1. 1
Impacts and Challenges of E-publishing
Ying Su
Piyush Tiwari
Rohan Nakrani
BUAD 501-08
Dr. Dana Loewy

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Table of Contents
Executive Summary............................................................................................................................3
I. Introduction ................................................................................................................................4
II. Background ................................................................................................................................4
III. Influence of E-Publishing.........................................................................................................5
A. Changes in Readers' Behavior ..................................................................................................5
B. Adoption of E-Publishing by Publishers....................................................................................7
1. Amazon EBooks ..................................................................................................................7
2. Apple Textbook Program .....................................................................................................7
3. Google Books......................................................................................................................8
C. Advantages of E-Publishing .....................................................................................................8
IV. Challenges in E-Publishing ......................................................................................................9
A. Copyright Issues......................................................................................................................9
B. Piracy Issues .........................................................................................................................11
C. Other Issues ..........................................................................................................................12
V. Recommendations .....................................................................................................................12
References .......................................................................................................................................14

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Executive Summary
E-publishing is an inevitable and sweeping social and economic trend in our society; it has great
influence to book readers and to publishers. It has various advantages such as more efficient to
publish books, lower costs for publishers, better accessibility for readers, and new business
models for publishers.
Besides of its benefits, e-publishing also faces challenges from different aspects. For global e-
book growth, it has met its growth bottleneck mostly because of translation copyrights and target
markets’ regulations. To better protect their revenue and copyrights, e-publishers also have to
cope with piracy issues. Thirdly, technology development also brings problems to e-publishers
and e-book readers. One thing is publishers have to decide in which digital form should they
publisher their e-books. Should they stick to only one form or digital version or should they
publish various versions if they cooperate with different e-book carriers? Another problem is the
accessibility of e-reading devices. If readers upgrade their e-reader or replaced their old one with
another brand, are they guaranteed for retrieving back all the e-books they purchased?
For translation copyright issues, some global publishing giants have had some good attempts.
The vertical merger with local publishers could work better to acquire local markets. The local
publisher will deal with the local regulations on behalf of the joint-adventure and from global
publishers’ perspective, to release the e-publishing rights to its affiliates would not do harm to its
global e-book publishing strategy. This attempt has been proved operating successfully in China
and Arab countries. Therefore, it is worthy considering for publishers who have global
publishing/e-publishing strategies.
For piracy issues, technology can help to prevent this problem. Publishers can link the registry of
e-book with the IP address of the device of the legal buyer or user. Publishers can chase the IP
address from where the pirated copy is uploaded and then report this copyright violation to the
local police. Publishers can also use file encryption system to prevent their e-books to be pirated.
For technology challenges, e-publishers can bundle their contents with e-readers makers. E-
reader makers can licensing books from e-publishers and promote their e-readers by a free e-
library. For duplicate digital book forms, e-publishers can work together and form out a common
DRM standard to solve the problem.

