Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

K8E

942 views

Published on

K8E

Published in: Education
  • Be the first to comment

  • Be the first to like this

K8E

  1. 1. Highly interactive eBook production, distribution and commerce for the K through 8 market.
  2. 2. Products and Services <ul><li>eBook Production – highly interactive ebooks with audio tracks, synchronized word highlighting, page flips, user tracking, assessment engines, and social collaboration. </li></ul><ul><li>Platform - centralized asset repository with the ability to create on the fly distributed ebook players anywhere on the web or on devices. Reporting across all players and platforms. </li></ul><ul><li>Commerce – sell your eBooks with K8E white labeled eBook stores that include catalogs, curriculum bundling, entitlements, shopping carts and check out services. </li></ul><ul><li>Distribution – build and operate ebook stores on publisher and educational sites, highly trafficked web portals, and into libraries and schools in exchange for revenue share . </li></ul>THE GSI COMMERCE OF INTERACTIVE EBOOKS
  3. 3. <ul><li>eBook production and distribution is too fragmented for Publisher Web 2.0 businesses. </li></ul>Problem: eBook Industry <ul><li>eBook Universe </li></ul><ul><li>Fragmented production </li></ul><ul><li>Multiple Device developers </li></ul><ul><li>No centralized asset tracking </li></ul><ul><li>Costly to produce assets </li></ul><ul><li>No centralized reporting </li></ul><ul><li>No centralized commerce </li></ul><ul><li>NO Platforms for ROI </li></ul><ul><li>Web 2.0 Universe </li></ul><ul><li>Unified production </li></ul><ul><li>Creation </li></ul><ul><li>Distribution </li></ul><ul><li>Sharing </li></ul><ul><li>Syndication </li></ul><ul><li>Commerce </li></ul><ul><li>Platforms for ROI </li></ul>Market Gap
  4. 4. eBook Production Audio Word Timings Acrobat PDF Resize for Platforms Word Coordinates
  5. 5. Multi-Platform Distribution Audio Word Timings Word Coordinates Acrobat PDF Nook/Kindle iPhone/iPad PC: B2C PC: Educational Set-Top Boxes
  6. 6. <ul><li>Publishers lacking options to create consumer eBook stores and to distribute to school systems </li></ul>Problem: eBook Commerce <ul><li>Publishers </li></ul><ul><li>Trade </li></ul><ul><li>Educational </li></ul><ul><li>ELL &ESL </li></ul><ul><li>Training </li></ul><ul><li>Commerce </li></ul><ul><li>Publisher Stores </li></ul><ul><li>App Stores </li></ul><ul><li>White Label Stores </li></ul><ul><li>School Systems </li></ul><ul><li>Library Systems </li></ul>
  7. 7. White Label eBook Stores
  8. 8. Vision <ul><li>“ Your eBooks, highly interactive, anywhere for everyone.” </li></ul><ul><li>Value Proposition </li></ul><ul><li>“ K8E enables distribution and commerce of highly interactive eBooks to the K though 8 market on all platforms with the only scalable system in the industry.” </li></ul>
  9. 9. eBooks - Is this the right market? <ul><li>K through 8 market size </li></ul>* Educational Market Research – 2010 TRADE MARKET Industry in 2010: $27 Billion (all ages)* Random House (15.9% market share) Pearson (11%) HarperCollins (10.6%) Simon & Schuster (9.3%) Hachette (6.2%) Approximately 2600 publishers active SCHOOL MARKET Industry in 2009: $6.2 Billion in the US Pearson $1.9 billion Houghton Mifflin Harcourt $1.6 billion McGraw-Hill $1.1 billion School Specialty $897 million Scholastic $477 million* Hundreds of publishers $1-50 million/yr * Educational Market Research – 2010
  10. 10. eBooks - Is this the right market? US Trade Wholesale Electronic Book Sales Q3 2010 = $119.7 Million * International Digital Publishing Forum– 2010
  11. 11. eBooks - Is this the right market? <ul><li>DISRUPTION - Books are now finally going digital. </li></ul><ul><ul><li>Google – large movement into eBooks. </li></ul></ul><ul><ul><li>Borders, Barnes & Noble – traditional retailers going under. New distribution models needed. </li></ul></ul><ul><ul><li>Industry currently in land grab state, and still pre-roll up phase. </li></ul></ul><ul><li>REAL MONEY– media users are used to paying for. E-book sales from the 13 publishers that report figures to the Association of American Publishers soared 176.6% in 2009, to $169.5 million, 164.4% in 2010, to $441.3 million – AAP. </li></ul><ul><li>COMPETITION – minimal for scalable platforms and partners with real media experience. Most competitors are aiming for the Trade and General Audience – not K through 8. </li></ul>
