crazy sh*t happens
12 months
 of learnings
   about
ebooks
  in 40 minutes
(a love story)
(and data-rich)
(delicious & nutritious)
#bnc10
#gatheringofbeautifulnerds
Michael Tamblyn
  @mtamblyn
#kobo
40 minutes
12 things we’ve learned
2 early mistakes
and how we fixed them
what we learned
about selling ebooks
about the ebook reader
devices
apps
in the past 12 months
175,200 : 1
highly loss-y
00:03
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(happy birthday)
February 27th, 2009
September 2009
Estimate:
Lose 5-10% of print sales
  to ebooks in 5 years
Choice:
a) Let someone else take 5-10%
        of Indigo’s sales.
b) Enter the ereading market
    and take it ourselves.
Strategy:
Build Your Own Competition
People are pressed for time.
Available time is fragmented.
Therefore...
Offer a reading experience that
works with devices they already
            have...
...with a mix of long and short
           content.
3 out of 4 were true.
Pressed for time
Time is fragmented
Devices they already own
Long and short content
✔ Pressed for time
  Time is fragmented
  Devices they already own
  Long and short content
✔ Pressed for time
✔ Time is fragmented
  Devices they already own
  Long and short content
✔ Pressed for time
✔ Time is fragmented
✔ Devices they already own
  Long and short content
✔ Pressed for time
✔ Time is fragmented
✔ Devices they already own
✖ Long and short content
✔ Pressed for time
✔ Time is fragmented
✔ Devices they already own
✖ Long and short content
Mistake #1
eBooks
  chapters
short stories
   articles
    blogs
 magazines
newspapers
eBooks
     chapters


 short stories
     articles


     blogs

 magazines
 newspapers
Long form reading is alive and
   well on mobile devices.
756 pages
756 pages
1074 pages
756 pages
1074 pages
528 pages
eBooks
  chapters
short stories
   articles
    blogs
 magazines
newspapers
...we had changes to make.
Focus on ebooks. Fast.
And we did.
(Make mistakes,
 adjust, move on.
As fast as humanly
     possible.)
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Massive software rebuild.
Optimized for ebooks.
Mistake #2
marchaprilmayjune
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Too long.
New Rules:
Release early, release often.
Small, cross-functional
 development teams.
Mix: UX, Dev, QA
Agile Development Process
Lightweight
specifications
Release-ready software every
         two weeks
New releases every 4 weeks
Web
      iPhone
    Blackberry
     Palm Pre
     Android
Core/Infrastructure
Content Processing
Release early, release often.
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I joined Kobo.
Content, Sales &
Merchandising
What do customers want?
What do they read?
Escape first,
information second.
Fiction dominates for now
(smartphones and eInk
favour text)
Illustration-heavy
categories with
illustrated works are
handicapped,
but not for long...
When do they read?
Average Purchases by Day




   Mon   Tues   Wed   Thurs   Fri   Sat   Sun
Sales consistent through day and evening
Sales consistent through day and evening




                      Lunchtime
Sales consistent through day and evening




                      Lunchtime   Commute
Sales consistent through day and evening




                      Lunchtime   Commute   Before bed
Sales consistent through day and evening




            Newspapers




                         Lunchtime   Commute   Bef...
This is a new release market.
New releases sell well…




                          19
unless the ebook release is
         delayed.
Sales impact of windowing.




                             20
(Obsessive customer analysis)
Paging vs. scrolling
We got ripped.
Scrolling vs. Paging

25% scrolling



                75% paging
Scrolled pages are 4x as long.
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Price.
$9.99
$10
Price and Value
“Defend the price of hardcovers”
“Preserving the perceived value of
           the book.”
ebook price
    =
print price
What do readers think an ebook
          is worth?
Warning: this next section of slides has
been presented at a previous conference,
but the presenter really likes them and
...
Publisher-Provided List Price (Trade)
Publisher-Provided List Price (Trade)


                                          First
                                  ...
Publisher-Provided List Price (Trade)


                            Trade         First
                            paper ...
Publisher-Provided List Price (Trade)


             Mass           Trade         First
             market         paper ...
Publisher-Provided List Price (Trade)


“Old Mass,   Mass           Trade         First
 Self pub”   market         paper ...
People will not buy $20
    trade ebooks.
Publisher-Provided List Price (Trade)


“Old Mass,   Mass           Trade         First
 Self pub”   market         paper ...
Unit Sales by Price Point (Trade, in USD)
 Unit sales by price-point
Unit Sales by Price Point (Trade, in USD)


                             The Mass
                              Market
   ...
Unit Sales by Price Point (Trade, in USD)


                             The Mass
                              Market
   ...
Unit Sales by Price Point (Trade, in USD)

                                            The
                               ...
Unit Sales by Price Point (Trade, in USD)


                             The Mass    “The Hurt
                           ...
Unit Sales by Price Point (Trade, in USD)


                             The Mass    “The Hurt
                           ...
Unit Sales by Price Point (Trade, in USD)


                             The Mass    “The Hurt
                           ...
Unit Sales by Price Point (Trade, in USD)
 Unit sales by price-point
Unit Sales by Price Point (Trade, in USD)

                             $9.99
 Unit sales by price-point
Unit Sales by Price Point (Trade, in USD)

                                      $9.99

                             <$9.9...
Unit Sales by Price Point (Trade, in USD)

                                      $9.99

                             <$9.9...
razor thin margins
   a lot of scale
 multiple markets
Unit Sales by Price Point (Trade, in USD)

                             $9.99
 Unit sales by price-point
Publisher-Provided List Price (Trade)


                                          First
                                  ...
$8.76*
$8.76*


*excluding textbooks/STM
“Could prices be
   higher?”
2 schools of thought
#1
Consumers would pay
more, we’ve just never
   asked them to.
#2
eBooks have both lower
 cost and limitations on
        their use.
Therefore ebooks should
 be much cheaper than
      ...
Both are true.
Which one is more true?
#1
Consumers would pay
more, we’ve just never
   asked them to.
Instant. Can buy whenever, wherever.
Cost savings vs. print.
Convenience - easier to carry.
Not tied to a particular devic...
1. Instant. Can buy whenever, wherever.
2. Convenience - easier to carry.
3. Not tied to a particular device.
4. Read on s...
Suggests there is some
 room to move price.
     (Just not much.)
#2
eBooks have both lower
 cost and limitations on
        their use.
Therefore ebooks should
       be cheaper.
Also true.
~$14.15
what’s missing
eBook
$9.99
mysterious print premium
         $4.16




       eBook
       $9.99
mysterious print premium
         $4.16




       eBook
       $9.99
eBook
$9.99
Can’t lend it.
        Can’t share it with family.




eBook
$9.99
Can’t lend it.
        Can’t share it with family.
        May be tied to a device.




eBook
$9.99
Can’t lend it.
        Can’t share it with family.
        May be tied to a device.
        May be tied to a retailer.



...
Can’t lend it.
        Can’t share it with family.
        May be tied to a device.
        May be tied to a retailer.
   ...
Can’t lend it.
        Can’t share it with family.
        May be tied to a device.
        May be tied to a retailer.
   ...
“That will be $14.15...
...and I need you to sign
      this license.”
“It says...
These terms apply to all users of the Service, whether or not you are a Registered User.
A. You shall use the Service for ...
literary works provided to Kobo for sale on the Service by a publisher or other content provider.
D. You may not obscure o...
edit, copy, display, publish and distribute any material made available on the Service by you. The foregoing does not appl...
“...only you can read it...”
“You cannot lend it.”
“Or sell it used.”
“You don’t really own it.”
“You’ve licensed it.”
“Enjoy.”
Wouldn’t you want to pay
          less?
That’s the pricing dynamic
         we’re in.
“Cheaper” is not the only
perceived value in ebooks.
Or the most important one.
Ignore customer price
tolerance at your peril.
The less a customer
can do with an ebook
(vs. paper), the lower
      the value.
marchaprilmayjune
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Time to raise money!

Creative Commons: Mark Coggins
The App Store doesn’t care
 about your VC meeting.
The App Store doesn’t care
 about your VC meeting.

             ^
           board
The App Store doesn’t care
 about your VC meeting.

             ^
       budget approval
The App Store doesn’t care
 about your VC meeting.

             ^
     product launch date
The App Store doesn’t care
 about your VC meeting.

             ^
       mom’s birthday
8 1/2 weeks
multiple platforms
marchaprilmayjune
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multiple platforms
Why should a customer
ever be tied to a single
       device?
These terms apply to all users of the Service, whether or not you are a Registered User.
A. You shall use the Service for ...
edit, copy, display, publish and distribute any material made available on the Service by you. The foregoing does not appl...
user of the Service to access, view, store or reproduce the material for that user's personal use. You grant Kobo the righ...
“You have to keep this
 book on a bookshelf in
your house that I will sell
        you...”
“...for $259 USD
(plus shipping & handling).”
“You may not put books on
  this shelf that you have
bought from other stores.”
“If the shelf breaks, you
 may lose your books.
 Or not. We’ll decide.”
“If you find a shelf made
by someone else you like
     better, too bad.”
There are great devices out there.
       There will be more.
      They will get better.
     They will get cheaper.
Let the reader choose the right
       device for them.
“Your whole reading life, always
          with you.”
The perfect reading machine hasn’t
         been created yet.
Opus Shelving, Sean Yoos
Equation Bookshelf
Marcos Breder
Stairs
Shakespeare & Co., Paris
We say:
Take your books with you
to any device
If you find a better device,
  move your books there.
A book that you can’t take
 with you is worth less.
September 15th
Downloadable ePub
          +
Adobe Content Server
          +
  Digital Editions
60%
40%
PRS-300 Reader Pocket Edition . PRS-505 Reader Digital Book .
 PRS-600 Reader Touch Edition . PRS-700BC Reader Digital...
marchaprilmayjune
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februarymarch
5 things
1. Digital sales and
    marketing
2. Pristine metadata
(ONIX 2.1, ONIX 3.0?)
3. Well-crafted ePub files.
4. ePub at the end of the
 production workflow.
5. An adventurous and
   courageous heart.
marchaprilmayjune
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octobernovember
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februarymarch
Season of Giving
December 15th
Raised $16M in funding
Largest bookseller in Australia,
New Zealand and Singapore


