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THE SOUND HORIZON	



          BOOKS 2.0: 
   CREATING NEW VALUE FROM
           READING	

          Dominic	
  Pride	
  
          19	
  March	
  2010	
  
ABOUT THE SOUND HORIZON
                                                                                                                                                                          ight,
                                                                                                                                                         T ranslating ins
                                                                                                                                                                        nd
                                                                                                                                                         intelligence a
                                                                                                                                                                       to things
                                                                                                                                                         innovation in
                                                                                                                                                                        !
                                                                                                                                                          people use.
                                                                                                                                                                Fast!
                                                                                                                                                                            !



      Dominic	
  Pride:	
  Managing	
  	
  Director	
  /	
  	
  Principal	
  Consultant	
                                                                     Some	
  of	
  our	
  Clients	
  

                            • Strategic	
  change	
  	
  
                            • Innova5on	
  management	
  
                            • Product	
  marke5ng	
  	
  
                            • Mobile	
  and	
  converged	
  service	
  
                            	
  	
  	
  development	
  
                            • Experience	
  with	
  operators,	
  handsets,	
  agencies,	
  	
  
                            content	
  brands,	
  labels,	
  associa5ons	
  




March	
  19,	
  2010	
                                     Dominic	
  Pride	
  -­‐	
  The	
  Future	
  of	
  Books.	
  Some	
  rights	
  reserved.	
                            1	
  
TODAY’S SESSION
How to transform the desire for change into reality	




     1.Dawn of                 2. Welcome                         3. Your new                                                   4. From       5. The
   digital reading             to the digital                      ecosystem                                                    books to     change
                                ecosystem                           partners                                                   Reading 2.0   agenda




                           @thesoundhorizon	
  
                                  #books20	
  
March	
  19,	
  2010	
                      Dominic	
  Pride	
  -­‐	
  The	
  Future	
  of	
  Books.	
  Some	
  rights	
  reserved.	
         2	
  
1. THE DAWN OF DIGITAL READING
DIGITAL READING GOES MAINSTREAM
    CES: 20+ E-
    reading devices
    on show




                                         The iPad: “ideal canvas” with
                                                                                                                                                 No. of books
                                         rich user interface
                                                                                                                                                 overtakes games
                                                                                                                                                 in iPhone App
                                                                                                                                                 Store*



                           The	
  digital	
  reading	
  use	
  case	
  is	
  becoming	
  widely	
  understood	
  
                                                                                        *Source: Mobclix http://blog.mobclix.com/ :
March	
  19,	
  2010	
                             Dominic	
  Pride	
  -­‐	
  The	
  Future	
  of	
  Books.	
  Some	
  rights	
  reserved.	
                4	
  
BUT SERIOUS CHALLENGES LIE AHEAD
                            Digital behaviours established
                                   by other services
                                                                                                                                           Consumer backlash
 Pricing and margin in App                                                Today’s rich UI will                                                  begun?
           Stores                                                         become tomorrow’s
                                                                            hygiene factor
   Growth potential for
reading beyond e-readers
                                                                                            Competition for
                                                                                           authors’ content
                                                                                          from other media.
         VCs and
    disruptive startups
     targeting reading
                                                                             Disintermediation by self-
                                                                               publishing platforms


               Perpetual, accelerating
                 pace of innovation            Competition for
                                                audience and
                                             revenue in “reading”
                                                  category.
 March	
  19,	
  2010	
                      Dominic	
  Pride	
  -­‐	
  The	
  Future	
  of	
  Books.	
  Some	
  rights	
  reserved.	
               5	
  
TO THE DIGITAL ECOSYSTEM
FROM BOOKS 1.0 VALUE CHAIN …

 Actor                         Author	
          Agent	
                                        Publisher	
                                                   Distributor	
        Retailer	
  


                               	
  Create	
     Maximise	
                               	
  Manage	
  risk	
                                                   Deliver	
       	
  Sell	
  book	
  
  Role
                                   work	
       revenues	
                               Market	
  book	
                                                        book	
  


                           • Wri5ng	
           • Finding	
  /	
                • Edi5ng	
                                                                    • Storage	
       • Store	
  
                           • Revising	
         developing	
                    • Prin5ng	
                                                                   • Transport	
     mgmt	
  
                           • Promo5on	
         /	
  placing	
                  • Product	
  Marke5ng	
                                                       (incl.	
          • Billing	
  
Activity
                                                talent	
                        • Release	
  management	
                                                     returns)	
        • Customer	
  
                                                • Royalty	
                                                                                                   • Account	
       service	
  
                                                collec5on	
                                                                                                   mgm.t	
  




    March	
  19,	
  2010	
                                      Dominic	
  Pride	
  -­‐	
  The	
  Future	
  of	
  Books.	
  Some	
  rights	
  reserved.	
                             7	
  
…TO BOOKS 2.0 VALUE ECOSYSTEM

     Authors	
  
                                                                                                                                      Auto-­‐
                                                                                          VCs	
                                       mo5ve	
                                          Content
                              Agents	
  


