6 Top Challenges in the Publishing Industry and How to Solve Them

Publishers have come a long way since the ancient days of stone tablets, papyrus scrolls and, in the mid-1440s, Johannes Gutenberg’s game-changing invention of the printing press. Centuries later, the industry continues to evolve, courtesy of advanced technologies that have introduced a modern set of challenges as publishers strive to adapt. This article explores six main challenges and how publishers can address them.

What Are Publishing Industry Challenges?

The worldwide publishing market continues to thrive. For books alone, physical and digital revenue is expected to reach $85.9 billion in 2027, up 8% over $79.6 billion in 2022. But for most of the 21st century, publishers have had to rethink the way they deliver their products amid consumers’ increasing preferences to consume content digitally using computers, mobile devices and e-readers. For all of the advantages associated with digital publishing — cost-effectiveness, new revenue streams, speed to market and global reach — digital publishers still must contend with many of the challenges facing traditional publishers. These include attracting new readers, generating revenue and the need for greater diversity at a time when competition is fiercer than ever.

6 Main Publishing Industry Challenge Types and Their Solutions

The publishing industry’s main challenges can be divided into six categories: technological disruptions, market dynamics, economic issues, legal and ethical concerns, sustainability, and diversity and representation. But to quote the late entertainer and businessman Jimmy Dean, “I can’t change the direction of the wind, but I can adjust my sails to always reach my destination.” Whether publishers can adapt their business models and methods of content delivery and do so better than their competitors are the main variables to their long-term success.

1. Technological Disruptions

While the percentage of people who prefer to read physical books continues to dwarf any other format — 65% versus 21% who prefer e-readers and 14% who prefer audiobooks, according to a survey of U.S. and European book readers — technology is no doubt disrupting how content is created, distributed and consumed. Here are four key disruptions:

• The rise of e-books and digital platforms: The global market for e-books is projected to surpass $32 billion by 2032, rising 61% over $20 billion in 2022, according to Future Market Insights. In addition, digital publishing tools, which facilitate the production of online content and have opened the doors to self-publishing, have allowed authors to bypass the need for publishers entirely. To meet these challenges, publishers may want to consider offering their content in multiple formats.

• Audiobooks and podcasts: New media formats, such as audiobooks and podcasts, have also become more popular. In 2006, just 22% of the U.S. adult population was even aware of podcasting, according to Statista. Fast-forward to 2022: 79% said they were aware. The estimated number of listeners is also expected to top 100 million in 2024, up from 82 million in 2021. As with e-books, publishers can tap into this growing market by adapting their content to include audio formats.

• Artificial intelligence and machine learning: Publishers are opening their eyes to the “magic” of artificial intelligence (AI) and machine-learning (ML) technologies to streamline their editorial and production processes and even generate content. Indeed, a global survey by the World Association of News Publishers found that 49% of newsroom executives are actively working with AI tools. Other use cases include the analysis of customer data and market trends, the delivery of personalized recommendations and the ability to spot plagiarized content. While these are still early days, publishers would be wise to start understanding and exploring how they could put AI and ML to use.

• Discoverability: Standing out to the right audiences amid a fragmented, jam-packed market of online content is as challenging as ever for publishers. Search engine optimization (SEO) is the go-to tactic for many, but frequent updates to search engine algorithms can make it tough to keep up. Website and social media advertising, plus traditional marketing at bookstores and retail stores, are other methods of discoverability. The elephant in the room? Generative AI tools, such as ChatGPT, and how they may change the way readers discover content. Publishers will need to keep tabs on customer behavior and discoverability trends to make sure they’re keeping their marketing resources aligned with them as they evolve.

2. Market Dynamics

A multitude of publishing-specific market dynamics are challenging publishers’ ability to compete against both their traditional and digital peers. Their ability to maneuver among the following realities, and adapt to them, will be critical.

• Changing consumer preferences: Publishers must meet their audiences’ desires for different forms of content and channels for purchasing it. Generational differences compound this challenge. For example, 77% of Gen Z adults and 67% of Millennials agreed that they rely on social media for their news, while only 28% of Baby Boomers said the same, according to a 2023 survey by S&P Global Market Intelligence. The challenge for publishers is to continually study and segment their customers’ behaviors, including who influences their decisions to purchase, stream or borrow; what genres they prefer to read; and their reading habits, all of which typically vary by age, gender, income and other demographics. Vital to the flexibility required to meet such diverse customer preferences are highly customizable technology solutions, such as cloud-based enterprise resource planning (ERP) systems. Some ERP systems can manage multiple customer types, from advertisers to subscribers, and apply different revenue models for each.

• Impact of self-publishing: Self-publishing empowers authors and other content creators to circumvent traditional publishers, gaining greater creative control and higher royalties. Indeed, more than 2.3 million books (with ISBN numbers) were self-published in 2021. That said, “published” is not the same as sold, with less than 10% of self-published books selling more than 100 copies and the average author earning less than $1,000 per year. Nevertheless, smart mainstream publishers might want to position themselves as providers of value-added self-publishing services, such as ghostwriting, editing, design and marketing.

