Making Sense of the Current Market

The current publishing market is in a state of flux and this is due to the massive impact of the digital revolution. Other media markets have already started to capitalise with digital, such as the music market and newspaper industries. However, compared to MP3 s and on line newspaper access, eBooks are relatively new and so Publishers are still working out the best ways to capitalise on them.

As with these other markets, it is imperative for the publishing market to change and adapt to the current landscaped and consumer needs. Innovation is crucial otherwise the industry will fail. The current economic climate has shown that markets such as the book market have to offer the customer something of value, cheaply, as there is now less disposable capital than before. A cheaper way to produce and distribute is absolutely crucial.

However, eBooks can be produced at home and so not only are publishers wrestling with cost of sales but also with a lack of authors, who are instead self publishing. However, there is a plus side to this new change in the industry, and publishers just need to utilise it. Due to the digital revolution, Publishers can now interact directly with their audience and customer base. Social networks have created an increasingly connected Publishing landscape. The proof of success however, will show through how Publishers use this connectivity to their audience and begin to understand directly their market needs.

Innovation will always happen in business. It is however, not enough to just recognise it. For Publishers to comletley be immersed in this new change to the industry, they have to understand it and become immersed in it.

The Big Picture

The constantly evolving digital world has had a significant impact on every aspect of society, and in particular, the relationship between business and consumer.  The increasing demand for instant downloads and the latest news available at the click of a button, means that publishers, booksellers, and newspapers alike are having to work harder than ever to attract the modern consumer. 

The working model of publishing is evolving, rendering certain respected roles within the industry obsolete.  The publisher now has direct access to their market thanks to the role of social media in modern society, and self-publishing is becoming increasingly easy, affordable, and profitable, which is bad news for the book agent.

The consumer is more demanding than ever, leaving high street booksellers earnestly searching for a way to compete with Amazon.  Waterstones may soon follow in the footsteps of Boarders and Ottakers if they are unable to lower their prices and provide instant access to a wider range of books from the consumer’s living room, or find a way to add value to their current product.

The availability, and more recent affordability, of eBooks and eReaders means that publishers and booksellers are facing the increasingly urgent need to incorporate digital media and innovation into their business models in order to stay relevant.  

Media Entrepreneurs and the Digital Publishing Market

Technology and consumer behaviour effect the publishing industry on a macro and meso level and it is vital for media entrepreneurs to create innovative business models which learn from the failures and successes of other businesses. For example, Spar, like the Co-op and Martin McColls before them, have recently installed ‘Amazon lockers’ at nine of their stores which allow customers to collect Amazon purchases at their convenience.

A key issue regarding the current digital publishing market is the value placed on digital content. Rather than purchase a physical magazine or newspaper it is more convenient for a consumer to access specific information digitally. Similarly, much of the book industry is free as consumers can loan physical books from the library or friends and it is possible to search and access specific e-book content for free online. It is difficult for book publishers to add value to digital content due to its immaterial nature and an absence of a standard or minimum e-book pricing system. For instance, e-books priced at just 20p are currently dominating Amazon’s Kindle store.

Making Sense of the Big Picture

The publishing industry has evolved rapidly as a result of the digital revolution. The products, processes and methods of consumption have all irrevocably changed and it is crucial for publishers to find ways to capitalise on this new publishing landscape.

Particularly in the current economic climate, where people have less disposable income to spend on books, magazines and newspapers, it is essential for publishers to prove their worth. They must provide something that customers are willing to pay for, all the while competing with an increasing array of free and cheap content online.

For book publishers, this means offering something of value in an age of self-publishing. For magazines and newspapers, this means distinguishing themselves from the realms of free content online and creating something that can be monetised viably. Furthermore, this must all be accomplished in an era of falling sales, advertising revenues and prices.

However, publishers no longer have to undergo this task in isolation but instead now have direct contact with their consumers as a result of the increasingly interconnected, social society. They must utilise this direct market access to ensure that they are catering to the needs and wants of consumers.

In doing so, it is also vital for publishers to keep abreast of continuing technological advances so that they can exploit opportunities when they arise and ensure that they do not get left behind.

Robert Boston's take on Publishing today

(Note: Rob was unable to access the blog, so he asked me to publish this on his behalf)

Publishing is changing! Be it through technological innovation, socio-cultural changes within society, economic factors or through political ramifications of the prior mentioned elements, the basic business model of the publishing industry is becoming as outdated and exhibited so, as the Caxton press or even Guttenberg’s pioneering creation.

                But where is the new markets and profit to be made in this creative industry? Failure to innovate leads to stagnation and eventual collapse, whilst pioneering new and uncharted grounds can lead to investment in ideas and technology, which, despite initial successes can fail to appeal to the majority of the primary audience, resulting in all charted ground lost, or at the mercy of those following in ones footsteps. The current thorn in the side of publishers appears to be that of E-book publishing and the spectrum of follow up questions which come thick and fast at the mentioning of this touchy subject. What format? Where to sell them? Sharing rights? Cost? User generated content? Book or game?

                Through looking at the available data, it is impossible to hypothesise a definitive and profit making business model, yet the time has come for publishers to begin the steady transition into the brave new world of the 21^st century and the technological updates and lifestyles which have revolutionised various other sectors of the entertainment industry.

 - Robert Boston

The Big Picture - My Findings

It's inevitable that the high street retailer will have to change significantly, and soon. The recession has already provided online retailers with a strong advantage over high street stores, suppressing the latter at a time when investment in e-publishing should have been a priority - the advent of the smartphone and tablet in particular has encouraged consumers to focus on convenience over the browsing experience, and even the browsing experience of the bookstore is being used by customers intending to make the actual purchase online.

Following this, designing books will fundamentally change as the means of marketing them has done - Fifty Shades of Grey came about principally through the support of online communities, and the funding website Kickstarter has proven that pitching to the potential consumer can be a viable alternative to pitching to a publisher. A product's initial appeal can extend far beyond critics and relying on it to look pretty on the shelf, and the traditional publisher is no longer the only means in which a product can come about.

In short, the more options and alternatives provided by technology, the more the traditional book publishing and retailing sectors become obsolete. Entire segments of the industry are finding they have to justify their existence, and the technology threatening them is something they have to embrace - basically, they can't beat 'em, so they must join 'em.