Largest bookseller in Canada


Second-largest bookseller in U...
Gave ourselves a new
       name
Japanese for “workshop”
Small unit of Nigerian
      currency.
A small town in Ethiopia.
Slang in Trinidad for
      “vulture”
The first name of both a
famous author and a sumo
          wrestler
a rearranging of the letters
         in“book”.
December 14th
Started giving away 1.8
     million books
120 libraries in 5 countries
180 languages
400 million pages
add about 1,000 new titles
       every day
We receive listings via
       OPDS
 (Open Publishing
Distribution System)
Given us a lot of insight
into the value of “free”
!"#$%&'(#)*+$,)-('').%%/#)




!"   #"   $"   %"   &"     '"   ("   )"   *"   !+"   !!"   !#"   !$"   !%"   !&"   ,"!&"
!"#$%&'(#)*+$,)-('').%%/#)
               eBook
          Training wheels




!"   #"    $"   %"   &"     '"   ("   )"   *...
!"#$%&'(#)*+$,)-('').%%/#)
               eBook
          Training wheels

                     “I          Jane
         ...
!"#$%&'(#)*+$,)-('').%%/#)




!"   #"   $"   %"   &"     '"   ("   )"   *"   !+"   !!"   !#"   !$"   !%"   !&"   ,"!&"
!"#$%&'(#)*+$,)-('').%%/#)




                                                           “Freegans”




!"   #"   $"   %"...
OPDS to
Indigo, Borders,
  REDgroup
Holidays on (dev)ice.
People don’t buy ebooks as
       gifts (yet)...
...but they do buy devices...
...and the people who
  receive devices buy
        ebooks.
December 24th
Week after Dec 25 =
highest volume of 2009
Without gifting or gift
    certificates.
marchaprilmayjune
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200
             Countries
          Largest markets:
US, Canada, UK, India, Australia, China
Very different levels of
  ePub availability.
Territorial rights capability
         is critical.
Territorial rights metadata
         is critical.
Expect to see Kobo in
  more languages
marchaprilmayjune
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februarymarch
And then things started to
       go mental.
“How much higher
could ebook prices
       go?”
“What if they didn’t have a
         choice?”
We’re about to find out.
Agency.
1. Publishers set prices.
2. eBook prices are lower
    than print prices.
 (new releases: $12.99-14.99)
3. eBooks are released
simultaneously with print
         books.
4. Retailers can’t discount.
5. 70/30 revenue split
  Publisher/Retailer
Unit Sales by Price Point (Trade, in USD)

                             $9.99
 Unit sales by price-point
Unit Sales by Price Point (Trade, in USD)
 Unit sales by price-point
Unit Sales by Price Point (Trade, in USD)

                             $9.99
 Unit sales by price-point
Unit Sales by Price Point (Trade, in USD)
 Unit sales by price-point
Publisher gets control of
        pricing.
but makes less.
List      Net

Wholesale
          Can$24.00 Can$12.00
   (50%)

  Agency
         Can$12.99 Can$9.09
   (70%)
The bet:
Consumers want the
books enough to absorb a
       $2-5 jump.
Unit Sales by Price Point (Trade, in USD)

                                            $9.99


                           ...
Unit Sales by Price Point (Trade, in USD)
 Unit sales by price-point
Unit Sales by Price Point (Trade, in USD)

                             $9.99
 Unit sales by price-point
Unit Sales by Price Point (Trade, in USD)




                                  ...to there.
 Unit sales by price-point
First time a media
industry has raised the
  price of an existing
Bonus:
Also limiting the tactics a
   retailer can use to
 motivate the consumer.
Publishers are going to
 have to get good at:
Price sensitivity analysis
Understanding loyalty
 and user motivation
Purchase frequency
     drivers
*Metadata*
April 1st
April Fool’s Day
“The Day We Turned the
 eBook Market Upside
Down and Shook it Until
      it Rattled.”
Could be great.
All agency agreements are
being written, negotiated
       and signed...
... in less than 30 days.
Average time to close an
ebook agreement with a
major publisher in 2009:
3-4 months
marchaprilmayjune
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“Powered by Kobo”
APIs
software development kit
    mobile storefront
   custom integration
   over 2 million titles
eInk devices
    tablets
   laptops
  netbooks
smartphones
support for sync/connect
via USB, Bluetooth, WiFi,
           3G
“Why?”
Where is
“the ereader for
  everyone?”
$149 USD SRP*



            * for a limited time
No wireless.
USB + Bluetooth
No wireless.
     USB + Bluetooth
(like your digital camera,
   video camera, iPod)
Simple.
And if you find a better
        device,
...or want to read on your
smartphone on the way to
          work...
your reading life is always
        with you.
marchaprilmayjune
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12 Months of Learning about eBooks in 40 minutes
12 Months of Learning about eBooks in 40 minutes
12 Months of Learning about eBooks in 40 minutes
12 Months of Learning about eBooks in 40 minutes
12 Months of Learning about eBooks in 40 minutes
12 Months of Learning about eBooks in 40 minutes
12 Months of Learning about eBooks in 40 minutes
12 Months of Learning about eBooks in 40 minutes
12 Months of Learning about eBooks in 40 minutes
12 Months of Learning about eBooks in 40 minutes
12 Months of Learning about eBooks in 40 minutes
12 Months of Learning about eBooks in 40 minutes
12 Months of Learning about eBooks in 40 minutes
12 Months of Learning about eBooks in 40 minutes
12 Months of Learning about eBooks in 40 minutes
12 Months of Learning about eBooks in 40 minutes
12 Months of Learning about eBooks in 40 minutes
12 Months of Learning about eBooks in 40 minutes
12 Months of Learning about eBooks in 40 minutes
12 Months of Learning about eBooks in 40 minutes
12 Months of Learning about eBooks in 40 minutes
12 Months of Learning about eBooks in 40 minutes
12 Months of Learning about eBooks in 40 minutes
12 Months of Learning about eBooks in 40 minutes
12 Months of Learning about eBooks in 40 minutes
12 Months of Learning about eBooks in 40 minutes
12 Months of Learning about eBooks in 40 minutes
12 Months of Learning about eBooks in 40 minutes
12 Months of Learning about eBooks in 40 minutes
12 Months of Learning about eBooks in 40 minutes
12 Months of Learning about eBooks in 40 minutes
12 Months of Learning about eBooks in 40 minutes
12 Months of Learning about eBooks in 40 minutes
12 Months of Learning about eBooks in 40 minutes
12 Months of Learning about eBooks in 40 minutes
12 Months of Learning about eBooks in 40 minutes
12 Months of Learning about eBooks in 40 minutes
12 Months of Learning about eBooks in 40 minutes
12 Months of Learning about eBooks in 40 minutes
12 Months of Learning about eBooks in 40 minutes
12 Months of Learning about eBooks in 40 minutes
12 Months of Learning about eBooks in 40 minutes
12 Months of Learning about eBooks in 40 minutes
12 Months of Learning about eBooks in 40 minutes
12 Months of Learning about eBooks in 40 minutes
12 Months of Learning about eBooks in 40 minutes
12 Months of Learning about eBooks in 40 minutes
12 Months of Learning about eBooks in 40 minutes
12 Months of Learning about eBooks in 40 minutes
12 Months of Learning about eBooks in 40 minutes
12 Months of Learning about eBooks in 40 minutes
12 Months of Learning about eBooks in 40 minutes
12 Months of Learning about eBooks in 40 minutes
12 Months of Learning about eBooks in 40 minutes
12 Months of Learning about eBooks in 40 minutes
12 Months of Learning about eBooks in 40 minutes
12 Months of Learning about eBooks in 40 minutes
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12 Months of Learning about eBooks in 40 minutes

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At BookNet Canada’s Technology Forum 2010, I condensed down 12 months of learnings, lessons, mistakes, and improvements into 40 minutes (ok, maybe 45.) This also had pieces from the “missing” Tools of Change presentation that I couldn’t give in February, so it’s really two presentations in one. So rather than having to fire up your own hyperdynamic, warp-speed-running ebook startup, you can get the benefit of all of our best insights from the comfort of your own home.

Includes:
* Two early mistakes we made and how we fixed them
* 5 things that every publisher must have to win in ebooks
* Why Kobo jumped into the eInk game with the $149 eReader
* A day (and a week!) in the life of a digital reader
* The answer to the age-old question: “If Charlotte Bronte fought Stephenie Meyer, who would win?”
* The four other meanings of Kobo.

Published in: Technology
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  • MT has provided a wonderful insight into the ebook market and gives a peek behind the covers behind one heck of a whirlwind year in a very exciting time in this space.

    Thank you for your insight and sharing
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  • I have to say, I am a little afraid of this conference. Last time I spoke here, there was a (#)
  • Massive economic collapse, the near-destruction of the world financial system, and complete loss consumer confidence.

  • This year, we are experiencing what can only be described as a (#)
  • mindbending reimagination of the ebook market and a complete rewriting of the business models by which ebooks are sold. Essentially, every time this conference takes place (#)
  • the wheels completely come off the bus.





  • and it&amp;#x2019;s also a love story
  • and yet, at the same time is also data-rich, which makes it (#- delicious *and* nutritious.
  • delicious *and* nutritious.
  • So we&amp;#x2019;re here at BNC Tech Forum 2010, or as I like to think of it, the (#
  • Gathering of Beautiful Nerds


  • And we&amp;#x2019;d better get cracking.








  • And that&amp;#x2019;s about 3 minutes per month or a compression ratio of (#)
  • Which is very efficient, but also
  • Highly loss-y, so I&amp;#x2019;m going to leave some stuff out.
    (This is the only stage you could be on in the book business where you can be guaranteed a laugh on a compression joke.)
  • So let&amp;#x2019;s get started


  • Kobo was born on Feb 27th, 2009, almost exactly one year ago. And it was conceived about 7 months earlier
  • Kobo was born on Feb 27th, 2009, almost exactly one year ago. And it was conceived about 7 months earlier
  • Indigo most of you know, had been looking at the ebook space
    - how would ebooks impact bricks and mortar
  • And that&amp;#x2019;s a fairly significant hit if you are a retailer. 10% would be like the worst recession in living memory, except that it would never get better. It would only get worse.
  • So they had a choice



  • And shortcovers was really founded to address that. And it had 4 core ideas, I&amp;#x2019;d say.



  • smartphones, laptops, desktops, existing devices








  • Our initial thinking: the opportunity looked like this.
  • But what customers very quickly told us was that it looked like this.
  • In the past year, our three bestselling books, read mostly on iPhones, blackberries, palm pre&amp;#x2019;s and android phones.



  • turns out that what people really want to read is sustained, long-form narrative fiction and nonfiction on portable devices.
  • And since the shortcovers initial model assumed this...




