Effect Of Technology On The Publishing Industry Media Essay

Effect Of Technology On The Publishing Industry Media EssayThe produce sedulousness is an intentness which is metameric into the book, freshspaper and magazine industry. The publication market is not simply a business. The products made in the extending industry have a gigantic impact on the socio-political and cultural environment, for instance in education systems. Additionally, collect to the increased popularity of online resources and e-books the publishing market is facing higher levels of competition. Competition in the publishing industry is affected by consumer spending which is strongly associate to economic growth and employment levels (Datamonitor, 2010).Beca go for of the higher levels of rivalry caused by the grounding of saucy technologies, such as scoreing on choose, e-books and online newspapers, society practically claims that the publishing industry is dying. While it is true that the publishing industry is undergoing a digital revolution, this revolut ion should be seen as a new opportunity, not as the end of the publishing industry. The purpose of this paper is to discuss the set up of technology on the publishing industry.beginning, the technological changes in the publishing industry go forth be examined. In this paper we focus on e-books and online newspapers. This pull up stakes be followed by the matters of new technologies on tack on and demand. Finally, the answer to the oppugn whether the new technologies be substitution or complementary acceptables will be discussed.2. ChangesRonte (2000) stated that technology has had and still has a dramatic effect on the publishing industry. Technologies currently shaping the publishing industry include online newspapers, gulling on demand and e-books. Digital technology is important for several reasons. First of all, digital technology has no boundaries in geography and time. Books, magazines and newspapers brush off be published, marketed, bought and ascertain anytime an d anywhere. Second, the power that came from physical distri exclusivelyion has disappe argond. Retailers or salespeople lavatorynot influence purchasing and selling behavior as they did before because handed-down strikeing is no longer the only way to have content published. Third, distribution of electronic copies of books is leave office and therefore marginal embodys of producing an additional book or journal atomic number 18 zero. The fixed costs, however, will increase because making digital publishing possible high investments in the installation of a intercommunicate should be made. Further more than, unique content acquires more immenseness. Aspects such as the locomote of digital distribution and exclusive access are more priceless to customers. Finally, the next generation, who are educated on computer, will use the new technologies more often (Ronte, 2000).2.1 E-booksElectronic books are defined asA digital object with textual and/or other(a) content, which a rises as a result of integrating the familiar concept of a book with features that can be provided in an electronic environment. E-books typically have in-use features such inquisition and cross reference function, hypertext links, bookmarks, annotations, highlights, multimedia objects and interactive tools. (Carreiro, 2010, p.221)The invention of e-books is an opportunity for the publishing industry to revitalize. The e-book market is still in its growth state and thusly can revive the publishing market. The fact that a publisher can never be out-of-print and the publishing industrys traditional supply chain will be faster and shorter are other advantages of e-books (Carreiro, 2010). This results in abase costs, which in turn results in higher profits for publishers and authors, which can petabit to lower prices for readers. On the contrary, digitalization goes together with piracy. As in the music and flash industry, publishers of e-books risk that their books are copied and illegally spread on the Internet. E-books can be protected from piracy by both encryption and compression. For instance by a digital object identifier (DOI) an initiative of the publishing community for protect its assets in the digital environment (Carreiro, 2010, p. 225).2.2 Online newspapersThe introduction of online newspapers is another change in the publishing industry. Most of the newspapers, local and national, offer nowadays both a traditional printed and an online newspaper. Despite of the question whether online newspapers are substitutes of print papers or not, which will be addressed in the next section, an on-going discussion is online price should newspaper publishers set a price for online newspapers? Online newspapers have often all-embracing content-sharing characteristics. The print edition is often the primary source for the online edition. The fact that analogous or identical information is published in two formats fostered the industrys solicitude about the negative impact of offering free content online on the print editions subscription base (Chyi Lasorsa, 2002, p. 94). This effect is called the cannibalization effect. Publishers are afraid that offering free content online may cause a lessen the demand of the print edition because of the subscription base. Therefore, many online news sites initially charged a subscription angle for online news access but most failed. The advertising model followed, but only with limited success (Chyi Lasorsa, 2002). Gentzkow (2007) also found that introducing online pricing causes a decrease in demand of online newspapers. People seem to take recital a printed newspaper over an online newspaper if an online price is charged. Gentzkow (2007) suggests not range an online price when the advertising market is favorable. The welfare benefits of the online newspaper outweigh the costs.3. tack on and demandThe law of supply and demand