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Impacts and Challenges of E-publishing
I. Introduction
Electronic publishing (also called e-publishing) is a publishing revolution associated with
technology innovation that impacts all stakeholders: publishers, authors, author’s agents, readers
and e-reading device makers. E-publishing is inevitable because it is part of the development of
information technology. At the same time, it has to be investigated as part of the economic or
business changes besides technology development. To better understand the developing of
eBooks, people should not only pay attention to eBooks consequences, but also should evaluate
the economic and social environment in which eBooks developed. EBooks should be considered
as part of the technology and economic trends of our era (Hillesund 2001).
Changes in technology and the development of eBooks have brought and continue to bring many
advantages to the E-publishing industries. With more and more people having access to the
internet, eBooks have become the easy and viable way for authors to make their books available
worldwide. It has also created variety of opportunities publishers. E-publishing reduces cost, as
e-publishers can publish unlimited copies of eBooks contrary to the traditional publishing.
EBooks are preferred by majority of people because they can be accessed and distributed easily
and conveniently worldwide. Any type of eBooks can be made available to target audience with
the help of interactive nature of internet. The level of convenience and popularity is further
increased when majority sellers like Google and Amazon actually sells eBooks. Contrary to
traditional publishing where printing hard copies of books require lot of paper and ink, E-
publishing is environmental friendly and eBooks are more interactive.
Although e-publishing developed to an inevitable trend in today’s markets, the major e-
publishers have to consider their strategies to cope with the bottleneck of e-publishing’s rapid
growth. E-publishers and e-reading devices makers have to overcome many hurdles in order to
successfully apply their e-publishing strategy, They have to solve more technical, legal and
copyright problems, have to negotiate, collaborate and yet combat with the targeting markets’
local publishers and its government’ regulations.
II. Background
E-publishing has developed and for three phases. Currently, it is at its third phases and people
can expecting the fourth phase is coming around the corner. In the first phase, e-publishing
mainly converted paper books to bytes as well as writing new titles in digital form (Shiratuddin
2003). That is, in the 1990s, e-publishing stayed in a print-based information system, when the
e-publishing is dominated the printed pages. The second phase started from the mid 1990s and
ended in the early 2000s. Researchers call it “the period of confusion.” At this period, new
dimension to the information industry involved in e-publishing and e-publishers also had to cope
with legal, business and technical challenges. The third phase started from 2000s, by then, digital
version of information out selling and outperforming their analogue equivalents (Brown 2008).

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Different from today’s eBook markets, e-publishing first started with textbook rather than
fictions though fictions are the real revenue giants in today’s eBook market. As early as in 1989,
the global leading textbook publisher McGraw-Hill launched a program called Primis Custom
Publishing, which allowed readers to produce customized college textbooks. This is regarded as
the origin of the concept print-on-demand. This program is still available on McGraw-Hill’s
website. The idea of print-on-demand not only saved the publisher costs on printing, but it also
offered readers an opportunity to tailor a book on their demand. Therefore, readers are able to
interact with publishers directly and become part of the publishing chain.
In the earlier stages of e-publishing’s development, the small start-up companies played a
dominating role (Hillesund 2001). Later many multinational companies, including technology
companies and major publishers, started to notice opportunities in e-publishing and launched
their own eBook publishing projects. They cooperated with book distributors such as Amazon
and Barnes & Noble for eBook distribution, which allowed them to expand eBook business in
the US. At the same time, these companies targeted on global markets for potential business
opportunities and launched different programs in different markets other than the US. Since most
of the major publishers such as Harper Collins are integral components of multinational media
conglomerates, their strategy of moving into e-publishing usually followed their corporation
business strategy of strengthening their leading roles of global digital content deliverers.
Compared with physical publications, eBooks are ideal products for distribution and sales
globally. International major publishers see the e-publishing technology as a way to increase
their revenue and a way to assure their market positions globally.
III. Influence of E-Publishing
As an influential innovation in human history, e-publishing has impacted different aspects in
society. Traditional publishing industry and reader’s reading behavior has been changed. It also
brought new business models to both publishers and related information technology companies.
A. Changes in Readers' Behavior
A survey done by Digital Book World in 2011 among major publishing companies’ executive’s
shows that 82% of them are “optimistic” about the digital transition. More people will read
books than did before, 60% in 2011 and readers will read a greater number of books than before.
Another survey carried on by Pew Research Center in 2011 shows that eBook readers are
actually read more. E-publications readers read 60% more than those who prefer traditional
publications (Milanova 2012). Pew Research also shows that among American eBook readers 16
years old or above, when they want to read a particular eBook, 75% of them would first look at it
at an online bookstore or website. The same survey also shows 73% people think eBooks are
better for traveling or commuting.
Figure #1 shows the evaluation of people who read both printed books and eBooks in last 12
months and have given their view on the type of books user prefer to read online.

