National Research University                         Moscow – December 5 and 6                       Paulo Faustino, MSc, ...
THE EVOLUTION OF BOOK PUBLISHING – FROM THE PAPER TO THE DIGITAL BUSINESS   Is Print Dead?Is Print Becoming Elitist?Is dig...
THE EVOLUTION OF BOOK PUBLISHING – FROM THE PAPER TO THE DIGITAL BUSINESS             Social Media * Users and Broadband P...
THE EVOLUTION OF BOOK PUBLISHING – FROM THE PAPER TO THE DIGITAL BUSINESS   Harlequin’s Digital Media Strategy            ...
THE EVOLUTION OF BOOK PUBLISHING – FROM THE PAPER TO THE DIGITAL BUSINESS     The Challenges to Big Publishing• Books judg...
THE EVOLUTION OF BOOK PUBLISHING – FROM THE PAPER TO THE DIGITAL BUSINESS   • Ebooks + Open Publishing       – Free ebook ...
THE EVOLUTION OF BOOK PUBLISHING – FROM THE PAPER TO THE DIGITAL BUSINESS         The Myth of Big Publishing   Publishers ...
THE EVOLUTION OF BOOK PUBLISHING – FROM THE PAPER TO THE DIGITAL BUSINESS                     IS BIG PUBLISHING DEAD?     ...
THE EVOLUTION OF BOOK PUBLISHING – FROM THE PAPER TO THE DIGITAL BUSINESS  Technology is a catalyst for rapid evolution.  ...
THE EVOLUTION OF BOOK PUBLISHING – FROM THE PAPER TO THE DIGITAL BUSINESS                         Here comes technology
THE EVOLUTION OF BOOK PUBLISHING – FROM THE PAPER TO THE DIGITAL BUSINESS           FIVE TRENDS TO ROCK THE WORLD OF PUBLI...
THE EVOLUTION OF BOOK PUBLISHING – FROM THE PAPER TO THE DIGITAL BUSINESS                       1. TREND ONE     Bookselli...
THE EVOLUTION OF BOOK PUBLISHING – FROM THE PAPER TO THE DIGITAL BUSINESS    Percentage of book purchases made     online ...
THE EVOLUTION OF BOOK PUBLISHING – FROM THE PAPER TO THE DIGITAL BUSINESS                Bookselling moves to the Web • Th...
THE EVOLUTION OF BOOK PUBLISHING – FROM THE PAPER TO THE DIGITAL BUSINESS                           2. TREND TWO:         ...
THE EVOLUTION OF BOOK PUBLISHING – FROM THE PAPER TO THE DIGITAL BUSINESS           Screens are the new paper
THE EVOLUTION OF BOOK PUBLISHING – FROM THE PAPER TO THE DIGITAL BUSINESS             Ebooks to overtake print            ...
THE EVOLUTION OF BOOK PUBLISHING – FROM THE PAPER TO THE DIGITAL BUSINESS          Ebooks as a percentage of US       30  ...
THE EVOLUTION OF BOOK PUBLISHING – FROM THE PAPER TO THE DIGITAL BUSINESS                  Why ebooks are hot• Screens off...
THE EVOLUTION OF BOOK PUBLISHING – FROM THE PAPER TO THE DIGITAL BUSINESS                     3. TREND THREE    The Rise o...
THE EVOLUTION OF BOOK PUBLISHING – FROM THE PAPER TO THE DIGITAL BUSINESS    Number of books published indie vs.          ...
THE EVOLUTION OF BOOK PUBLISHING – FROM THE PAPER TO THE DIGITAL BUSINESS    Indie ebooks published at Smashwords         ...
THE EVOLUTION OF BOOK PUBLISHING – FROM THE PAPER TO THE DIGITAL BUSINESS                New tools open book publishing   ...
THE EVOLUTION OF BOOK PUBLISHING – FROM THE PAPER TO THE DIGITAL BUSINESS                     4.TREND FOUR       Content E...
THE EVOLUTION OF BOOK PUBLISHING – FROM THE PAPER TO THE DIGITAL BUSINESS      Glut leads to price competition            ...
THE EVOLUTION OF BOOK PUBLISHING – FROM THE PAPER TO THE DIGITAL BUSINESS                        5. TREND FIVE            ...
THE EVOLUTION OF BOOK PUBLISHING – FROM THE PAPER TO THE DIGITAL BUSINESS    Big Publishers Have Lost Their Monopoly • Pri...
THE EVOLUTION OF BOOK PUBLISHING – FROM THE PAPER TO THE DIGITAL BUSINESS                       Stigmas to Flip?Aspire    ...
