Publishing and information industry

Industry Snapshot

GENERAL INDUSTRY: Communications

CAREER CLUSTERS: Arts, A/V Technology, and Communication; Information Technology

SUBCATEGORY INDUSTRIES: Art Publishing; Book Publishing; Calendar Publishing; Directory and Mailing List Publishing; Greeting Card Publishing; News Syndicates; Newspaper Publishing; Periodical Publishing

RELATED INDUSTRIES: Advertising and Marketing Industry; Broadcast Industry; Internet and Cyber Communications Industry; Motion Picture and Television Industry

ANNUAL DOMESTIC REVENUES: Book publishing: $44.2 billion USD; e-book publishing: $4.7 billion USD; newspaper publishing: $30.8 billion USD; magazine and periodical publishing: $40.1 billion USD (IBISWorld, 2024)

NAICS NUMBERS: 5111, 519110

Summary

The publishing and information industry mass produces and distributes written materials, including printed books, newspapers, magazines and other periodicals, as well as electronic or digital media that convey the same content, such as e-books and online full-text databases. Published works may convey information, entertain, persuade, or engage in all these activities simultaneously. Databases and guides such as telephone directories also fall within the scope of the industry, which is an important component of the overall information and communications sector.

History of the Industry

Published print was the earliest form of mass communication. Although the written word has been used since ancient times to convey messages to multiple readers or listeners, it was only after the printing press made it possible for a printed text to become standardized that print could become a mass medium. As literacy among the population grew, so did the industry.

Before the advent of the printing press, most writing was done by hand. Producing written materials was a time-consuming and difficult process completed by scribes, often in monasteries. A single copy of the Bible took up to five years to complete. The audience for these manuscripts (often religious or Latin texts) was the educated class and the clergy, as the general population was illiterate. Publishing was revolutionized with the development of the printing press in Germany in 1450 by Johann Gutenberg. Gutenberg’s press, the technology of which spread throughout Europe quickly, eliminated the need for manual transcription and made books more accessible to everyone.

In the centuries that followed, the mechanized printing press underwent many improvements, making the mass production of printed material quicker and more affordable. By the eighteenth century, books were widely available throughout the world. Regular publications such as newspapers also began to be produced. As printing technology advanced, making books easier to print, other labor-saving technologies increased the average amount of leisure time and wealth. Thus, more people had time to learn how to read and to exercise this ability once they acquired it. Both literacy and printed materials designed to be read during leisure time increased. These societal changes accompanied calls for democratic reforms within the Church and within nations. Thus, the publishing industry became inextricably tied to the democratic notions of a free press, free will, self-actualization, and autonomy.

In many ways, the twentieth century was the golden era of publishing. By the early part of the century, regular publications such as magazines and newspapers were produced in every corner of the world. Even after the advent of other modes of mass communication, such as radio and television, newspapers remained the most popular way for people to find out about current events. The second half of the twentieth century saw a strong trend toward consolidation within the industry. Smaller publishing companies, catering to local markets, increasingly came under corporate control. Part of the reason for this trend was that newer printing equipment was very expensive to purchase and maintain. Many small companies were unable to cover the high cost of equipment upgrades and were forced to sell out to large, cash-rich publishing concerns.

The Internet began to influence the publishing industry at the end of the twentieth century. Electronic rather than paper publishing presented opportunities to significantly reduce costs associated with printing and distribution. However, the fact that consumers were beginning to get information online meant decreases in sales, circulation, and advertising revenue for the paper products that had sustained the industry throughout its history.

The Industry Today

The publishing industry is facing radical challenges and poorly defined opportunities in the early twenty-first century. These challenges reflect the impact of the Internet. Reading habits are changing, and the industry has so far struggled to adjust to these changes.

Serial publications such as newspapers have suffered significant declines in both readership and revenue in the early years of the twenty-first century. One standard measurement of publication readership is circulation, or the total number of copies produced and distributed. By 2009, newspaper circulation was down an estimated 10 percent from its peak in the early 1990s and by 2021 circulation of paid daily newspapers had fallen by more than 50 percent. Circulation figures continued to decline; from 2019 to 2023, the top twenty-five US newspapers lost a combined average 30 percent of print circulation, although many of the largest publications were building up digital subscriptions. Another measure of readership is household penetration, which is a ratio of newspapers read per household. At its peak, the household penetration of all print newspapers reached 130 percent, since many households read multiple newspapers. In the early twenty-first century, household penetration fell to 54 percent. (This measure, however, only accounts for print readership and does not take into account Internet readership.)

