Digital Books & the New
Subscription Economy
Ted Hill, THA Consulting
May 2014 - NYC
1
Introduction
Introduction
Will we see a
subscription economy
for digital books?
Introduction
 Focus on:
 Consumer fiction & non-fiction
 Scholarly monographs
 Professional & technical reference
 Hi...
Introduction
 Extensive research
 Broad review of current models for digital media
 50+ interviews with industry stakeh...
Introduction
Our findings…
Introduction
They’re here
Introduction
Or, they’re near
Introduction
Get used to it!
Survey Highlights
Survey Highlights
80% see subscriptions
as inevitable
Survey Highlights
84% see a positive
impact in next 5 years
Survey Highlights
86% of scholarly
presses work with
aggregators
Survey Highlights
65% of professional
publishers sell direct
Survey Highlights
33% of textbook
publishers see
very significant revenue
today
Survey Highlights
(Only 7% of trade
publishers do)
Dominant Models
Dominant Subscription Models
Purchase for
Perpetual Use
Dominant Subscription Models
Rentals, Pay-per-Use
& Short Term Loan
Dominant Subscription Models
Paywall Access
Dominant Subscription Models
Freemium &
Open Access
Dominant Subscription Models
“The market drives the
model”
Dominant Subscription Models
Selection
Purchase
Use
Market drivers:
Dominant Subscription Models
 Selection
 Who chooses?
 How important is the breadth and depth of the
collection?
 Purc...
Dominant Subscription Models
Access vs Ownership
Price Sensitivity
Breadth vs Depth
Additional factors:
Dominant Subscription Models
Dominant Subscription Models
“The market drives the
model”
Four Markets
Consumer Publishers
 Amazon Prime/KOLL, Audible have been with us
for a long time
 Some publishers already in the game
...
Consumer Publishers
Impact of “Netflix” model
Scholarly Presses
 Slower adoption of ebooks
 Bigger players already selling direct access to
collections
 Established ...
Scholarly Presses
Library budget process
Professional Publishers
 Early migration of database reference titles
 Many have tradition of DTC marketing
 How to mee...
Professional Publishers
Integration into workflow
Higher Ed Textbooks
 Student preferences for print over digital are at a
tipping point
 Rentals (digital & print) are a ...
Higher Ed Publishers
Migration to learning
platforms
Open Issues
Open Issues
Customer & publisher
acceptance
Open Issues
Degradation of high
value markets
Open Issues
Will emerging channels
increase revenues?
Open Issues
Direct-to-consumer
vs
3rd party aggregators
For more information…
On Sale June 2014
Buy your copy today at:
BISG.org
Thanks!
ted@THAconsulting.com
Digital Books and the New Subscription Economy: Preliminary Results from the BISG Research Study, presented by Ted Hill, P...
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Digital Books and the New Subscription Economy: Preliminary Results from the BISG Research Study, presented by Ted Hill, President, THA Consulting at Making Information 2014, a track of IDPF's Digital Book 2014 at Book Expo America, May 29, 2014

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Digital Books and the New Subscription Economy: Preliminary Results from the BISG Research Study, presented by Ted Hill, President, THA Consulting at Making Information 2014, a track of IDPF's Digital Book 2014 at Book Expo America, May 29, 2014

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Digital Books and the New Subscription Economy: Preliminary Results from the BISG Research Study, presented by Ted Hill, President, THA Consulting at Making Information 2014, a track of IDPF's Digital Book 2014 at Book Expo America, May 29, 2014

  1. 1. Digital Books & the New Subscription Economy Ted Hill, THA Consulting May 2014 - NYC 1
  2. 2. Introduction
  3. 3. Introduction Will we see a subscription economy for digital books?
  4. 4. Introduction  Focus on:  Consumer fiction & non-fiction  Scholarly monographs  Professional & technical reference  Higher Ed textbooks
  5. 5. Introduction  Extensive research  Broad review of current models for digital media  50+ interviews with industry stakeholders  Survey of BISG and PCG members  Ongoing coverage in the press
  6. 6. Introduction Our findings…
  7. 7. Introduction They’re here
  8. 8. Introduction Or, they’re near
  9. 9. Introduction Get used to it!
  10. 10. Survey Highlights
  11. 11. Survey Highlights 80% see subscriptions as inevitable
  12. 12. Survey Highlights 84% see a positive impact in next 5 years
  13. 13. Survey Highlights 86% of scholarly presses work with aggregators
  14. 14. Survey Highlights 65% of professional publishers sell direct
  15. 15. Survey Highlights 33% of textbook publishers see very significant revenue today
  16. 16. Survey Highlights (Only 7% of trade publishers do)
  17. 17. Dominant Models
  18. 18. Dominant Subscription Models Purchase for Perpetual Use
  19. 19. Dominant Subscription Models Rentals, Pay-per-Use & Short Term Loan
  20. 20. Dominant Subscription Models Paywall Access
  21. 21. Dominant Subscription Models Freemium & Open Access
  22. 22. Dominant Subscription Models “The market drives the model”
  23. 23. Dominant Subscription Models Selection Purchase Use Market drivers:
  24. 24. Dominant Subscription Models  Selection  Who chooses?  How important is the breadth and depth of the collection?  Purchase  Is the money spent by the reader or someone else?  Is there competition from lower-priced alternatives?  Use:  Does the reader need whole works, or just parts?  Is it important to “own” the digital works or have long term access?
  25. 25. Dominant Subscription Models Access vs Ownership Price Sensitivity Breadth vs Depth Additional factors:
  26. 26. Dominant Subscription Models
  27. 27. Dominant Subscription Models “The market drives the model”
  28. 28. Four Markets
  29. 29. Consumer Publishers  Amazon Prime/KOLL, Audible have been with us for a long time  Some publishers already in the game  All publishers know they must reach digital readers who subscribe to other forms of digital media 29
  30. 30. Consumer Publishers Impact of “Netflix” model
  31. 31. Scholarly Presses  Slower adoption of ebooks  Bigger players already selling direct access to collections  Established and newer aggregators are offering more choices to librarians
  32. 32. Scholarly Presses Library budget process
  33. 33. Professional Publishers  Early migration of database reference titles  Many have tradition of DTC marketing  How to meet the changing needs of information workers?
  34. 34. Professional Publishers Integration into workflow
  35. 35. Higher Ed Textbooks  Student preferences for print over digital are at a tipping point  Rentals (digital & print) are a major part of the business today  For many product lines, publishers see Integrated Learning Systems as the future of their business
  36. 36. Higher Ed Publishers Migration to learning platforms
  37. 37. Open Issues
  38. 38. Open Issues Customer & publisher acceptance
  39. 39. Open Issues Degradation of high value markets
  40. 40. Open Issues Will emerging channels increase revenues?
  41. 41. Open Issues Direct-to-consumer vs 3rd party aggregators
  42. 42. For more information… On Sale June 2014 Buy your copy today at: BISG.org
  43. 43. Thanks! ted@THAconsulting.com
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