IBISWorld Market Research
E-books have become very popular over the past five years, particularly since the explosion in popularity of tablets
Melbourne, Australia (PRWEB) October 22, 2014
Over the past five years, the Book Publishing industry in Australia has been affected by a revolution in the way consumers read and purchase books. According to IBISWorld industry analyst Spencer Little, “rather than going to local bookstores to seek out physical copies, consumers are increasingly buying print books and e-books online.” E-books can be read using e-readers or tablets, providing customers with greater accessibility and convenience, as many books can be stored on the one device. Parallel import restrictions (PIR) prevent retailers from importing books that have been published domestically within 30 days of their international release. However, these PIR have mainly affected the industry's retail channels, with Borders and Angus & Robertson closing in February 2011, due to strong online competition. As a result, industry revenue is estimated to decline at a compound annual 1.1% over the five years through 2014-15.
Online competition has severely affected the industry, mainly through websites such as US-based Amazon and UK-based Book Depository. Such operators sell foreign-published books direct to Australian consumers, which effectively bypasses the parallel import restrictions. This competition is expected to result in a 3.0% fall in revenue in 2014-15, to $2.1 billion. Australian competitors selling Australian-published books are becoming increasingly price-competitive in response, particularly with the sale of e-books. "E-books have become very popular over the past five years, particularly since the explosion in popularity of tablets brought about by the release of the Apple iPad,” says Little. E-books are generally sold at cheaper prices than print copies, due to lower production costs, and this ability to minimise printing costs has improved industry profit margins.
Over the next five years, the Book Publishing industry is expected to continue struggling. Competition from foreign online book retailers will remain strong, challenging local publishers. However, local online retailers such as Booktopia, Fishpond and Bookworld may help the industry to achieve stronger sales volumes. The Book Publishing industry exhibits a low level of market share concentration. While no operator dominates the industry due to the variety of books that are published, there are many global companies with medium-size operations in Australia that prevent smaller players from expanding. Companies such as Pearson, Scholastic and McGraw-Hill Education all compete within the educational book segment. While each company has large-scale global operations, the strong competition between the companies in Australia prevents market share concentration from growing. A similar dynamic occurs among trade publishers such as Penguin, Random House, HarperCollins, Hachette and Allen & Unwin. The merger of Penguin and Random House to form Penguin Random House could signal the beginning of industry consolidation that increases market share concentration. However, although these players have merged at a global level, they still operate as separate reporting entities in Australia.
For more information, visit IBISWorld’s Book Publishing industry in Australia report page.
Companies in the industry are mainly engaged in publishing books, including atlases, textbooks, travel guides and e-books. Firms that publish books exclusively on the internet are excluded from the industry.
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IBISWorld industry Report Key Topics
Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
International Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Industry Globalisation
Major Companies
Operating Conditions
Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance
Key Statistics
Industry Data
Annual Change
Key Ratios
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