Print newspaper and magazine revenue is also down significantly since the end of the twentieth century. Classified advertising, traditionally a lucrative revenue stream for newspapers, began to migrate to online venues such as Craigslist. Display advertising, the mainstay of serial publications, has also dropped. Whereas newspapers used to command profit margins of more than 20 percent, those margins fell to 6–10 percent in the early twenty-first century.

The global recession of 2007–9 also dealt a significant blow to the publishing industry. Major market newspapers saw unprecedented drops in advertising revenue because of the recession. The largest serial publishing company in the United States, Gannett Newspapers, experienced a 60 percent decline in revenue in early 2009. The New York Times Company, as another example, saw a drop in income of more than 50 percent in the last quarter of 2008. The dramatic drop in revenues that occurred in the early twenty-first century forced a number of well-established newspapers into bankruptcy. This occurred even in large cities with traditionally strong markets. For example, both of Chicago’s major newspapers, the Chicago Tribune and the Chicago Sun-Times, declared insolvency in late 2008 and early 2009. Many large publishing companies opted to stop print production of their flagship products. Instead, they switched to an Internet-only format. The Seattle Post-Intelligencer, for instance, ceased print publication in early 2009. The industry was dealt another blow in 2020 with the global COVID-19 pandemic, which caused many businesses to shutter and cancel advertising. The pandemic caused global supply chain issues that further disrupted retail sales and triggered rising inflation around the world.

While the decline of newspapers has been the development of most concern in publishing, other branches of the industry have been suffering as well. The magazine industry has suffered similar drops in circulation and advertising revenue, largely as a result of the Internet’s impact. The global recession of 2007–9 dealt a fatal blow to many magazines that had enjoyed decades of success, including Condé Nast’s Gourmet and Modern Bride. Book sales also declined in the wake of the global recession, causing most of the largest book publishing firms to take austerity measures. Many companies froze salaries and hiring and cut back on development expenses. The COVID-19 pandemic affected the book publishing industry in various ways. While sales were robust, likely because many people reported reading as a way to pass the time, publishers canceled many author tours or turned to virtual events.

Although publishing is in a moment of crisis in the early twenty-first century, there are many who feel that the internet will provide opportunities to rejuvenate the industry. A study from Scarborough Research shows that readership is actually on the rise, as many publishing concerns have made their content available through multiple online sources. Initial attempts to move print content online initially had mixed commercial success, but a 2016 study from Scarborough found that newspaper readership in the United States was at about 70 percent. What is clear is that the industry must rethink its business model, and some publishing concerns have done so with success. Some community newspapers are seeing a rise in readership. Instead of requiring their readers to pay for subscriptions, they are making their papers available to a wide range of demographics—something that advertisers appreciate.

Another threat to the publishing industry was the introduction of e-book readers such as Amazon.com’s Kindle, Barnes and Noble’s Nook, and Apple’s iBooks application for iPad. Each e-book platform negotiates book pricing and profit share with publishers. When Amazon’s Kindle dominated the market, publishers feared the power that one distribution network would have on book pricing, marketing, and other elements. When Apple entered the market, contracts were renegotiated, and the prices of some e-books increased as publishers were able to use Apple’s more generous terms to force Amazon to improve its terms. This event was widely covered as a rare example of a situation in which increased competition resulted in increased prices for consumers.

Industry Outlook

Overview

The outlook for print publications in this industry shows it to be in decline. By any measurement, the publishing industry is in a moment of flux, a crisis of identity that many analysts consider to be the end of traditional publishing. According to U.S. Department of Labor projections, employment for editors between 2022 and 2032 was expected to decline 4 percent, and employment for reporters and correspondents was expected to decline 3.3 percent. Total employment across the broader media and communications industry was predicted to increase 2.6 percent in the same period.

Readership of serial publications has declined throughout the twentieth century. Whereas the average American household in the 1920s read 1.3 newspapers on a regular basis, only around half of households report reading newspapers in the twenty-first century. Declining readership reflects the impact of the internet. As the public increasingly finds its news and entertainment online, there is less demand for print publications. Younger people are more likely to use the internet to find information, and this trend is reflected in the fact that the lowest levels of newspaper readership are in the younger demographic. The trend toward lower levels of print newspaper readership is therefore likely to continue into the future.