  12. 12. eBooks - Is this the right market? <ul><li>DISRUPTION – online book sales outpacing retailers. </li></ul>* Foners Books and SEC filings
  13. 13. Trade - Is this the right market? <ul><li>TRADE PUBLISERS AT STAND STILL </li></ul><ul><li>RIGHTS - fragmented rights issues -aggregators pursuing trade publishers will fail at creating a scaled catalog. </li></ul><ul><li>STUCK - Trade Publishers are thinking that they can build their own systems. </li></ul><ul><li>DECLINING – traditional retail outlets in decline or closing but afraid to chose new online partners. </li></ul>
  14. 14. Educational - the Right Market? <ul><li>EDUCATIONAL PUBLISHERS READY TO GO! </li></ul><ul><li>RIGHTS - Educational Publishers have large catalogs and usually own all rights – globally. </li></ul><ul><li>CAPTIVE AUDIENCE - Content is exposed to students, teachers, and parents daily in schools but no access to buy independently B2C. </li></ul><ul><li>DISRUPTION - economy and educational funding has parents interested in supplementing education. </li></ul>
  15. 15. eBook Competitors Flash Page Flip Books & Educational Commerce Interactive eBooks, video & Multi-Platform Commerce Animated eBooks PDF Download Interactivity Scalable Commerce Trade Publishers Educational Publishers Ruckus Media Impelsys Capstone Blackboard Independent iPad developers
  16. 16. Go To Market Strategy <ul><li>Phase 1 – PENETRATE - initially go after K through 8 educational publishers to aggregate large catalogs, launch white label stores , and hone production. Prove scale. (GSI Commerce of eBooks) </li></ul><ul><li>Phase 2 – RADIATE - leverage momentum built through the educational space to get the Trade Publishers on board for distribution. (Brightcove of eBooks) </li></ul><ul><li>phase 3 – CONQUER - enablement of social media tools and gaming on platform to increase revenue and user engagement. (Facebook of eBooks) </li></ul>
  17. 17. Read Together Live Read together live via web cam video sessions.
  18. 18. Teacher & Author Notations Authors and teachers can leave video notes on books, pages or series.
  19. 19. Book Chat
  20. 20. Social Book Clubs
  21. 21. Product Differentiation <ul><li>SCALABLE - production and distribution platform built on proven top tier media distribution CMS in the world. </li></ul><ul><li>MATURE – core functions already built – we are focusing on developing ebook specifics. </li></ul><ul><li>FAST - Faster and cheaper to market with new technologies and features. </li></ul><ul><li>EASY TO INTEGRATE – built on systems already being used by most media companies and already supported by all 3 rd parties – analytics, advertising, CDNs, and pay walls. </li></ul>
  22. 22. The Right Company? <ul><li>TEAM: </li></ul><ul><li>Ken Ruck – CEO . Formerly VP of Digital Media - HIT Entertainment , Head of Mobile - Nickelodeon, General Manager – Virgin Mobile, Original Member – Oberon Media. Currently advises Turner Broadcasting on New Product Development. 2 - American Library Association Awards. </li></ul><ul><li>John Cheary – President. Currently CEO of the world's largest independent producer of audio books – John Marshall Media. With multi-millions in revenues, clients include Random House , Harper and Macmillan. In 2008, acquired Paul Ruben Productions, Inc., a leading production company specializing in language teaching programs for top publishers such as McGraw-Hill, Education, Macmillan ESL/ELT, and Berlitz. </li></ul>
  23. 23. The Right Company? <ul><li>TEAM continued: </li></ul><ul><li>Paula Parker – Sales. 25 years in publishing industry. Deep relationships with many target publishers. Co-Founder Paul Ruben Productions. Generated Millions in sales of audio book production. </li></ul><ul><li>Glyn Beaumont – Technical Director (contractor.) Over 15 years experience in transactional application architecture and development of web systems for many of the best-known media companies in the world. Awards include a Nexus Supreme Gold , and an international ECHO Awards. </li></ul>
