This assignment will give you an insight of online publications and online content. Online publicatons are defined as contents which are not offered in a physical way but in the internet. This definition entails for instance how far the internet (datacontent) supersedes traditional objects. Examples for main type products are e-Books, e-Magazines, Newsletter, Weblogs, Databases and Websites. Consequently, we tried to find out how many people adopt the medium internet and use rather e-Publications than conventional ones and how much money are they willing to spend for them ultimately. We also want to answer the question, how the internet influence the publishing industry. What kind of new opportunities are there for both consumer (reader) and provider?
Expenditure for e-Books
This graphic illustrates how much money consumer have spent for e-Books from year 2009 until 2012 and how does it probably look like in future in several regions in the world. You can see that Latin America does not spend any money for e-Books since they are not technically developed yet. People in Western Europe for instance did not spend any money in 2009. But since 2009, they began to consume e-Books and spent more money for that continously. According to this graphic, they will spend 2,500 US$ millions in 2016. In Asia it looks similary: In 2009, they already spent round about 1,250 US$ millions for electronic books. But in 2016, the expenditure will be twice. In 2012, they already spent more money than in Western Europe. The most of money, people spend in North America. They started in 2009 with approximately 1,000 US$ millions. Nowadays, they spend round about 5,000 US$ millions and in 2016 it will be presumably more than 10,000 US$ millions which is four times as big as they will spend in Asia and Western Europe at the same time. In comparision, we determined that people from North America probably accept the change from convetional books to innovative e-Books the most. It depends on the one hand on the technical progress, the country went through, on the other hand on the population density and the attitude and habits.
The impact of the internet of the publishing industry
In this part, we want to answer the question how the internet affected and still influences the publishing industry. In 2000, the Internet as such, and especially with its interactive applications, represented something totally new: There were new offers for both consumer and publishers. Publishers were forced to ponder upon how to use the internet in the most efficient way, how it could be linked with daily operations of their magazines, and what their strategic options were. The magazine publishers have acted and reacted quickly since the market forecasts changed: in the late 1990’s we saw a few years of high-profile Internet investments, but in the early 2000’s many enterprises were closed or run down. For the past couple of years, another new perspective has opened up since publishers have taken a step-by-step attempt in continuously developing and updating their websites. Thenceforth, operator of websites were more focused on improving online services rather than marketing them, as they did it in the late 1990’s. From the changes which have taken place in the industry, it is obvious that publishers’ objectives and strategies are under permanent modification. It has also been realized that making Internet enterprises profitable is more complicated than firstly thought, and it may even be impossible . The Internet clearly represents a major challenge.
Analysis of the magazine publishing industry: Porter's five forces The next part of our work was to determine the impact of the Internet on the industry level. A classic methode to analyse the competitive environment of the firm is the Porter's 'five forces’ analysis. The five forces are the threat of potential entrants, the threat of substitutes, the bargaining power of the suppliers,...