The Book Publishing Evolution - Can we keep up?

The book publishing industry is currently teething its way through a massive change. Changing attitudes towards reading, in addition to the rising prominence of digital publishing has given the industry a lot to react to.  A PEST analysis reflects these changes.

Politically, the rise of digital publishing has raised new issues. These are apprehensions concerning copyright and piracy. Issues such as this may cause confusion over ownership and rights. It has been known for the publishing company to own the rights to the printed work, whilst the author keeps the rights to the digital version of the work, thus allowing the author to self-publish an electronic edition. Piracy and protecting digital copies of the book are also prominent concerns.

Piracy also raises the question of the economic factors. With digital media being so easy to replicate, ownership and rights will need to be considered differently. On a separate economic thought, the rise of self-publishing may also bring economic implications for the publishing industry.  

In Strategic Management in the Media, Kung relates that; due to generational shifts in attitude towards reading, books are being read for pleasure less often, particularly within the 18-24 age range. This declining market is, of course, a threat to the publishing industry. However, new products with new technology may entice lapsed readers.

Reading was usually a solitary pastime; however, there is an increasing social aspect evolving. The Goodreads website allows readers to socially interact with other readers, and even the authors themselves in a way that were never possible before. Similarly, Wattpad produces a social dimension to the writing process; readers can communicate and interact with the text and the writer, their feedback helping to shape the text as it is actually being produced.

The environment of change may spark new ideas, innovations and markets, or just improve existing systems. As digital media rapidly changes the industry, we need to ensure that we evolve with it. 

A Changing Industry - PEST

The politics of the publishing industry are shifting, from the powerful to the everyman. While the rich aristocracy, who owned the publishing companies, formally dictated what was considered ‘good writing’ the ability to self-publish online is providing an open platform for the public. Although this opportunity is not without its problems, the legalities of ownership rights being one, this semi–amateur nature of digital publishing changes the traditional narrative of the industry.

Economically speaking, this is a positive change. For aspiring authors, or those so far relatively unknown, online publishing may be more profitable as they eliminate the middleman. Online publishing can also increase the distribution, which would increase circulation, whether it be books or magazines, this could only be beneficial to profits. The nature of digital publishing and the popularity of the e-reader has even widened the industry, with an opportunity for profit for outside companies. As our increasingly green society steps away from the paper trail of traditional publishing, and towards the economically friendly e-reader, hardware creators such as Apple and Amazon stand to gain in the digitization. It is not just the author and publisher who will make money.

With the advancements of technology in the industry, publishing is becoming increasingly social. Online publishing is impacting on the authorship of books by making it a social rather than solitary occupation; blogs that post chapter-by-chapter can allow the feedback from readers’ commentary to effect the direction of the narrative. Social media allows you to be an engaging community rather than just an isolated reader. The popularity and convenience of e-readers is no surprise considering the shift in attitude towards technology in recent generations, compared with our older relatives.

The technological advancements have without a doubt massively affected the publishing industry as it tries to adapt, and with their potential for constant improvement they seem able to change it further in the future. This effect can threaten traditional publishers and force them to compete in order to survive; such as Barnes and Noble and the ‘Nook’ (Erin Carreiro: Electronic Books: How Digital Devices and Supplementary New Technologies are Changing the Face of the Publishing Industry). For the consumer, the technology can be both positive and negative. While the technology does allow you to connect with the text and use social media to input your opinions, having a digital version with constantly changing commentary on it means you never get a complete, single version of the text. Either way, technology is by no means destroying the publishing industry, instead it is providing extra platforms through which we can interact and consume. 

For Better Or Worse: An Analysis Of Digital Publishing

It’s been 550 years since Johannes Gutenberg pioneered a new printing technique and began to publish on a mass scale for the first time. With the dawn of digital publishing a new frontier revealing itself to us. Digital is being promoted as the future of the publishing industry and as tablet computers and e-books become increasingly widespread the ways in which we devour our media is changing faster than ever before.

While this is only a brief analysis of the arena of digital publishing and it wouldn't surprise anyone if this information is rendered irrelevant in 6 months, looking at the industry as it stands provides an interesting view.