• Subscription models: Readers have long subscribed to newspapers and magazines delivered to their homes, paying by the week, month or year. Publishers now do the same with digital content, placing much of it behind paywalls to be accessed only with a subscription. In the book world, platforms like Kindle Unlimited and Audible are allowing readers to read multiple books for a fixed monthly fee. What’s more, there are many different potential approaches to charging for content. For example, publishers must choose from at least five different subscription pricing models, alone. The upside for publishers is a recurring revenue stream, but the trade-off can be a decrease in revenues. To navigate this, publishers can consider flexible pricing strategies that attract readers but with sustainable revenue generation.

• Inconsistent revenues: The rise of digital content and self-publishing has disrupted traditional revenue models even as the lower pricing and margins of digital formats is creating revenue pressures for publishers. Online subscription models also complicate the landscape and often result in lower earnings. Meanwhile, traditional publishers continue to contend with rising production costs for paper, printing and shipping. To address these challenges, publishers should closely track key performance indicators, such as gross profit margin and revenue growth, while carefully monitoring associated expenses, such as author compensation and marketing. Flexibility and diversification of revenue streams and business models are key.

• Retaining readers: As with other industries, attracting and retaining customers is an ongoing challenge for publishers. Among the reasons: a proliferation — some might say overload — of online content, increased competition and changing consumer preferences, all of which make it difficult to stand out. Other than the needle-in-a-haystack chance of a title landing on Oprah Winfrey’s book club list, ways to retain readers include having a deep understanding of target markets, providing quality content and eye-catching cover designs, offering personalized recommendations, engaging with audiences and creating innovative marketing campaigns. Publishers can also proactively manage their subscriber base to see who is coming up for renewal and, for example, send an email reminder with perhaps a discount to renew.

3. Economic Challenges

While economists generally agree that a full-fledged recession in 2024 is unlikely, slower economic growth remains in the forecast. Reduced U.S. consumer spending is also on the horizon, at least for the first half of 2024, according to The Conference Board. In such a challenging economic environment, publishers must be vigilant about managing their revenue and cash flow. Additional economy-fueled challenges include:

• Pricing pressures: More choices means more competition. Digital and self-published content typically cost less for consumers to buy than their physical counterparts. Subscription pricing is another pressure, as are apps, such as Libby, that function as a digital library and stream books for free. Traditional publishers also face higher production and distribution costs. Some ways traditional publishers can meet these challenges include making their operational processes more efficient, expanding their business model to include digital publishing or offering bundled-pricing discounts.

• Declining print sales and revenue: Revenue from print newspapers, magazines and books very much dominate the market, according to PwC. However, digital growth is outpacing traditional growth and, in the case of consumer magazines, the global firm predicts digital advertising revenue will, for the first time, exceed print ad revenue in 2025. Traditional publishers will want to focus on ways to save costs internally, diversify their offerings, target new markets, rethink pricing strategies and/or invest in marketing and customer engagement.

• The role of big retailers and distributors: Big retailers and distributors put books, magazines and newspapers in front of millions of readers at brick-and-mortar stores and online. Wholesalers, which buy books from publishers and sell them to retailers, are often involved as well. The challenge, of course, is that every player in the supply chain earns a piece of the revenue. Publishers must factor that into their pricing strategies to maintain sustainable profit margins, as well as pay close attention to the terms and conditions of their retail deals to ensure their titles will receive proper attention (even if they’re not bestsellers). Another solution is they can sell directly to consumers on their own websites or partner with independent bookstores.

• Royalty management: Authors typically receive compensation based on a percentage of revenue earned from each book sold. These royalties can be based on full list prices or on net sales, which reflect any discounts publishers gave retailers to carry the titles. Adding to the complexity, different formats — such as hardcover, paperback, ebook and audiobook — that are sold through different channels — physical bookstores, online retailers or direct from the publisher’s website — and are perhaps sold internationally may have different royalties. As a result, publishers need to ensure that their royalty agreements are clearly defined and that they have the systems and processes in place to accurately track sales, calculate royalties and pay writers.

4. Legal and Ethical Challenges

Plagiarism is nothing new — records of it date back to the first century AD and involved a Roman poet — but the financial stakes can be high for plagiarists and publishers alike. More recent use of generative AI applications can increase the risk, damaging trust and brand reputation and leading to legal consequences. Copied material can also hurt SEO. Here are additional legal and ethical challenges that are on publishers’ plates.

• Intellectual property and copyright concerns: Anyone who knows how to cut, paste, print or take a screenshot understands how easy it is to copy content from the internet. Yet publishers must protect their authors’ work from piracy and unauthorized distribution. One way is through use of a digital rights management (DRM) system, which controls how copyrighted content can be used and shared. In addition, publishers should understand and monitor copyright laws in the countries where they do business.

