Skip to main content

Global Disruption of the Legacy Publishing Sector


According to the findings of several related market studies, the next big global disruption will occur in the traditional publishing sector. In the same way that the music recording industry lost control of their marketplace, the large legacy print media companies are equally vulnerable.

As an example, according to the latest market study by eMarketer, they predict that sales of ebooks and the devices on which people read them -- i.e. ereaders, tablets and smartphones -- are on a steady upward trajectory. Much of the new digital publication revenue growth could come at the expense of print publications.

The U.S. ereader user base is poised to grow at double-digit percentages this year and next, but by 2014 and 2015 the expansion will likely slow to about 5 percent. eMarketer believes that this reflects market cannibalization from media tablets, not necessarily a loss of interest in consuming ebooks.

People are using these devices -- both ereaders and media tablets -- to read a variety of digital content from a multitude of sources. The Online Publishers Association (OPA) has found that tablets encouraged book purchases.

In March 2012, 35 percent of American tablet owners purchased ebooks on their devices -- that's more than the number who bought movies or TV shows, purchased magazine or newspaper subscriptions, or bought single copies of magazines, according to OPA.

Similarly, Harris Interactive showed that ereader owners tended to buy more books than non-owners. Harris also indicated that ereader owners read more than non-owners.

Apparently, there are difficulties to overcome in the ebook market -- they're primarily associated with content delivery and pricing. Although ebook production generates its own set of costs, consumers still believe that an ebook should be significantly less expensive than print book.

Regardless of whether publishers, distributors, retailers agree with the value perception problem, they're still under intense pressure to meet their customer's expectations.

Moreover, a recent action by the Department of Justice against Apple and five publishers for alleged ebook price fixing will likely result in a period of uncertainty over price levels.

In addition ebook library lending is becoming more popular. Although these programs provide revenue and promotional benefits to media publishers, they also raise the prospects of digital piracy and potential revenue cannibalization.

eMarketer says that while all indicators point toward robust sales and a healthy growth outlook for the ebook business, the publishing industry is in the midst of a standoff over competing business models.

The long-term outcome is uncertain, but it could result in an closed marketplace in which a few companies could have unprecedented control over pricing, marketing, technology decisions and other critical aspects of ebook commerce.

Popular posts from this blog

Artificial Intelligence Growth at an Inflection Point

Business technology investment no longer follows a predictable path to growth. The global venture capital (VC) investment in artificial intelligence (AI) was close to its peak in 2021 reaching $22.3 billion, according to the latest worldwide market study by ABI Research. This is just $400 million shy of the historical high of $22.7 billion recorded in 2019. Compared to the $15 billion recorded in 2020, the market made a remarkable recovery, with a 48.5 percent year-on-year growth. Will the future AI marketplace return to stable growth, or will it remain volatile? Artificial Intelligence Market Development "COVID-19 greatly accelerated the speed of digital transformation within the enterprise. Businesses are looking for solutions to work processes automation, customer care, due diligence, transcription and translation, and sales and marketing enablement tools," said Lian Jye Su, research director at ABI Research . At the same time, COVID-19 led to the Great Resignation of 2021

How a Digital-First CEO Leads Transformation

Some leaders reject the notion that "wait and see" is the best response to disruptive change. Savvy senior executives are already driving digital business transformation throughout their organization in an effort to gain a bold strategic advantage. According to the latest market study by International Data Corp (IDC), Digital-First CEOs plan to drive at least half of their income from digital business products, services, and experiences by 2027 -- that's ahead of the market average of 39 percent. Driven by their response to the COVID-19 pandemic, these business leaders have changed how they think about the relationship between business and technology, and how they approach the next digital transformation era -- from scaling digital technology to guiding a viable digital business. Digital Business Market Development IDC defines digital business as value creation based on technology, which entails: 1) Automated customer-facing processes and internal operations; 2) Provision

Digital Solutions for Industrial & Manufacturing Firms

Executive leaders of fast-moving consumer goods (FMCG) are seeking guidance on how to apply new business technology in their manufacturing operations. CIOs and CTOs are tasked with gaining insight into the best solutions for digital transformation. ABI Research evaluated the impact politics, regulation, the economy, supply chain, ESG, and technology are having on FMCG, pharma, producers of steel, chemicals, pulp and paper -- as well as the mining and oil & gas sectors. Digital Transformation Market Development "Our assessment found that the FMCG sector is under pressure from all sides," says Michael Larner, industrial & manufacturing research director at ABI Research . Securing raw materials is challenging considering lockdowns in China and limited grain supplies from Ukraine. Supply shocks are raising input costs, and operating costs are rising with higher energy costs coupled with the pressure to pay higher wages and work sustainably. "We all hoped that with th