rules books as tangible product. Changes in demand or supply will lead to an increase or decrease in the market equipoise price and quantity. Factors that cause a shift in demand are a change in price of complements or substitutes, a change in income or a change in preference. The supply curve shifts as a consequence of changes in costs of input, new technology or an increase/decrease in the number of suppliers (McDowell, et al., 2009). To be more specific, factors that influence the e-books demand are technology, cost, user friendliness, and privacy (Carreiro, 2010). The better developed these factors are, the higher the demand and, if supply remains the same, the higher the market equilibrium price. However, the demand of traditional printed books and newspapers diminish due to new technologies such as e-books and online newspapers. Thus, for the publishing printing industry the market equilibrium price lowered. The decrease in the demand of traditional printing can be explained by the substitution effect which is discussed in section 4.4. Su bstitution and complementary effects4.1 E-booksTo answer the question, e-books are no clear substitutes for the traditional printed books. The substitution effect can be explained as the change in the quantity demanded that results because buyers switch to substitutes when the price of the good changes (McDowell, Thom, open Bernanke, 2009, p.67). In other word of honors, when goods are substitutes, in this case printed books and e-books, when the price of e-books increases, the demand of printed new books increases, and vice versa. This is partly the case in the publishing industry. The publishing industry treats the e-book just as another format, releasing the same titles in hardcover, book-on-tape, and e-book at the same time (Gall, 2005, p.27). It is important to decide whether it is useful to publish a book in e-book format. Childrens books, for example, will ever so remain paper-based, as young children are un analogously to handle computers (Ronte, 2000, p.19). On the oth er hand, pedantic obligates, other reference works and course catalogues are very able to be published as an e-book. In this case, e-books are substitutes for printed books. In the article Dispelling Five Myths about E-books, Gall (2005, p.27) notes that the e-book will be an electronic saviour of text, replacing the printed word in the same way as the printed word knock backd oral traditions. This is true and agrees on the fact that pleasure readers will prefer a printed book. Thus, paper based books will not become nonexistent because e-books nowadays only substitute scientific books and sources.4.2 Online newspapersDisagreement exists whether online and print newspapers are substitute goods. Chyi and Lasorsa (2002) found that about one half of the online users also read the print edition (55% for the Wall Street Journal Interactive, 42% for regular army Today and 41% for the New York Times on the Web). The simultaneous use of print and online newspapers suggests that to so me extent print and online products complemented each other. Two goods are complements in consumption if an increase in price of one causes a leftward shift in the demand curve for the other (McDowell, et al., 2009, p.79). In other words, online and printed newspapers gain from each other. Thus, if the demand for online newspapers increases, the demand of printed newspapers increases too. Furthermore, Chyi and Lasorsa (2002) found that almost 80% prefer the print format, whereas only 20% would prefer the online edition. The online edition is more likely to be read by younger people. Gentzkow (2007) also researched on the complementarity of online newspapers. Gentzkow used the Washington Post and post.com for his research. In contrast to Chyi and Lasorsa, Gentzkow (2007) found that print and online newspapers are significant substitutes. Theoretically, the degree of product substitutability is defined by cross-price elasticity of demand, the percentage change in demand for one good d ivided by the percentage changes of a related good, other things creation equal (Chyi Lasorsa, 2002, p.95). A $0.10 (33 per cent) increase in the price of the Post would lead to an increase in post.com readership of 8,358 (2 per cent) (Gentzkow, 2007). This indicates that post.com and the Post substitute each other.5. ConclusionIn conclusion, technologies that have an effect on the publishing industry are e-books, online newspapers and print on demand. In this paper only e-books and online newspapers are discussed. One of the effects of these new technologies is that the boundaries in geography and time have disappeared. Furthermore, the marginal cost of producing an additional unit is zero and the uniqueness of books, magazines of newspapers has a greater importance than before. Supply and demand in the publishing industry has changed because of the introduction of new technologies. The demand of traditional prints decreased, which results in a lower market equilibrium price. Thi s can be explained by the substitution effect. However, there is a caboodle of disagreement whether e-books as well as online newspapers are substitutes for the traditional printed books and newspapers. E-books are substitutes concerning research information, such as academic articles. On the contrary, people who like to read books in their leisure time will not replace the traditional book for an electronic version. For online newspapers researchers hold the same disagreement. Gentzkow describes online and printed newspapers as faultless substitutes, whereas Chyi and Lasorsa found that electronic and traditional newspapers are complements. Because of the fact there is no clear evidence that new technologies substitute the traditional versions, it can be concluded that the print book or newspaper will always exist and that the publishing industry, fortunately, is not dying.