Gregg Hano on Digital Publishing: "It's just the beginning"

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As CEO of Mag+, Gregg Hano, speaks about the future of digital publishing being more dynamic than we could have ever imagined and there's a lot taht can be done to help define and shape this new …

As CEO of Mag+, Gregg Hano, speaks about the future of digital publishing being more dynamic than we could have ever imagined and there's a lot taht can be done to help define and shape this new industry. This presentation took place at Magazine Moment, Stockholm, Sweden on October 10, 2012.

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  • Create - Package - Price - Distribute - Market...\n
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Transcript

  • 1. It’s Just The BeginningGregg Hano, CEOMagazine Moment · Stockholm, Sweden · October 10, 2012
  • 2. Moore’s LawSource: Wikipedia
  • 3. Moore’s Law Number of integrated circuits doubles every 18 months from time inventedSource: Wikipedia
  • 4. Today’s Consumer 5:30AM 7:22AM 9:15AM 5:15PM 7:30PM 10:12PM
  • 5. Tomorrow’s ConsumerMorgan Stanley Research
  • 6. Tomorrow’s Consumer It’s Just The Beginning...Morgan Stanley Research
  • 7. 100+ Types Of Tablet DevicesNew devices by end of 2012? • Kindle Fire 2 • Google Nexus • Window’s Surface • Mini iPad • Samsung Galaxy 10.1 • Nook
  • 8. 10+ Newsstands• Android marketplace• Amazon/fire newsstand• Apple newsstand• B&N• Google newsstand• More…
  • 9. 10+ Newsstands• Android Marketplace• Amazon/Fire Newsstand It’s Just• Apple Newsstand The Beginning...• B&N• Google Newsstand• More…
  • 10. 40+ Platforms • Mag+ • Adobe DPS • Aquafadas • BlueToad • Pixelmags • Zinio • More…
  • 11. 40+ Platforms • Mag+ • Adobe DPS • Aquafadas • BlueToad • Pixelmags • Zinio • More…
  • 12. Device Volume Growth • Tablet/eReader sales were 30 million in 2010 • Tablet forecast sales predicted to be 140 million sold in 2012 • Tablet forecast sales predicted to be 375 million sold in 2016Source: Forrester 2012
  • 13. Device Volume Growth • Tablet/eReader sales were 30 million in 2010 • Tablet forecast sales predicted to be 140 million sold in 2012 • Tablet forecast sales predicted to be 375 million sold in 2016 It’s Just The Beginning...Source: Forrester 2012
  • 14. Device Volume Growth Despite Tremendous Ramp So Far, Smartphone User Adoption Has Huge Upside Global Smartphone vs. Mobile Phone Subscriptions, Q4:11 7,000 6.1B Mobile Phone Subscriptions 6,000 5,000 Global Subscriptions (MM) 4,000 3,000 2,000 953MM Smartphone Subscriptions 1,000 0 Smartphone Mobile Phone Source: Mobile phone subscriptions per Informa (as of Q4:11), Smartphone subscriptions estimate based on Morgan Stanley Research’s estimated smartphone user as % of total mobile user at the end of 2011 (16%).Source: Morgan Stanley Note: While there are 1B global 3G subscribers as of Q4:11, not all of them were smartphone users. One user may have multiple mobile 11
  • 15. User Engagements • 25% smartphone owners use a tablet • 25% pay to watch videos • 50% + tablet owners prefer to read news, magazines & books on tablets vs. paper • 60% read books on their tabletsSource: comScore June 2012 ; Information Based On U.S.; Last Stat Based on Gartner Inc Survey
  • 16. User Engagements Tablet Magazine Engagements • 48% of interactive elements are selected or played at 9%! least once in a digital % Other 12 0 36 magazine 10% 39% • 58% decided to read another hyperlink webview magazine on iPad 1 vid 9% • Readers Spent 2.5+ hours eo 11% consuming magazine app slideshow contentSource: Omniture Oct 11-Feb 12; Based On U.S.; MPA FactBook 2012
  • 17. Paid vs. Free (Tablets – all App types) 68% is Paid for Content 15% Single 27% Entitled 26% Subscription 32% FreeSource: Omniture Oct 11-Feb 12; Based On U.S.
  • 18. Digital Publishing Experiment• New technology = new type of user behavior• Trial & error• Creating content to fit the device
  • 19. Digital Paid Copies PDF Adobe DPS Mag+ Publication Redbook Wired Popular Science 12 month $337,491 $1,300,089 $1,353,222 subscription Single copy + $2,745 + $14,918 + $13,782 Apple 30% -$102,070 -$394,502 -$410,101 Total revenue $238,165 $920,505 $956,903Numbers based on latest ABC statement June 30, 2012
  • 20. Digital Paid Copies PDF Adobe DPS Mag+ Publication Redbook Wired Popular Science Number of 12 month 16,883 65,037 90,275 subscription Number of single 688 3,739 2,762 copy Total number of 17,571 68,776 93,037 subscribersNumbers based on latest ABC statement June 30, 2012
  • 21. Redbook PDF PDF replica - ratings are consistently poorComment From User Ex subscriber on Jul 9, 2012; Customer Ratings Dated: 09/20/12
  • 22. Wired Adobe DPS Slightly enhanced apps - ratings better than PDF’sComment From User Bryce Csavy1 on June 24, 2012; Customer Ratings Dated: 09/20/12
  • 23. Popular Science Mag+ Fully enhanced apps - ratings are consistently the bestComment From User chocojoe on Sept 18. 2012; Customer Ratings Dated: 09/20/12
  • 24. Interactive vs. PDF Top 20 grossing apps as of September 21, 2012Top 20 Apps In Apple Newsstand as of 09/21/12
  • 25. Interactive vs. PDF Top 20 grossing apps as of September 21, 2012 Interactive: 20 PDF: 0Top 20 Apps In Apple Newsstand as of 09/21/12
  • 26. Ad Measurement • 47% of respondents took action after reviewing an ad • 58% decided to read another magazine on iPad • 73% read/tap on ads • 74% recalled seeing ads when reading the enhanced issueSource: Shell Advertising; 2012 MPA Factbook: GfK MRI iPanel, February 2012
  • 27. Ad Spending By 2016 advertisers to spend: • $77 billion online/mobile/tablet; comprising 35% overall ad spendingSource: Canon Advertising; Forrester
  • 28. Mag+
  • 29. Who We Are• Built-in analytics• iPhone & android smartphone• HTML-integration for live content, interactivity• Automatic dual-orientation layout• Ability to purchase any iTunes store content in the app (in-app purchase)• One-click app build—no coding required
  • 30. Mag+ philosophyIt’s about recreating the experience: immersive,intimate, easy. Learn by doing.
  • 31. It’s Just The Beginning Thank you! Make Publishing Magic! magplus.com