  • And that&amp;#x2019;s what we learned in Month 1. And this is kinda strategy 101 for sure, but let me tell you, there is nothing harder than looking at the strategy that you thought was a winner and realizing that you have to make a big change. It is terrifying.
  • And that&amp;#x2019;s what happened in April.


  • And that was mistake #2. Because it wasn&amp;#x2019;t just April. it was more like (#)
  • We spent the better part of 90 days rebuilding everything, adding in a whole bunch of new features, spending a lot of time on specifications, user experience, design, getting ready for a great big release.
  • it was a prolonged period of self-inflicted agony. We tried to do everything all at once. But in a lot of ways it was necessary. We were coming out of a large, enterprise-scale retailer. We had to leave all of that behind and really act like the startup we needed to be.
  • And these rules hold to this day.


  • Teams have a mix of User Experience, Development




  • and we do it across all of the platforms we support.
  • And the results have been dramatic. Insane. Everything about us is faster, feels faster. It was a huge lesson and we&amp;#x2019;re lucky we learned it early.
    And I know, you&amp;#x2019;re thinking -- hey, that was just one thing in 2.5 months. No fear -- we&amp;#x2019;ll catch up.
  • June was a big month for me.

  • Given the improbably long title of VP of Content, Sales &amp; Merchandising. And i learned the important lesson that you should always beware of long titles, because they mean extra work. Really the job has two parts:
  • One of the big parts of that role is: What do customers want?
    What books are they looking for? How do they want to find it? How much or how little will they pay for it? And this has started a discipline around user analytics that we have made a constant, almost obsessive practice.


  • This is units purchased from March 2009 - January 2010. And what we can clearly see is that...
  • But there are some interesting stories within this:
    eBooks, right now, are shockingly fiction-friendly:
    Most of our readers are on smartphones and eInk devices. A format that favours text-only content. ((Smartphones-&gt;small screens / eInk-&gt; black and white))
    We were surprised that mystery ranked lower until we realized that Mystery readers tend to skew somewhat older than other fiction genres, which probably handicaps their sales a bit.
  • Those illustrated categories have incredible room for growth. As we start to see devices that can handle full colour, we&amp;#x2019;ll
    These also tend to be the categories where we have the fewest titles to choose from. We are starting to sell PDFs for heavily illustrated works because we want to grow in this market.

  • So we can see that Monday is the doldrums of reading.
    Tuesday, on the other hand is much better because it&amp;#x2019;s New Release day. Most publishers drop their new releases on Tuesday and we promote them heavily, so we see a spike then.
    And then from Wednesday through to the weekend, we see a steady climb, with Sunday being the busiest day of the week, 40% higher on average than Monday.
  • (#) Lunch and then the drop through the afternoon
    (#) and then a steady rise once the commute home starts, Commute,
    (#) peaking right before bed
    It&amp;#x2019;s also fascinating to see that reading books is very definitely an afternoon activity.
    (#) Morning is all about current events, which is why we&amp;#x2019;re doing much more with newspapers.
  • (#) Lunch and then the drop through the afternoon
    (#) and then a steady rise once the commute home starts, Commute,
    (#) peaking right before bed
    It&amp;#x2019;s also fascinating to see that reading books is very definitely an afternoon activity.
    (#) Morning is all about current events, which is why we&amp;#x2019;re doing much more with newspapers.
  • (#) Lunch and then the drop through the afternoon
    (#) and then a steady rise once the commute home starts, Commute,
    (#) peaking right before bed
    It&amp;#x2019;s also fascinating to see that reading books is very definitely an afternoon activity.
    (#) Morning is all about current events, which is why we&amp;#x2019;re doing much more with newspapers.
  • (#) Lunch and then the drop through the afternoon
    (#) and then a steady rise once the commute home starts, Commute,
    (#) peaking right before bed
    It&amp;#x2019;s also fascinating to see that reading books is very definitely an afternoon activity.
    (#) Morning is all about current events, which is why we&amp;#x2019;re doing much more with newspapers.

  • Day 1 is way way up there. This is not a &amp;#x201C;First Week&amp;#x201D; business. It&amp;#x2019;s a &amp;#x201C;First Day&amp;#x201D; business.

  • This is 330 days long because that&amp;#x2019;s how much data we had when I pulled this report.
  • This is the barest tip of the iceberg in terms of the kinds of analysis we&amp;#x2019;re looking at. this is, without a doubt, the most data-rich retail environment I&amp;#x2019;ve ever seen.
  • We went out the door in March of 2009 on the iPhone with a reading model that was scrolling. First version didn&amp;#x2019;t have the page curl, swipe animation.
  • Nobody wants to scroll. Everybody wants paging. So we blasted a new rev out. And got it done. A year later...
  • ...
    the catch?
  • So it&amp;#x2019;s actually a dead-heat.
  • July was really the beginning of our ongoing obsession with

  • That&amp;#x2019;s when we began matching the $9.99 pricepoint in the US and $11.99 in Canada. And we actually waited a while before we did match that price point. It turned out that even before going to $9.99, our sales by price point looked something like this:
  • This was what our price distribution looked like before we started offering $9.99 pricing in the US.
  • To talk about How Much is really to talk about Price and Value of eBooks.

  • Both of which mean, quite reasonably...
  • So as a result, so far, the price that publishers have provided ebooks to retailers has been equal to the price of the print books. So when we get books from publishers, it looks something like this:
  • ...
    And to answer that, we first need to answer: (#)
  • Now at this point, I have to give a disclaimer
  • So these are the raw materials we get from publishers.
    (#) First formats (hardcovers) all north of $20
    (#) Trade paperbacks clustered around $14
    (#) Mass markets around $7
    (#) And old mass market, self-published works around $4
    But here&amp;#x2019;s the problem...
  • So these are the raw materials we get from publishers.
    (#) First formats (hardcovers) all north of $20
    (#) Trade paperbacks clustered around $14
    (#) Mass markets around $7
    (#) And old mass market, self-published works around $4
    But here&amp;#x2019;s the problem...
  • So these are the raw materials we get from publishers.
    (#) First formats (hardcovers) all north of $20
    (#) Trade paperbacks clustered around $14
    (#) Mass markets around $7
    (#) And old mass market, self-published works around $4
    But here&amp;#x2019;s the problem...
  • So these are the raw materials we get from publishers.
    (#) First formats (hardcovers) all north of $20
    (#) Trade paperbacks clustered around $14
    (#) Mass markets around $7
    (#) And old mass market, self-published works around $4
    But here&amp;#x2019;s the problem...
  • People will not buy $20 ebooks.
    And this is not for lack of trying. We have all kinds of books at every conceivable price point. But at the end of the day, we use the margin granted to us by publishers to turn (# - this
  • this...
  • Into this. Here is unit sales by price-point in US dollars.
    We see the (#) Mass Market Foothills,
    having first passed through
    (#) The Garden of the lovely, old, unique and weird &amp;#x2013; backlist mass market series, romance titles with a second life, stand-alone short stories, and beginner erotica, self-published accounts of alien abduction, and enthusiastic combinations of the two.
    from whence we ascend to $10 (#)
    The Pinnacle of Negative Margin. Although I hear rumors that in Seattle, the $10 pricepoint is known as (#) &amp;#x201C;The Hurt Locker&amp;#x201D;.
    And then you&amp;#x2019;ll notice that we do not descend, we plummet to (#)
    The Barren, Rocky Plain of Publisher Wishful Thinking, (**for print only...)
    where many a $25 undiscounted ebook lies undisturbed and perfectly preserved as a warning to ebook retailers who pass by.
  • Into this. Here is unit sales by price-point in US dollars.
    We see the (#) Mass Market Foothills,
    having first passed through
    (#) The Garden of the lovely, old, unique and weird &amp;#x2013; backlist mass market series, romance titles with a second life, stand-alone short stories, and beginner erotica, self-published accounts of alien abduction, and enthusiastic combinations of the two.
    from whence we ascend to $10 (#)
    The Pinnacle of Negative Margin. Although I hear rumors that in Seattle, the $10 pricepoint is known as (#) &amp;#x201C;The Hurt Locker&amp;#x201D;.
    And then you&amp;#x2019;ll notice that we do not descend, we plummet to (#)
    The Barren, Rocky Plain of Publisher Wishful Thinking, (**for print only...)
    where many a $25 undiscounted ebook lies undisturbed and perfectly preserved as a warning to ebook retailers who pass by.
  • Into this. Here is unit sales by price-point in US dollars.
    We see the (#) Mass Market Foothills,
    having first passed through
    (#) The Garden of the lovely, old, unique and weird &amp;#x2013; backlist mass market series, romance titles with a second life, stand-alone short stories, and beginner erotica, self-published accounts of alien abduction, and enthusiastic combinations of the two.
    from whence we ascend to $10 (#)
    The Pinnacle of Negative Margin. Although I hear rumors that in Seattle, the $10 pricepoint is known as (#) &amp;#x201C;The Hurt Locker&amp;#x201D;.
    And then you&amp;#x2019;ll notice that we do not descend, we plummet to (#)
    The Barren, Rocky Plain of Publisher Wishful Thinking, (**for print only...)
    where many a $25 undiscounted ebook lies undisturbed and perfectly preserved as a warning to ebook retailers who pass by.
  • Into this. Here is unit sales by price-point in US dollars.
    We see the (#) Mass Market Foothills,
    having first passed through
    (#) The Garden of the lovely, old, unique and weird &amp;#x2013; backlist mass market series, romance titles with a second life, stand-alone short stories, and beginner erotica, self-published accounts of alien abduction, and enthusiastic combinations of the two.
    from whence we ascend to $10 (#)
    The Pinnacle of Negative Margin. Although I hear rumors that in Seattle, the $10 pricepoint is known as (#) &amp;#x201C;The Hurt Locker&amp;#x201D;.
    And then you&amp;#x2019;ll notice that we do not descend, we plummet to (#)
    The Barren, Rocky Plain of Publisher Wishful Thinking, (**for print only...)
    where many a $25 undiscounted ebook lies undisturbed and perfectly preserved as a warning to ebook retailers who pass by.
  • Into this. Here is unit sales by price-point in US dollars.
    We see the (#) Mass Market Foothills,
    having first passed through
    (#) The Garden of the lovely, old, unique and weird &amp;#x2013; backlist mass market series, romance titles with a second life, stand-alone short stories, and beginner erotica, self-published accounts of alien abduction, and enthusiastic combinations of the two.
    from whence we ascend to $10 (#)
    The Pinnacle of Negative Margin. Although I hear rumors that in Seattle, the $10 pricepoint is known as (#) &amp;#x201C;The Hurt Locker&amp;#x201D;.
    And then you&amp;#x2019;ll notice that we do not descend, we plummet to (#)
    The Barren, Rocky Plain of Publisher Wishful Thinking, (**for print only...)
    where many a $25 undiscounted ebook lies undisturbed and perfectly preserved as a warning to ebook retailers who pass by.
  • Into this. Here is unit sales by price-point in US dollars.
    We see the (#) Mass Market Foothills,
    having first passed through
    (#) The Garden of the lovely, old, unique and weird &amp;#x2013; backlist mass market series, romance titles with a second life, stand-alone short stories, and beginner erotica, self-published accounts of alien abduction, and enthusiastic combinations of the two.
    from whence we ascend to $10 (#)
    The Pinnacle of Negative Margin. Although I hear rumors that in Seattle, the $10 pricepoint is known as (#) &amp;#x201C;The Hurt Locker&amp;#x201D;.
    And then you&amp;#x2019;ll notice that we do not descend, we plummet to (#)
    The Barren, Rocky Plain of Publisher Wishful Thinking, (**for print only...)
    where many a $25 undiscounted ebook lies undisturbed and perfectly preserved as a warning to ebook retailers who pass by.
  • Into this. Here is unit sales by price-point in US dollars.
    We see the (#) Mass Market Foothills,
    having first passed through
    (#) The Garden of the lovely, old, unique and weird &amp;#x2013; backlist mass market series, romance titles with a second life, stand-alone short stories, and beginner erotica, self-published accounts of alien abduction, and enthusiastic combinations of the two.
    from whence we ascend to $10 (#)
    The Pinnacle of Negative Margin. Although I hear rumors that in Seattle, the $10 pricepoint is known as (#) &amp;#x201C;The Hurt Locker&amp;#x201D;.
    And then you&amp;#x2019;ll notice that we do not descend, we plummet to (#)
    The Barren, Rocky Plain of Publisher Wishful Thinking, (**for print only...)
    where many a $25 undiscounted ebook lies undisturbed and perfectly preserved as a warning to ebook retailers who pass by.
  • Into this. Here is unit sales by price-point in US dollars.
    We see the (#) Mass Market Foothills,
    having first passed through
    (#) The Garden of the lovely, old, unique and weird &amp;#x2013; backlist mass market series, romance titles with a second life, stand-alone short stories, and beginner erotica, self-published accounts of alien abduction, and enthusiastic combinations of the two.
    from whence we ascend to $10 (#)
    The Pinnacle of Negative Margin. Although I hear rumors that in Seattle, the $10 pricepoint is known as (#) &amp;#x201C;The Hurt Locker&amp;#x201D;.
    And then you&amp;#x2019;ll notice that we do not descend, we plummet to (#)
    The Barren, Rocky Plain of Publisher Wishful Thinking, (**for print only...)
    where many a $25 undiscounted ebook lies undisturbed and perfectly preserved as a warning to ebook retailers who pass by.
  • Now there are a couple of interesting things here.
    Certainly the (#) $9.99 pricepoint is the single pricepoint at which we sell the most units.
    But we sell far more at (#) less than $9.99. The current ebook consumer is definitely a price-conscious one.
    And you&amp;#x2019;ll notice that if you add them all up, it&amp;#x2019;s not that we don&amp;#x2019;t sell *any* books north of 10. We also sell almost as many books at greater than $9.99 than we do at $9.99, we just don&amp;#x2019;t sell very many at any given price point.
  • Now there are a couple of interesting things here.
    Certainly the (#) $9.99 pricepoint is the single pricepoint at which we sell the most units.
    But we sell far more at (#) less than $9.99. The current ebook consumer is definitely a price-conscious one.
    And you&amp;#x2019;ll notice that if you add them all up, it&amp;#x2019;s not that we don&amp;#x2019;t sell *any* books north of 10. We also sell almost as many books at greater than $9.99 than we do at $9.99, we just don&amp;#x2019;t sell very many at any given price point.
  • Now there are a couple of interesting things here.
    Certainly the (#) $9.99 pricepoint is the single pricepoint at which we sell the most units.
    But we sell far more at (#) less than $9.99. The current ebook consumer is definitely a price-conscious one.
    And you&amp;#x2019;ll notice that if you add them all up, it&amp;#x2019;s not that we don&amp;#x2019;t sell *any* books north of 10. We also sell almost as many books at greater than $9.99 than we do at $9.99, we just don&amp;#x2019;t sell very many at any given price point.

