Electronic publishing industry and its monetizing opportunities

Abstract

In the traditional publishing setup, for works written independently, authors have to usually first submit a proposal directly to a literary agent or to a publisher. Submissions sent directly to a publisher, referred to as unsolicited submissions, are usually placed in the slush pile and usually have a very low rate of acceptance with some sources estimating that publishers ultimately choose about three out of every ten thousand unsolicited manuscripts they receive. Also many of the book publishing companies maintain a strict "no unsolicited submissions" policy and will only accept submissions via a literary agent. Hence the traditional route of publishing is a tough path to tread on for an upcoming author with no established reputation. However with the advent of the Electronic publishing medium. i.e. EBooks, the structure of the traditional model has evolved. An upcoming author can now leverage on the opportunity of low search and online publishing costs and thus bypass most of the issues faced in the traditional setup. We propose to study the current business model of the publishing industry, specifically the electronic medium of publishing and identify its key drivers. We propose an effective business model as well as strategies for publishers to leverage this medium by effectively monetizing on the different electronic publication opportunities now available. The business model would provide an opportunity for publishers to monetize the long tail of the publishing industry while also gaining a foothold in the electronic marketplace. The business model ensures that the publisher covers his costs and minimizes his risk of exposure, while the author also gains by riding on the shoulders of an established brand name that enables him to get noticed in the electronic marketplace. As part of the primary research, we have interviewed authors, publishers and agents to identify the various issues faced in promoting, marketing and driving sales of a book in the both the print and publishing world as well as the electronic market place