THE EVOLUTION OF BOOK PUBLISHING – FROM THE PAPER TO THE DIGITAL BUSINESS   What is Success? The Success Flywheel
THE EVOLUTION OF BOOK PUBLISHING – FROM THE PAPER TO THE DIGITAL BUSINESS     How Big Publishers can Regain the Faith• Do ...
Impact of Digitalization on Industries    There is a very obvious transformation of industries    going on due to an ongoi...
Digitalization in the Book Industry - Examples:eBook, eJournal, eEverything? THE EVOLUTION OF BOOK PUBLISHING – FROM THE P...
Framework to Capture the Changing Value Creation     Structures                                         Processes     Prod...
Value Creation Structures:Re-Intermediation: Reinforcement of Existing PlayersTraditional intermediaries have to redefine ...
Value Creation Structures:Cyber-Mediation: Emerging new IntermediariesAmazon.comOnline-only bookseller scared traditional ...
Value Creation Processes: Bypassing Traditional PlayersProcess              DescriptionProduct              Individualizat...
Value Creation Processes:           Bypassing Traditional Players                                                      Goo...
Value Creation Processes:Bypassing Traditional PlayersOrder            Online orders through publishersProduction       Bo...
Conclusions-The book market is undergoing a major change- Changes are driven by ICT- Market interaction reaches new height...
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Paulo Faustino "The evolution of book publishing - from the paper to the digital business"

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Paulo Faustino "The evolution of book publishing - from the paper to the digital business"

  1. 1. National Research University Moscow – December 5 and 6 Paulo Faustino, MSc, PhD, PostDoc faustino.paulo@gmail.com Presidente of Media XXI/Formalpress Porto University and Lisbon School of Mass Media Centrer of Investigation in Media and Journalism/Nova University of Lisbon Columbia Institute of Tele Information, Columbia University THE EVOLUTION OF BOOK PUBLISHING- FROM THE PAPER TO THE DIGITAL BUSINESS -
  2. 2. THE EVOLUTION OF BOOK PUBLISHING – FROM THE PAPER TO THE DIGITAL BUSINESS Is Print Dead?Is Print Becoming Elitist?Is digital Changing the Face of PublishingIs Print Becoming Obsolete?
  3. 3. THE EVOLUTION OF BOOK PUBLISHING – FROM THE PAPER TO THE DIGITAL BUSINESS Social Media * Users and Broadband Penetration Worldwide, 2007 - 2012 2012 2011 2010 in percentage of 2009 broadband users in millionsof 2008 broadband users 2007 0 500 1000 1500Note * = MySpace, Facebook, YouTube, and FlickrSource: Strategy Analytics “The People’s Revolution: Implications of Web 2.0 and Social Media Applications,” Dec. 12, 2007
  4. 4. THE EVOLUTION OF BOOK PUBLISHING – FROM THE PAPER TO THE DIGITAL BUSINESS Harlequin’s Digital Media Strategy Harlequin Romance Radio
  5. 5. THE EVOLUTION OF BOOK PUBLISHING – FROM THE PAPER TO THE DIGITAL BUSINESS The Challenges to Big Publishing• Books judged on perceived commercial merit – Difficult to identify potential bestsellers • Readers decide this!! – Reject many great authors• Publishers deciding what readers can read – Readers shut out• Slow production cycles• Books too expensive• Cannot take a risk on every book
  6. 6. THE EVOLUTION OF BOOK PUBLISHING – FROM THE PAPER TO THE DIGITAL BUSINESS • Ebooks + Open Publishing – Free ebook publishing tools – Distribution to major ebook stores – Promote publishing best-practices – Power to the author
  7. 7. THE EVOLUTION OF BOOK PUBLISHING – FROM THE PAPER TO THE DIGITAL BUSINESS The Myth of Big Publishing Publishers controlled Heaven Promised Perks of the After life – editing – printing press – distribution – marketing – royalties – fame and respect – readers – “published author” inscribed on your tombstone
  8. 8. THE EVOLUTION OF BOOK PUBLISHING – FROM THE PAPER TO THE DIGITAL BUSINESS IS BIG PUBLISHING DEAD? No, though it has lost its way You will decide the fate of Big Publishing You can help it find its way, if you choose that path WE LIVE IN UNCERTAIN TIMES BOOK PUBLISHING IS CAUGHT IN THE TURBULENT CROSS CURRENTS OF MULTIPLE CONVERGING FORCES TECHNOLOGY IS CHALLENGING BIG PUBLISHING
  9. 9. THE EVOLUTION OF BOOK PUBLISHING – FROM THE PAPER TO THE DIGITAL BUSINESS Technology is a catalyst for rapid evolution. Successful technology is that which satisfies human desires for greater empowerment. And for products and services that are faster, cheaper, more accessible and more useful. Technology can be disruptive by rendering old business models and practices obsolete. Let’s examine the changes
  10. 10. THE EVOLUTION OF BOOK PUBLISHING – FROM THE PAPER TO THE DIGITAL BUSINESS Here comes technology
  11. 11. THE EVOLUTION OF BOOK PUBLISHING – FROM THE PAPER TO THE DIGITAL BUSINESS FIVE TRENDS TO ROCK THE WORLD OF PUBLISHING - to prepare for the future, it’s more important you understand where you’re heading, rather than when you’ll get there. - Here, I will share macro representations of where your world is headed
  12. 12. THE EVOLUTION OF BOOK PUBLISHING – FROM THE PAPER TO THE DIGITAL BUSINESS 1. TREND ONE Bookselling moving to the Web
  13. 13. THE EVOLUTION OF BOOK PUBLISHING – FROM THE PAPER TO THE DIGITAL BUSINESS Percentage of book purchases made online vs B&M - Print and E-Books Web Brick & Mortar Today?