  • The source of all the publisher consternation is that so many of these $9.99 ebooks
  • used to be those $20 first formats and hardcovers.
  • It turns out that the average price of a book sold at Kobo, weighted for volume, is $8.76.
  • That&amp;#x2019;s the trade number, excluding textbooks &amp; STM.
    And this is not to say that we don&amp;#x2019;t think there is some room to maneuver here. There definitely is.
    $10 is an artifact of pricing driven by retail competition. The only problem is that we don&amp;#x2019;t see a lot of consumers going there right now?
  • So the real questions of the moment are: &amp;#x201C;How much higher could we go?&amp;#x201D;
  • and this gets to the core of &amp;#x201C;What&amp;#x2019;s an ebook worth?&amp;#x201D;




  • This one we&amp;#x2019;ve actually done some research on. We ran focus groups in the U.S. where we asked potential ebook customers to rank the following benefits of ebooks.

  • Now to be clear, they unequivocally said ebooks needed to be cheaper than print books. But they didn&amp;#x2019;t say that price was their only reason for buying.


  • The average sale price of a print book in the US is about:
  • The average price of a print book purchase in the U.S. is just over $14. And it turns out if you ask people why they&apos;re willing to pay $14 or 15 dollars for a paper book but rarely willing to pay more than $10 for an ebook, even though they aren&apos;t industry insiders or people working for publishing or economists, they can generally give you a pretty good breakdown of (#)




















  • Imagine you are at your local bookstore.
  • You want to buy a copy of The House at Pooh Corner for your niece.
  • And the person at the counter says. &amp;#x201C;That will be $14.15...













  • And this one is going to come back to us later one.
  • And this one is going to come back to us later one.
  • And this one is going to come back to us later one.
  • So now we have a great development process, a good handle on the customer and what they&amp;#x2019;re looking for, competitive pricing and a sense of how they value ebooks.
  • We&amp;#x2019;re building new versions of our applications with great new features to keep pace with the competition. And we&amp;#x2019;re in the process of spinning ourselves out from Indigo into a separate company. Which means it&amp;#x2019;s (#)
  • ...
    Meeting with Venture Capital and private equity funds, institutional investors and potential retail partners. Which is excellent, except that even though we&amp;#x2019;re building great new apps for iPhone and Blackberry and Palm Pre.
  • The new iPhone app isn&amp;#x2019;t getting approved. It was submitted to the App Store. Weeks ago. But something&amp;#x2019;s holding up its approval and we can&amp;#x2019;t find out what. And all the most recent great features we&amp;#x2019;re building aren&amp;#x2019;t getting into the hands of customers. At which point, we learn this month&amp;#x2019;s harsh lesson... (#)





  • Now do *not* get me wrong. (#) We (#) love the # App Store. But we were certainly glad that during the (#)
  • Now do *not* get me wrong. (#) We (#) love the # App Store. But we were certainly glad that during the (#)
  • Now do *not* get me wrong. (#) We (#) love the # App Store. But we were certainly glad that during the (#)
  • that our app was stuck in approval purgatory
  • that we were still able to release new versions of our other apps for Blackberry, Palm and Android. And even though we have never had a delay that bad since. (We&amp;#x2019;ve had apps approved in 24-48 hours in the last few months.) it also reinforced for us the importance of
  • and never being dependent on any single platform or channel for our sales or the majority of our customers.

  • That idea of multiple platforms is important to us as a retailer, but it should be just as important to consumers. It was something that we were thinking a lot about through the summer of last year. And it came down to this question:
  • We boiled it down to a pretty basic set of princples that we&amp;#x2019;ve been following ever since:
  • Lets go back to our copy of The House at Pooh Corner (# - and it&amp;#x2019;s license)







  • So basically, imagine that you have to live with the
  • Ikea bookcases that you bought from Ikea when you were in university for the rest of your life. You can (#- upgrade
  • You can upgrade, when they bring out a new version,
  • move from birch veneer to medium brown, add some more storage space and extra shelves. But only Ikea. Forever.


  • ((explain))
    Because if there is one thing we can be sure of...

  • At some point you may want to move from this to
  • this
  • or this
  • or this
  • or this.



  • And the great thing is that we&amp;#x2019;re attracting customers because of that value proposition.


  • of our purchases are read on our various smartphone platforms or the web.
  • are read on other devices that we support
  • By November one of the things we&amp;#x2019;re starting to get a very clear picture of is what makes a great digital publisher.
  • Certainly not the only things, but these are ones that really jump out.
  • Unlike print books, there isn&amp;#x2019;t a sales cycle per se for ebooks. We don&amp;#x2019;t have reps coming in to sell us via a catalog. Bizarrely, we&amp;#x2019;re usually having to figure out what books are available by inference or through working with print siblings. It&amp;#x2019;s amazing how few publishers make an ongoing effort at giving our merchandisers a heads-up on upcoming ebook product.
  • This humble little document is the Random House ebooks email. It isn&amp;#x2019;t a lot, but it&amp;#x2019;s close to the best bit of timely guidance we get from a publisher about upcoming ebooks. Lots of publishers give us files and nothing at all.
  • Descriptions, full and comprehensive territorial rights, accurate pricing. All of this is absolutely critical for ebook sales.
  • We run a full-time QA department to check for everything from bizarro formatting to missing chapters. Publishers who do this well tend to have
  • We can tell when you&amp;#x2019;ve cut corners and built the ePUB from the Word file or the pre-galley InDesign file. We can tell and so can our customers. And similarly, we can see those files that have been put together by someone who cares as much about the digital file as the print edition. It shows.
  • Some publishers look at ebooks as a risk to be managed. Others look at it as a place to experiment, try things out, and share ideas. We love those ones.