Political

As digital generated content and Internet access is becoming increasingly widespread there is a new generation of writers from all backgrounds on an international scale. These new writers can create followings and generate interest in their pursuits, whether they are political or creative. With a wider field of reporting and the repercussions of coverage can be felt in political institutions across the world. The recent Arab Spring was accelerating by the use of digital communications and localized revolutionary reporting. The flip side of this is that those with an extreme agenda have the same soapbox from which to speak.

Economic

There are a series of new revenue streams that digital publishing presents for the industry in general, which goes some way to explaining why the leaders of publishing companies are fiercely pursuing it. While 40% of tablet owners have purchased a magazine app and 25% regularly read magazines on their device, there are still considerable gains to be made in that market. Advertising has been deemed more effective if it is seen to be interactive. With companies such as Facebook have been quick to adopt purchasing software such as Synapse and Alvenda buying direct from a digital magazine can hardly be light-years away.

Social

There is an increasingly social side to the way digital content is created and eventually published. Publishing efforts from 37 Signals have pioneered the use of blogs to release parts of their book over time and in order to engage with their readers to see how they were being received.  Wayne Gladstone’s book Notes From The Internet Apocalypse was originally a serialized novella published on Cracked.com but will soon be published by Thomas Dunne books.

Technological

The reading experience has been enhanced by the dawn of this new technology. The time spent reading magazines rises with digital publications, the average number of minutes spent on Vanity Fair rose from 65 minutes to 200 when the audience used a digital copy. Since their release in 2010 over 100 million iPads have been sold worldwide and this is a considerable audience for any publisher.

Legal

With digital content being so easily exploited, copied and reproduced there are a number of legal issues revolving around the rights of digital content. Acknowledging the right of workers and professionals is one key aspect of this but also the rights of the purchaser. Looking at the widely reported story that Bruce Willis was to sue Apple in order to leave his considerable digital music collection to his daughters raises an interesting question, who actually owns downloaded content? In reality customers never actually buy a lot of digital content, rather they purchase the license to use it. The same is as true for ebooks and magazines as it is for music. There may be a digital artifact on your kindle but we cannot say that you “own” it in the traditional sense of the word. As such that feeling of “buying” something may be misplaced.

Environmental

A great deal has been made about the benefits of digital readers to the environment. If there are less trees being felled for magazine paper then there will be a positive impact. However, the natural resources that have to be harvested and mined for the creation of tablets and various e-readers could have a negative impact on the environment. Books and magazines are easily recyclable whereas technology is particularly hard to dispose of and can lead to terrible amounts of waste and landfill.

Even this blog (which was meant to come in at a tidy 300 words) cannot fully incorporate every aspect of the burgeoning digital publishing industry, but hopefully it has demonstrated that in this relatively infant medium there is plenty of potential for great success.

Issues impacting the business of the media

Issues impacting the business of the media.

Political- One of the Political issues that has affected the media is the pressure to be more economically friendly. Reading a book or magazine on an E-reader or tablet saves paper and the costs of actually paying for and producing the book (although digital publishing execs say it is just as expensive to produce an E-book). But apart from saving trees it has also lead the media businesses to be innovative which has resulted in great advances in technology and has made people realise how beneficial owning a tablet, smartphone or laptop etc. can be for consuming media in an environmentally friendly and convenient way.  

Economic- Today’s economy is not great and people have very little money so what impact does this have on the Media Business? Well the best way media companies are going to make money is if they make as much content and products accessible to as many people as they can for as cheaply as they can and then throw loads of advertising all over it. By offering a product like an E-book at half the price and embedding it with advertisements, say two 30 second adverts at the end of each chapter, or every 30mins the reader would be happy to sit through these if they paid £5 instead of £10 for the book.     

Social- Today people have greater expectations of the business media than ever before. Information must be readily waiting at any given time. News must be immediate and books and magazines have to be more than just artifacts to be read; they must be interactive and engaging. In a world where nobody waits, readers demand the ability to at the click of a button have instant access to a book, a magazine a movie or music.

