Ebooks, publishing and innovation — buenos aires book fair 2014

1,127 views

Published on

Published in: Technology, Business
  • Be the first to comment

  • Be the first to like this

Ebooks, publishing and innovation — buenos aires book fair 2014

  1. 1. Creatividad e innovación en el mundo editorial Dominique Raccah Sourcebooks, Inc. Feria Internacional del Libro de Buenos Aires
  2. 2. [ about Sourcebooks]
  3. 3. Entered book publishing during desktop publishing revolution
  4. 4. Continuous evolution…
  5. 5. Creativity and Innovation in Book Publishing 1. The U.S. book market  How the U.S. ebook market evolved  U.S. ebook consumer 2. What are the results of this change? 3. Keys to creating in this rapidly changing environment
  6. 6. Critical importance of data during times of change
  7. 7. Data is from BOOKSTATS
  8. 8. Special ConsiderationsBookStats Data Cube
  9. 9. 59,719
  10. 10. SMALL MEDIUM LARGE VERY LARGE TOTAL ACADEMIC 1 13 13 27 ARTS 961 203 12 1 1177 BISAC UNKNOWN 47 37 14 98 BUSINESS 315 77 10 402 EDUCATION 255 81 14 1 351 LAW 79 50 7 136 MEDICAL 155 37 8 200 NON-TRADITIONAL 1 7 28 36 OTHER 620 181 40 1 842 RELIGION 555 181 26 1 763 SMALL PUBLISHER 48,884 48,884 TECHNICAL AND SCIENTIFIC 786 269 64 8 1127 TRADE - GENERAL 1,296 406 76 4 1782 TRADE - JUVENILE 356 189 64 5 614 TRADE - NONFICTION 1,425 309 36 1770 TRADE - ADULT FICTION 1,039 224 44 4 1311 UNIVERSITY PRESS 100 65 34 199 TOTAL 56,873 2,311 469 66 59,719
  11. 11. Digital transformation of the book Where are we now? (US data only)  ebook consumer  ebook sales  ebook ecosystem
  12. 12. [ U.S. ebook consumer ]
  13. 13. Multi-year study (12+ contracted publications) Methodology • PubTrack™ Consumer panel of U.S. book buying men, women and teens balanced to US Census • Survey pool of ~78K book consumers at the time of last fielding • 95% probability threshold
  14. 14. [ who is the US ebook customer? ]
  15. 15. Benefits of e-reading devices… BISG — US 2010 data
  16. 16. © 2010, the Book Industry Study Group, Inc.
  17. 17. who is the customer: reader who reads a lot
  18. 18. 0% 20% 40% 60% 80% Sept. 2010 Jan. 2011 May 2011 Aug. 2011 Dec. 2011 Feb. 2012 May 2012 Aug. 2012 Feb. 2013 Aug. 2013 More than a year ago Within the last year When did you begin acquiring e-books?
  19. 19. 0% 10% 20% 30% 40% 50% I mostly purchase e- books, and purchase fewer print books than I used to I purchase e-books and print books interchangeably, or I prefer some genres as e- books and others as print I now exclusively purchase e-books I no longer buy e- books, only print books Format choices
  20. 20. 0% 20% 40% 60% 2 or more YEARS ago 1 to 2 YEARS ago 7 to 12 MONTHS ago 2 to 6 MONTHS ago Buying more books Buying the same # of books Buying fewer books Long time e-book readers buy more
  21. 21. [who is the US power buyer]
  22. 22. Who is Today‘s Core Trade E-Book Buyer (in the U.S.)?  Woman (66%)  ~44 years old  HH Income ~$77K Yr  Predominantly Fiction (58% of all ‗e‘ sold)
  23. 23. Female 45-54 years old Clerical worker or homemaker Kindle user
  24. 24. 0% 20% 40% 60% 80% 100% Google Ebooks.com iBooks/iTunes Other Library B&N Amazon Power Buyers Other respondents Where power buyers buy ebooks?
  25. 25. Device Use – Overall 0% 10% 20% 30% 40% 50% NOOK e-reader NOOK Color Android tablet iPhone Kindle Fire iPad Kindle e-reader Power Buyers Other respondents
  26. 26. Device Use – Most Frequent 0% 10% 20% 30% 40% iPhone Android tablet NOOK e-reader NOOK Color iPad Kindle Fire Kindle e-reader Power Buyers Other respondents
  27. 27. [ what are the results of this change?]
  28. 28. Authors Have A Lot More Choices
  29. 29. Today, it‘s become much easier to publish a book in the US
  30. 30. An Overwhelming Amount of Content
  31. 31. Every day in America 3,500 books are published* and only a handful will be considered successful by any criteria *Bowker 2013
  32. 32. Decline in price of traditionally published e-books $0.00 $5.00 $10.00 $15.00 $20.00 $25.00 E-Books Softcover Hardcover 2008 2009 2010 2011 2012
  33. 33. In the era of the Kindle, a book costs the same price as a sandwich. Dennis Johnson, an independent publisher, says that ―Amazon has successfully fostered the idea that a book is a thing of minimal value—it‘s a widget.‖ —The New Yorker, Feb. 2014
  34. 34. [ where are we today? ] 1. Enormous number of ebooks being published  Steep declines in ebook pricing  The use of ebooks as loss leaders or giveaways fosters a continuing devaluing of ebooks
  35. 35. [ are print books dead or dying? ]
  36. 36. $0 $2,000,000,000 $4,000,000,000 $6,000,000,000 $8,000,000,000 $10,000,000,000 $12,000,000,000 $14,000,000,000 2008 2009 2010 2011 2012 eBooks Combined Print Print lives
  37. 37. $0 $1,000,000,000 $2,000,000,000 $3,000,000,000 $4,000,000,000 $5,000,000,000 $6,000,000,000 2008 2009 2010 2011 2012 eBooks Hardcover Mass-market Softcover © 2013, the Book Industry Study Group, Inc. But e-books continue to grow…
