Mobile content consumption is expanding rapidly on a global scale. People are accessing content through dedicated eReaders, tablets, smartphones, and other multi-function devices. The available content formats and devices are proliferating, making it challenging for content providers. However, designing for mobile user experiences and the cloud may help address these issues and open new opportunities for reaching global audiences.

1. Read 2.0 is mobile (and global)
NFAIS MOBILE workshop
MARCH 16, 2012

2. This morning’s presentation
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 A mobile context
 Global trends
 Current options for mobile content consumption
 Implications for content creation and management

3. Mobile content consumption: core take-aways
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 Expanding rapidly
 Global implications
 Dedicated and multi-function devices
 Content forms evolving along with the platforms

4. Headlines (begin to) tell the tale
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5. Things are changing fast, and faster
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 Smartphone use grew an estimated 40% in 2011
 Social networking on mobile devices grew 240% in a
single year
 Tablet sales doubled in 2011
 72% of the U.S. workforce is “already mobile”
 Mobile is expected to “trump laptops and desktops”
and become the “first screen” for web access by 2013
Source: Chief Content Officer

6. Mobile is busting out all over
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 US leads the way
 Significant expansion expected in UK, France
 Emerging: Spain, Germany, Netherlands
 Regional rights sales can be a challenge

7. Digital reading in major markets
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Sources: Barclays Capital, PwC, Magellan analysis

8. Digital reading in emerging markets
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Sources: Barclays Capital, PwC, Magellan analysis

9. How do you qualify emerging markets?
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 Affordable, attractive eReading devices
 Wide range of content (okay if it’s trade)
 Perceived price competitiveness
 Straightforward interfaces
 … and maybe see if your content is being pirated

10. Keys to mobile reading success
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 Wireless coverage
 Seamless transactions
 Extensive content libraries
 Device reliability
 Content interoperability
Adapted from work by Andrew Brenneman, Book Business

11. Technology: changing the reading landscape
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 Content forms are evolving as platforms emerge
 Today: web, text, apps, search, (some) ads
 New options are emerging
 Location-based services (LBS)
 QR codes
 Near-field communication (NFC)
 Dedicated eReaders and multifunction devices
 Tablets may supplant other devices for reading

12. Already: iPad eating away at print news
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 University of Missouri survey of 1,600 iPad users
 84.4% cited “following current events” as a primary
use for their iPad [good news]
 Almost half claimed an hour or more per day is spent
reading news
 Of those heavy news consumers, 58% said they were
likely to cancel print; 10% had already cancelled
 Key factor: price [bad news]
Sources: Journalism Institute at the University of Missouri; Macworld March 2011

13. The appeal of mobile reading
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 Portable
 Searchable
 Broader selection
 “In the moment” (immediate, interactive, relevant,
updated)
 Increasingly “webby”: open, social, linked

14. A cross-section of digital content models
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Typically supported Opportunity to develop
using web-based and implement device-
wireless applications based apps
Source: Alisa Bowen, Thomson-Reuters; Magellan analysis

15. Mobile reading segments: a range …
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• Sony Reader • Apple iPad • iPhone (Apple)
• Amazon Kindle • Samsung • Blackberry (RIM)
• BN Nook • Motorola • Android (Google)
• Kobo Reader • RIM • Microsoft (Windows)
• … and many more • Kindle Fire
• Nook Color
• Kobo

16. … with differing use profiles
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Source: Nielsen, February 2011

17. Part of an evolving e-reading value chain
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Source: Forrester Research; Magellan research

18. Designing for mobile is “the new black”
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 Desired: a consistent user experience across multiple
digital channels
 “Fat-finger” challenges
 Search options must be omnipresent
 Speed matters (so, optimize for the platform)
 Sharing matters (“likes”, recommendations, reviews)
 Increasingly, geo-location features matter

19. A significant challenge: formats
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Today: Device +
Format + Discovery +
Acquisition +
Installation + DRM =
“Confusion”
“Confusion” courtesy Peter Brantley, Internet Archive

20. Proliferation of file types and DRM options
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Segment Options
File types RTF and PDF
BBeB
.lit, mobi and AZW
PDB and FB2
HTML, RB, CHM and OEB
… and EPUB
Digital rights Microsoft Reader
management Adobe Digital Editions
eReader
Mobi
Apple FairPlay
DNL
… and others
Adapted from work by Neelan Choksi

