Digital publishing had quickly gained in popularity over the last few years and publishers have had to keep up with the trend by adapting their business models. We notice that most of the time the models followed are the same as in traditional print publishing, with a few slight changes.
Indeed, one-off payment, subscription, and advertising business models all have their equivalence in the digital world. However, the difference goes further than the fact that digital payments are replacing face-to-face purchases in bookshops.
New business models specific to digital publishing are also emerging. In 2012 the CEO of Safari Books online gave a talk at the Tools of Change for Publishing conference about a business model referred to as the ‘subscription/access’ model. The latter can indeed be more profitable for digital publishers as this model is based on usage. Users are paying every single time they read a page or book, whereas in retail the publisher is only paid once, regardless of how many times the book will be read.
Another mode of payment that was introduced to the world of e-reading is the ‘freemium’ business model. It allows users to access to a part of the content for free, then if they find the content interesting they are offered the opportunity to purchase it entirely. The purpose of this model is to encourage the reader to buy more: there is less hesitation when buying because of the preview that was offered.
Indeed, one-off payment, subscription, and advertising business models all have their equivalence in the digital world. However, the difference goes further than the fact that digital payments are replacing face-to-face purchases in bookshops.
New business models specific to digital publishing are also emerging. In 2012 the CEO of Safari Books online gave a talk at the Tools of Change for Publishing conference about a business model referred to as the ‘subscription/access’ model. The latter can indeed be more profitable for digital publishers as this model is based on usage. Users are paying every single time they read a page or book, whereas in retail the publisher is only paid once, regardless of how many times the book will be read.
Another mode of payment that was introduced to the world of e-reading is the ‘freemium’ business model. It allows users to access to a part of the content for free, then if they find the content interesting they are offered the opportunity to purchase it entirely. The purpose of this model is to encourage the reader to buy more: there is less hesitation when buying because of the preview that was offered.
Teece, D. (2009). Business Models, Business Strategy and Innovation. Business Community.
Webb, J. (2014). Business models to monetize publishing in the digital era - Tools of Change for Publishing. [online] Toc.oreilly.com. Available at: http://toc.oreilly.com/2012/02/monetization-in-publishing-toc-2012.html [Accessed 16 Oct. 2014].
Webb, J. (2014). Business models to monetize publishing in the digital era - Tools of Change for Publishing. [online] Toc.oreilly.com. Available at: http://toc.oreilly.com/2012/02/monetization-in-publishing-toc-2012.html [Accessed 16 Oct. 2014].