Overall Picture of the EM field
How was this field born and how is it evolving?
Book Publishing Industry
- "Since 1639 book publishing has been clustered primarily on the East Coast (mainly in the port cities of New York, Boston, and Philadelphia) and in Chicago. New York City became the center of the industry in the nineteenth century." (Greco 1997, 4)
- "By 1987 the New York City-Boston-Philadelphia triad no longer dominated the industry. California was the second largest book publishing state, with an impressive 375 corporations. The other principle states were Illinois, New Jersey, Massachusetts, and Florida. Pennsylvania was a distinct seventh." (Greco 1997, 5)
- In the 1990s, "the impact of electronic publishing, the information highway, sophisticated telecommunication systems, computers, and fax machines seem to negate the importance of publishers being located in urban centers" (Greco 1997, 8)
- "freelance editors, consultants, graphic artists, and others [...] can [now] be contracted out and supervised from some distance because of the availability and usefulness of electronic ocmputer and telecommunications systems."
- "Dominant Trends Since 1945" (Greco 2007, 10)
What are the main business models?
Book Publishing Industry
- Solitary Authorship + Contractual Relationship
- "Whatever the motive, the stark reality of writing means that the author toils alone, for writing is a singular, hard profession." (Greco 1997, 1) However, "the author's objective changes. He or she needs a publisher willing to tender a contract to have the novel, biography, or monograph edited, printed, reviewed, publicized, distributed, and, hopefully, read by as many people as possible." (Greco 1997, 1)
Commercial Publishing House
- Modest objectives?: "... to sell enough copies to pay the publishing house's employees, taxes, and other expenses while making a contribution to the world of letters. Hopefully, a profit can be made a royalty paid to the author." (Greco 1997, 1)
University Presses
- Mission?: "to make a contribution to scholarship while trying to pay the bills" (Greco 1997, 2)
What are the innovation dynamics in this field?
Inputs Innovations
- "New capital expenditures" (Greco 1997, 3)
- Timing: incremental growth, 1967-1987
- "Computer systems for editing, data management, accounting, royalties, and payroll"
- Commons-based peer production
Outputs Innovations
- e-Books
- Timing: potentially disruptive technology but still some percentage of sales
- In 2005, "30,000-50,000 e-book units were in use in the United States" (Greco 2007, 24)
- In 2005, "total e-book sales were in the $12 million range" (Greco 2007, 24)
- (Computerized) Print on Demand (POD)
- Timing: incremental innovation "allowed publishers to keep titles 'in print,' effecitvely reaching new audiences for decades" (Greco 2007, 24)
How does knowledge flow in this field?
coming soon
Is this field replicating models from other fields?
coming soon
How many companies?
Book Publishers (not only EM)
- 2006 U.S. Census Data (U.S. Census Bureau, Company Statistics Division & Bowan 2008)
- # of Firms: 3,042
- Employees: 83,504
- Annual Payroll: $4,993,924
- 1967 and 1987 U.S. Census Data (Greco 1997, 2-3)
| Year | # of Firms | # of Employees | # Annual Payroll | Shipments Value |
|---|---|---|---|---|
| 1967 | 1,022 | 52,000 | $390 million | $2.13 billion |
| 1987 | 2,298 | 70,100 | $1.86 billion | $11.6 billion |
| 2006 | 3,042 | 83,504 | $5 billion | ??? |
Textbooks Publishers
"Market share for new textbooks (that is, the $4.2 billion piece) is highly consolidated, with 6 publishers holding about 85% of all sales dollars (Pearson, Thomson, McGraw Hill, John Wiley, Houghton Mifflin, and St. Martin's/Von Holtzbrinck). Although college publishing remains highly profitable for the large players, with reported EBITDA in some instances as high as 30%, growth has stalled, due in large part to the rise of the used book business, which represents the key strategic issue in the industry today."
How much money do they make or how much money do they “move” in the American economy?
Book Publishing Industry
- Sales by type of book (Book Industry Study Group 2005 / NOTE: need to get 2008 from library)
- Professional and scholarly: $4.1 billion (176 million units)
- University press: $450 million (24 million units)
- Elhi (elementary and high school texts): $4.7 billion (178 million units)
- College textbooks (all levels): $3.9 billion (67 million units)
"The U.S. college textbook business currently has annual revenues net to publishers of about $4.2 billion. (For a variety of reasons, this document will address only the U.S. opportunity.) The figure for the amount actually spent on classroom materials is much higher than that, however. For example, used texts have now grown to about $1.2 billion a year, net to retailers. The margin on new texts taken by retailers is approximately $1 billion (that is, $1 billion on top of the publishers' receipts of $4.2 billion). And then there are all the books that are not formal textbooks that find their way into the curriculum, mostly in the humanities: literary classics, paperbacks on social policy, anthologies, coursepacks (collections of readings), etc. Data on these informal materials are hard to assemble, in part because of their widespread provenance (literally thousands of trade and university press publishers), and in part because most of these sales go through wholesalers, making it difficult for publishers to ascertain a book's ultimate destination. A good working estimate of the total size of the college book market is therefore around $7 billion." (Long Tail)
How important is research from universities in this specific field?
coming soon
How important is public funding in this field?
coming soon
How important is private funding / venture capital in this field?
coming soon
Are there any specific public policies (from agencies, federal or state policies) that give incentives for openness or enclosure?
coming soon
What is the cost structure of the field?
coming soon
Who are the producers, the buyers, and the users?
coming soon
What is the structure of power from the production side?
Who has the power to control production?
coming soon
How is the control distributed?
coming soon
What is the structure of power in the demand side?
Who has the power to control demand?
- Book Publishing Industry
- Book Reviews (Greco et al 2007, 48-51)
- Oprah Winfrey (Greco et al 2007, 51-53)
How is the control distributed?
coming soon