Industry Analysis & Industry Trends
Lower disposable income hampered discretionary spending on books and, therefore, hampered Global Book Publishing industry growth during the past five years. A transition toward digital technology also dented revenue due to the difficulty of pricing e-books, which are intrinsically different from printed products. The investments necessary to transition toward digital publishing also led to consolidation within the industry; they resulted in a 2.5% annualized decline in firms to 16,467 in the five years to 2012. New forms of entertainment also forced book publishers to increasingly compete with other media, including self-publishers and free e-books. Consequently, the industry is forecast to decline at an annualized five-year rate of 2.5% to total $108.7... read more
Starting a New Business
Barriers to entry are moderate overall, though they can vary by country and region. Barriers include the reputation and distribution capabilities of incumbents.
It can take a company take significant time and money to build a good reputation among authors and readers. A publisher's reputation can be promoted by having a track record of publishing quality books, possessing expertise in particular subject matters, marketing products successfully and understanding legal issues. The ability to appraise the quality of manuscripts is also important.
Large publishers are often in a strong position to sell their books to large wholesalers and retailers... read more