21. Salvation in the cloud?
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22. Platforms, devices and carriers
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Leading platforms
 Apple iPhone OS
 Android
 Windows
 Blackberry

23. Market share for smartphone platforms
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Platform Nov 2010 Nov 2011 Change
Android 26.0% 47.0% +21.0
Blackberry RIM 33.5% 6.0% -27.5
Apple iOS 25.0% 43.0% +18.0
All other 15.5% 4.0% -11.5
Because mobile devices are replaced often, market shares can shift quickly…
Source: Nielsen

24. Platform share among “recent acquirers”
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Platform Share of recent acquirers
Android 46.9%
Apple iOS 44.5%
RIM Blackberry 4.5%
All other 4.1%
Shifts like these can affect the willingness of app developers
to work with a given platform.
Source: Nielsen Mobile Insights (December 2011)

25. Market share for leading devices
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Device 3Q 2010 3Q 2011 Change
Nokia 28.2% 23.9% -4.3
Samsung 17.2% 17.8% +0.6
LG 6.6% 4.8% -1.8
Apple 3.2% 3.9% +0.7
ZTE 1.9% 3.2% +1.3
RIM 3.0% 2.9% -0.1
HTC 1.6% 2.7% +1.1
Motorola 2.1% 2.5% +0.4
All others 36.3% 38.1% +1.8
Although Apple trails in the share of leading devices, it outpaces all
providers in revenue earned from its mobile devices.
Source: Gartner, November 2011

26. Mobile platforms vary widely by country
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Platform USA Canada UK France Spain Germany
Apple 35% 77% 42% 64% 56% 59%
Blackberry 28% 8% 35%
Android 27% 8% 12% 19% 20% 21%
Nokia 6% 14% 8%
Other* 11% 7% 12% 11% 9% 12%
These figures reflect operating systems for all mobile devices in use. “Other”
includes Nokia and Blackberry in markets where they are not broken out.
Source: iCrossing, February 2011

27. Four carriers dominate the U.S. market
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Carrier Market share (2010)
Verizon 37%
AT&T 31%
Sprint 16%
T-Mobile 11%
All others 5%
Total mobile subscribers 290 million
Source: Wireless Industry News

28. Practical implementation advice
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 Know the devices your audience uses
 Track usage behaviors and be ready to adjust
 Create and align user-experience “maps” across
platforms (web, mobile, apps)
 Set usage and engagement goals that track across
multiple platforms
 Remember that a bad app is worse than no app
Source: Publishing Executive; Association Media & Publishing

29. Preparing for new digital models
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 Be sure that rights are well-tracked and up to date
 Know where your files are (ideally, in-house)
 Align your metadata with partner requirements
 If you want to sell content components, plan ahead
 Think globally

30. If you are just getting started
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 Think EPUB
 Simple before enhanced
 If enhanced, think platform

31. If you are prepared to go global
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 Direct sales? Devices and markets are complex
 Partners can help
 If geographically focused, you can choose
 Worldwide rights gaining in value

32. Either way: “Look Homeward, Angel”
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 Subscription and component sales
 Cost containment and agile content
 Piracy can point out demand
 Keep up with VAT
 Buy and use eReaders

33. Publisher options for rich-media strategies
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 Consider using one of the digital magazine vendors
 Market broadly (print, digital mag, app) and let the
audience choose the format
 Don’t just give away content
 Limit web-based content to a subset until registered
 Limit app-based access until log-in/subscribe
 Where applicable, sell cross-platform advertising
Source: Publishing Executive

34. Mobile content consumption: core take-aways
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 Expanding rapidly
 Global implications
 Dedicated and multi-function devices
 Content forms evolving along with the platforms

35. 35
“What matters is trying to figure
Looking ahead
out how to work with the
audience and how to help them
find out what it is they want to
find. People, I think, will pay for
that.”
- Nick Bilton, NYT.com
Source: Associations Now

36. For more information
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 Book Industry Study Group (www.bisg.org) , “Consumer Attitudes
Toward Digital Publishing” (two-volume study)
 A mobile bibliography, http://bit.ly/9iaZPQ
 Livres Canada Books, “Exporting digital books: A guide to best
practices”
 Barclays Capital, “eBooks – Digital positive for once?”
 Outsell, “Worldwide eBooks market size and forecast report”
 PwC, “Turning the page: The future of eBooks”
 The Bookseller’s “FutureBook” annual surveys (2009 – 2011)
 brian.oleary@magellanmediapartners.com