  14. 14. THE EVOLUTION OF BOOK PUBLISHING – FROM THE PAPER TO THE DIGITAL BUSINESS Bookselling moves to the Web • The decline of brick and mortar • Consumer drivers: • Price • Convenience • Selection • Self-published books displayed side by side with traditional books • Big publishers no longer control distribution
  15. 15. THE EVOLUTION OF BOOK PUBLISHING – FROM THE PAPER TO THE DIGITAL BUSINESS 2. TREND TWO: Reading Moving to Screens
  16. 16. THE EVOLUTION OF BOOK PUBLISHING – FROM THE PAPER TO THE DIGITAL BUSINESS Screens are the new paper
  17. 17. THE EVOLUTION OF BOOK PUBLISHING – FROM THE PAPER TO THE DIGITAL BUSINESS Ebooks to overtake print Ebooks Print books Today?
  18. 18. THE EVOLUTION OF BOOK PUBLISHING – FROM THE PAPER TO THE DIGITAL BUSINESS Ebooks as a percentage of US 30 wholesale trade market 25 20 15 10 5 0 2002 2004 2006 2008 2010 2012 Source: Association of American Publishers, publishers.org. 2012 Smashwords estimate
  19. 19. THE EVOLUTION OF BOOK PUBLISHING – FROM THE PAPER TO THE DIGITAL BUSINESS Why ebooks are hot• Screens offer better reading experience and they are improving – Changeable font size – Portable and compact A A A A – Screens will get better/faster/cheaper – Amazon, Apple, B&N, etc• Ebooks offer better consumption experience – Lower cost than print – Convenient sampling and purchasing – Huge selection
  20. 20. THE EVOLUTION OF BOOK PUBLISHING – FROM THE PAPER TO THE DIGITAL BUSINESS 3. TREND THREE The Rise of Ebook Self-Publishing
  21. 21. THE EVOLUTION OF BOOK PUBLISHING – FROM THE PAPER TO THE DIGITAL BUSINESS Number of books published indie vs. traditional Indie books New trad. books Today?
  22. 22. THE EVOLUTION OF BOOK PUBLISHING – FROM THE PAPER TO THE DIGITAL BUSINESS Indie ebooks published at Smashwords 141,000 + 160000 (July 2012) 140000 120000 92,000 + 100000 80000 60000 28,800 40000 6,000 20000 140 0 2008 2009 2010 2011 2012
  23. 23. THE EVOLUTION OF BOOK PUBLISHING – FROM THE PAPER TO THE DIGITAL BUSINESS New tools open book publishing ….and distribution to all• Tools such as Smashwords empower you to become your own publisher – Free printing press in the cloud – Distribution to major online ebookstores, libraries Self publishing advantages to the author: – faster time to market – greater creative control – lower prices to consumers – lower expenses – better distribution to global market – never go out of print – earn more per book
  24. 24. THE EVOLUTION OF BOOK PUBLISHING – FROM THE PAPER TO THE DIGITAL BUSINESS 4.TREND FOUR Content Explosion Leads to Downward Pressure on Prices
  25. 25. THE EVOLUTION OF BOOK PUBLISHING – FROM THE PAPER TO THE DIGITAL BUSINESS Glut leads to price competition $4.25 $3.15 October 2010 March 2012Average price of Smashwords ebooks
  26. 26. THE EVOLUTION OF BOOK PUBLISHING – FROM THE PAPER TO THE DIGITAL BUSINESS 5. TREND FIVE Publishers Losing Primacy
  27. 27. THE EVOLUTION OF BOOK PUBLISHING – FROM THE PAPER TO THE DIGITAL BUSINESS Big Publishers Have Lost Their Monopoly • Printing press is free to all • Distribution free to all • Knowledge to publish, distribute and market high-quality, professional books is free to all • Big Publishers overprice • Professional authors asking: – “What can a publisher do for me that I can’t do for myself?” – “Will a publisher actually limit my ability to reach readers?”
