Pearson to Go 'Digital First' in US Higher-Education Publishing
July 16 2019 - 6:33AM
Dow Jones News
By Adria Calatayud
Pearson PLC (PSON.LN) said Tuesday that it will shift toward a
"digital first" model, and away from print, in its U.S.
higher-education publishing operations.
The London-based education company said it is breaking from the
traditional education-publishing model of lengthy and expensive
print revisions, which has defined U.S. college publishing since
the 1970s. All future releases of the company's 1,500 active U.S.
titles will be digital first and updated on an ongoing basis,
Pearson said.
Pearson--which currently generates 62% of its revenue from
digital or digitally-enabled products and services--said the shift
will create a more predictable revenue stream with a better quality
of earnings.
Shares at 0956 GMT were up 3.1% at 890.20 pence, making Pearson
one of the top risers of the FTSE 100.
"We've changed our business model to deliver affordable,
convenient and personalized digital materials to students. Our
digital-first model lowers prices for students and, over time,
increases our revenues," Chief Executive John Fallon said.
Students who still want a print textbook will be able to rent
one for an average price of $60, which compares with an average
price of $40 for an eBook, the company said. .
Write to Adria Calatayud at
adria.calatayudvaello@dowjones.com
(END) Dow Jones Newswires
July 16, 2019 06:18 ET (10:18 GMT)
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