| dc.description.abstract | In Norway, sales of physical books are declining, while sales of books in digital formats,
although increasing, account for only a marginal share of the total market (Norwegian
Publishers Association, 2019; Ibenholt, 2017). With declining revenues, the Norwegian
publishing companies are facing a situation where competition intensifies and operating
profitably becomes increasingly tougher.
This thesis aims at developing an understanding of the profitability of the Norwegian
publishing industry. We examine the competitive environment and the profitability of the
industry as a whole. Moreover, we analyze potential sources of profitability variations between
players and explore which business models can be profitable in the future, considering the
impact of digitalization.
The thesis uses both qualitative and quantitative data sources. The profitability of the industry
is studied based on financial statements from a sample of 76 Norwegian publishing companies.
Moreover, factors behind profitability variations are explored using insights from in-depth
interviews which were conducted for the purpose of this thesis. Thus, the thesis has both a
descriptive and an explorative purpose.
The analysis shows that the industry is characterized by a high level of competition and strong
profitability variations between players. Moreover, we find that specialized publishers
(especially academic publishers) are significantly more profitable than publishers with wide
selections of genres. Moreover, the interviews indicate that capacity utilization, exploitation
of linkages, complexity of book projects and governmental procurement schemes are among
important cost drivers.
Furthermore, we argue that publishers who focus on direct sales, as well as merged and
specialized publishers have potential to be profitable in the future. However, we highlight the
risk of overlooking the impact of digitalization and focusing on “business as usual” while
disruptive changes can be around the corner. | en_US |
