Aon Risk Solutions points out that the “increasing popularity of e-books, iPads, and other digital publishing technology is fundamentally altering the way publishers and content providers address the way they approach credit control risks.”
As a result the international broker’s second “Electronic Media Forum,” to be held in London on April 7, will feature a presentation from its Trade Credit team and P&A Receivables Services that will “explore how the new and emerging distribution technologies will affect the publishing sector and how business will be transacted in the digital economy.”
Hugh Burke from Aon’s Trade Credit team commented: “The shift in the way people consume media, whether that be books, newspapers, magazines or television shows is accelerating, forcing publishers to speedily engage new suppliers, content providers and other third parties in their efforts to supply the growing demand.
“While it would be an overstatement to say that an entirely new rule book needs to be written to deal with credit risks in the new world of digital publishing, there is only limited experience in this developing space, so we are still working with insurers to work out the best criteria to judge credit risks and ultimately help our clients sleep a little more soundly.”
Laurie Beagle, divisional director at P&A Receivables Services and founder of Electronic Media Forum, pointed out that as this is a “new sector;” sales and marketing sides of publishing companies may be familiar with “the new products and business models,” but the “finance people are not.”
A speaker at the Forum, Dominic Pride, founder and managing director, The Sound Horizon, commented: “Publishers are now competing for the customer’s attention and spend on the same platforms as all other content industries. They are also exposed to the same disruptive forces which are re-shaping the landscape for music, film, TV and magazine publishing.
“As publishers look for new distribution opportunities, they will engage with partners in consumer electronics, internet access and advertising. Credit control and risk management will play a key role, as traditional publishing transforms to meet these innovative and demanding partnerships.”
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