Whatever Happened to Innovation in the Publishing Industry?
Remember the excitement surrounding the launch of Amazon’s Kindle eight years ago? It was a clunky device, even by 2007 standards, but it was revolutionary. One of the original Kindle’s breakthrough features was the ability to download books via cellular network. The e-Ink display and extremely long battery life also led to its popularity despite the device’s hefty $399 price tag.
That was eight years ago and it’s hard to name even two or three other innovations that have had as significant an impact as the first-gen Kindle. Sure, the iPad was noteworthy but it didn’t exactly reinvent reading. And while today’s devices are faster and cheaper than yesterday’s they feature incremental improvements, not groundbreaking innovations.
The same can be said for all aspects of the digital publishing ecosystem, not just devices. The most interesting development over the past few years is probably the all-you-can-read subscription model. But any momentum there has been halted as Oyster is about to disappear and Amazon’s offering has no Big Five content. For what it’s worth, I still believe in all-you-can-read models but only if they’re focused around a topic/genre and they avoid the unsustainable business model that crushed Oyster.
Why has there been almost no innovation in the book publishing industry since the original Kindle?
As I meet with publishers I hear a lot of conservatism and anxiety in their voices. Many are just trying to survive revenue shortfalls and staff downsizings. They’re also afraid of doing anything that might be perceived as a threat to the key retailers.
I believe most publishers are relying too much on the industry leader, Amazon, to also serve as innovation leader. Given that books (print and e) represent less than 10% of Amazon’s overall revenue I’m not convinced they’re motivated to innovate. Amazon is more focused on building other areas of the business and not so much on the book industry they currently dominate. They want to protect and grow their book market share, of course, but I doubt they want to pour a lot of money into reinvention breakthroughs. Amazon didn’t invent the all-you-can-read model, for example; they simply launched a service in reaction to Oyster and Scribd.
This is why I’ve always been a huge fan of the startup community. But it seems as though there are fewer and fewer new, interesting startups in the publishing space. Perhaps it’s because techies see more upside in other industries or maybe they too are afraid of getting squashed by the dominant player. Whatever the reason, there seems to be less startup innovation focused on publishing than ever before.
One interesting development on this front is the Ingram Content Group’s 1440 accelerator program. It’s great seeing an industry leader like Ingram stepping in to help drive and encourage innovation. I plan to keep a close eye on the startups who make the 1440 cut and I hope other publishers and leaders in the publishing ecosystem will work to support and develop similar initiatives.