  • And that really manifested itself in 4 ways...
  • First, on December 15th
  • Closed a $16M round of funding. (Although it&amp;#x2019;s safe to say that&amp;#x2019;s a gift with a fairly large number of strings attached.)
  • After looking at a lot of different investors, selected based on those who were going to...
    ((scale, customer reach, access to new markets, local market knowledge, access to a large base of people who actually like to read))

  • The same day, we gave ourselves a new name (#)
  • And changed from Shortcovers, which really didn&amp;#x2019;t fit for a number of reasons (#) to Kobo, which is...
  • And changed from Shortcovers, which really didn&amp;#x2019;t fit for a number of reasons (#) to Kobo, which is...



  • ...
    But most importantly,...(#)
  • ...
    But most importantly,...(#)

  • Just the day before (#)







  • A lightweight, structured syndication format for catalog listings based on Atom and HTTP.
  • ...
    For one thing, it tells us that the most powerful author in ebooks is, in fact...(#)
  • Jane Austen. It&amp;#x2019;s true. In ebook-land,
  • Jane Austen beat (#) Stephenie Meyer just about any day of the week.
  • The top 5 free titles are...
    (#) pride and prejudice by Jane Austen
    # Dracula by Bram Stoker
    # Louisa May Alcott&amp;#x2019;s Little Women
    # Charles Dickens&amp;#x2019; A Tale of Two Cities
    # Leo Tolstoy&amp;#x2019;s Anna Karenina
  • The top 5 free titles are...
    (#) pride and prejudice by Jane Austen
    # Dracula by Bram Stoker
    # Louisa May Alcott&amp;#x2019;s Little Women
    # Charles Dickens&amp;#x2019; A Tale of Two Cities
    # Leo Tolstoy&amp;#x2019;s Anna Karenina
  • The top 5 free titles are...
    (#) pride and prejudice by Jane Austen
    # Dracula by Bram Stoker
    # Louisa May Alcott&amp;#x2019;s Little Women
    # Charles Dickens&amp;#x2019; A Tale of Two Cities
    # Leo Tolstoy&amp;#x2019;s Anna Karenina
  • The top 5 free titles are...
    (#) pride and prejudice by Jane Austen
    # Dracula by Bram Stoker
    # Louisa May Alcott&amp;#x2019;s Little Women
    # Charles Dickens&amp;#x2019; A Tale of Two Cities
    # Leo Tolstoy&amp;#x2019;s Anna Karenina
  • The top 5 free titles are...
    (#) pride and prejudice by Jane Austen
    # Dracula by Bram Stoker
    # Louisa May Alcott&amp;#x2019;s Little Women
    # Charles Dickens&amp;#x2019; A Tale of Two Cities
    # Leo Tolstoy&amp;#x2019;s Anna Karenina
  • This is a graph of people who are both ebook *purchasers* and free content consumers. Most ebook buyers read (or at least start) at least 1 free book first. We see them in a few distinct groups.
    # eBook training wheels
    # I heart Jane Austen (and the Brontes and maybe a little tolstoy)
    # But way at the other end we have these interesting guys we call (#) the Freegans. Most of what they read is free. They actively seek it.
  • This is a graph of people who are both ebook *purchasers* and free content consumers. Most ebook buyers read (or at least start) at least 1 free book first. We see them in a few distinct groups.
    # eBook training wheels
    # I heart Jane Austen (and the Brontes and maybe a little tolstoy)
    # But way at the other end we have these interesting guys we call (#) the Freegans. Most of what they read is free. They actively seek it.
  • # But way at the other end we have these interesting guys we call (#) the Freegans. Most of what they read is free. They actively seek it. They look for new good free stuff. And we&amp;#x2019;re doing more interesting stuff on the marketing and promotional side specifically for free-content consumers.
  • The other side benefit is that it&amp;#x2019;s given us experience with technology that has come in very handy elsewhere.
  • The same OPDS formats that we use to pull free content, we&amp;#x2019;re also using to push our catalog to Indigo, Borders, and REDgroup.
  • And last, in the month of giving, we also got a sense of what holidays look like in the ebook world. And this we really weren&amp;#x2019;t sure about. eBooks by nature are not especially giftable, so we were very interested to see what would happen as we got closer to December 25th.


  • ... and basically buy them as soon as they unwrap them.
  • ...was pretty much in line with the rest of the month.
  • Christmas Day and Boxing Day went nuts.
  • So we expect that to get even crazier this year.

  • The other reason that we needed a change from the name Shortcovers is that we needed a name that was language-neutral and worked well in other languages. Since we started (#)


  • ((born in Canada, embedded in our DNA))




  • We finally got to meet the unicorn.
  • Apple finally announced the iPad
    and that in itself is fine.
  • Remember back to our earlier question?
  • ...
    Which brings us to...

  • Agency.
    Now to be clear, all of the agency agreements are confidential. But the general gist is: (#)




  • What it really proposes is to take the sales of new releases that are happening (#- here
  • Here
    and redistribute them
    (#) here, her, and here.
    But it&amp;#x2019;s a double-edged sword. It gets rid of the (#) pesky $9.99 pricepoint
  • Here
    and redistribute them
    (#) here, her, and here.
    But it&amp;#x2019;s a double-edged sword. It gets rid of the (#) pesky $9.99 pricepoint


  • ...
    (#) And not a little bit less. That&amp;#x2019;s a fair bit less.
  • What if the consumer won&amp;#x2019;t follow you there?

  • From here (#) to there.
  • From here (#) to there.
  • From here (#) to there.
  • From here (#) to there.
  • Now I am (thankfully) not a media historian, but I *think* it&amp;#x2019;s the first time a media industry has ever raised the price across the board on an existing format.






  • It all starts April 1st.
  • But soon to be known as

  • There is definitely upside for us in terms of margin, competing on price, but it will definitely come at a cost.




  • And that brings us back to March. And just because we didn&amp;#x2019;t want to kick back and relax while renegotiating our largest ebook publisher agreements.
  • We decided to stir the pot a little bit. Yes, we are releasing a dedicated eReader. But it&amp;#x2019;s really two things at once.
  • First, its the first implementation of the Kobo eReader application. We&amp;#x2019;re going to be using this on our own device, but we are also going to be making it available to other device manufacturers who want to embed a great reading and buying experience on new hardware.



  • so depending on the device being brought to market, it can be as connected as you want.
  • And then there is the device itself.
  • And we&amp;#x2019;ve been asked a few times &amp;#x201C;why get into the device business at all?&amp;#x201D;. The first reason is to showcase the eReading platform we talked about before. But there is another reason too.
  • the ereader market so far has been focused in two places.
  • A premium market with a focus on high price-points and a fight on functionality.
  • And others that were lower cost, but basically hideous.
  • What we wanted to know was:
  • Where was the ereader for everyone? The ereader for people who love books more than technology? For people that aren&amp;#x2019;t willing to drop $200 for a device?
  • Affordable enough that you didn&amp;#x2019;t feel like you had to take out insurance.
  • Beautiful and tactile so you don&amp;#x2019;t have to feel like you&amp;#x2019;re making an aesthetic compromise.





  • or on our new iPad app
  • that we&amp;#x2019;re submitting in the next few days...
  • that we&amp;#x2019;re submitting in the next few days.


  • I have to say, I am a little afraid of this conference. Last time I spoke here, there was a (#)
  • Transcript of "12 Months of Learning about eBooks in 40 minutes"