                                                                                                                        Consumer	
  
                                                                                                                        Electronics	
  
                                                                                        Developers	
  
                                   Book	
  
                                 Publishers	
                                                                             Mobile	
  
                                                  Magazine	
                                                             Networks	
                                                          Consumers	
  
                   Film	
  
                                                  Publishers	
  
                                                                                                                                                  App	
  Stores	
  



         TV	
  
                              Content	
                  Newspaper	
  
                                                                                              Brands	
  
                                                                                                                               ISPs	
                                    Social	
  
                                                                                                                                                                        Networks	
  
                              Owners	
                   Publishers	
  




                                                                                            Agencies	
                                     Digital	
  Retail	
  
                                                   Games	
  
                  Music	
  
                                                  Publishers	
  

                                   Radio	
  

                                                                                                                                  Portals	
  


                                                                                                                         Analy5cs	
  Providers	
  



March	
  19,	
  2010	
                                                    Dominic	
  Pride	
  -­‐	
  The	
  Future	
  of	
  Books.	
  Some	
  rights	
  reserved.	
                                 8	
  
…TO BOOKS 2.0 VALUE ECOSYSTEM

     Authors	
  
                                                                                                                                      Auto-­‐
                                                                                          VCs	
                                       mo5ve	
                                          Revenue
                              Agents	
  


                                                                                                                        Consumer	
  
                                                                                                                        Electronics	
  
                                                                                        Developers	
  
                                   Book	
  
                                 Publishers	
                                                                             Mobile	
  
                                                  Magazine	
                                                             Networks	
                                                         Consumers	
  
                   Film	
  
                                                  Publishers	
  
                                                                                                                                                  App	
  Stores	
  



         TV	
  
                              Content	
                  Newspaper	
  
                                                                                              Brands	
  
                                                                                                                               ISPs	
                                    Social	
  
                                                                                                                                                                        Networks	
  
                              Owners	
                   Publishers	
  




                                                                                            Agencies	
                                     Digital	
  Retail	
  
                                                   Games	
  
                  Music	
  
                                                  Publishers	
  

                                   Radio	
  

                                                                                                                                  Portals	
  


                                                                                                                         Analy5cs	
  Providers	
  



March	
  19,	
  2010	
                                                    Dominic	
  Pride	
  -­‐	
  The	
  Future	
  of	
  Books.	
  Some	
  rights	
  reserved.	
                                9	
  
…TO BOOKS 2.0 VALUE ECOSYSTEM

     Authors	
  
                                                                                                                                      Auto-­‐
                                                                                          VCs	
                                       mo5ve	
                                          Attention /
                              Agents	
  
                                                                                                                                                                                       Engagement
                                                                                                                        Consumer	
  
                                                                                                                        Electronics	
  
                                                                                        Developers	
  
                                   Book	
  
                                 Publishers	
                                                                             Mobile	
  
                                                  Magazine	
                                                             Networks	
                                                          Consumers	
  
                   Film	
  
                                                  Publishers	
  
                                                                                                                                                  App	
  Stores	
  



         TV	
  
                              Content	
                  Newspaper	
  
                                                                                              Brands	
  
                                                                                                                               ISPs	
                                    Social	
  
                                                                                                                                                                        Networks	
  
                              Owners	
                   Publishers	
  




                                                                                            Agencies	
                                       Digital	
  Retail	
  
                                                   Games	
  
                  Music	
  
                                                  Publishers	
  

                                   Radio	
  

                                                                                                                                  Portals	
  


                                                                                                                         Analy5cs	
  Providers	
  



March	
  19,	
  2010	
                                                    Dominic	
  Pride	
  -­‐	
  The	
  Future	
  of	
  Books.	
  Some	
  rights	
  reserved.	
                                10	
  
…TO BOOKS 2.0 VALUE ECOSYSTEM

   Linear	
                                                                    Open	
  	
  
   Closed	
                                                                    Dynamic	
  and	
  sensitive	
  
   Values	
  only	
  end-­‐user	
                                              Can	
  visualise	
  flows	
  of	
  
    revenue,	
  not	
  other	
                                                   new	
  generatives	
  
    value	
  created	
                                                          Recognises	
  customers	
  
   Customer	
  as	
  source	
  of	
                                             as	
  adding	
  value	
  
    revenue	
  only	
                                                           Can	
  identify	
  new	
  
   Measures	
  value	
  added	
                                                 niches	
  
    to	
  physical	
  product,	
                                                Helps	
  determine	
  
    not	
  digital	
                                                             service	
  design	
  
March	
  19,	
  2010	
       Dominic	
  Pride	
  -­‐	
  The	
  Future	
  of	
  Books.	
  Some	
  rights	
  reserved.	
     11	
  
WHAT IT MEANS FOR YOU

•  You	
  are	
  connected	
  to	
  everything	
  
               –  You	
  are	
  exposed	
  to	
  disruptive	
  innovation	
  
               –  Your	
  offering	
  will	
  have	
  to	
  respond	
  to	
  this	
  
•  Control	
  will	
  be	
  impossible	
  
               –  Finding	
  niches,	
  collaboration	
  and	
  symbiosis	
  
                  become	
  important	
  
•  You	
  will	
  have	
  different	
  models	
  for	
  partners	
  
               –  Each	
  channel	
  has	
  specific	
  needs	
  and	
  drivers	
  

March	
  19,	
  2010	
                  Dominic	
  Pride	
  -­‐	
  The	
  Future	
  of	
  Books.	
  Some	
  rights	
  reserved.	
     12	
  
THE SOUND HORIZON	




3.YOUR NEW ECOSYSTEM PARTNERS
YOUR NEW ECOSYSTEM PARTNERS
What do they need and what do you expect in return ?	


