Interactive Publishing Sector Snapshot


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This short presentation includes several infographics that review the state of the rapidly evolving interactive publishing sector.

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Interactive Publishing Sector Snapshot

  1. 1. Sector Snapshot Q1, 2012 Troy Centazzo
  2. 2. Oh, What a Year! – Publishing, Edutainment and Technology Interactive Publishing– Still Early, But Lots of Activity and Momentum It Finally Was The Interactive Publishing: Year of Mobile! Still in its Infancy34M Americans used a tablet in‘11; 90M expected by 2012.Smart phones surpass 50% Any Impact?market share. Digital • App Store has 25,000content tops e-commerce book apps $300M in the followingpurchases at 26%. Mobile paid • iBook Store has digital book start-ups:advertising/search surpassedemail and social media. Apps hundreds ofare exploding. $38B market enhanced booksby 2015. Trends areglobal. • B&N offers 600 for the Nook • Few break-out hits; continued risk of “busts” • What’s a “book”? An “app”? ** EPUB3 **
  3. 3. Oh, What a Year! – Publishing, Edutainment and Technology The Big Six (Plus) – Now Aggressively Pursuing Interactive Business and Industry Partnerships MORE TRANSMEDIA PARTNERSHIPS S&S digital THAN EVER BEFORE revenue E-Book Sales doubled in Double in Digital = 1/3 2011; juiced up 2011 for of all Revenue Royalty Rates income Penguin; at Pearson on the Rise 20% of US Rev; Plans US E-Book Revs up 117% in 2011 strategic investments Total Trade: $5,860M (-4.1% YoY) E-Books (non religious): $970M (+117%) $1B in US!
  4. 4. Oh, What a Year! – Publishing, Edutainment and Technology Children’s Mobile Digital Content- “Rapidly Evolving” is an Understatement How to Market to and Develop an Audience? Licensing agreements with Hasbro,150 e-books; 25 apps Crayola, SeaWorld, The Wiggles, Cyberchase and Dino Dan 1 Million Dr. Seuss Downloads in 2 years TO COME Safari Books (JV of Pearson 2M Minutes Education and O’Reilly Media ) Nine Top iOS Children’s Played on FP acquires Threepress (Ibis Storybooks in 2011 Apps in Dec Reader) January 2011
  5. 5. Our Bottom Line on the Industry –Chaos at Enterprise-Level CompaniesAnd That’s Only Positive for Emerging Companies’ Prospects
  6. 6. Digital Media “Value Stack” for Emerging Firms Massive Number of Users / • Do you have a massive number of active buyers?Readers with Direct Relationship Control of Useful Data • Do you have the “secret sauce” on how to publish a top-seller? • Have you built a publishing toolkit that provides an advantage? Can it become Protected Development Tools the industry standard? In-House (Owned) Titles • How many successful titles have you developed, published and marketed? Massive Market Leader • How far “out in front” are you? Competition? Locked License Business • Long-term agreements with A-level content owners Project Business for Premier • High margin business for industry leaders. Market share. Firms Infrastructure to Scale Rapidly • Can you grow 100 miles per hour in the current environment? Demonstrated Technical • Are you the technology leader? Who’s catching up? Superiority 6
  7. 7. About the Author Troy is an Engagement Partner at GT Securities/Growthink, where he leads investment banking and consulting engagements for the firm’s clients. He focuses on convergence media. Troy brings to GT more than 20 years of experience advising corporations at all stages of development, from start-up firms to Fortune 500 companies. Troy joins Growthink’s Los Angeles office after serving as the founding Principal of MBL, an advisory and investment firm that assisted clients in all areas of business, including developing their strategies and raising Troy Centazzo capital. Also a seasoned entrepreneur, he helped found, manage andEngagement Partner invest in several start-up companies, primarily in the consumer products, technology and New Media sectors while at and before MBL. Digital Media Expert Troy additionally worked as an Associate in the Investment Banking and Merchant Banking Divisions at Donaldson, Lufkin & Jenrette (DLJ, now Contact: CS First Boston). His first job after college was serving as the founding Director of the RI Enterprise Zone Program. Cell: (202) 369-2188 Education Email • JD, Law School; MBA, Darden School, University of Virginia (Winner, The Faculty Award; Raven Society) LinkedIn • BA, Brown University (Honors; Class Co-President) Twitter