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Figure #1
Data Source: Pew Research Center (2011)
From the chart it is clear that most of the people prefer reading particular types of book online.
The development of e-publishing is due to the rapid changes that took place in recent years.
Figure #2 shows the percentage of eBook readers vs. non eBook readers for different activities.
Figure #2
Data Source:PewResearchCenter (2011)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Reading with
child
Sharing books Reading books
in bed
Title options Reading while
traveling
Access books
quickly
Preferencebased on Purpose
E-Books Printed Books
0%
10%
20%
30%
40%
50%
60%
70%
Current Events Work or School Pleasure Personal Interest
Reading Preferences
E-Books Readers Print Books Readers

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The rapid evolution of new media technologies has changed customers’ way to access
information. For example, most of the users like to read newspaper and watch television on
tablets and computers through internet. The internet has also become an important source of
information on services and products. Major companies have been establishing easy and cheap
way to provide multi-media solutions for the mobile market. According to the survey carried on
by Pew Research Center in 2011(Figure #2), eBooks readers read more than the other
readers. They read 60% more that the people which prefer traditional books, newspapers,
magazines, 42 % prefers their own computers, 41 % prefers e-readers, 23% - 29% use smart
phones or tablets for reading.
B. Adoption of E-Publishing by Publishers
The changes in technology and the development of E-Publishing enabled many companies like
Amazon, Apple, Google, Sony, and Barnes & Noble to start their own E-Publishing sector.
1. Amazon EBooks
Amazon launched its publishing program in 2009. This program was meant to encourage authors
or publishers to use Amazon resources to publish their eBooks. After the launch of the program
the company faced hard time to convince authors or publishers to use the company’s platform to
launch their books. In order to overcome this problem and make E-Publishing a profitable
business, the company came up with strategy under the name Kindle Direct Publishing (KDP).
Under KDP, the author or the publisher can make changes to its book at any time. They can
make the published eBooks reaches world-widely. To publish an eBooks only takes about 5
minutes and the eBook can be on-shelf on Amazon.com within 24 hours. Authors can earn up to
70% loyalty depending on the type and popularity of the book. Moreover, they can publish their
books in many different languages and make their books available on Kindle devices or on free
Kindle apps (amazon.com).
KDP program had a huge impact on the sales of eBooks through amazon platform and as a result
high revenues were generated. The number of kindle eBooks in U.S. store has increased from
100,000 in 2007 AD to 950,000 in 2011 AD (businessinsider.com). Amazon‘s e-publishing
revenue accounted for 10% of the total amazon’s revenue. Approximately $6 billion revenue
generated from amazon’s e-publishing company.
2. Apple Textbook Program
Apple launched its Apple Textbook Program on January’2011.The new version of iBooks was
launched that allowed the users to read eBooks on any apple devices. Soon after Apple launched
its textbook program it faced major competition from the majority market share holder Amazon.
In order to get the competitive advantage Apple came up with the new business model under the
name iBookstore. iBookstore categorized the eBooks based on the user preferences. The user can
choose from the wide variety eBooks under a single platform using iBookstore. Any textbook on
iBookstore costs $14.99 or less which is cheaper than printed textbooks, some of which costs
around $100 (businessinsider.com). Apple also created iBooks Author that allows any user to
write and publish all sorts of digital books, not just the textbooks. The user also receives free
updates of the purchased books when they are updated by the author or the publisher.
After the launch of iBooks and iBooks Author, the sales of eBooks on iBooks platform has
increased at drastic rate. Nearly 10000 eBooks are sold through iBooks every day. Apple gained