• Censorship and freedom of expression: Publishers must prevent the spread of harmful or illegal content, but they must also allow for freedom of expression. How much control they can exert will depend on the country and government where they operate. To avoid potential controversy, legal ramifications and reputational damage, publishers must stay abreast of censorship laws, establish detailed content policies, review their processes for alignment with those laws and policies, and communicate clearly about it all with authors and staff.

• Privacy and data protection: Publishers collect and store a vast amount of customer data, which helps them with audience segmentation, content personalization and monetization strategies, among other benefits. However, all it takes is one data breach for records to be exposed and for a publisher to find itself in legal hot water. Ways to protect the privacy and data of customers, advertisers and suppliers include implementing robust data security measures, such as encryption, access controls and regular audits; maintaining transparent privacy policies; and ensuring compliance with data protection regulations, such as the General Data Protection Regulation (GDPR) and California Consumer Privacy Act (CCPA).

5. Sustainability Challenges

Numerous studies, including one from the National Retail Federation/IBM, show that an increasing number of consumers care about sustainability and are willing to pay a premium for sustainable products. They’re also more willing to try them in the first place, according to Kantar, and, per McKinsey, products that claimed to be sustainable grew faster than those that didn’t. So, it’s important for publishers, both print and digital, to confront sustainability challenges head-on.

• Environmental impact of print publishing: Billions of trees are cut down worldwide every year to produce paper used for printing books, newspapers and magazines, among many other paper-based products. The process begins with tree harvesting, which contributes to deforestation and biodiversity loss. During the manufacturing process, large amounts of water, energy and, often, harmful chemicals are used. In addition, tactual distribution of printed content — by road, air or sea — adds to greenhouse gas emissions. And, if not recycled, millions of tons of paper wind up in landfills. Steps print publishers can take to reduce their environmental impact include using recycled paper, optimizing printing processes to cut down on waste and energy consumption, and working with sustainable suppliers.

• Sustainability in digital publishing: Despite the absence of paper, digital publishers must contend with their own set of environmental challenges. Digital reading devices, such as e-readers and tablets, consume energy and, over time, contribute to electronic waste. In addition, the servers that store and deliver digital content use significant amounts of energy, often powered by non-renewable resources. To enhance sustainability in digital publishing, strategies include improving energy efficiency in data centers, encouraging the recycling and responsible disposal of electronic devices, and transitioning to renewable energy sources to power servers.

6. Diversity and Representation

Diversity and representation continue to be prioritized industrywide. Two key areas where these aspects come into play in publishing are the diversity of published content and the diversity of the workforce.

• Diversity in published content: White authors continue to dominate the publishing world, followed far behind by Hispanic, Black and Asian authors, respectively. There’s a recognized need to represent different voices and experiences in published content, particularly among Generation Z. Indeed, 79% of Gen Z survey respondents said diversity and representation is important to them when choosing books (and other forms of entertainment), and 60% said they actively seek out books that focus on marginalized groups. In addition, midway through 2022, sales of LGBTQ+ fiction was up 39% compared to the same time in 2021 — a year in which LGBTQ+ book sales doubled to 5 million units, per the NPD Group. The message to publishers is that they must actively pursue author diversity, especially if they cater to younger generations.

• Diversity in the publishing workforce: Similar to authors, more than 70% of publishing employees are white. Publishers are missing the documented benefits of a diverse workforce, which include improved problem-solving and decision-making, increased creativity, higher levels of productivity and employee retention, and better financial performance. Diversity also ensures that a variety of voices and experiences are considered when deciding what content to publish. To build a diverse workforce, publishers should analyze their current workforces (including leadership), examine their hiring processes, offer diversity and unconscious/implicit bias training as part of a diversity program or policy, and communicate about their diversity goals with staff.

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From technological disruptions and changing market dynamics to economic issues, legal and ethical concerns, sustainability and diversity and representation, the publishing industry is dealing with a multitude of challenges that mirror the rapid pace of change in today’s world. Publishers’ ability to navigate these challenges will not only determine their survival, but also their ability to redefine their value in an increasingly digital, diverse and environmentally conscious world.

Publishing Industry Challenge FAQs

What are the biggest challenges in the publishing industry?

The publishing industry is facing a host of challenges. They fall into six broad categories: technological disruptions, changing market dynamics, economic issues, legal and ethical concerns, sustainability and the need for diversity and representation.

Why is publishing in decline?

Overall, publishing is not in decline. Combined revenue from print and digital publishing products continues to grow. However, print publishing revenue has declined as consumers’ preferences for online books, magazines and newspapers have increased. As a result, advertisers have also shifted their ad spend. For example, in 2022 nearly half (48%) of newspaper advertising revenue came from digital advertising, according to Pew Research Center. In 2011 that percentage was 17%.

Is publishing a hard industry?

Yes, publishing is hard. The industry faces more than its fair share of challenges from the mega-trends of our age, and they’re not likely to get easier in the coming years. But with the right approach and technologies, publishers have many opportunities to succeed.