"Creative Destruction”, the famous expression coined by Austrian political economist Joseph Schumpeter to describe capitalism lends itself very well to describe the current situation in the print media sector. The rush to produce credible digital offerings by publishers is precipitating a boom of  so-called digital publishing solution providers.

These companies—NxtBook, Texterity, Zinio, Zmag, and others—help publications and corporate catalogs digitize their content, often  providing online newsstands and selling subscriptions. According to a recent study by Gilbane Publishing Group, overall sales in this sector are approximately $80 million a year. Moreover, annual growth rate lies at 20%.

The higher the frequency of a publication, the more repeat business a digital solutions provider gets.

B2B and B2C

The market is divided in the Business to Consumer (B2C) publications subsector, which is led by Zinio, and the Business to Business subsegment (B2B), in which the main players are NxtBook and Texterity.

Marcus Grimm, Marketing Director of NxtBook tells Portada that B2B titles tend to get a higher proportion of their readership online than B2C titles.

“The average B2B gets 15% of its readership digitallyl the average B2C approximately 3%,” Grima notes.

The digital solutions provider market can also be categorized in two different sectors by functionality. On one hand, there are the self-service providers (firms that provide technology to help publishers do the work themselves) and, on the other hand, there are the full service providers that manage the whole process, such as those listed above.


Portada Staff

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