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the market share of 19% in just two years after the launch of iBooks. Apple generates revenue by
taking 30% commission on the sale of each eBook published by the author or publisher on iBook
platform. Apple generated 8% of its total revenue by selling eBooks through iBookstore, which
accounts for $1.8 billion per annum (forbes.com).
3. Google Books
Google Books is a service from Google Incorporation. Google Books is the collection of all
kinds of books available for purchase and free. It allows the user to preview the books before
making a purchase. The user can choose from wide range of books across different genre. All the
books are categorized based on its type. Google E-Publishing is a part of the Google Books
program that allows authors of publishers to e-publish their books.
Soon after Google launched Google Books, there were two major problems faced by the
company, first is a library metadata, which aggregates information about all the books available
across all the libraries in the world and second is a large database, a storehouse of information
that we could search the way we search on Google. Google rectified its error by implementing
subject-matter classification in its metadata program which classified eBooks on the basis of the
subject-matter or the type of content of the eBook. Google also added the unique feature of pay-
per-view where users have to pay only for the particular portion of the eBook they want to
purchase.
C. Advantages of E-Publishing
Compared with print publishing, the first advantage of e-publishing is it is more efficient and the
manufacturing costs are lower. A fundamental fact of the publishing industry is that it consists of
a substantial fixed cost with a modest variable cost. Usually, print publishing have comparative
higher cost on editing, refining, printing and packaging published book while distributing the
publication is a modest share. Generally, a title with a larger print run would have higher fixed
costs. If a larger sale follows, the fixed costs are spread. Therefore, best-selling titles’ per copy
cost is lower because each copy carries a smaller share of the fixed cost. In thinking about an
eBook, the manufacturing costs are significantly lower than the printed books. Therefore, in the
era of e-publishing, the lower costs could have two results: either customer could enjoy a lower
book price or the publisher could expect a higher net income.
The best part of a digital publication is that it is accessible to all users regardless of geographic
location as long as they have internet access. Compared with ordering an English publication
from Amazon.com and having it shipped to China, to download the same book to a Kindle is
cheaper and convenient. Moreover, eBooks are easy to carry so it gives the possibility of read
whenever readers want and read as much as readers can. In addition, In libraries having eBooks
available, readers have better chance to lend the same book compared with libraries where only
offer physical books.
E-publishing could offer different business opportunity for different type of publishers. Global
publishing giants, private publishers, and the traditional book distributors, for example Amazon

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has launched its self-publishing program named Kindle Direct Publishing, which allows people
to publish their writings on Kindle platform and earn royalty.
At the same time, the author-publisher relationship is changing as well. In traditional publishing,
authors, except the few well-sought ones, usually are not in a favorable position to negotiate with
publishers. The process to publish a title is being long. However, in e-publishing, since the
manufacturing costs are lower, the technology applied in editing and layout design are easier to
access, and the distribution process is simpler, the authors would be in better position to
negotiate with publishers. Moreover, authors could have an option to self-publish their books on
certain websites.
E-publishing could also bring new forms of revenue to publishers and authors. In traditional
publishing, sale a book is the only way for a publisher or an author to earn revenue or royalty.
However, e-publishing could cultivate different types of revenues for publishers and authors.
Basically, there are different ways to read a digital book: purchasing or renting and downloading
to e-reading device, reading online as members or pay in a pay-per-look basis. Distributors can
also generate campus license or library license to public libraries and university/college libraries.
Therefore, different business models such as subscriptions, print-on-demand, online distribution,
and pay-per-view can all bring revenues to players in this industry.
Publishers’ business models are based on sales channel, consumer demand, manufacturing
practice and business practice. These models are evolving rapidly. There are mainly two factors
responsible; the primary factor is the digital revolution in electronic devices such as smart
phones, e-tablets, and tablet computers. Any books can be made available to these electronic
devices with the help of internet. The secondary factor is cloud-based computing services. These
services provide servers that can store large amount of data that can be accessed through
electronic devices via internet. Customer only needs to have appropriate device and access to the
internet to purchase eBooks.
Business Models like Open access (publishing), Online advertising, Online distribution, Pay-Per-
View, Print on demand, Subscriptions (eg. e-novels), Self-publishing (eg. Blogs) has bridged the
gap between authors and publishers and also has created new ways and opportunities for the
authors to publish their work quickly and easily.
IV.Challenges in E-Publishing
Key issues that have been hampering the e-publishing growth are the translation licensing
copyrights conflicts, piracy, the affordability of e-reading devices and other technology related
challenges.
A. Copyright Issues
One challenge the eBook publishers have encountered is licensing translation copyrights in
publishing eBooks in another language.
When eBooks first debuted, acquiring an e-publishing copyright used to be a problem which
prevented the publishers or e-content providers to convert printed books to eBooks. Online books

