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TOCCON2013 Panel: The Elusive Netflix for Books. 24symbols

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O'Reilly Tools of Change 2013.
Panel: The Elusive Netflix for Books
Introduction of 24symbols and its standpoint re: the present and future of subscription-based services for ebooks.

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TOCCON2013 Panel: The Elusive Netflix for Books. 24symbols

  1. 1. Panel: The Elusive Netflix for Books Justo Hidalgo jhidalgo@24symbols.com @justohidalgo
  2. 2. ■ Co-founder, 24symbols■ Past: B2B stuff (data integration, metadata, web search and automation, …) • VP Sales Engineering, Product Management • VP Technology■ Mentor for startups (Tetuan Valley, UEIA, …)■ Ph.D., M.Sc. in Computer Science • Training in Product Strategy/Mgmt, Innovation&Creativity at Stanford, UC Berkeley■ Love data. Love books.
  3. 3. “the publishing industry is in a most exciting, but also vulnerable way” Evan Schnittmann, 201
  4. 4. More than a Business Model
  5. 5. When talking about “Netflix for Books”, “Spotifyfor Books” or “Subscription Services foreBooks”, we should not circunscribe ourselvesto the revenue model. The business model willonly work as long as other key elements takethe most of what technology, reading devicesand specific approaches to how people find andread books provide to us.
  6. 6. 1. Books on theCloud
  7. 7. Multidevice synchronizationHTML5 Web iPad app
  8. 8. Real- TimeLearning and Control
  9. 9. Mutable artifact Credits: Craig Mod, June 2011
  10. 10. First key element is “books on the cloud”For readers: no worries about where books are,simplicity in how books are found, accessed andkeptFor publishers: DRM becomes a non-issue; real-time analytics dashboard becomes a real assetEvolution of books: in some cases, books needto evolve continuously.
  11. 11. 2. Social Reading
  12. 12. Before you say “oh, no, social reading again”, let me redefine it…
  13. 13. … just call it ENGAGEMENT
  14. 14. 2. Engagement
  15. 15. Why should we worry about engagement in the publishing industry?
  16. 16. Because we compete for people’s time, and other options are winning
  17. 17. Readers will mainly want to read books. Ofcourse.But potential readers have many otherentertainment opportunitiesThere are many other ways to increaseengagement• Social Reading is one• Recommendations is anotherBut there are many more:• Mining the content of books• Linking the content of books
  18. 18. Of course, the obvious: share with your friends.But much more: communication amongreaders, first step towards a betterrecommendation system based on friends andtastes, beyond “purchases”And it must happen inside and outside of theserviceThis is the “engagement” side of the equation.Critical.
  19. 19. Breaking the wallbetween the book and the readers…
  20. 20. … among the readers themselves…
  21. 21. … and with the authors?
  22. 22. RecommendationsRecommendationsEngine based onprior readingsSocialrecommendations(your friends!)
  23. 23. … not just for fun…■ Edition, Author and Publisher Pages■ Sharable in Facebook, Twitter, Google+ (virality)■ Organic positioning in search engines
  24. 24. … and more to come
  25. 25. 3. ContentAggregation
  26. 26. This is what many publishers would like to have
  27. 27. But that’s a huge challenge for MOST publishers… and for readers Big PublisherI just wanted to read a book… Great Publisher Cool Publisher
  28. 28. D2C is a clear opportunity for publishersBut it is also a huge challenge: most publisherslack a brand• People look for authors, books, categories, but not for publishers• Many publishers are generalistsThat’s where getting the most of a publishinghub makes sense
  29. 29. “Book as a Service” provides a real HUB for readers, publishers and authors
  30. 30. And it can be done in new, attractive ways
  31. 31. 4. Business Models
  32. 32. Content is not enoughFREE CONTENT PAID CONTENT many 1
  33. 33. But it is still key…
  34. 34. … and core of your business
  35. 35. OK, so we need to offer a great service beyond content… but…
  36. 36. HOW TO MAKE PEOPLE PAY FOR A SERVICE?????
  37. 37. Subscription models look for ways to increaserevenues, but in a different way:• Offer a great service• Offer great content• Pay once, FORGET ABOUT IT• Have new stuff everytime readers come back• In summary: create value, constantlyHow do you avoid the initial chasm?• Our approach: FREEMIUM!!!
  38. 38. FreemiumREADERS FREE ACCESS WANT MORE? TO CONTENT c
  39. 39. Freemium =Free: read ebooks, free and with non-intrusive adsPremium: ad-free, even withoutInternet connection. Price bysubscriptionAffiliation: we redirect traffic to yoursite or wherever you sell your printedbooks
  40. 40. Income model 24symbols income is based on advertising and subscriptions. 70 % of this revenue is shared equally among the total number of pages read. 70% Income PublishersPublisher’s = xIncome Pages Read Total Pages Read
  41. 41. Fear offreemium?
  42. 42. 1. Freemium increases engagement FreeUsers Conversion Rate Delayed subscription (test the service & engage) Premium Lower entry ratio Time Then, work on conversion
  43. 43. 2. Price per page increases as subscriptions grow Price/page Profit threshold Growth Consolidation time/conversion rate• http://www.digitalbookworld.com/2012/how-the-economics-of-ebook-subscription- services-work/• http://www.24symbols.com/docs/FAQ24symbols_en.pdf
  44. 44. 4. Platform
  45. 45. Are books “it”?Are books “the final product”?
  46. 46. A subscription service on the cloud is the bestfit for an ebook platformA place where readers can read, and othercompanies can create added-value services fortheir customers: recommendations, contentmining, book interlinking, … imagination is thelimitAnd potentially open for standards, research,etc.
  47. 47. So, elusive? Nah, I don’t think so 110000 100000 90000 80000 70000 60000 50000 40000@justohidalgo
  48. 48. Just a typical adoption lifecyclehttp://toc.oreilly.com/2013/02/the-four-stages-of-the-spotify-for-ebooks-adoption-model.html
  49. 49. Thanks for your time!Justo Hidalgojhidalgo@24symbols.com@justohidalgo

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