Last week my BusinessWorld column focussed on the importance of content. (http://www.jayabhattacharjirose.com/jaya/2013/03/26/the-economics-of-electronic-content-if-the-e-content-falters-or-is-under-par-it-will-not-translate-into-a-sustainable-business-model/) It discussed how education publishers are growing. Trade publishers too want a slice of this pie and are busy reinventing themselves and introducing new verticals that focus on education publishing.
Since then there are three interesting pieces of news that I have come across:
16 March 2013 “..the global book conglomerate Random House is now hiring mostly statisticians and mathematicians in the United States, because CEO Markus Dohle has dubbed Random House a “data driven company”. ( “An Amazon problem: the book is dead, long live the book. ABC News. http://abcnews.go.com/Business/amazon-problem-book-dead-long-live-book/story?id=18737681#.UVMv2Bxgcsw )
26 March 2013 The Bookseller ( http://www.thebookseller.com/news/bertelsmann-develop-education-business.html) announced that Bertelsmann is to develop education business with the long-term potential to generate €1bn in sales, it was revealed at the company’s annual results conference in Berlin this morning (26th March).
Meanwhile Random House chairman and chief executive officer Markus Dohle spoke of “possible further portfolios” in Latin America following its outright acquisition of Spanish-language publisher Random House Mondadori.
Last year Bertelsmann invested in the University Ventures Fund, which partners with entrepreneurs and institutions to establish “transformative” companies in post-secondary education. Today the German media group said it was pursuing a “comparable model” in education.
Thomas Hesse, executive board member for corporate development and new businesses, said the education sector offered considerable growth potential in China, India and Brazil, and a new business division would be created for Bertelsmann’s education activities. The education division would grow through “incubation, start-ups and gradual development over the years”, he said.
The news came as Bertelsmann reiterated a company strategy oriented towards growth, and digital and international initiatives, with chairman and c.e.o. Thomas Rabe saying it was Bertelsmann’s objective to increase sales share in the US, China, India and Brazil.
At the conference, Dohle indicated that further publishing acquisitions could be on the cards as the company looked to growth in emerging markets. The acquisition of the remaining 50% of Random House Mondadori last November “makes it possible to generate more growth in Latin America, organically and with possible further portfolios”, he said.
27 March 2013 HMH Appoints First-Ever Chief Content Officer (DBW) http://click.digitalbookworld-hub.com/?qs=eb4fce5f18a52c20103018f3ccfe67589e9bff1bcbf4bf04a4debf9366e867ce
Mary Cullinane is Houghton Mifflin Harcourt’s first-ever chief content officer. She was formerly the head of innovation for Microsoft Education. She will lead the company’s content production and innovation efforts. Previously, she had been executive vice president of corporate affairs at the company.