  28. 28. THE EVOLUTION OF BOOK PUBLISHING – FROM THE PAPER TO THE DIGITAL BUSINESS Stigmas to Flip?Aspire AspireTraditional IndieAspireIndie Aspire Traditional 4 yrs ago Today? Future?
  29. 29. THE EVOLUTION OF BOOK PUBLISHING – FROM THE PAPER TO THE DIGITAL BUSINESS What is Success? The Success Flywheel
  30. 30. THE EVOLUTION OF BOOK PUBLISHING – FROM THE PAPER TO THE DIGITAL BUSINESS How Big Publishers can Regain the Faith• Do for authors what authors cannot or will not do for themselves• Change the publishing mindset – Serve authors first – Empower editors (the heart and soul of great publishers!) – Develop long tail strategies• Forget about selling - better: selling is important but focus on publishing• Increase author royalties• Abandon DRM – better: be more flexible
  31. 31. Impact of Digitalization on Industries There is a very obvious transformation of industries going on due to an ongoing digitalization. For example: - Banking Tourism - Media - Newspapers - Music Movie - Others ….but what about the book industry?THE EVOLUTION OF BOOK PUBLISHING – FROM THE PAPER TO THE DIGITAL BUSINESS
  32. 32. Digitalization in the Book Industry - Examples:eBook, eJournal, eEverything? THE EVOLUTION OF BOOK PUBLISHING – FROM THE PAPER TO THE DIGITAL BUSINESS
  33. 33. Framework to Capture the Changing Value Creation Structures Processes Products InfrastructuresTHE EVOLUTION OF BOOK PUBLISHING – FROM THE PAPER TO THE DIGITAL BUSINESS
  34. 34. Value Creation Structures:Re-Intermediation: Reinforcement of Existing PlayersTraditional intermediaries have to redefine their business , namely:- Book retailers- Book wholesaler- Publishing housesAnd invest more in:- E-Commerce applications- Web 2.0 applicationsExamples:Catalogues, Online ordering, recommendations, reviews, blogs, bookcharts, social tagging, communities of interest, additional informationabout authors such as interviews, etc., search inside, whishlist, ratings, etc.
  35. 35. Value Creation Structures:Cyber-Mediation: Emerging new IntermediariesAmazon.comOnline-only bookseller scared traditional player in the mid 90sGoogle.comDigitalization of books, search insideLibreka.de :The answer to GoogleLibreka.de: represents the German booksellers- E-Commerce optionsGoal: shall support traditional booksellers but why should I go the bookseller anymore?THE EVOLUTION OF BOOK PUBLISHING – FROM THE PAPER TO THE DIGITAL BUSINESS
  36. 36. Value Creation Processes: Bypassing Traditional PlayersProcess DescriptionProduct Individualization of contents:design/ The reader as a co-authortext authoring Collaborative authoring: Provision of platforms supporting authors Utilization of wikis to integrate readers into the authoring processTHE EVOLUTION OF BOOK PUBLISHING – FROM THE PAPER TO THE DIGITAL BUSINESS
  37. 37. Value Creation Processes: Bypassing Traditional Players Google Book Search libreka.de Online book seller and publisher Online applications offered byProduct Booksellers, publishers: e.g., review, MySpace.com Facebook.com: Virtualsearch book charts by readers, blogs, Bookshelf Affiliate-Programs of search inside, background Online booksellers information, forums, chats, etc.THE EVOLUTION OF BOOK PUBLISHING – FROM THE PAPER TO THE DIGITAL BUSINESS
  38. 38. Value Creation Processes:Bypassing Traditional PlayersOrder Online orders through publishersProduction Book print to orderDistribution Pure Online distribution as e-books Hybrid distribution: free download availability but version to buy Direct distribution through authorsTHE EVOLUTION OF BOOK PUBLISHING – FROM THE PAPER TO THE DIGITAL BUSINESS
  39. 39. Conclusions-The book market is undergoing a major change- Changes are driven by ICT- Market interaction reaches new heights- Booksellers have to redefine their business- The reader is no longer only a buyer, but a reviewer, co-author, discussant- There are plenty of options - but they have to be tested … and there are plenty of threats but no sustainable business models yet!-The business models are changing. The new digital and networked online environmentsimply does not support big intermediaries as we know today- The revenues, moreover, can flow more directly to the authors than the intermediaries TO AVOID THE BUSINESS DECLINE, THE BRAND, MARKETING AND RELATION WITH THE AUTHORS IS A KEY FACTOR

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