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consisted mostly of works whose copyrights have expired (Moschella 1999). Project Gutenberg
is a non-profit, volunteering project that digitizes and archive cultural works. The project has
collected thousands of out-of-copyright titles and offered them to public for free. After the first
generation of e-publishers successfully published eBooks and readers showed interest in those e-
publications, well-known writers such as Stephen King showed their interest in marketing their
books in digital formats (Shiratuddin 2003). E-publishing has pushed the copyright laws to
consider this new trend. Today, in practice, e-publishing copyrights are usually acquired by the
primary publishers when acquiring the rights of the title from the author or author’s agent. This
allows the publisher to publish a digital version of a title when publishes the printed book.
However, translation rights works in a different way that made the situation more complicated.
Usually, if a local publisher wants to publish a book in its local language, she needs to acquire
the translation rights from the original publisher because most of the time, the original publisher
controls the translation rights when they acquired the copyrights of publishing the book in its
original language. (Sometimes, the translation rights are controlled by authors’ agency.) And one
thing we need to note is that the translation rights of publishing physical books and eBooks are
released separately, which means local e-publishing rights would not be granted simultaneously
when the translation rights to publish the physical book would release.
To assure the growth of e-publishing internationally, rarely the original publisher likes to release
translation rights for eBooks to the local publishers. Rather, what the original publisher plans to
do is to hold the translation rights of the e-version and to publish it by itself. At the same time, to
avoid the e-versions conflicts with their printed books in the market, the local publishers want to
acquire the translation rights for the e-version when they negotiate that of the physical book.
Since the local publisher controls the translation for the title and are reluctant to share it with the
original publishers, to publish the e-version of the same title becomes more difficult for the
original publisher.
Also, to protect the local publishers, most of the governments have regulations towards e-
publishing which also prevented the global e-publishers to enter into the market. It can be
anticipated that the translation copyrights would be the next battlefield for all e-publishers who
have global e-publishing strategy and there would be a lot of on-going negotiations regarding on
this issue in global e-publishing markets, especially in the emerging markets such as China and
India.
When publishing a eBook in a language other than Indo-European language, for example
Chinese and Arabic, the publishers have to consider how to fit the language and its fonts to work
on e-pub formats and to be applicable on different systems in different platforms. This issue
hampered the big international companies to launch their eBooks because solving this problem
can be overwhelming if considering the technical support team to work on each language to find
a very specific solution just for that language. Also, big publishers felt reluctant to invest on this
project as each market by itself is not big enough for such an investment (Rashad 2013).

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B. Piracy Issues
EBook piracy has always been one of the major issues for both publishers and authors.
Publishers are struggling hard to keep the published eBooks away from being pirated. Traditional
books can be copied with machines. However, the cost and time of doing it limits the extent of
this type of piracy. With eBooks piracy is as easy as copying and pasting one document from
another and sharing it online. Most of the hackers tampers with the file extension or the file
format of the eBooks, change it in a suitable manner and upload the entire eBooks online for free.
There are many software available online which allows the access to the link of the pirated
eBooks. Any person using that software can use the links to download the content of the books
for free.
Figure #3 shows the different categories of eBook complaints that lead to piracy. In the figure
non-downloaders refers to legal downloader.
Figure #3
Piracy directly affects the revenue generated by selling copies of the book online. Nearly 10,000
online copies of every e-published book are downloaded for free (Association of American
Publishers, 2010). Piracy also affects the sales of the legal copies of eBooks. According to
Michael D. Smith, professor at Carnegie Mellon University, because of piracy, there is 52%
decrease in eBooks sales and 22% decrease in overall sales. According to the survey carried out
by Dear Author Reader Survey, of the 2724 respondents, 681 have accepted that they have
downloaded eBooks illegally.

