Pira Releases Publishing Industry Technology Forecast
LEATHERHEAD, UK—May 31, 2011—Computer technology to create, sort and deliver electronic content that will engage and prove useful for the recipient is among the most important trends for the publishing industry between now and 2020, according to a recent study by Pira International—“Print and Publishing Technology Forecast to 2020.”
According to Pira, electronic versions are not a panacea for publishers. The media removes physical production and distribution costs, together with the time involved, but the technology is being used to increase convenience for individuals. Many users have browsers that restrict pop-ups and spam filters, but they may also divert files and messages.
Smaller, more powerful mobile gadgets catch the public attention and there are armies of content providers broadening the range of applications for consumers. They represent a new and rapidly changing media challenge for publishers: how to supplement and earn revenue from these communication channels.
Telecoms
Telecom providers are not currently active in content provision in North America and Europe, but they are in many Asian countries. These companies provide the distribution method and are looking to add more value by selling content as well. This is a good opportunity for them to enter potential growth areas and many will choose to do so.
Pira predicts that telecom providers will compete with publishers to provide content electronically over the next few years. The available network bandwidth will grow and network traffic—an important revenue earner for telecom providers—will include electronic news, magazine articles and books. It is a natural step for telecoms firms to add publishing functions to their services.
Though sales figures for e-readers, tablets and other latest-generation consumer electronics products—led by the Kindle and iPad—have been impressive, there have been few viruses and malware aimed at smartphones and e-readers. It is likely that there will be in future and such concerns will impact the take-up of such devices, and have implications for increasing connectivity.
The e-reader market is likely to split into several distinct parts according to Pira, from the high-end color touchscreen with many other capabilities, through smartphones, down to cheap monochrome versions with simple controls to load and read titles. As the technology advances there will be cheaper, higher quality, lighter devices that will help reading and interactivity.
Bookstore
Apple has followed up on iTunes with its iBookstore, which yields a healthy margin for the company that it will fight hard to maintain and grow.
While music, video and images are easy and straightforward to distribute electronically, there are significant technical issues still to be overcome for text-based information that maintains formatting and legibility. Text handling technology in print has developed over hundreds of years to provide many interesting type styles and design tools, to create appealing and easy-to-read pages and documents.
Subscriptions
Before 2020, one publishing model will probably involve supplying a suitable reader in return for a subscription package, whereby newspaper content is provided over a period, according to Pira.
This benefits the publisher, which does not have to bear the cost of physical production and distribution of the print, and lose part of the sale price to distributors and retailers.
There is a lot of debate about the relative merits of e-books, and different claims for the relative market sizes. In 2010 e-books are in the great minority, but this may not be the case in 2020. They will be widely accepted and it Pira expects new book sales may include a licence for an electronic version.
Books that are digitally printed will include a unique link and code that allows a one-time download of the title, similarly for magazines and newspapers.
Search
The Android operating system used in its smartphones provides interesting opportunities for content and interaction, and there are rumours about a Google e-reader. Android can be used as a reader on a mobile device.
Google is becoming a significant player in publishing digital content. Google Books has over 12 million books available to search as well as newspapers and magazines.
Through its well-publicized negotiated settlement with publishers and authors, Google can sell the full text of books, many of which are out of print. It is trying to broaden the content and is working with some 30,000 publishers to provide increased access, while creating new revenue streams for content creators, and Google. Over the next 10 years, it is in pole position to redefine publishing business models, while earning revenue from the sale and distribution of content.
Social media
Pira sees opportunities for social media to develop into mainstream publishing and promotional applications. Among printing companies, the use of social networking as a promotional tool is in its infancy. One notable exception is Vistaprint, which provides content and allows its myriad customers to share design and success stories of marketing campaigns that work for them.
Print is now firmly part of a broad media mix, as consumers have a much wider choice of usable content delivery channels alongside print.
“Print and Publishing Technology Forecast to 2020” is available now. For more information, please contact Stephen Hill at +44 (0) 1372 802025, or via e-mail on stephen.hill@pira-international.com, or see www.pira-international.com
About Pira International
Pira International—the worldwide authority on packaging, paper and print industry supply chains. Established in 1930, Pira provides strategic and technical consulting, testing, intelligence and events to help clients gain market insights, identify opportunities, evaluate product performance and manage compliance.
Source: Pira.