Technological- Technology has had a huge impact on the business media in recent years. The internet has allowed innovation to take a great leap for example Wikipedia has not only replaced the encyclopaedia but it has surpassed it in terms of usefulness, quality, timelessness and convenience (Mod, Craig (2012) “Post-Artifact Books & Publishing”.http://craigmod.com/journal/post_artifact/). Amazon changed the way we buy books, music, films etc. E-readers and tablets have changed how we access them. Facebook, MySpace and Twitter have changed as how a society we interact which in turn has created a grand place for advertisers to reach a global market, all without anyone leaving their desks. 

Digital Media in the Publishing Industry

Reading alone has become as old-fashioned as print itself. Thanks to the growth of technology, readers are now seeking to form online communities around their favourite authors and books. The politics of piracy that have plagued the music industry with the growth of digital has been suggested as a similar threat to the print industry. However, by embracing  this change, we have created a whole new way of enjoying books, not threatening them. Ranging from the ‘sticky websites’ Hollander uses to describe online forums and websites, to everyday social media, the e-book allows its readers to post information, thoughts or even share books themselves online, transforming the art of reading into a new, sociable experience

The current economical climate goes hand in hand with technological aspects of today’s society. Reduced print circulation and general income alongside price rises has forced the publishing industry into seeking innovative ways to get their materials read, and still make a profit. Online publishing reduces the costs incurred when producing material in print. Digital media is not only cheaper than print, it is more accessible and user friendly. (World Newsmedia Innovation) The convenience at reading materials on the go can result in clawing in an unexpected  reader, in addition to saving on expenditure.

Furthermore, the social habits of consumers has changed considerably in this new digital age. Hollander also discusses the constant need for innovative concepts and ideas, leaving customers craving the next big thing. This fast-paced, instant culture has developed a need for us to have the newest craze as soon as possible, and this is what digital was created for. E-books mean that customers no longer have to wait, or leave the house to buy the next best seller: it’s already there. 

Technology is the driving force behind the key changes in the publishing industry. The need to create new technologies, or to use existing ones in an innovative way has become the focal point of our society, the publishing industry no less. In a world where nothing exists if not on a screen, books have had to reinvent themselves to reach a wider audience. The invention of e-books, in addition to online publications has not only kept the industry up to speed with the rest of the world, but it has also created a new way to access our most valued materials.

Looking At The Bigger Picture - A PEST Analysis on the Media Industry

Businesses in the media industry have straight forward value chains.  However, the digital revolution is allowing them to reconstruct.  This process is allowing businesses to become more innovative.  But how do they do this? 

Publishing digitally is growing.  Different platforms and devices are being introduced constantly, providing consumers with a new way of reading.  Communities are being created online, allowing people to engage through books, magazines, blogs and long-form journalism. 

The digital distribution of books creates engagement with readers.  Books can reach a much larger audience, which brings in more revenue. 

Inevitably, the continuing growth of the e-book (for example, Amazon's kindle) in this industry will mean the death of the printed book.  The threat lies in innovation – how do publishers think of new ways to attract readers?  Publishing houses are consolidating to reduce operation costs, but if the money still isn’t growing, more rationalising has to take place.

In the music industry, CD sales are decreasing.  People are looking for ways to share music, which allows businesses to be innovative and create new ways for this to happen.  However, they also need to find a way to attract people and make money.  If there is no new talent, there is no money.

Newspapers have also realised how beneficial an online presence is.  This provides them with an opportunity to carry a range of content to appeal to a range of readers.  The key, again, is innovation.  Simply, if there are fewer advertisements, there are fewer pages in the newspaper; therefore making it less value for money and less attractive to readers. 

Then we have magazines.  People spend an equal amount of time reading print as they do online.  They have endless opportunities to expand.  However, there is still one major downfall.  If the internet is ever growing, what does this mean for magazine sales? 

For international businesses, their problem is the decline in print advertisement revenue.  In order to compete, they would need to build on their online advertisement revenue and their content revenue. 

Digital is taking over.  There’s no stopping it.  Businesses need to be innovative and aware in order to build, grow and succeed.

