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BEA and writing industry in general as covered by the NYTimes. First they beat a dead horse, and then they proceed to scare the shit out of writers.
Although as far as an "ancillary market" Krugman writes about, I say it's going to be in the teaching because writing is becoming a far more prevalent hobby. The internet is chock full of hobby writers and you don't have to look far for them. People writing for pleasure, uncaring if they finish or not, people writing fan-fiction they know will never have a shot in hell to publish because of copyright infringement, people who just want to write down their life story for their friends and family, not to mention *ahem* bloggers. I'm finding most of these people would love writing advice and instruction, sometimes one on one or as part of a writing group.
Because of this, I think paid instruction, conferences and writing retreats will be the part of the market to grow. Writing vacations for hobbyists is a rather untouched market. And could be quite interesting assuming the retreats find teachers that aren't so into academia that they choke when they're classes all write fanfic. (I've had teachers that were cool with it and known others who would have been somehow offended, always interesting.)
But that's just my thought. Hopefully there will still be at least some kind of money in paper copies, advances and royalties for a while longer. Or at least I hope the ebook price bubble won't burst because right now it's good for both buyer and seller although the 99cent download would change that drastically.