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C. Other Issues
Along with major issues there are other issues associated with e-publishing and eBooks which
impacts the publishing business.
Publishers has been facing problem to decide which format they should choose to publish their
eBook. Each e-reader device maker has a unique eBook format. If publishers publish their book
in one format then ebook will open only in e-readers which support the format but not in other.
This also limits eBook market up to the users who owns e-readers which support the format. For
example the eBook which opens in Kindle will not open in Nook or Kobo and if a user purchase
a book for Kindle and later buy a Nook he cannot transfer his book form Kindle to Nook.
Publisher may support multiple format of an eBook but it involves extra cost. Some time
copyrights and other digital right management (DRM) issues does not allow publisher to do so
(Bradford 2013).
Another issue is users do not own the eBook forever even they have purchased it. They only
license it. This problem may not affect the e-publishers directly but it discourages users to buy
eBooks and can affect the e-publishing business. When we purchase an eBook we only buy right
to access it but the words "buy" and "Purchase" on the online purchasing sites mislead us and
give an impression that we own the eBook. The Publisher or e-reader company can remove the
title any time they want. It is even harder for international travelers to access their eBooks when
they are traveling to a country where publisher does not have copyrights for those eBooks (Stone
2009).
E-reader prices are also a factor that affect eBook sell. It is a costly investment for the consumer
especially for students to purchase an e-reader or other e-reading devices. Even a reader wants to
read few eBooks he still requires to purchase an e-reader to read those books. Although e-readers
prices are declining, e-readers still remains expensive for many potential users.
V. Recommendations
To explore the global market for e-publishing, the international publishers have to consider the
regulations of their target markets and negotiate with the local publishers from a win-win
perspective. Hachette, a France based publishing giant, has decided to try a different strategy in
the emerging markets, which has set up a good model and the other publishers could learn from.
Hachette formed joint-adventures in Arab and China. Hachette’s joint-adventure in China is
controlled by Phoenix Publishing Group, the largest publisher in China. The joint-adventure
agrees to follow Hachette’s global publishing plans and share revenue with Hachette. In return,
Phoenix Publishing Group copes with all publishing regulation issues and shares its distribution
channel and other resources with Hachette. Based on this type of collaboration, Hachette releases
the simplified Chinese e-publishing rights to its joint-adventure. In this way, Hachette actually
entered the eBook market in China.

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In order to tackle piracy of eBooks one should first find the source of the devices from where the
pirate books have been uploaded. This can be done by tracking the IP (Internet Protocol) address
of the device from where the pirated content has been uploaded and using that IP address the
website on which pirated material was uploaded can be taken down. Technology can also play
the major role in limiting the piracy. Publishers can design the online copy of the book in a way
that changing the source of the eBook will result in the deletion of the file. Publishers can also
link the registry of eBook with the IP address of the device of the legal buyer or the user. As a
result copying the eBook from one device to another would not be possible and hence pirating
the copy and sharing it online could be prevented.
To avoid eBook intra device portability issues the eBook polishers should get rid of the DRM
restriction. Common DRM would solve the problem. Like music industry, where audio and
video files have some standard formats and these files can be played on multiple devices, the e-
readers' makers could agree on a common format. The big companied like Amazon may not want
to give up its dominance but definitely a common eBooks file format will benefit even them at
the end.
In order to address issue related to licensing an eBook vs. owning it forever. E-publisher should
allow users to read their book anytime and anywhere they want. To handle copyright issue e-
reader maker can adopt the same solutions that have recommended to counter piracy issues. In
addition to that publishers can use technology to assign each device unique identification number
and associate it with a user account. All eBooks downloaded by user should also associate with
this unique number. This would make sure that designated user can only access the eBooks.
When user want to transfer her books to another device then she can contact to publisher to
register new device to her account and books and then publisher can add new device in here
account after removing the existing one.
The e-reader prices issue may require addressing for each readers group differently. To promote
sales in students companies should offer e-readers to the students at low prices. Companies can
introduce schemes in an e-reader could offer at low price or free if student buy all eBooks for his
program from them. Companies can also promote the e-readers by providing then free in
libraries. For other readers companies could bring schemes to pay in installments or rebate
schemes in a portion of e-reader’s price could be refund if users exceed a specific eBooks
purchasing limit.

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