    1. 1. crazy sh*t happens
    2. 2. 12 months of learnings about ebooks in 40 minutes
    3. 3. (a love story)
    4. 4. (and data-rich)
    5. 5. (delicious & nutritious)
    6. 6. #bnc10
    7. 7. #gatheringofbeautifulnerds
    8. 8. Michael Tamblyn @mtamblyn
    9. 9. #kobo
    10. 10. 40 minutes
    11. 11. 12 things we’ve learned
    12. 12. 2 early mistakes
    13. 13. and how we fixed them
    14. 14. what we learned
    15. 15. about selling ebooks
    16. 16. about the ebook reader
    17. 17. devices
    18. 18. apps
    19. 19. in the past 12 months
    20. 20. 175,200 : 1
    21. 21. highly loss-y
    22. 22. 00:03
    23. 23. marchaprilmayjune julyaugustseptember octobernovember decemberjanuary februarymarch
    24. 24. (happy birthday)
    25. 25. February 27th, 2009
    26. 26. September 2009
    27. 27. Estimate: Lose 5-10% of print sales to ebooks in 5 years
    28. 28. Choice:
    29. 29. a) Let someone else take 5-10% of Indigo’s sales.
    30. 30. b) Enter the ereading market and take it ourselves.
    31. 31. Strategy: Build Your Own Competition
    32. 32. People are pressed for time.
    33. 33. Available time is fragmented.
    34. 34. Therefore...
    35. 35. Offer a reading experience that works with devices they already have...
    36. 36. ...with a mix of long and short content.
    37. 37. 3 out of 4 were true.
    38. 38. Pressed for time Time is fragmented Devices they already own Long and short content
    39. 39. ✔ Pressed for time Time is fragmented Devices they already own Long and short content
    40. 40. ✔ Pressed for time ✔ Time is fragmented Devices they already own Long and short content
    41. 41. ✔ Pressed for time ✔ Time is fragmented ✔ Devices they already own Long and short content
    42. 42. ✔ Pressed for time ✔ Time is fragmented ✔ Devices they already own ✖ Long and short content
    43. 43. ✔ Pressed for time ✔ Time is fragmented ✔ Devices they already own ✖ Long and short content
    44. 44. Mistake #1
    45. 45. eBooks chapters short stories articles blogs magazines newspapers
    46. 46. eBooks chapters short stories articles blogs magazines newspapers
    47. 47. Long form reading is alive and well on mobile devices.
    48. 48. 756 pages
    49. 49. 756 pages 1074 pages
    50. 50. 756 pages 1074 pages 528 pages
    51. 51. eBooks chapters short stories articles blogs magazines newspapers
    52. 52. ...we had changes to make.
    53. 53. Focus on ebooks. Fast.
    54. 54. And we did.
    55. 55. (Make mistakes, adjust, move on. As fast as humanly possible.)
    56. 56. marchaprilmayjune julyaugustseptember octobernovember decemberjanuary februarymarch
    57. 57. Massive software rebuild.
    58. 58. Optimized for ebooks.
    59. 59. Mistake #2
    60. 60. marchaprilmayjune julyaugustseptember octobernovember decemberjanuary februarymarch
    61. 61. Too long.
    62. 62. New Rules:
    63. 63. Release early, release often.
    64. 64. Small, cross-functional development teams.
    65. 65. Mix: UX, Dev, QA
    66. 66. Agile Development Process
    67. 67. Lightweight specifications
    68. 68. Release-ready software every two weeks
    69. 69. New releases every 4 weeks
    70. 70. Web iPhone Blackberry Palm Pre Android Core/Infrastructure Content Processing
    71. 71. Release early, release often.
    72. 72. marchaprilmayjune julyaugustseptember octobernovember decemberjanuary februarymarch
    73. 73. I joined Kobo.
    74. 74. Content, Sales & Merchandising
    75. 75. What do customers want?
    76. 76. What do they read?
    77. 77. Escape first, information second.
    78. 78. Fiction dominates for now (smartphones and eInk favour text)
    79. 79. Illustration-heavy categories with illustrated works are handicapped, but not for long...
    80. 80. When do they read?
    81. 81. Average Purchases by Day Mon Tues Wed Thurs Fri Sat Sun
    82. 82. Sales consistent through day and evening
    83. 83. Sales consistent through day and evening Lunchtime
    84. 84. Sales consistent through day and evening Lunchtime Commute
    85. 85. Sales consistent through day and evening Lunchtime Commute Before bed
    86. 86. Sales consistent through day and evening Newspapers Lunchtime Commute Before bed
    87. 87. This is a new release market.
    88. 88. New releases sell well… 19
    89. 89. unless the ebook release is delayed.
    90. 90. Sales impact of windowing. 20
    91. 91. (Obsessive customer analysis)
    92. 92. Paging vs. scrolling
    93. 93. We got ripped.
    94. 94. Scrolling vs. Paging 25% scrolling 75% paging
    95. 95. Scrolled pages are 4x as long.
    96. 96. marchaprilmayjune julyaugustseptember octobernovember decemberjanuary februarymarch
    97. 97. Price.
    98. 98. $9.99
    99. 99. $10
    100. 100. Price and Value
    101. 101. “Defend the price of hardcovers”
    102. 102. “Preserving the perceived value of the book.”
    103. 103. ebook price = print price
    104. 104. What do readers think an ebook is worth?
    105. 105. Warning: this next section of slides has been presented at a previous conference, but the presenter really likes them and hopes you will too. Frequent publishing conference-goers may experience deja-vu, ennui, or a desire to check email. Snarky twitter comments may begin now.
    106. 106. Publisher-Provided List Price (Trade)
    107. 107. Publisher-Provided List Price (Trade) First formats
    108. 108. Publisher-Provided List Price (Trade) Trade First paper formats
    109. 109. Publisher-Provided List Price (Trade) Mass Trade First market paper formats
    110. 110. Publisher-Provided List Price (Trade) “Old Mass, Mass Trade First Self pub” market paper formats
    111. 111. People will not buy $20 trade ebooks.
    112. 112. Publisher-Provided List Price (Trade) “Old Mass, Mass Trade First Self pub” market paper formats
    113. 113. Unit Sales by Price Point (Trade, in USD) Unit sales by price-point
    114. 114. Unit Sales by Price Point (Trade, in USD) The Mass Market Foothills Unit sales by price-point
    115. 115. Unit Sales by Price Point (Trade, in USD) The Mass Market Foothills Unit sales by price-point The Garden of the Lovely, Old, Unique and Weird
    116. 116. Unit Sales by Price Point (Trade, in USD) The Pinnacle of The Mass Negative Market Margin Foothills Unit sales by price-point The Garden of the Lovely, Old, Unique and Weird
    117. 117. Unit Sales by Price Point (Trade, in USD) The Mass “The Hurt Market Locker” Foothills Unit sales by price-point The Garden of the Lovely, Old, Unique and Weird
    118. 118. Unit Sales by Price Point (Trade, in USD) The Mass “The Hurt Market Locker” Foothills The Barren, Unit sales by price-point The Garden Rocky Plain of of the Lovely, Publisher Old, Unique Wishful and Weird Thinking
    119. 119. Unit Sales by Price Point (Trade, in USD) The Mass “The Hurt Market Locker” Foothills Unit sales by price-point The Garden of the Lovely, **For print Old, Unique only** and Weird
    120. 120. Unit Sales by Price Point (Trade, in USD) Unit sales by price-point
    121. 121. Unit Sales by Price Point (Trade, in USD) $9.99 Unit sales by price-point
    122. 122. Unit Sales by Price Point (Trade, in USD) $9.99 <$9.99 Unit sales by price-point
    123. 123. Unit Sales by Price Point (Trade, in USD) $9.99 <$9.99 +$9.99 Unit sales by price-point
    124. 124. razor thin margins a lot of scale multiple markets
    125. 125. Unit Sales by Price Point (Trade, in USD) $9.99 Unit sales by price-point
    126. 126. Publisher-Provided List Price (Trade) First formats
    127. 127. $8.76*
    128. 128. $8.76* *excluding textbooks/STM
    129. 129. “Could prices be higher?”
    130. 130. 2 schools of thought
    131. 131. #1 Consumers would pay more, we’ve just never asked them to.
    132. 132. #2 eBooks have both lower cost and limitations on their use. Therefore ebooks should be much cheaper than paper.
    133. 133. Both are true.
    134. 134. Which one is more true?
    135. 135. #1 Consumers would pay more, we’ve just never asked them to.
    136. 136. Instant. Can buy whenever, wherever. Cost savings vs. print. Convenience - easier to carry. Not tied to a particular device. Read on mobile devices/smartphones. Read offline (don’t need an internet connection.) Highlight/annotate.
    137. 137. 1. Instant. Can buy whenever, wherever. 2. Convenience - easier to carry. 3. Not tied to a particular device. 4. Read on smartphones/mobile devices. 5. Cost savings vs. print. 6. Read offline (don’t need an internet connection.) 7. Highlight/annotate.
    138. 138. Suggests there is some room to move price. (Just not much.)
    139. 139. #2 eBooks have both lower cost and limitations on their use. Therefore ebooks should be cheaper.
    140. 140. Also true.
    141. 141. ~$14.15
    142. 142. what’s missing
    143. 143. eBook $9.99
    144. 144. mysterious print premium $4.16 eBook $9.99
    145. 145. mysterious print premium $4.16 eBook $9.99
    146. 146. eBook $9.99
    147. 147. Can’t lend it. Can’t share it with family. eBook $9.99
    148. 148. Can’t lend it. Can’t share it with family. May be tied to a device. eBook $9.99
    149. 149. Can’t lend it. Can’t share it with family. May be tied to a device. May be tied to a retailer. eBook $9.99
    150. 150. Can’t lend it. Can’t share it with family. May be tied to a device. May be tied to a retailer. Proprietary DRM. eBook $9.99
    151. 151. Can’t lend it. Can’t share it with family. May be tied to a device. May be tied to a retailer. Proprietary DRM. Lacks the permanence of eBook paper. $9.99
    152. 152. “That will be $14.15...
    153. 153. ...and I need you to sign this license.”
    154. 154. “It says...
    155. 155. These terms apply to all users of the Service, whether or not you are a Registered User. A. You shall use the Service for lawful purposes only. you shall not post or transmit through the Service any material that (i) violates or infringes in any way upon the rights of others, (ii) is unlawful, threatening, abusive, defamatory, invasive of privacy or publicity rights, vulgar, obscene, profane or otherwise objectionable, or (iii) encourages conduct that would constitute a criminal offense, gives rise to civil liability or otherwise violate any law. Without Kobo's express prior approval, you shall not post or transmit through the Service any material that contains advertising or any solicitation with respect to products or services. You shall not use the Service to advertise or perform any commercial solicitation, including, without limitation, the solicitation of users to become subscribers of other on-line information services. Any conduct by you that in Kobo's discretion restricts or inhibits any other user from using or enjoying the Service will not be permitted. B. All content on the Service, including but not limited to designs, text, graphics, pictures, video, information, applications, software, music, sound and other files, and their selection and arrangement ("Site Content"), save and except for any literary works are the proprietary property of Kobo or its licensors with all rights reserved. No Site Content may be modified, copied, distributed, framed, reproduced, republished, downloaded, displayed, posted, transmitted, or sold in any form or by any means, in whole or in part, without Kobo's prior written permission. Provided that you are eligible for use of the Service and subject to these Terms of Use, you are granted a limited license to access the Service and the Site Content and to download or print a copy of any portion of the Site Content to which you have properly gained access solely for your personal, non- commercial use, provided that you keep all copyright and other proprietary notices intact. You may not upload or republish Site Content on any Internet, Intranet or Extranet site or incorporate the information in any other database or compilation, and any other use of the Site Content is strictly prohibited. The foregoing license is subject to these Terms of Use and does not include use of any data mining, robots or similar data gathering or extraction methods. Any use of the Service or the Site Content other than as specifically authorized herein, without the prior written permission of Kobo, is strictly prohibited and will terminate the license granted herein. Such unauthorized use may also violate applicable laws including without limitation copyright and trade-mark laws and applicable communications regulations and statutes. Unless explicitly stated herein, nothing in these terms and conditions shall be construed as conferring any license to intellectual property rights, whether by estoppel, implication or otherwise. This license is revocable by Kobo at any time without notice and with or without cause. C. You shall not upload, post or otherwise make available on the Service any material protected by copyright, trademark or other proprietary right without the express permission of the owner of the copyright, trademark or other proprietary right and the burden of determining that any material is not protected by copyright rests with you. You shall be solely liable for any damage resulting from any infringement of copyrights, proprietary rights, or any other harm resulting from such a submission. By submitting material to any public area of the Service, you automatically grant, or warrant that the owner of such material has expressly granted Kobo the royalty-free, worldwide, perpetual, irrevocable, non-exclusive right and license to use, reproduce, modify, adapt, publish, display, translate and distribute such material (in whole or in part) and/or to incorporate it in other works in any form, media or technology now known or hereafter developed. You also permit any other user of the Service to access, view, store or reproduce the material for that user's personal use. You grant Kobo the right to
