Public policies and government interventions in the book publishing industry

Purpose – The purpose is to review public policies and government interventions in the book publishing industry, a sector where public policies have blossomed. The paper concentrates on five major issues: intellectual property rights and issue of infringements (piracy), the debate about the fixed price of books (vs free market) or the agency versus wholesale models, VAT discrimination between printed books and e-books, the role institutions like libraries and registration authorities, and competition issues. Design/methodology/approach – This article is based on an extensive set of research initiated by the EC JRC IPTS on the “Statistical, ecosystems and competitiveness analysis of the Media and Content Industries”. The research implied an extensive review of the literature, meetings with players and validation workshops. This paper focuses more on the analysis of policy documents and position of players. Findings – The paper shows a growing discrepancy between the leading position of the EU publishing industry and its position in on-line distribution and production of e-books. The EU leads the global publishing market, with companies like Bertelsmann, Hachette or Pearson. However, compared with the USA, in the EU, the e-book market is still negligible. The European e-book market is fragmented, expanding fast in the UK and lagging behind in other Member States. As digitisation of books and earlier on-line distribution of physical books are changing the landscape, the paper considers potential policies at EU level to coordinate, accompany and speed up the process of digitalisation. Research limitations/implications – The article stems from the research initiated by the IPTS on the “Statistical, ecosystems and competitiveness analysis of the Media and Content Industries” (MCI). This research was based on a review and synthesis of the available literature, desk research. The results were reviewed by experts from the book industry at dedicated meetings. The paper does not cover other important public policy issues such as the role in the functioning of democracies, triggering consequent rights and responsibilities with respect to human rights, democracy, and freedom of information and cultural diversity. Practical implications – To contribute to the debate about the policies needed for the economic health and development conditions that will support the future competitiveness of the book publishing industry. There is a need to better understand if policies designed for the physical world will be effective in a digital world. Distribution is very different in a digital world from physical distribution; these supply-side policies may reach their limits. Originality/value – In the media and entertainment markets, the book market is the only one where EU companies (Bertelsman, Hachette, Pearson, Wolters Kluwer) lead. However, this industry is one of the less covered segments of these markets. Besides, the paper combines a review of legacy policies such as copyright, fixed prices, and issues raised by the digital shift such as VAT discrimination between physical books and e-books.