ENTRIES TAGGED "publishing mergers"

Publishing News: Publishing’s worst-case fate, Amazon as US Steel

Possible fates of the publishing industry, Google appeals court ruling, an open source book scanner, and your textbook may be looking at you.

Here are a few stories from the publishing space that caught my attention this week.

Applying an historical perspective to the fate of the publishing industry

NPR’s Adam Davidson looked this week at the Penguin-Random House merger from an industrial historical perspective. In a piece at the New York Times, Davidson looked at the effect of mergers in other industries, such as U.S. Steel — instead of competing by innovating new and cheaper ways to make steel, owner J. P. Morgan opted to merge three companies and buy most of the iron ore range from which most steel companies purchased materials. The consequences were dire all around. Davidson writes:

“As a result, the company hardly worried about competition; it had little need to innovate or compete on price, which made everything from cars to soda cans more expensive. Worse, it left a massive industry unprepared for the growth of innovative Asian companies during the 1970s and 1980s. By then, U.S. Steel all but collapsed, and a chunk of the U.S. economy went down with it.”

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