will be able to hold on to such a dominant market as e-book pricing becomes more competitive and more complicated."

In newspaper and magazine publishing, opportunities are less tangible than for books, and monetization models are in flux.

Several publishers are looking to experiment with paid models after ad-supported efforts have fallen short. Existing paid plans included metered access, freemiums, 100 percent subscription sites and even donations in one case.

But many studies already demonstrated that consumers are very reluctant to pay up for news content -- unless it's truly of exceptional quality.

"Consumers will resist paying for content," Mr. Verna said, "especially in cases where they feel they can find the same quality information elsewhere online for free."

Popular posts from this blog

How Data and Analytics Drive Business Growth

Senior executives in the world’s largest and most complex organizations will develop the insights required to achieve lasting Digital Transformation. Gartner has identified a model for digital business growth that binds together data, analytics, technology, and forward-looking transformation capabilities. The Gartner Research Board said that data and analytics (D&A) leaders are uniquely positioned to drive this strategic organizational change that will make their companies behave like 'digital native' leaders.  "The most advanced and successful D&A leaders are driving new opportunities to use digital capabilities – often data and analytics products – to capture value. Those opportunities should directly connect to the business priorities," said Mario Faria, vice president at Gartner . Digital Business Market Development At the same time, some leaders are using digital and D&A to create whole new business models. These leaders – which Gartner named the CxO

Anywhere, Anytime Workplace Demand for SASE

The ongoing adoption of flexible working models within the enterprise market has significant implications for typical IT organizations that must now support knowledge workers and front-line employees that operate outside the corporate network perimeter. The global COVID-19 pandemic created IT networking and security challenges. The expansion of the distributed workforce, an increasing reliance on cloud computing infrastructure, and the requirement to securely connect online employees -- wherever they choose to work, at any given moment in time. Legacy IT solutions that have rigid network underlays and a requirement for on-premises infrastructure cannot adequately deal with these trends. This 'Anywhere, Anytime Workplace' led to demand for new Secure Access Service Edge (SASE) solutions, with networking and security delivered as-a-service. Anywhere, Anytime Workplace Market Development   Although converging networking and security capabilities offer enterprises a promising solut

The Metaverse Raised Virtual Reality Interest

After years of slow growth and limited use cases, the Virtual Reality (VR) market is now forecast to grow significantly over the next five years. Consumer interest in VR games and media continues to grow after the COVID-19 pandemic accelerated activity. At the same time, the need for employee enablement and immersive content within the enterprise environment remains strong. According to the latest market study by ABI Research, over 90 million Head Mounted Display (HMD) shipments in 2027 will drive total VR market revenues to reach over $95 billion across hardware, software, and services. Virtual Reality Market Development "The virtual reality market is no stranger to false starts, with identifiable efforts in VR dating back to the 1980s and 1990s. While the technology never found purchase results, the increased capability of VR hardware combined with the demand for immersive content in numerous markets, presents a significant opportunity," says Eric Abbruzzese, research direc