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The Expanding Education Market for Digital Books


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The education market has been a solid market for publishers for years, but with the arrival of digital books, the market has become more challenging and confusing for educators and publishers. However, some companies are finding an expanding market and new opportunities for organic growth. During this session, Todd Brekhus, President of Capstone Digital will describe the huge success of myON reader. MyON reader has added over 25 publishers to the platform and grown to attain over 1.4 million readers. The myON platform, a personalized literacy platform, has over 4,000 interactive titles available from the cloud or through iPad and Android Apps. Terri Soutor will share the early success of Brain Hive, which has wowed the school market with its innovative pay-per-use model, enabling affordable ebook access to schools. With free membership and open, unlimited access to 3,000+ titles from educational and trade publishers, Brain Hive has created a reader-driven ebook lending program for schools and a creative option for publishers to grow digital revenue and access insightful data about e-reading habits and demand.

Terri and Todd will provide insight into developments and trends in educational technologies, the evolving use of digital content and mobile technology in the classroom, and what publishers can do to attract and reach education buyers.

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The Expanding Education Market for Digital Books

  1. 1. THE EXPANDING EDUCATIONMARKET FOR DIGITAL BOOKS Lisa Holton, Moderator Terri Soutor, @terrisoutor Todd Brekhus, @toddbrekhus
  2. 2. Children’s Publishing Goes Digital Terri Soutor, VP
  3. 3. Digital Shift in Schools• $42M spent on eBooks in U.S. schools last year• 47% of school libraries currently use eBooks and 25% plan to use with next year – 62% of high schools – 50% of middle schools (fastest growing segment) – 39% of elementary schools• Avg. # of eBooks ↑ 83% (HS avg. 438 titles)• eReader, mobile & tablet use in schools is HOT – iPad sold just under one million units to the education market in the Q3-2012• Top eBook adoption motivators: – Keeping up-to-date with technology – Educational trends/best practices – Portability, flexibility in curriculum• Barriers: budget, complexity, access Data Sources: 1) The New Normal—Survey of Ebook Penetration & Use in U.S. School (K-12) Libraries, 2012, published by School Library Journal and Library Journal. 2) 2011 SLJ Technology Survey.
  4. 4. An eBook Alternative for Schools Schools want to meet growing eBook demand, offer relevant digital content, and take advantage of all the benefits eBooks provide for teaching and learning. Yet, the purchasing models available today are often complex and cost prohibitive for schools leaving them searching for an alternative. Brain Hive™ offers a solution that breaks down the financial and eBook access barriers to digital adoption in K-12 schools and school libraries
  5. 5. What We Do• An online eBook service for K-12 schools offering unlimited access to a $150,000 eBook collection.• 3,700+ curated titles, plus downloadable teaching resources and online Accelerated Reader Quizzes for reading assessment.• Membership is free for schools—no up-front investment, no long-term commitment.• An “on demand” service—members get unlimited access to eBooks. The school pays a $1 for each 14-day checkout.• The school isn’t buying eBooks that don’t circulate! They only pay for what kids are reading – a reader- driven model with safety nets and spending controls for the school.• Goodreads-like experience for kids with book sharing, reader ratings, favorites, recommendations, and book clubs.• Business model = rental. Revenue is created from volume of individual eBook circulations across hundreds of schools.
  6. 6. Our Publishing Partners
  7. 7. Marketing Brain Hive• Two marketing drivers—school enrollments & eBook circulation/usage• Primarily a direct marketing play. Finding early marketing success with email marketing and telemarketing to drive enrollment.• Large Addressable Market: There are 90,000 U.S. public schools (and another 20,000+ private/Catholic schools) that are prospective Brain Hive members and 48.5 million prospective readers of your books!
  8. 8. Publisher Benefits• Low risk. No product development investment.• Earn new revenue in an underserved market niche; incremental revenue on existing and new eBooks (BTW…your titles should be everywhere!)• Benefit from positive brand perception among educators and parents; helping to solve an education need = a PR win and you’re reaching book consumers• Gain new “preview” opportunities for titles with diminishing retail shelf- space• Gain access to quantitative data about e-reading habits and demand for your titles – valuable data for digital and editorial planning
  9. 9. Todd BrekhusPresident, Capstone Digital
  11. 11. THE STAKES ARE ENORMOUS: • 67 percent of 4th graders can’t read at their grade level • Kids who don’t read well by 4th grade are 4 times more likely to drop out of school • Half of these struggling students end up on welfare
  12. 12. TRADITIONAL CONTENTAND PLATFORMS AREN’T ENOUGH: • Libraries have long wait lists for popular titles • Kids have their own tastes, and encounter many books too hard or easy to read • Integrating instructional practices and online assessment – very difficult
  13. 13. myON knows kids individually—age, interests, reading level, booksthey’ve read—and suggests other books they might like, at their readinglevel
  14. 14. Over 4,000 enhanced digital books from over 26 publishers—70%nonfiction and over 10% SpanishAll books over 1,000 Lexiles have actor read-aloud
  16. 16. 24/7 unlimited, anytime, anywhere access, available on desktops, laptops,tablets, and mobile devices
  17. 17. “The amount of time that students spent reading because of technology and access is huge. With our community-wide Read on myON Project we have achieved 21 years of reading in just over six months. This can’t happen at your traditional library.” MaryEllen Elia, Superintendent Hillsborough County Public Schools, Florida
  18. 18. Building communities of confident readersAligning to curriculum and program goals
  19. 19. With myON students can track their reading growth and challengethemselves to strive higher.
  20. 20. WHY PUBLISHERS ARE WORKING WITH MYON…New non-exclusive revenue streamsDedicated Sales Team, Direct Marketing, and Inside Sales Support – LargeInvestment in District Level RelationshipsBecoming part of the curriculum through Professional Services and ProjectManagementMetrics and data to support publishing efforts