Transforming the Publishing sector
I’ve been working in the publishing industry for some years now in Latam and now in Spain. It’s a sector that has been suffering a slow and deeply crisis a cause of new entrants such as amazon and kobo. They have as any other industry a linear pipeline system and it’s been trying to compete with platforms with no success so far.
What shocks me the most is how new digital initiatives are shot down by big publishing houses, and how early startups have been cannibalised instead of being use as a transformational force that could let their business evolve, plus the elements that bring the most value to the system such as writers and readers are not being harness properly.
I find that these are the elements likely to be transformed by new entrants, where each one of them will plug into the current e-commerce and social giants in order to scale and succeed fast:
- In Marketing: ID platforms built on top of reader communities that will form user profiles and benefit from the user behaviour data when they not only search but discover, create and recommend books.
- Production: Broadcaster communities and AI that will accelerate the audiobooks creation in a collaborative way, such as Rakuten’s viki did with subtitles. maybe build on top of iphone screen speech feature 😶
- In Distribution: P2P match communities that let you share and exchange books or deliver them acquiring some of the transactional costs traditional distribution firms take for doing this.
- In Acquisition: CrowdBuying systems that will help get bundle books for less price, something that is currently happening offline in Latam due to the high cost of books.
- In Creation: Beneath this constant value exchange, Data BI systems and Machine learning algorithms that will give form to every data point in order to predict the next bestseller, as Netflix is actually doing with tv series.
We will see how the first platforms takes place and profits from the +700 million Spanish/Latin market. I hope the publishing sector wakes up of its coma before american latinos startups begin conquering their markets.