The Threat of Online Publications to the Traditional Publishing Industry

The Threat of Online Publications to the Traditional Publishing Industry


The aggregate demand of published material, both online and offline, is a fixed number. Publishers in today's mass media market face fierce competition; each customer that an online publisher wins comes at the expense of its offline counterpart. To illustrate, imagine the unequal slicing of a pumpkin pie representing market shares that vary in size. The sum of all shares, or 'slices,' adds up to the total client base. Although each publisher already owns a portion of the pie, it still covets those who have a bigger slice. In this zero-sum game, with each new slice that a publisher gains, its pie becomes ...

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how do traditional publishers stay in business? In the same way opposing forces in nature result in a state of equilibrium, there is a single overarching mechanism in the publishing industry that is designed to buffer short-term market gains and resist long-term change.

This built-in mechanism in the media business consists of a multitude of socioeconomic factors. We will first explore the economics behind the publishing industry, which includes the horizontal integration of ownership and realizing specific market segmentation, such as textbooks. Then, we will scrutinize the social implications such as conventions, content censorship, and government regulation, and finally, delve in on a specific case of value-added books.

In assessing the economics of the media business, it is helpful to first examine the ways in which publishing companies are owned and financed. Broadly speaking, media systems can be owned by the state, by private corporations, or by a mixture of both, ...

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is operational, it then attracts new readership and advertisers and generates more revenue.

From a project valuation stand point, the online content has already been paid for; therefore web operations can earn additional profit while incurring negligible added cost. Companies integrate horizontal markets1 not only to achieve operational efficiency, but also to attract advertisers and readers with different demographic profiles. In that sense, the online-offline combination seems to achieve synergy and reinforce the traditional publisher's position in the market.

Market segmentation is another economic reason that traditional publishers stay afloat. Rather than becoming a ...

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The Threat of Online Publications to the Traditional Publishing Industry. (2012, April 3). Retrieved September 1, 2015, from http://www.essayworld.com/essays/Threat-Online-Publications-Traditional-Publishing-Industry/100588
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"The Threat of Online Publications to the Traditional Publishing Industry." Essayworld.com. April 3, 2012. Accessed September 1, 2015. http://www.essayworld.com/essays/Threat-Online-Publications-Traditional-Publishing-Industry/100588.
"The Threat of Online Publications to the Traditional Publishing Industry." Essayworld.com. April 3, 2012. Accessed September 1, 2015. http://www.essayworld.com/essays/Threat-Online-Publications-Traditional-Publishing-Industry/100588.
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PAPER DETAILS
Added: 4/3/2012 05:20:13 PM
Submitted By: kamikaze
Category: Technology
Words: 2111
Pages: 8

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