Study: the publishing industry can survive, even thrive, on the iPad and Kindle
TweetFollow Us on Twitter

Study: the publishing industry can survive, even thrive, on the iPad and Kindle

NYU Stern Professor Vasant Dhar, an expert in the strategic implications of information technology, warns that the publishing industry will be the next “carcass” if it doesn’t embrace a new business model, and he proposes what this new model should look like. And it involves devices such as the upcoming iPad and the Kindle.

“Publishing executives have an unprecedented opportunity to grow the industry. Yet, what they are doing is defending their old business model – which, frankly, is now antiquated,”says Dhar. “The two are mutually exclusive.”

Dhar, who conducted the first study to quantify the economic impact of user-generated content for the music business, cites the music trade as a perfect example of an industry that failed because it was unprepared and resistant to adopting new technologies. Instead of focusing on providing their customers value and reasonable rights of usage, they became obsessed with preventing piracy, and it cost them dearly. He argues that publishers should adopt a more market-back-focused business model that welcomes technological innovation.

“Executives are disconnected from their rising consumer base," the professor says. "They underestimate the power of and the cultural shift that has been brought on by emerging technologies.”

Dhar explains the drivers behind the technological shift:

° Moore’s Law. which states that raw computing power doubles every 18 months, making general purpose devices capable of rendering content at high quality

° The increasing level of digitization of virtually all types of content and the explosion of user-generated content: data on the Internet doubles every three months, and roughly 20 hours of new content is currently uploaded every hour on YouTube

° The modularity of software, which makes it easy to build new applications: while software productivity languished for decades, it has now kicked into high gear as object-oriented software makes it easy to plug-and-play self-contained modules into high-quality systems very quickly

Taken together, the three drivers are powerful disruptors of existing business models. Dhar suggests the publishing industry implement a digital strategy based on simple pricing and digital rights aimed at growing the market of readers.

“Increasingly, consumers prefer electronic delivery of their content. Publishers should tap this market and see it for what it is -- growth,” he says. “Would you rather have a piece of a growing market even if it’s a smaller percentage than before, or try and hold onto a larger piece of one that is crumbling?”

All the evidence to date suggests that defending obsolete business models isn’t a good idea, he says. His paper, “Information Technologies in Business: A Blueprint for Education and Research,” was published in INFORMS in 2007 with NYU Stern Professor Arun Sundararajan. The full paper is available for download at: http://isr.journal.informs.org/cgi/content/abstract/18/2/125 .

 
AAPL
$102.50
Apple Inc.
+0.25
GOOG
$571.60
Google Inc.
+2.40
MSFT
$45.43
Microsoft Corpora
+0.55
MacNews Search:
Community Search:

Latest Forum Discussions

See All
view counter

view counter
view counter
view counter
view counter
view counter
view counter

Qube Kingdom – Tips, Tricks, Strategies,...
Qube Kingdom is a tower defense game from DeNA. You rally your troops – magicians, archers, knights, barbarians, and others – and fight against an evil menace looking to dominate your kingdom of tiny squares. Planning a war isn’t easy, so here are a few tips to help you take apart your enemies. Attention All Cube Warriors: Want to know what we... | Read more »
Qube Kingdom Review
Qube Kingdom Review By Nadia Oxford on August 29th, 2014 Our Rating: :: KIND OF A SQUARE KINGDOMUniversal App - Designed for iPhone and iPad Qube Kingdom has cute visuals, but it’s a pretty basic tower defense game at heart.   | Read more »
Fire in the Hole Review
Fire in the Hole Review By Rob Thomas on August 29th, 2014 Our Rating: :: WALK THE PLANKUniversal App - Designed for iPhone and iPad Seafoam’s Fire in the Hole looks like a bright, 8-bit throwback, but there’s not enough booty to make this a compelling voyage.   | Read more »
Alien Creeps TD is Now Available Worldwi...
Alien Creeps TD is Now Available Worldwide Posted by Ellis Spice on August 29th, 2014 [ permalink ] Universal App - Designed for iPhone and iPad | Read more »
Dodo Master Review
Dodo Master Review By Jordan Minor on August 29th, 2014 Our Rating: :: NEST EGGiPad Only App - Designed for the iPad Dodo Master is tough but fair, and that’s what makes it a joy to play.   | Read more »
Motorsport Manager Review
Motorsport Manager Review By Lee Hamlet on August 29th, 2014 Our Rating: :: MARVELOUS MANAGEMENTUniversal App - Designed for iPhone and iPad Despite its depth and sense of tactical freedom, Motorsport Manager is one of the most accessible and addictive management sims around.   | Read more »
Motorsport Manager – Beginner Tips, Tric...
The world of Motorsport management can be an unforgiving and merciless one, so to help with some of the stress that comes with running a successful race team, here are a few hints and tips to leave your opponents in the dust. | Read more »
CalPal Update Brings the App to 2.0, Add...
CalPal Update Brings the App to 2.0, Adds Lots of New Stuff Posted by Ellis Spice on August 29th, 2014 [ permalink ] | Read more »
Baseball Battle Review
Baseball Battle Review By Jennifer Allen on August 29th, 2014 Our Rating: :: SIMPLE HITTINGUniversal App - Designed for iPhone and iPad Simple and cute, Baseball Battle is a fairly fun baseball game for those looking for something light.   | Read more »
Checkmark 2.1 Update Released, and it’s...
Checkmark 2.1 Update Released, and it’s on Sale for a Limited Time Posted by Jessica Fisher on August 29th, 2014 [ permalink ] | Read more »
All contents are Copyright 1984-2010 by Xplain Corporation. All rights reserved. Theme designed by Icreon.