Holly Sutton 

Digital Innovations Do Not Spell the End for Magazines

Technology has been the biggest driving force of change in the publishing sector. The Internet and invention of the smart phone and tablet have revolutionized how people gain access to information.  When the first tablet, Apple’s Ipad, was launched in 2010 many predicted the end for print media.

Jonas Bonnier, CEO of Bonniers international multi-channel media company, says that, “magazine publishers can survive if they are able to monetize a variety of revenue streams and operate on different mediums.”

The tablet meant that many magazines brought out apps to allow readers to download issues to read onscreen. This has been successful but online subscriptions still only account for a fraction of any magazines total sales. Most people would still prefer to have a magazine in hard copy, to touch, hold, smell and enjoy at their leisure.

However, it is important for magazines to have a strong online presence to retain customer brand loyalty. Therefore, all content written for the magazine must serve a function, the content should not be the same on all levels. For example it is important that there is material specifically produced for the app, which works well on the platform incorporating interactive elements.

Magazines need revenue from print advertisements and having a website only cannot supplant this. Many magazines, such as Teen People or Seventeen in the USA, made a mistake in moving to digital only format.  According to Fipp Research this spells death for the magazine, because if you can’t make it in print you won’t in digital. The problem lies not with the medium but the magazine.

Conglomerates tend to control distribution systems and retail outlets, so by cutting out the middle men and selling directly to the public online, independent publishers are able to operate more easily. Independent magazine publishers, such as Stack magazines, have a page on the Internet where subscribers sign up for monthly delivery of magazines, which cannot be found in shops.

So, instead of the Internet killing magazines off, it is actually helping them to thrive. The future of magazines looks promising as long as they continue to move with the times and have a strong presence on many platforms.

Looking at the Big Picture: Issues impacting on the business of media.

“Quite often I can be in a bookshop, standing beneath a great big picture of myself and paying for a book with a credit card clearly marked John Grisham, yet no one recognises me. I often say I'm a famous author in a country where no one reads”.

      (John Grisham)                                                                                

The media industry has always in one way or the other had its challenges. These challenges range from political, economic, and social to technological. Some industries in the media business seem to flourish as technology advances and the society changes. On the other hand, some are failing. This blog post throws more light on key issues in the media industry.

Book titles published by new or unpopular authors in the UK often find it difficult on the market. Brand-names and best sellers seem to appeal more to the public than books written by unpopular authors. This issue cuts across most media industries. A similar case in the film industry is the dependence on a few number of stars thought to be vital to the industry’s success. It becomes a struggle for films produced with unpopular characters to make it on the market[1]. In the newspaper industry, the customer and product relationship is often measured by strong brand loyalty which offers a foundation for the customer to remain committed to its purchase, hence, posing a challenge to entry for new companies.

In Ghana, the Daily Graphic newspaper for example, was the first newspaper published. It gained great popularity that subsequent newspapers produced suffered initially on the market. 

Another challenge is the introduction of new technologies which tend to compete with the older ones. This can be seen in the film and music industry where the technology of CDs and DVDs are gradually giving way to iTunes and internet downloads[2]. With internet download comes the issue of piracy. Also, the establishment of more broadcasting stations, both television and radio has increased competition between stations, leading to decreasing income of some companies. A more current and familiar example is the introduction of eBooks.

The book market in the UK rose to more than £50 billion in 2007. The whole market has shrunk since then and is expected to slip to about £40 billion in 2015. This was due to factors including the increased patronage of digital media such as eBooks. On the contrary, in Ghana, though technology is gradually picking up, the sale of printed books has risen. On the 2012 digital Hot spots map, Ghana was among the “coolest” countries with more than 75% of its population using mobile phones. Less than 40% have access to the internet[3].

All these issues mentioned above call for entrepreneurs to come up with innovative ideas to keep the media business running. If not, more challenges may arise.

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[1]Kung, L (2008) ‘Part 1: Strategic Content’ in Strategic Management in the Media: theory and practice. London: Sage, pp 73.

