Recently published research by a faculty member in the Naveen Jindal School of Management shows how the rise of digital channels is disrupting traditional print media markets.
The study — “The Impact of Digitization on Print Book Sales: Analysis Using Genre Exposure Heterogeneity” — was co-authored by Dr. Alejandro Zentner, an associate professor in the Jindal School’s Finance and Managerial Economics Area. It was published in the March-April issue of Manufacturing and Service Operations Management, a publication tracked in the UTD Top 100 Business School Research Rankings™.
Zentner’s research colleagues and co-authors of the study are Dr. Siddhartha Sharma from Indiana University at Bloomington’s Kelley School of Business and Dr. Rahul Telang at Carnegie Mellon University’s Heinz College and Tepper School of Business, where he holds a courtesy appointment.
The study investigates how the introduction of e-readers and e-books into the book market can cannibalize or complement print sales.
“We use genre differences to identify treatment and control groups, as digitization can affect genres differently,” Zentner said. “Some books are more likely to be read in e-book versions, while others are preferred in print.”
Zentner explained that the study’s findings showed a significant drop in print sales for adult fiction after e-books gained popularity, the reason being that e-readers are particularly suited for leisure reading.
“Their straight narrative and sequential reading formats make them ideal for digital consumption, with adult fiction being the most popular genre for e-books,” he said.
The launches of the Kindle and iPad were pivotal moments in the digitization timeline. Zentner said the iPad’s launch in 2010 amplified the impact of e-books on print sales. While the Kindle’s 2007 launch initiated the digitization trend, the iPad expanded e-reader adoption and boosted e-book popularity.
Pricing also played a role. E-books were generally priced lower than print books, attracting price-sensitive consumers. Zentner noted that publishers tried to mitigate this by controlling e-book prices and using strategies like delayed releases.
The study also showed that, while digitization affected the entire market, genres like juvenile non-fiction and certain segments of adult non-fiction showed resilience.
“The unique appeal of print for specific audiences, such as collectors or those who value physical book experiences, suggests that print books will continue to coexist with e-books,” he said.
Since book publishers, retailers, and even libraries are affected by the digitization of books, they can take away lessons from the study’s findings.
“Stakeholders can use our results to fine-tune pricing and release strategies for different formats,” Zentner said. “It’s also key to rely on data and data analytics to understand audience preferences.”
