Cultural Enterprise Office

Pros

1. You may be able to reach a new market segment. Consumers of digital may be different from consumers of physical.

2. You will have no print, reproduction, warehousing or postage costs for a digital product. 

3. It enables retention of greater margin, at least in percentage terms, as there will be no retailer or wholesaler to pay.

4. It reduces the cost of correcting mistakes or producing a new edition.

5. It doesn’t tie up cash in stock, so reduces risk.

Cons

1. It can reduce economies of scale in physical production. Shorter print runs will equal a higher unit cost.

2. Consumers expect to pay a lower price for a digital product because they know the production cost is lower.

3. People see physical books in shops, where will they see a book that is only available in digital form?

4. Retailers may be less inclined to support publishers who sell digital books at a significant discount compared to physical.

5. Piracy – as with music, digital books can be circulated if not properly protected.

Disclaimer: We want to keep you in the know, so we offer a wide selection of useful resources. But Cultural Enterprise Office isn’t responsible for the advice and information of external organisations in this document. So if you have any questions, please contact the specific organisation directly.