The publishing value chain needs a critical assessment of current IT infrastructure to respond to scaling computer power, increasing storage and archival space, delivering content seamlessly to multiple devices, and uninterrupted support for peak loads.
By end of 2015 the global shipment of tablets is expected to take over that of desktops and portable PCs with the inflection point arriving even sooner in some markets like the U.S. and UK. Growth of social networking as well as the increased ability of eCommerce channels to embed themselves into digital media effectively has provided further impetus to the rise of digital as an alternative medium for content distribution as well as an important ingredient for marketing campaigns.
The biggest issue now facing publishing houses is when the end user starts unauthorized sharing of publisher content with friends and even strangers - Piracy. Multiple copies get created and publishers lose the opportunity to earn more money. The digital solution, which promised to be a big source of revenue for publishers, has actually in some cases robbed them of dollars.
The global newspaper publishing revenues from sales and advertising were down to US $164bn in 2012 from US $187bn in 2008 and a modest recovery is expected in the magazine publishing revenue from US$81.9bn in 2012 to US$83.3bn in 2017. Publishers face many challenges like increased customer churn, reduced attention spans and finding new revenue streams. Lack of customer insights hampers their ability to take the right decisions.
The time seems right for cloud technologies to take over more applications essential to publishers and to move them to a “software as a service” (SaaS) based model, where the software provided is relatively cheap or free but its maintenance and customization is not. Making this transition, however, is easier said than done
Digital developments are a challenge. Understanding new trends in the publishing industry, such as mobile learning projects, eBook delivery methods, commercializing data and establishing analytics services are crucial to the big question of how to monetize this transition of the publishing industry.