  38. 38. [ are print books dead or dying? Digital doesn’t affect every content category in the same way ]
  39. 39. Print and eBook Sales in Units 0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 Print eBook
  40. 40. 2013 YTD Sales by Units 0 500000 1000000 1500000 2000000 2500000 3000000 3500000 Adult Fic Adult NF Kids (ALL) Kids (not YA) YA eBooks Print
  41. 41. $0 $200,000,000 $400,000,000 $600,000,000 $800,000,000 $1,000,000,000 $1,200,000,000 $1,400,000,000 $1,600,000,000 $1,800,000,000 $2,000,000,000 2008 2009 2010 2011 2012 Hardcover Mass-market Softcover eBooks © 2013, the Book Industry Study Group, Inc. Especially for Adult Fiction
  42. 42. E-Growth is Slowing 2008 2009 2010 2011 2012 355% 199% 143% 44% 0% 50% 100% 150% 200% 250% 300% 350% 400% $- $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500
  43. 43. [ where are we today? ] 2. Print lives. Absolutely.  In U.S., ebooks are replacing/displacing our cheapest formats  BIG impact on fiction sales and narrative  Much less impact on other categories of books
  44. 44. [ how is book retailing changing? ]
  45. 45. The Continuous Momentum Towards Online Shopping
  46. 46. DISTRIBUTION: How purchased? FORMATpurchased? PRINTeBooks Brick and Mortar Retail Online Retail
  47. 47. -194 52 1,111 Retail Stores (Total) Other Channels Online Retail The billion-dollar shift in trade retail
  48. 48. The billion-dollar shift in Trade $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 Chains Unclassified Indie stores Specialty stores Mass merchants College stores 2010 2011 2012
  49. 49. [ where are we today? ] 3. Combination of online convenience, plus long tail plus digital transformation has put real pressure on our brick and mortar/physical book retailers  In U.S., physical book retailers need to learn to be great online merchants (of physical as well as digital books)
  50. 50. [ where are we today? ] 4. Consolidation and monopoly in the U.S retail space  Amazon majority of online book retailing  Barnes and Noble majority of brick and mortar book retailing
  51. 51. [devices]
  52. 52. law of diffusion of innovation -Simon Sinek, Ted Talk
  53. 53. 56
  54. 54. What is your preferred device for reading e-books? 57 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% Amazon Desktop/Laptop All Other
  55. 55. What is your preferred device for reading e-books – Power Buyers 58
  56. 56. What is your preferred device for reading e-books? 59 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% Tablets Dedicated E-Readers Frequently Occasionally Rarely
  57. 57. The market is maturing and settling down. The longer someone is in the market, the more predictable his or her behavior becomes. Tablets are overtaking e-readers, but not with power buyers. Ebooks are still driven by fiction. And in the U.S., Amazon is dominant. Conclusion 60
  58. 58. Challenges of today‘s US market  Explosion in the amount of books available  Increasing pressure on brick and mortar bookstores  Value of discovery in the brick and mortar retail space  Corresponding challenge of discovery in the online retail space  Marketing is becoming more fragmented and more expensive
  59. 59. Creativity and innovation in publishing
  60. 60. How to create more value in a rapidly changing publishing world
  61. 61. Creating more value… Authors and Agents Retailers Provide More Value Publishers
  62. 62. 1. experimentation experimentación
  63. 63. Have to think about experimentation differently
  64. 64. our goal has to be to increase the probability that a book, a series or a program will be successful
  65. 65. Need more and better data, better processes, and more transparency around every step in the publishing process
  66. 66. And what‘s critically important is that we rethink our whole view on FAILURE
  67. 67. this experimental model has worked for us
  68. 68. The Lean Startup Model
  69. 69. In this model: failure is an event. It‘s about the facts. It‘s not about you.
  70. 70. Your goal is to…
  71. 71. 2. focus on your readers centrarse en sus lectores
  72. 72. Look at your content/books from the point of view of your readers  What do they want?  What do they need?  How can you increase engagement?
  73. 73. iPhone apps $0.99 - $4.99 Complete Book of Baby Names Baby Name Treasury 25,001 Best Baby Names ebook 25,001 Best Baby Names MM $19.95$12.99$5.99$4.99 Baby Names Content Continuum
  74. 74. Gary Gruber Content Continuum
  75. 75. Fiske Interactive Web Version
  76. 76. Work to create something that delights your readers and helps your authors
  77. 77. - Steve Jobs, May 1997 ―You‘ve got to start with the customer experience and work back toward the technology — not the other way around.‖
  78. 78. - Steve Jobs, May 1997 ―Hay que comenzar con la experiencia del cliente y trabajar de nuevo hacia la tecnología - no al revés.‖
