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
$107.72
Apple Inc.
-5.04
GOOG
$597.79
Google Inc.
-20.46
MSFT
$41.82
Microsoft Corporation
-1.70
MacNews Search:
Community Search:
view counter

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

This Week at 148Apps: August 24-28, 2015
The Apps of August With 148Apps How do you know what apps are worth your time and money? Just look to the review team at 148Apps. We sort through the chaos and find the apps you're looking for. The ones we love become Editor’s Choice, standing out above the many good apps and games with something just a little bit more to offer. Take a look at... | Read more »
NASCAR in Real Racing 3? Sure, Why Not?
I have to give Firemonkeys credit - it's very cool of them to add NASCAR to Real Racing 3 via an update rather than making a separate game for it. But that's a different discussion for another time; for now let's sit back and enjoy driving in circles. [Read more] | Read more »
The nuyu is an Inexpensive Activity Moni...
Today, Health o Meter nuyu has announced a series of health and fitness-related products, including the aforementioned activity monitor along with a wireless scale. All at a decent pricepoint, no less. [Read more] | Read more »
The Makers of Overkill are Trying Someth...
Craneballs, the studio responsible for the Overkill series, is taking a little break from all that violence (a little break) to bring us Cube Worm - a 3D take on one of the most classic PC/calculator games in existence. [Read more] | Read more »
The Sandbox Welcomes Cutethulu in its La...
Another month, another update to Pixowl's The Sandbox. This time players can say hello to "Cutethulu" - an adorable little rendition of perhaps the most well known (and infamous) of the Elder Gods. [Read more] | Read more »
ReBoard: Revolutionary Keyboard (Utilit...
ReBoard: Revolutionary Keyboard 1.0 Device: iOS Universal Category: Utilities Price: $1.99, Version: 1.0 (iTunes) Description: Do everything within the keyboard without switching apps! If you are in WhatsApp, how do you schedule a calendar appointment? By switching to Calendar app. Right?What if you could schedule an appointment... | Read more »
Tiny Empire (Games)
Tiny Empire 1.1.3 Device: iOS Universal Category: Games Price: $2.99, Version: 1.1.3 (iTunes) Description: Launch cannonballs and blow tiny orcs into thousands of pieces in this intuitive fantasy-themed puzzle shooter! Embark on an epic medieval journey that will take you from the grasslands of the empire to the forgotten desert... | Read more »
Astropad Mini (Productivity)
Astropad Mini 1.0 Device: iOS iPhone Category: Productivity Price: $4.99, Version: 1.0 (iTunes) Description: *** 50% off introductory price! ​***Get the high-end experience of a Wacom tablet at a fraction of the price with Astropad Mini!• "Astropad is my new go-to retouching tool while on the go, which is often." - FStoppers• "In... | Read more »
Emo Chorus (Music)
Emo Chorus 1.0.0 Device: iOS Universal Category: Music Price: $1.99, Version: 1.0.0 (iTunes) Description: Realistic Choir simulator ranging from simple Chorus emulation to full ensemble Choir with 128 members.### introductory offer 60% off ### | Read more »
Forest Spirit (Games)
Forest Spirit 1.0.5 Device: iOS Universal Category: Games Price: $2.99, Version: 1.0.5 (iTunes) Description: | Read more »
All contents are Copyright 1984-2010 by Xplain Corporation. All rights reserved. Theme designed by Icreon.