Since 2005, multiple business models have been flourishing in the Scandinavian ebook market. With Storytel’s acquisition of its Danish rival subscription service provider Mofibo earlier this year, the large Northern European player is leading the way for the next generation of subscription services in the book industry.
However, as seen in the music industry, streaming subscription services equal lower margins per consumed product. So the question becomes, are lower margins per sold book inevitable?
Luckily for book publishing, we tend to move more slowly than other players in the entertainment industry when it comes to new technologies and business models. And thankfully, this slow adoption has given us the chance to learn from other sectors, like music and film. Even though the consumption patterns of products, and the products themselves, are very different, there are still many similarities in the digital transformation that the businesses have undergone.