Curiouser and Curiouser: Novelty-centred Business Models and Value Creation in Established Publishing Firms

The global publishing industry is in a period of turmoil. Established firms are accused of sticking to broken—and doomed—business models, while start-ups and new entrants are seen as the prime beneficiaries of the rapid pace of technological change. To survive, existing book publishers must find new sources of value creation, devoting resources to the development of new business models as much as the content and product innovations currently gaining attention. This study synthesizes research across the publishing and management fields, presenting a generic business model for the traditional book publishing industry, which is then used to identify and categorize nine novelty-centred business model innovations within established book publishing firms. An analysis of the methods used to create value—for publishers, content creators, and consumers—derives four distinct categories of novel business model innovation: developing new distribution mechanisms and sales transactions, breaking down barriers between publishers and consumers, capturing new revenue streams, and transforming into a service business. It is demonstrated that the innovative business models of established firms are in line with those that have been seen to deliver increased performance for start-up businesses. However, the impact on performance for these more long-running book publishers is, as yet, uncertain.