EXPERTISE SECTORPublishing & Printing

The publishing & printing industry faces technology disruption by digital transformation

In today's digital age, the publishing and printing sector faces the challenge of finding ways to shift to digital. The industry needs to find solutions to cross the gap with the current business model.

The publishing and printing industry has been around ever since commercial printing presses were made available. It involves a process of mass reproducing text and images using a template and pre-design. The industry is fragmented, mature, and cyclical which consists of two subcategories, publishing and printing. Publishing primarily concentrated on products for consumers, such as books, magazines, newspapers, and other periodicals. The printing business focuses on the physical production of media including billboard advertising, promotional activity brochures, fliers, and many more. The largest sector by sales volume is commercial printing, which accounts for more than 30% of all industry sales. Commercial printing is one of the largest sales generators in the industry with advertising and marketing becoming the main drivers of the sector. Newspaper publishing comes in second contributing about 20% of all sales. 

Traditional Print Media or Publishing

Most traditional print media depend heavily on advertising dollars. The commercial ad revenue helps to cover the general costs and expenses of the business. The level of revenue will determine the profitability of a company. The increase in circulation and distribution reach to customers will determine the success of the business. However, the advertisement spending for the publishing segment can also be reduced and affected by the economic downturn.

Printing

The printing segment is less affected or indirectly related to the overall level of advertising spending. The segment aligns the media print orders with the flow of a diverse customer base, resulting in less dependence on the advertising market. However, printing companies have to deal with technological disruption. The digitization of information has become a serious challenge for the printing industry. Even with cutting-edge and efficient production, it will be difficult to compete with consumers' new attitudes towards the newly embraced digitalization. 

Key trends in publishing & printing industry

Web-based Content
Audio-Content & Podcasts
Personalized Content
Subscription Model
Digitalization
Economic Cycle
Cost Issue

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