eBooks at the Crossroads: Which Way Forward?

eBOOKS AT THE CROSSROADS: WHICH WAY FORWARD?

Introduction

The eBook market’s explosive growth continues to outpace forecasts. Near-monthly announcements of new and improved eReader devices, new alliances and partnerships, and additional investment in enabling technologies from some of the largest information technology and retail players have effectively repositioned the eBook debate from one regarding permanence to that of future adoption rates. The enormous volume of free and digital rights management (DRM)-freed content flooding the market, the emergence of new platforms and the increasing adoption of EPUB as the standard file format further demonstrate the market’s expansion and promise. Publishers and consumers are excited about the growth of the market, but this growth has also highlighted the need to address critical underlying business issues. Decisions regarding optimal eBook creation processes, cost, pricing and future royalty structures may have long-lasting and profound consequences across the entire publishing business. The eBook market is young, unbalanced and volatile, but this is the time to act.

Many early players have fared well with a handful of eBook channels that mirrored traditional print-based pricing and royalty models by default, but publishers realize this model is not durable. Publishers Weekly magazine reported that 72 percent of publishers surveyed on digitization’s impact said the development of new business models, multi-media products and effective marketing strategies is the biggest challenge facing publishers today. Decision-makers in the publishing industry have concluded they need to carefully navigate this potentially lucrative, yet also tumultuous, landscape.

Publishers must establish a sustainable eBook operating model that provides the flexibility to maximize profits from the existing model, while positioning them for future developments that may require multiple strategies. They have arrived at a crossroads, with the majority of publishers considering three viable paths...