on Aug 3rd, 2009 in Strategy & Public Policy | 18 comments
It wasn’t too long ago that digital audio players such as iPods and MP3s revolutionized the music industry. Now, almost a decade later, the same sort of revolution is occurring in the publishing industry with the introduction of electronic reading devices such as the Amazon Kindle and Sony Reader. Electronic reading devices allow users to download digital versions of books, newspapers, and magazines. The devices are mobile, and some offer wireless capabilities. Now, newspaper and magazine publishers have another option besides the Postal Service to reach customers. Will electronic reader technology become a more effective method to deliver newspapers and magazines? Will this technology be the answer for the survival of newspaper and magazine publishers or the demise of the mail house and printing industry? A recent study stated the number of business to business publications offering digital editions and total subscriptions have increased over 300 percent from 2006 to 2007. In addition, consumer publications offering digital editions and total subscriptions have increased over 200 percent from 2005 to 2007. However, Periodicals mail volume has steadily declined since 2000, and for the past few years, the Postal Service’s Periodicals class revenue has failed to cover its costs. The electronic reader option offers newspaper and magazine publishers a less expensive way to reach readers. In addition to the thousands of digital books available for download, today electronic reader users can buy monthly subscriptions to The Washington Post, The Wall Street Journal, and other major newspapers all for around $10 a month. These publications can be downloaded automatically to the electronic reader overnight, so at breakfast, it's available to read. Some electronic readers require synching and downloading using a personal computer, while others offer wireless downloads. Electronic reader technology also provides the ability to cut, paste, and email articles, and to clarify words through built-in dictionaries, which makes the electronic reader more compelling as a news delivery mechanism. The technology is still being developed but in the future could possibly include color and touch screen interaction. The technology also saves paper, although it consumes electricity. Right now, the only drawback is the price; electronic readers sell for about $299 to $500. So what do you think?
- Do you think the Postal Service’s Periodicals mail volume will be further reduced by electronic reader technology? What about other types of publications such as catalogs?
- At the current prices, would you purchase one of the electronic readers?
- If you own an electronic reader, do you subscribe to a newspaper or magazine?
- Would you subscribe to a newspaper or magazine if you owned an electronic reader?
- Is there a way the Postal Service can use electronic reader devices to its benefit to increase revenue?
This topic is hosted by the OIG’s Risk Analysis Research Center (RARC).