[2] Walli, S. (2010) “The Future of Book Publishing Business Models,“ Once More unto the Breach, 8 March 2010: http://stephesblog.blogs.com/my_weblog/2010/03/the-future-of-book-publishing-business-models.html   [accessed 02/10/13]

[3] Stone, M., Nel, F., McBride, L. and Lin, E. (2012) World News Future and Change study 2010. Chicago: World News Media Networking (WNMN0), pp 52.

PEST Analysis for Media Journalism

By carrying out a PEST Analysis into the current Media Journalism sector, we are able to gain an in-depth understanding of the current industry, highlight new opportunities and also threats or problems and how these can be over come.

The Internet and advances in digital technology has changed the model of mass communication and has had a major impact on the external environment of the newspaper and magazine industries, gradually substituting traditional print media. Digital media has also increased competitiveness within the market and with low capital cost and global accessibility of resources, this has been a threat for many established prints publications. Many existing newspapers have therefore had to compliment their daily prints with online version and further updates throughout the day, instead of waiting for updates till their next publication to be released.

The current economical climate also means that people may be less likely to buy a newspaper or magazine when they could access this information free online - either via newspaper websites, independent websites, blogs or forums. This has had a knock on effect for companies who may have previously used print promotion to reach consumers, as their target consumers might be struggling to buy products, they may have smaller marketing budget or may be choosing to spend their budget on other promotional platforms.

The current economical climate has also led to the public becoming less trusting of the government and therefore, it is easy for consumers to avoid certain publications depending on their political standpoint. With developments in technology and an increased access to resources and information it also means that the public are more likely to investigate news stories themselves - allowing more transparency and angles to a story.

Socially peoples needs are also changing in the way readers access information. More people are accessing digital and social media and by going online, newspaper and magazines can offer their readers multimedia and interaction - something which was not possible only a few years ago.

Media Industry - PEST Analysis

Political, Economic, Socio-Cultural, Technological Factors – These will help make sense of the bigger picture.

Political – The Digital revolution is expanding yet has many issues to combat. One of which is the number of lawsuits it has faced due to copyrighted content. This has led publishers to take an extra precaution as they need to avoid future lawsuits. They demand that freelancers sign away electronic rights or risk not being published electronically. (Cunningham B. Who owns that story now? Columbia J Rev. 2000; 38(5):11). The threat here is piracy, where people will copy content free of charge.

Economic – The pressure is rising to sell more books. Profits on e-books are not as high and this means that authors are not able to make enough revenue. Technology has undermined the economics of book publishers and authors. On a positive note, e-readers help the economy because e-books as a supply inventory chain control saves trees in the long run. Digital editions of magazines are also creating an attractive environment for advertisers.

Socio-Cultural – New publishing strategies create engaged community forums, for example Goodreads.com is a digital and social networking library which allows people to chat about books and creates awareness about niche books. This builds an opportunity for promotion of products which would not only help authors but also help publishers. A threat that social networking may impose is bad reviews and therefore have the opposite effect. The audience now have just as much access to media distribution as publishers do. E-marketer has reported that CEO's within the media and entertainment industry are leaning on social media to encourage growth and build future customer connections. (www.Fipp.com)

Technological – The media market place is not simply about technology. But technology does in fact play a huge role. Convergence of media is making boundaries harder to decipher. Where do books end is one main question and another medium begin.  The rise of e-books meant numerous platforms were created as a marketplace for books. One example is when Steve Jobs announced the launch of the iPad iBooks, which created a huge opportunity for publishers. A problem with technology is that it is forever changing and media companies must always look at innovative ways to lure back those lapsed readers, with the added pressure of other competing technologies. The good thing about the discovery of new media devices is that it is transforming magazine media audiences, whilst print remains just as important.

 Fipp has researched into how

 “The remarkable strengths of tablets, websites, smartphones and social media in presenting magazine content, and consumers enthusiastic acceptance of these new means of 

delivery, means that for publishers there is a dramatic and continuing shift in profile towards digital audiences without necessarily reducing print audiences. All in all, this indicates a very healthy future for magazine media is one of the conclusions drawn in the book.”

By Saima Omar