The Decline of College Textbook Publishing: Cengage Learning and McGraw-Hill.

America's college textbook publishers historically had a business model based on continuing profits and growth led by high prices. However, that model eroded as competition from the used-book market and rental textbooks resulted in falling textbook sales and losses for publishers. Textbook publisher...

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Detalles Bibliográficos
Publicado en:American Economist Vol. 65; no. 2; pp. 284 - 300
Autor principal: Carbaugh, Bob
Formato: Artículo
Publicado: Sage Publications Inc. Oct2020
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        au: Carbaugh, Bob
        affil: Central Washington University, Ellensburg, USA
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        Cengage Learning Inc.
        Electronic textbooks
        Textbooks
        Overhead costs
        Industrial costs
        Business models
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          Cengage Learning Inc.
          Electronic textbooks
          Textbooks
          Overhead costs
          Industrial costs
          Business models
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        Cengage Learning
        college textbook publishing
        McGraw-Hill
        merger
      ab: America's college textbook publishers historically had a business model based on continuing profits and growth led by high prices. However, that model eroded as competition from the used-book market and rental textbooks resulted in falling textbook sales and losses for publishers. Textbook publishers are currently revising their business model so as to move away from printed textbooks to digital (online) educational materials. Also, publishers are downsizing their operations and undergoing mergers with each other to survive in the marketplace. The 2019 merger proposal of McGraw-Hill and Cengage Learning reflects the current problems of college textbook publishing: The merger would be between two financially weak companies that are attempting to reduce overhead and production costs and create additional revenue streams. However, the U.S. Department of Justice's concerns about the harmful effects on competition led to the companies' agreement to abandon their plans to merge in May 2020. JEL Classification : A00, K21, L22, L41
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