  24. 24. The Right Company? <ul><li>B2C and B2B REVENUE STREAMS: </li></ul><ul><li>eBook Store Revenue Share – K8E receives 1/3 of all revenues from sales to consumers on stores we operate (costs recouped.) Publisher gets 1/3, Site partner gets 1/3 (Oberon model.) </li></ul><ul><li>Platform Licensing Fees - monthly licensing fees from Publishers for usage of our ebook distribution platform into school systems. (Brightcove model) </li></ul><ul><li>Distribution Revenue Share – K8E receives 1/3 of revenues generated from distributing titles to devices. </li></ul><ul><li>Professional Services – K8E gets paid by Publishers for development of software products that leverage our core platform and ebook capabilities. </li></ul>
  25. 25. The Right Company? <ul><li>3 Year PRO FORMA: </li></ul>* All numbers are USD                 Year 1 Year 2 Year 3     Income           White Label Systems $ 621,228 $ 3,419,678 $ 6,691,493     Educational Systems $ 234,500 $ 623,000 $ 962,500     Distribution $ 6,870 $ 234,047 $ 659,101     Total Income $ 862,598 $ 4,276,725 $ 8,313,093                 Expense           Sales & Marketing $ 369,333 $ 1,385,000 $ 2,150,000     Research & Development $ 637,333 $ 1,217,083 $ 1,705,000     G&A $ 221,333 $ 601,000 $ 1,240,000     Total Expenses $ 1,228,000 $ 3,203,083 $ 5,095,000                 Net Ordinary Income $ (365,402) $ 1,073,642 $ 3,218,093              
  26. 26. The Right Company? <ul><li>MILESTONES TO DATE: </li></ul><ul><li>Product Development - January 2010. </li></ul><ul><li>Alpha Built – May 2010. </li></ul><ul><li>Company Formed – September 2010. </li></ul><ul><li>Catalog Secured - October 2010 - 2500 titles under contract, 3000 more under LOI . </li></ul><ul><li>Beta Store & Player Complete – December 2011. </li></ul><ul><li>Sales Outreach – January 2011 – Industry soft sell. </li></ul><ul><li>Distribution - March 2011 - Agreement with Sharp naming K8E as content aggregation partner for eReaders. </li></ul>
  27. 27. The Right Company? <ul><li>TEAM - Publishing industry insiders teamed with digital media execs successful in multi-platform distribution and monetization. Deep existing business relations with Publishers. </li></ul><ul><li>PLATFORM - Most scalable distribution engine in the industry. </li></ul><ul><li>MOMENTUM - Largest independent catalog of K through 8 titles in world. Agreements for store and product development. </li></ul><ul><li>POSITION – world’s largest catalog of rights, and immediate access to all files required for eBook production. </li></ul><ul><li>PLAN - Positioned for revenue scale and/or acquisition. </li></ul>
  28. 28. Barriers to Entry <ul><li>PRODUCTION & DISTRIBUTION– very difficult at scale (more complicated than games and video.) </li></ul><ul><li>RIGHTS FRAGMENTATION – trade publishers do not own all rights. Most successful titles are legacy with fragmented ownership. </li></ul><ul><li>ROI - Publishers can not find ROI working with multiple partners. </li></ul><ul><li>INDUSTRY - slow to embrace new changes and partners and lacking knowledge of scaled distribution & digital commerce. Making the mistakes media, music and gaming companies did. </li></ul>
  29. 29. Capital Requirements <ul><li>$250K USD - Convertible Note to Series A round. </li></ul><ul><ul><li>25% discount </li></ul></ul><ul><ul><li>CAPITAL NEEDED TO RESPOND TO CLIENT DEMANDS </li></ul></ul><ul><ul><li>Launch white label store and production platform (2 months.) </li></ul></ul><ul><ul><li>Production of titles already under contract. </li></ul></ul><ul><ul><li>Major industry trade show roll out. </li></ul></ul><ul><ul><li>Secure and launch more store partnerships. </li></ul></ul><ul><ul><li>Build educational platform v1.0. </li></ul></ul><ul><ul><li>Scale revenue. </li></ul></ul>
  30. 30. 6 Month Use of Funds Plan <ul><li>WHITE LABEL STORES – 5 live stores. </li></ul><ul><li>CATALOG - 3000 titles produced for multi-platform distribution. </li></ul><ul><li>EDUCATIONAL SYSTEM– 1 major publisher. </li></ul><ul><li>DISTRIBUTION - to eReaders and devices. </li></ul><ul><li>PRODUCT DEVELOPMENT - 2 educational software projects. </li></ul><ul><li>REVENUE – scale to break even. </li></ul>
  31. 31. Contact <ul><li>Ken Ruck – [email_address] 917 406 4789 </li></ul><ul><li>John Cheary – [email_address] 917 838 9134 </li></ul>

×