  79. 79. ―My view is there's no bad time to innovate. You should be doing it when times are good and when times are tough— and you want to be doing it around things that your customers care about.‖ —Jeff Bezos, BusinessWeek
  80. 80. Shift focus from books… …to readers/users
  81. 81. Shift focus from content… …to experience
  82. 82. Focus on reader with questions like: • What are the right interactive elements? • What supports/expands the story? • What creates the most immersive experience? • How can we enhance reader experience and engagement?
  83. 83. 3. think beyond ebooks pensar más allá de ebooks
  84. 84. Digital opens opportunities beyond ebooks
  85. 85. the world for book publishers just got a lot BIGGER enhanced e-books online platforms (mobile) appsonline communities user-generated content e-books
  86. 86. How can you serve your readers better? enhanced e-books online platforms (mobile) apps online communities user-generated content e-books
  87. 87. What is the value you‘re adding… Authors and Agents Retailers Provide More Value Publishers
  88. 88. Our strategy: develop our own direct- to-consumer platforms and channels
  89. 89. Our strategy: develop our own direct- to-consumer platforms and channels
  90. 90. 4. Shakespeare example
  91. 91. the problem of Shakespeare
  92. 92. the problem of Shakespeare
  93. 93. Teachers have told us ―it takes about 3 weeks to get kids into Shakespeare‖ the problem of Shakespeare
  94. 94. the problem of Shakespeare  Can we make learning, engaging with, immersing in Shakespeare…easier
  95. 95. Shakesperience
  96. 96. Shakesperience  Can we support different learning styles?  Visual—Images from great performances set the stage  Auditory—Embedded audio from multiple actors show you the powerful spectrum of interpretation  Kinesthetic—You‘re literally interacting with the content
  97. 97. Touchable interface = language at your fingertips
  98. 98. Shakesperience  lean forward vs lean back experience
  99. 99. 5. Put Me In The Story example
  100. 100. The bedtime reading experience
  101. 101. What Put Me In The Story Does We create a personal connection between you and the books you love
  102. 102. And What Really Matters… …we foster a greater love of reading (sometimes even a first love of reading) We create a keepsake that families will cherish forever
  103. 103. Great Books! Why It Works
  104. 104. We started with bestselling books and authors
  105. 105. And then we added Elmo!!
  106. 106. What Put Me In The Story Does Differently We‘re creating many forms of personalization to create the best experience in the stories you love We allow many different ways of personalizing a book
  107. 107. What Put Me In The Story Does DifferentlyWe‘re using a digital process to create both digital books (app) and physical books
  108. 108. Creating Books to Cherish Forever!
  109. 109. Why It Works The app and the website work together to deliver a personalized content experience whenever and wherever you want it. Different use cases.
  110. 110. Why It Works Incredibly easy-to-use interface… Allows you to see every page of the book as you personalize.
  111. 111. What We Know Now… The app, the web and print all work together It‘s a single ecosystem
  112. 112. Our 2013 partners
  113. 113. Many more great partners coming! And in 2014…
  114. 114. More great partners coming!
  115. 115. Anne Geddes!
  116. 116. How Put Me In The Story Creates Value For Publishers and Authors • Higher price point: $24.99-$32.99 + $6.99 (s/h) • Incremental sales dollars • Some indication that all our online marketing is lifting retail sales (10‘s of millions of impressions in Q4) • On our way to creating a new channel for picture and illustrated books • New incremental dollars/revenue for authors • And creating extraordinary gift experience that builds and enhances author‘s brands and the connection that readers have to books and story
  117. 117. We believe… …Put Me In The Story will be the leading personalized book
  118. 118. Extending the book — Content, format and experience
  119. 119. Keys to Creativity and Innovation in Book Publishing 1. Experiment  Test and iterate quickly  Allow yourself to learn from failure 2. Think beyond ebooks 3. Focus on your user/reader  What do they want/need?
  120. 120. Work to add new kinds of value to authors and retail partners Authors and Agents Retailers Provide More Value Publishers
  121. 121. It‘s not just the book that‘s transforming. It‘s the book publisher. Digital changes everything.
  122. 122. “Procuremos más ser padres de nuestro porvenir que hijos de nuestro pasado.” -Miguel de Unamuno (1864-1936) Spanish essayist, novelist, poet, playwright, and philosopher “ ”
  123. 123. Thank YOU! Twitter: @draccah LinkedIn Group: Ebooks, Digital Books and Content Publishing Network

×