TOCCON Panel - The elusive Netflix for EBooks

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24symbols participated in TOCCON's Panel on the Netflix for Books (Feb 2013). This is our view on that topic.

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  • http://aclweb.org/anthology-new/W/W11/W11-15.pdf#page=117http://www.cse.unt.edu/~rada/papers/csomai.flairs07.pdfhttp://www.ltg.ed.ac.uk/np/publications/ltg/papers/Betts2007Utility.pdf
  • TOCCON Panel - The elusive Netflix for EBooks

    1. 1. Justo Hidalgo jhidalgo@24symbols.com @justohidalgo Panel: The Elusive Netflix for Books
    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”, “Spotify for Books” or “Subscription Services for eBooks”, we should not circunscribe ourselves to the revenue model. The business model will only work as long as other key elements take the most of what technology, reading devices and specific approaches to how people find and read books provide to us.
    6. 6. 1. Books on the Cloud
    7. 7. Web iPad appHTML5 Multidevice synchronization
    8. 8. Real- Time Learning 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 and kept For publishers: DRM becomes a non-issue; real- time analytics dashboard becomes a real asset Evolution of books: in some cases, books need to 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. Of course. But potential readers have many other entertainment opportunities There are many other ways to increase engagement • Social Reading is one • Recommendations is another But 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 among readers, first step towards a better recommendation system based on friends and tastes, beyond “purchases” And it must happen inside and outside of the service This is the “engagement” side of the equation. Critical.
    19. 19. Breaking the wall between the book and the readers…
    20. 20. … among the readers themselves…
    21. 21. … and with the authors?
    22. 22. Recommendations Engine based on prior readings Social recommendations (your friends!) Recommendations
    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. Content Aggregation
    26. 26. This is what many publishers would like to have (picture of Apple Store in NYC)
    27. 27. But that’s a huge challenge for MOST publishers… and for readers Big Publisher Great Publisher Cool Publisher I just wanted to read a book…
    28. 28. D2C is a clear opportunity for publishers But it is also a huge challenge: most publishers lack a brand • People look for authors, books, categories, but not for publishers • Many publishers are generalists That’s where getting the most of a publishing hub 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 enough 1 many FREE CONTENT PAID CONTENT
    33. 33. But it is still key…
    34. 34. … and core of your business
    35. 35. OK, so offer a great service beyond content… but…
    36. 36. HOW WILL I MAKE PEOPLE PAY FOR A SERVICE?????
    37. 37. Subscription models look for ways to increase revenues, 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, constantly How do you avoid the initial chasm? • Our approach: FREEMIUM!!!
    38. 38. c Freemium FREE ACCESS TO CONTENT WANT MORE?READERS
    39. 39. Free: read ebooks, free and with non- intrusive ads Premium: ad-free, even without Internet connection. Price by subscription Affiliation: we redirect traffic to your site or wherever you sell your printed books Freemium =
    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. Publisher’s Income 70% Income Publisher's Pages Read Total Pages Read = x
    41. 41. Fear of freemium?
    42. 42. 1. Freemium increases engagement Time Users Delayed subscription (test the service & engage) Free Premium Conversion Rate Lower entry ratio Then, work on conversion
    43. 43. time/conversion rate Price/page Growth Profit threshold Consolidation 2. Price per page increases as subscriptions grow • 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 best fit for an ebook platform A place where readers can read, and other companies can create added-value services for their customers: recommendations, content mining, book interlinking, … imagination is the limit And potentially open for standards, research, etc.
    47. 47. @justohidalgo 40000 50000 60000 70000 80000 90000 100000 110000 So, elusive? Nah, I don’t think so
    48. 48. Just a typical adoption lifecycle http://toc.oreilly.com/2013/02/the-four-stages-of-the-spotify-for-ebooks-adoption- model.html
    49. 49. Thanks for your time! @justohidalgo Justo Hidalgo jhidalgo@24symbols.com

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