The textbook market has always
offered high reward and with it high risk. Many have tried to corner the market
including the big technology giants, chains, publishing joint ventures and new
start-ups, but it remains, like its students and their courses - diverse.
Now Google has joined
Amazon, Apple, Microsoft in its intent to go after what they all regard as ’low
hanging fruit’, but what often turns out to be not Golden Delicious apples but high
hanging and sour crab apples.
Of course Google believe that
its new Nexus 7 Tablet is 'perfect for students', and therefore intends to stuff a
special educational section of its Google Play store with textbooks. Its "comprehensive"
selection of titles will be available for purchase and for rental over
six-months periods and cover works from the five major textbook publishing
houses. Just to add some spice Google is promising that they'll be at discounts
of up to 80%. Google’s partners are Pearson, Wiley, Macmillian Higher
Education, McGraw-Hill and Cengage Learning.
Given that textbooks are
expensive an 80% discount would look attractive. The high cost is regarded as
the reason why used textbooks and textbook rentals have been booming of recent
years and this together with the entry of all the major technology giants has
been heavily impacting the major textbook publishers. On one hand the used and
alternative marketplace is stealing sales and on the other they are often have
high discount terms being dictate to them.
One way the likes of Pearson
and McGraw-Hill Education are trying to address this is to create a new model
aimed at developing online versions of their texts that often have interactive
features, and then selling the students access codes which expire at the end of
the semester. However, persuading students to go digital isn't straightforward
and according to research firm Outsell, only 27% of the textbook spend in US secondary
schools and colleges was digital.
Pearson is undeterred and
are restructuring to emphasize online content. Cengage Learning, has stated its
intent to emerge from its recent bankruptcy filing more focused on digital. McGraw-Hill Education, has acquired an equity stake in
one software company
focused on digital learning and acquired another.
Just to confuse the issue
further, the major publishers have created a joint venture called Coursesmart
which was set up to offer a joint direct market service to promote and sell
digital textbooks. However when one’s parents are spreading their bets it’s not
surprising that it has become somewhat of an ‘also ran’.
Some would say that the
publishers are pursuing a multi-channel strategy others would suggest that it
is less of a strategy and more of, ‘every which way but win’ and that to
compete against yourself and your investment is at best questionable and not wise
dot com.
But is digital a forgone conclusion?
In a survey last year by the
National Association of College Stores, some 77% of college students said they
preferred print to e-books. Another survey, by the research firm Student
Monitor, found only 14% of students had classes that required online texts and only
2% bought the majority of their books in digital format.
So is it down to cost and availability
through alternative markets or does physical textbook still serve the students’
needs better? One thing that is certain is that both the publishers and technology
companies are betting on digital and are trying every which way to win the
market. The alternative is seen by them as more used and second-hand Textbooks
and stolen sales. Some may argue it’s a choice between a rock and a hard place.