It is incumbent on news organizations, if they are to remain in business, to re-create the way they deliver the content they produce. Some news organizations are succeeding, although the most successful method of maintaining readership is still undetermined. Some organizations are requiring paid subscriptions for their online content, hoping to balance advertising revenue and reader subscriptions. Other organizations have decided to make all of their content accessible, relying most heavily on advertising revenue to maintain their positions.

Serial publications are feeling the impact of both long-term and short-term drops in revenue. Normal revenue within the industry has traditionally been around 20 percent annually. In the early twenty-first century, this figure dropped to less than 10 percent. Further, the recession of 2007–9 did significant damage to newspaper revenues. Most of the major newspaper publishing firms reported 40 to 50 percent drops in revenue during this period. The early months of the COVID-19 pandemic likewise saw plummeting newspaper sales. For example, USA Today saw its print circulation fall by 60 percent over six months in 2020.

The Department of Labor projects that book, periodical, and directory publishing will remain relatively stable. However, it notes that even these components of the publishing industry are sensitive to economic fluctuations. In the wake of the recession, book sales immediately declined 7 percent. This was a greater revenue decline than book publishing companies anticipated, and it demonstrated that no sector was entirely immune to the changes taking place within the industry. As noted, book publishing was robust during the pandemic in 2020-1.

Although many analysts consider the publishing industry to be in serious trouble, it is not going to vanish. Instead, it will transform. The internet is creating information services that incorporate written articles and videos. As the Department of Labor’s projections indicate, this is helping blur the traditional distinctions between media industries. Though sustainable business models that embrace the new online reality have yet to be invented, there is every reason to believe that the Internet’s blurring effect will create new opportunities for many kinds of companies in the publishing industry.

Employment Advantages

The publishing industry is in a moment of profound change and a crisis of identity. Traditional business models are beginning to fail. However, it will survive in some form as long as the written word remains an important mode of communication.

Despite the fact that publishing careers are increasingly unstable, working in this industry is the best way to gain media experience. All forms of media and entertainment rely heavily on talented writers. Individuals with an interest in the written word can gain a level of writing experience in the publishing industry that would be hard to achieve elsewhere. The deadline-driven nature of most publishing companies teaches writers to produce quality copy in a limited time frame. This is a valuable skill for an employee in any business sector to have.

The publishing industry also remains an excellent place for people who enjoy research. Whether producing newspapers, magazines, or books, publishing businesses rely on investigative talent. Few other jobs can give an individual as many opportunities to hone qualitative research skills.

Perhaps the most attractive reason to consider a career in publishing is precisely that the industry is changing so rapidly. People entering the world of publishing in the 2020s will have unparalleled opportunities to help shape the future of the industry. Pioneering sustainable business models in the age of the internet will be an incredible challenge, and those involved will be able to define publishing for future generations. Moreover, those who are among the first to formulate successful revenue models for online publishing stand to become not only influential but also incredibly wealthy.

Annual Earnings

Rising interest in online media has led to long-term revenue stagnation throughout the print industry. Global economic woes have made it clear that publishing is very fragile. IBISWorld predicted book publishing would struggle through 2027, although the educational publishing sector remained strong. Certain sectors, such as database and directory publishing were expected to continue to decline.

Some sectors of the industry are in fairly dramatic decline. Publishing businesses that depend on advertising revenue are in the most serious trouble going forward, as online advertising operates largely independently of the content in which it appears. According to respected market research firm PricewaterhouseCoopers (PwC), digital advertising grew in the United States at 12.2 percent in 2020 because of the pandemic and was expected to continue to remain strong; print advertising was $7 billion in 2021 but was expected to fall to $4.9 billion by 2026. Newspaper companies were expected to be hurt the most by advertising losses but, as the firm's report shows, recouped revenues by selling online subscriptions for high-quality content.

PwC anticipates that the global industry will grow overall, as there are exceptionally robust domestic publishing industries in some countries. India, for instance, is the second-largest producer of English books and one of the top six publishers globally. However, India's publishing industry struggled to address annual revenue loss of about 25 percent due to piracy.

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