    156. 156. literary works provided to Kobo for sale on the Service by a publisher or other content provider. D. You may not obscure or misrepresent your geographical location, forge headers, use proxies, use IP spoofing or otherwise manipulate identifiers in order to disguise the origin of any message or transmittal you send on or through the Service. You may not pretend that you are, or that you represent, someone else, or impersonate any other individual or entity. E. You are prohibited from violating or attempting to violate the security of the Service, including, without limitation: (a) accessing data not intended for you, including logging into a server or account which you not authorized to access; (b) attempting to probe, scan or test the vulnerability of a system or network to breach security or authentication measures without proper authorization; (c) using any "deep-link", "page-scrape", "robot", "spider" or other automatic device, program, algorithm or methodology, or any similar or equivalent manual process, to access, acquire, copy or monitor any portion of the Service or any Site Content, or in any way reproduce or circumvent the navigational structure or presentation of the Service or any Site Content, to obtain or attempt to obtain any materials, documents or information through any means not purposely made available through the Site; (d) taking any action that imposes an unreasonable or disproportionately large load on the infrastructure of the Service or Kobo's systems or networks, or any systems or networks connected to the Service or to Kobo' (e) conducting a reverse look-up, tracing or seeking to trace any information on any other user, Registered User or visitor to the Service, or any other customer of Kobo, to its source, or exploit the Service or any service or information made available or offered by or through the Service, in any way where the purpose is to reveal any information, including but not limited to personal identification or information, other than your own information, as provided for by the Service; (f) attempting to interfere with, disrupt or disable service to any user, host or network, including, without limitation, via means of "denial of service" attacks, overloading, "flooding", "mailbombing" or "crashing"; (g) forging any TCP/IP packet header or any part of the header information in any e-mail or newsgroup posting; (h) disrupt network nodes or network services or otherwise restrict, inhibit, disrupt or impede Kobo's ability to monitor or make available the Service; or (i) taking any action in order to obtain services to which you are not entitled. Violations of system or network security may result in civil or criminal liability. Kobo will investigate occurrences which may involve such violations and may involve, and cooperate with, law enforcement authorities in prosecuting any user (whether o not a Registered User) who is involved in such violations.
    157. 157. edit, copy, display, publish and distribute any material made available on the Service by you. The foregoing does not apply to literary works provided to Kobo for sale on the Service by a publisher or other content provider. D. You may not obscure or misrepresent your geographical location, forge headers, use proxies, use IP spoofing or otherwise manipulate identifiers in order to disguise the origin of any message or transmittal you send on or through the Service. You may not pretend that you are, or that you represent, someone else, or impersonate any other individual or entity. E. You are prohibited from violating or attempting to violate the security of the Service, including, without limitation: (a) accessing data not intended for you, including logging into a server or account which you not authorized to access; (b) attempting to probe, scan or test the vulnerability of a system or network to breach security or authentication measures without proper authorization; (c) using any "deep-link", "page-scrape", "robot", "spider" or other automatic device, program, algorithm or methodology, or any similar or equivalent manual process, to access, acquire, copy or monitor any portion of the Service or any Site Content, or in any way reproduce or circumvent the navigational structure or presentation of the Service or any Site Content, to obtain or attempt to obtain any materials, documents or information through any means not purposely made available through the Site; (d) taking any action that imposes an unreasonable or disproportionately large load on the infrastructure of the Service or Kobo's systems or networks, or any systems or networks connected to the Service or to Kobo' (e) conducting a reverse look-up, tracing or seeking to trace any information on any other user, Registered User or visitor to the Service, or any other customer of Kobo, to its source, or exploit the Service or any service or information made available or offered by or through the Service, in any way where the purpose is to reveal any information, including but not limited to personal identification or information, other than your own information, as provided for by the Service; (f) attempting to interfere with, disrupt or disable service to any user, host or network, including, without limitation, via means of "denial of service" attacks, overloading, "flooding", "mailbombing" or "crashing"; (g) forging any TCP/IP packet header or any part of the header information in any e-mail or newsgroup posting; (h) disrupt network nodes or network services or otherwise restrict, inhibit, disrupt or impede Kobo's ability to monitor or make available the Service; or (i) taking any action in order to obtain services to which you are not entitled. Violations of system or network security may result in civil or criminal liability. Kobo will investigate occurrences which may involve such violations and may involve, and cooperate with, law enforcement authorities in prosecuting any user (whether or
    158. 158. “...only you can read it...”
    159. 159. “You cannot lend it.”
    160. 160. “Or sell it used.”
    161. 161. “You don’t really own it.”
    162. 162. “You’ve licensed it.”
    163. 163. “Enjoy.”
    164. 164. Wouldn’t you want to pay less?
    165. 165. That’s the pricing dynamic we’re in.
    166. 166. “Cheaper” is not the only perceived value in ebooks. Or the most important one.
    167. 167. Ignore customer price tolerance at your peril.
    168. 168. The less a customer can do with an ebook (vs. paper), the lower the value.
    169. 169. marchaprilmayjune julyaugustseptember octobernovember decemberjanuary februarymarch
    170. 170. Time to raise money! Creative Commons: Mark Coggins
    171. 171. The App Store doesn’t care about your VC meeting.
    172. 172. The App Store doesn’t care about your VC meeting. ^ board
    173. 173. The App Store doesn’t care about your VC meeting. ^ budget approval
    174. 174. The App Store doesn’t care about your VC meeting. ^ product launch date
    175. 175. The App Store doesn’t care about your VC meeting. ^ mom’s birthday
    176. 176. 8 1/2 weeks
    177. 177. multiple platforms
    178. 178. marchaprilmayjune julyaugustseptember octobernovember decemberjanuary februarymarch
    179. 179. multiple platforms
    180. 180. Why should a customer ever be tied to a single device?
    181. 181. These terms apply to all users of the Service, whether or not you are a Registered User. A. You shall use the Service for lawful purposes only. you shall not post or transmit through the Service any material that (i) violates or infringes in any way upon the rights of others, (ii) is unlawful, threatening, abusive, defamatory, invasive of privacy or publicity rights, vulgar, obscene, profane or otherwise objectionable, or (iii) encourages conduct that would constitute a criminal offense, gives rise to civil liability or otherwise violate any law. Without Kobo's express prior approval, you shall not post or transmit through the Service any material that contains advertising or any solicitation with respect to products or services. You shall not use the Service to advertise or perform any commercial solicitation, including, without limitation, the solicitation of users to become subscribers of other on-line information services. Any conduct by you that in Kobo's discretion restricts or inhibits any other user from using or enjoying the Service will not be permitted. B. All content on the Service, including but not limited to designs, text, graphics, pictures, video, information, applications, software, music, sound and other files, and their selection and arrangement ("Site Content"), save and except for any literary works are the proprietary property of Kobo or its licensors with all rights reserved. No Site Content may be modified, copied, distributed, framed, reproduced, republished, downloaded, displayed, posted, transmitted, or sold in any form or by any means, in whole or in part, without Kobo's prior written permission. Provided that you are eligible for use of the Service and subject to these Terms of Use, you are granted a limited license to access the Service and the Site Content and to download or print a copy of any portion of the Site Content to which you have properly gained access solely for your personal, non- commercial use, provided that you keep all copyright and other proprietary notices intact. You may not upload or republish Site Content on any Internet, Intranet or Extranet site or incorporate the information in any other database or compilation, and any other use of the Site Content is strictly prohibited. The foregoing license is subject to these Terms of Use and does not include use of any data mining, robots or similar data gathering or extraction methods. Any use of the Service or the Site Content other than as specifically authorized herein, without the prior written permission of Kobo, is strictly prohibited and will terminate the license granted herein. Such unauthorized use may also violate applicable laws including without limitation copyright and trade-mark laws and applicable communications regulations and statutes. Unless explicitly stated herein, nothing in these terms and conditions shall be construed as conferring any license to intellectual property rights, whether by estoppel, implication or otherwise. This license is revocable by Kobo at any time without notice and with or without cause. C. You shall not upload, post or otherwise make available on the Service any material protected by copyright, trademark or other proprietary right without the express permission of the owner of the copyright, trademark or other proprietary right and the burden of determining that any material is not protected by copyright rests with you. You shall be solely liable for any damage resulting from any infringement of copyrights, proprietary rights, or any other harm resulting from such a submission. By submitting material to any public area of the Service, you automatically grant, or warrant that the owner of such material has expressly granted Kobo the royalty-free, worldwide, perpetual, irrevocable, non-exclusive right and license to use, reproduce, modify, adapt, publish, display, translate and distribute such material (in whole or in part) and/or to incorporate it in other works in any form, media or technology now known or hereafter developed. You also permit any other user of the Service to access, view, store or reproduce the material for that user's personal use. You grant Kobo the right to
