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Amazon vs Publishers: The Impact of Print-on-Demand on the Industry

The conflict between Amazon and publishers is intensifying as Amazon shifts to printing on demand. This strategy, initiated after acquiring BookSurge in 2005, allows Amazon to reduce physical inventory costs while increasing its buying power. Publishers face decreased supply power, as Amazon can print books without their involvement. To compete, publishers are investing in supply chains and warehousing. Questions arise about the future of tangible books versus e-books and the viability of publishers in an Amazon-dominated market. What strategies might publishers adopt in response?

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Amazon vs Publishers: The Impact of Print-on-Demand on the Industry

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  1. Amazon vs. Publishers Josh Miller Adam O.

  2. The situation Amazon • Amazon wants to decrease inventory on hand by using printing on demand. • In 2005, Amazon acquired on-demand provider, BookSurge and began offering publishers the option of printing-on demand copies when physical volumes of a book sell out. http://www.youtube.com/watch?v=i6H7nfHjHtY

  3. Supplier / buying power conflict • Amazon switches to printing on demand • Buying Power increases: • It allows amazon to purchase less and print more. • Publishers - Supply power decreases. • Less power because amazon has the right’s to print without them.

  4. Publisher Responds • Publishers: • Investing: • Supply chains • Storing books in warehouses • Develop transportation infrastructure to compete. Question: What are some other ways publishers could respond to amazon’s attempt to control the market?

  5. Espresso Book Machine • Manufactured by Xerox – Created in 2003 • Created by On Demand Books • ATM-Like machine to create hard-to-find books. • http://www.youtube.com/watch?v=Q946sfGLxm4

  6. Questions • Who likes to read from tangible books in comparison to e-text/books? • Do you believe the entire population will eventually switch over to E-books? • Do you think it is a smart move for publishers to attempt to compete against amazons distribution capabilities or to simply give in and accept the terms amazon has purposed to them?

  7. Sources • http://www.youtube.com/watch?v=i6H7nfHjHtY • http://i.cnn.net/money/magazines/fsb/fsb_archive/2006/12/01/8395114/book_atm.03.jpg • http://images.fastcompany.com/upload/amazonukbig.jpg • http://www.businessweek.com/printer/articles/22358-amazon-vs-dot-publishers-the-book-battle-continues

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