Book retailers in Australia have started voicing concerns over the loss in business that they have been witnessing for the past five years. Newspaper publishers have voiced similar concerns, which industry sources have pegged at 5.6 percent on an annual basis over the past five years. Experts are already predicting the loss for the 2013-14 period to stand at 5.6 percent which amounts to a considerable $3.8 billion.
The above trend comes on the back of contrasting factors, such as increase in disposal income among families, though several other factors can be considered to have contributed to the digital wave. These include a general lull in the world economic scene that has forced consumers to seek greener pastures, and an increase in internet penetration which has proved to be positive for online retailers and a source of concern for the conventional bookstores.
According to IBISWorld industry analyst Claudia Burgio-Ficca, the newspaper publishers are likely to respond to the changes scenario by rationalizing “distribution networks, cut newsagent margins and ramp up digital offerings over the next five years.”
Book publishers are also expected to adopt similar strategies as they try to enhance their digital presence to remain afloat in the changed world order.