    182. 182. edit, copy, display, publish and distribute any material made available on the Service by you. The foregoing does not apply to literary works provided to Kobo for sale on the Service by a publisher or other content provider. D. You may not obscure or misrepresent your geographical location, forge headers, use proxies, use IP spoofing or otherwise manipulate identifiers in order to disguise the origin of any message or transmittal you send on or through the Service. You may not pretend that you are, or that you represent, someone else, or impersonate any other individual or entity. E. You are prohibited from violating or attempting to violate the security of the Service, including, without limitation: (a) accessing data not intended for you, including logging into a server or account which you not authorized to access; (b) attempting to probe, scan or test the vulnerability of a system or network to breach security or authentication measures without proper authorization; (c) using any "deep-link", "page-scrape", "robot", "spider" or other automatic device, program, algorithm or methodology, or any similar or equivalent manual process, to access, acquire, copy or monitor any portion of the Service or any Site Content, or in any way reproduce or circumvent the navigational structure or presentation of the Service or any Site Content, to obtain or attempt to obtain any materials, documents or information through any means not purposely made available through the Site; (d) taking any action that imposes an unreasonable or disproportionately large load on the infrastructure of the Service or Kobo's systems or networks, or any systems or networks connected to the Service or to Kobo' (e) conducting a reverse look-up, tracing or seeking to trace any information on any other user, Registered User or visitor to the Service, or any other customer of Kobo, to its source, or exploit the Service or any service or information made available or offered by or through the Service, in any way where the purpose is to reveal any information, including but not limited to personal identification or information, other than your own information, as provided for by the Service; (f) attempting to interfere with, disrupt or disable service to any user, host or network, including, without limitation, via means of "denial of service" attacks, overloading, "flooding", "mailbombing" or "crashing"; (g) forging any TCP/IP packet header or any part of the header information in any e-mail or newsgroup posting; (h) disrupt network nodes or network services or otherwise restrict, inhibit, disrupt or impede Kobo's ability to monitor or make available the Service; or (i) taking any action in order to obtain services to which you are not entitled. Violations of system or network security may result in civil or criminal liability. Kobo will investigate occurrences which may involve such violations and may involve, and cooperate with, law enforcement authorities in prosecuting any user (whether or not a Registered User) who is involved in such violations.
    183. 183. user of the Service to access, view, store or reproduce the material for that user's personal use. You grant Kobo the right to edit, copy, display, publish and distribute any material made available on the Service by you. The foregoing does not apply to literary works provided to Kobo for sale on the Service by a publisher or other content provider. D. You may not obscure or misrepresent your geographical location, forge headers, use proxies, use IP spoofing or otherwise manipulate identifiers in order to disguise the origin of any message or transmittal you send on or through the Service. You may not pretend that you are, or that you represent, someone else, or impersonate any other individual or entity. E. You are prohibited from violating or attempting to violate the security of the Service, including, without limitation: (a) accessing data not intended for you, including logging into a server or account which you not authorized to access; (b) attempting to probe, scan or test the vulnerability of a system or network to breach security or authentication measures without proper authorization; (c) using any "deep-link", "page-scrape", "robot", "spider" or other automatic device, program, algorithm or methodology, or any similar or equivalent manual process, to access, acquire, copy or monitor any portion of the Service or any Site Content, or in any way reproduce or circumvent the navigational structure or presentation of the Service or any Site Content, to obtain or attempt to obtain any materials, documents or information through any means not purposely made available through the Site; (d) taking any action that imposes an unreasonable or disproportionately large load on the infrastructure of the Service or Kobo's systems or networks, or any systems or networks connected to the Service or to Kobo' (e) conducting a reverse look-up, tracing or seeking to trace any information on any other user, Registered User or visitor to the Service, or any other customer of Kobo, to its source, or exploit the Service or any service or information made available or offered by or through the Service, in any way where the purpose is to reveal any information, including but not limited to personal identification or information, other than your own information, as provided for by the Service; (f) attempting to interfere with, disrupt or disable service to any user, host or network, including, without limitation, via means of "denial of service" attacks, overloading, "flooding", "mailbombing" or "crashing"; (g) forging any TCP/IP packet header or any part of the header information in any e-mail or newsgroup posting; (h) disrupt network nodes or network services or otherwise restrict, inhibit, disrupt or impede Kobo's ability to monitor or make available the Service; or (i) taking any action in order to obtain services to which you are not entitled. Violations of system or network security may result in civil or criminal liability. Kobo will investigate occurrences which may involve such violations and may involve, and cooperate with, law enforcement authorities in prosecuting any user (whether or
    184. 184. “You have to keep this book on a bookshelf in your house that I will sell you...”
    185. 185. “...for $259 USD (plus shipping & handling).”
    186. 186. “You may not put books on this shelf that you have bought from other stores.”
    187. 187. “If the shelf breaks, you may lose your books. Or not. We’ll decide.”
    188. 188. “If you find a shelf made by someone else you like better, too bad.”
    189. 189. There are great devices out there. There will be more. They will get better. They will get cheaper.
    190. 190. Let the reader choose the right device for them.
    191. 191. “Your whole reading life, always with you.”
    192. 192. The perfect reading machine hasn’t been created yet.
    193. 193. Opus Shelving, Sean Yoos
    194. 194. Equation Bookshelf Marcos Breder
    195. 195. Stairs Shakespeare & Co., Paris
    196. 196. We say: Take your books with you
    197. 197. to any device
    198. 198. If you find a better device, move your books there.
    199. 199. A book that you can’t take with you is worth less.
    200. 200. September 15th
    201. 201. Downloadable ePub + Adobe Content Server + Digital Editions
    202. 202. 60%
    203. 203. 40% PRS-300 Reader Pocket Edition . PRS-505 Reader Digital Book . PRS-600 Reader Touch Edition . PRS-700BC Reader Digital Book . Aluratek Libre eBook Reader Pro . Asktak EZ Reader, EZ Reader Pocket Pro, Mentor . Barnes & Noble Nook . BeBook One . BeBook Mini . Bookeen Cybook Opus . Bookeen Gen 3 . COOL-ER Classic . Elonex eBook 600 . HanLin eBook (V3, V5) . REX Digital Reader 1000S . Neolux NUUT2
    204. 204. marchaprilmayjune julyaugustseptember octobernovember decemberjanuary februarymarch
    205. 205. 5 things
    206. 206. 1. Digital sales and marketing
    207. 207. 2. Pristine metadata (ONIX 2.1, ONIX 3.0?)
    208. 208. 3. Well-crafted ePub files.
    209. 209. 4. ePub at the end of the production workflow.
    210. 210. 5. An adventurous and courageous heart.
    211. 211. marchaprilmayjune julyaugustseptember octobernovember decemberjanuary februarymarch
    212. 212. Season of Giving
    213. 213. December 15th
    214. 214. Raised $16M in funding
    215. 215. Largest bookseller in Australia, New Zealand and Singapore Largest bookseller in Canada Second-largest bookseller in US 15 telecom carriers, 10,000 retail locations in UK, EU, Asia
    216. 216. Gave ourselves a new name
    217. 217. Japanese for “workshop”
    218. 218. Small unit of Nigerian currency.
    219. 219. A small town in Ethiopia.
    220. 220. Slang in Trinidad for “vulture”
    221. 221. The first name of both a famous author and a sumo wrestler
    222. 222. a rearranging of the letters in“book”.
    223. 223. December 14th
    224. 224. Started giving away 1.8 million books
    225. 225. 120 libraries in 5 countries
    226. 226. 180 languages
    227. 227. 400 million pages
    228. 228. add about 1,000 new titles every day
    229. 229. We receive listings via OPDS (Open Publishing Distribution System)
    230. 230. Given us a lot of insight into the value of “free”
    231. 231. !"#$%&'(#)*+$,)-('').%%/#) !" #" $" %" &" '" (" )" *" !+" !!" !#" !$" !%" !&" ,"!&"
    232. 232. !"#$%&'(#)*+$,)-('').%%/#) eBook Training wheels !" #" $" %" &" '" (" )" *" !+" !!" !#" !$" !%" !&" ,"!&"
    233. 233. !"#$%&'(#)*+$,)-('').%%/#) eBook Training wheels “I Jane Austen” !" #" $" %" &" '" (" )" *" !+" !!" !#" !$" !%" !&" ,"!&"
    234. 234. !"#$%&'(#)*+$,)-('').%%/#) !" #" $" %" &" '" (" )" *" !+" !!" !#" !$" !%" !&" ,"!&"
    235. 235. !"#$%&'(#)*+$,)-('').%%/#) “Freegans” !" #" $" %" &" '" (" )" *" !+" !!" !#" !$" !%" !&" ,"!&"
    236. 236. OPDS to Indigo, Borders, REDgroup
    237. 237. Holidays on (dev)ice.
    238. 238. People don’t buy ebooks as gifts (yet)...
    239. 239. ...but they do buy devices...
    240. 240. ...and the people who receive devices buy ebooks.
    241. 241. December 24th
    242. 242. Week after Dec 25 = highest volume of 2009
    243. 243. Without gifting or gift certificates.
    244. 244. marchaprilmayjune julyaugustseptember octobernovember decemberjanuary februarymarch
    245. 245. 200 Countries Largest markets: US, Canada, UK, India, Australia, China
    246. 246. Very different levels of ePub availability.
    247. 247. Territorial rights capability is critical.
    248. 248. Territorial rights metadata is critical.
    249. 249. Expect to see Kobo in more languages
    250. 250. marchaprilmayjune julyaugustseptember octobernovember decemberjanuary februarymarch
    251. 251. And then things started to go mental.
    252. 252. “How much higher could ebook prices go?”
    253. 253. “What if they didn’t have a choice?”
    254. 254. We’re about to find out.
    255. 255. Agency.
    256. 256. 1. Publishers set prices.
    257. 257. 2. eBook prices are lower than print prices. (new releases: $12.99-14.99)
    258. 258. 3. eBooks are released simultaneously with print books.
    259. 259. 4. Retailers can’t discount.
    260. 260. 5. 70/30 revenue split Publisher/Retailer
    261. 261. Unit Sales by Price Point (Trade, in USD) $9.99 Unit sales by price-point
    262. 262. Unit Sales by Price Point (Trade, in USD) Unit sales by price-point
    263. 263. Unit Sales by Price Point (Trade, in USD) $9.99 Unit sales by price-point
    264. 264. Unit Sales by Price Point (Trade, in USD) Unit sales by price-point
    265. 265. Publisher gets control of pricing.
    266. 266. but makes less.
    267. 267. List Net Wholesale Can$24.00 Can$12.00 (50%) Agency Can$12.99 Can$9.09 (70%)
    268. 268. The bet:
    269. 269. Consumers want the books enough to absorb a $2-5 jump.
    270. 270. Unit Sales by Price Point (Trade, in USD) $9.99 from here... Unit sales by price-point
    271. 271. Unit Sales by Price Point (Trade, in USD) Unit sales by price-point
    272. 272. Unit Sales by Price Point (Trade, in USD) $9.99 Unit sales by price-point
    273. 273. Unit Sales by Price Point (Trade, in USD) ...to there. Unit sales by price-point
    274. 274. First time a media industry has raised the price of an existing
    275. 275. Bonus: Also limiting the tactics a retailer can use to motivate the consumer.
    276. 276. Publishers are going to have to get good at:
    277. 277. Price sensitivity analysis
    278. 278. Understanding loyalty and user motivation
    279. 279. Purchase frequency drivers
    280. 280. *Metadata*
    281. 281. April 1st
    282. 282. April Fool’s Day
    283. 283. “The Day We Turned the eBook Market Upside Down and Shook it Until it Rattled.”
    284. 284. Could be great.
    285. 285. All agency agreements are being written, negotiated and signed...
    286. 286. ... in less than 30 days.
    287. 287. Average time to close an ebook agreement with a major publisher in 2009:
    288. 288. 3-4 months
    289. 289. marchaprilmayjune julyaugustseptember octobernovember decemberjanuary februarymarch
    290. 290. “Powered by Kobo”
    291. 291. APIs software development kit mobile storefront custom integration over 2 million titles
    292. 292. eInk devices tablets laptops netbooks smartphones
    293. 293. support for sync/connect via USB, Bluetooth, WiFi, 3G
    294. 294. “Why?”
    295. 295. Where is “the ereader for everyone?”
    296. 296. $149 USD SRP* * for a limited time
    297. 297. No wireless. USB + Bluetooth
    298. 298. No wireless. USB + Bluetooth (like your digital camera, video camera, iPod)
    299. 299. Simple.
    300. 300. And if you find a better device,
    301. 301. ...or want to read on your smartphone on the way to work...
    302. 302. your reading life is always with you.
    303. 303. marchaprilmayjune julyaugustseptember octobernovember decemberjanuary februarymarch

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