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
$114.40
Apple Inc.
-4.04
GOOG
$631.07
Google Inc.
-0.14
MSFT
$47.61
Microsoft Corporation
+0.80
MacNews Search:
Community Search:
view counter

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

Five Nights at Freddy's 4 has Been...
In keeping with tradition, Five Nights at Freddy's 4 has made its way to the App Store with zero warning fanfare. Honestly I'd be disappointed it if happened any other way at this point. [Read more] | Read more »
Doom & Destiny Advanced (Games)
Doom & Destiny Advanced 2.3.4.0 Device: iOS Universal Category: Games Price: $.99, Version: 2.3.4.0 (iTunes) Description: ---SUPER GIGA LAUNCH DISCOUNT! Get it now for cheap or pay more later!---An additional 143 MB download is required to play.--- | Read more »
Five Nights at Freddys 4 (Games)
Five Nights at Freddys 4 1.0 Device: iOS Universal Category: Games Price: $2.99, Version: 1.0 (iTunes) Description: This time, the terror has followed you home. | Read more »
This Week at 148Apps: July 27-31, 2015
Winding Down July 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 what... | Read more »
You'll Want to Keep an Eye Out for...
If you're the kind of person who had fun hunting down and completing all the codex puzzles in Assassin's Creed 2, then are you ever in for a treat. The Guides looks like it's going to be a very robust collection of similarily odd, seemingly disconnected, and quite challenging puzzles. [Read more] | Read more »
Vivid Games has Announced Real Boxing 2...
The original Real Boxing was a pretty impressive bit of fisticuffs, but if the trailer Vivid Games is showing off for GamesCom is any indication Real Boxing 2 is going to be even better. [Read more] | Read more »
PAC-MAN Championship Edition DX - Tips,...
[Read more] | Read more »
Card King: Dragon Wars - Tips, Tricks an...
[Read more] | Read more »
Pac-Man Championship Edition DX has brou...
Bandai Namco has released Pac-Man Championship Edition DX on iOS and Android, which features the classic arcade gameplay that we've all grown to love. Pac-Man Championship Edition DX can be enjoyed in much shorter bursts than the arcade versions but the gameplay remains intact. [Read more] | Read more »
Cosmonautica (Games)
Cosmonautica 1.1 Device: iOS Universal Category: Games Price: $6.99, Version: 1.1 (iTunes) Description: Cast off! Are you ready for some hilarious adventures in outer space? | Read more »
All contents are Copyright 1984-2010 by Xplain Corporation. All rights reserved. Theme designed by Icreon.