                                Digital                Consumer                                                                   Access               Agencies
                                Retail                 Electronics                                                                Partners            and Brands




They                       • Volume                  • Differentiation                                                   • Acquisition               • Inventory
                           • Margin                  • Brand Loyalty                                                     • Retention                 • Audience
need                                                 • Support retail                                                    • ARPU                      • Engagement
                                                     proposition
You
need                       • Volume                  • Distribution                                                      • Distribution              • Data share
                           • Margin                  • Placement                                                         • Activation                • Conversation
                                                     • Activation                                                        • Billing                   • Feedback




                     Your	
  business	
  models	
  and	
  proposi5ons	
  will	
  change	
  depending	
  on	
  partner	
  	
  

March	
  19,	
  2010	
                                 Dominic	
  Pride	
  -­‐	
  The	
  Future	
  of	
  Books.	
  Some	
  rights	
  reserved.	
             14	
  
AND HOW THEY COMMUNICATE




     Content	
  packaged	
  as	
  part	
  of	
  mix	
  of	
  access,	
  services,	
  communica5ons	
  and	
  discovery	
  

March	
  19,	
  2010	
                       Dominic	
  Pride	
  -­‐	
  The	
  Future	
  of	
  Books.	
  Some	
  rights	
  reserved.	
     15	
  
e
               n ers ar
         w part
          e
Your n
selling
          ss
 • acce are
           w
  • hard         y
   • inv entor ervices.
                   s
            need      u re o f
    They             t
             s the fu in this
      What’ ducts
                o
      your pr ent?
                m
       e nviron




                                 16	
  
THE SOUND HORIZON	




 4. FROM E-BOOKS TO READING 2.0
BOOKS TO E-BOOKS: 1.0 to 1.1?
                                                                                                                           “the	
  ebook	
  
                                                                                                                           [doesn’t]	
  really	
  
                                                                                                                           have	
  that	
  much	
  
                                                                                                                           to	
  offer	
  
                                                                                                                           consumers	
  over	
  
                                                                                                                           a	
  physical	
  
                                                                                                                           book”	
  
•  [publishers	
  should]	
  turn	
  from	
  the	
  disruptive	
  innovations	
  of	
  ebooks	
  
   and	
  ereaders	
  to	
  the	
  creation	
  of	
  sustaining	
  innovations	
  that	
  improve	
  
   those	
  technologies.	
  	
  Ania	
  Wieckowski	
  -­‐Harvard	
  Business	
  Review	
  Feb	
  2010	
  


March	
  19,	
  2010	
                Dominic	
  Pride	
  -­‐	
  The	
  Future	
  of	
  Books.	
  Some	
  rights	
  reserved.	
            18	
  
BECOMING WEB AND CONTENT 2.0

             WEB 1.0                                                                                        WEB 2.0



   • Read-­‐only	
                                                                                • Read-­‐write	
  
   • One-­‐way	
                                                                                  • Two-­‐way	
  
   • Authored	
  by	
  webmaster	
                                                                • (Co-­‐)	
  Authored	
  by	
  users	
  
   • Centralised	
                                                                                • Decentralised	
  
   • Des5na5on	
  sites	
                                                                         • Syndica5on	
  
   • “users	
  go	
  to	
  content”	
                                                             • “content	
  comes	
  to	
  users”	
  


                           The Broadcast Web                                                                                             The Social Web




March	
  19,	
  2010	
                         Dominic	
  Pride	
  -­‐	
  The	
  Future	
  of	
  Books.	
  Some	
  rights	
  reserved.	
                  19	
  
Digital	
  content	
  is	
  
                                                                                                     not	
  a	
  format	
  or	
  
                                                                                                      a	
  replacement	
  
                                                                                                       for	
  a	
  physical	
  
                                                                                                            product.	
  




March	
  19,	
  2010	
     Dominic	
  Pride	
  -­‐	
  The	
  Future	
  of	
  Books.	
  Some	
  rights	
  reserved.	
     20	
  
3Cs VALUE CREATION FRAMEWORK
Content at the heart of the experience but only one of three vital elements for customer value	

  Community:
  • How does it bond me with
  my friends?
  • How does it confer status on
  me?
  • How does it enable me to
  make new friends?



       Context:
       • What
       device?
       • Where?
       • When?
       • Why?




March	
  19,	
  2010	
                Dominic	
  Pride	
  -­‐	
  The	
  Future	
  of	
  Books.	
  Some	
  rights	
  reserved.	
     21	
  
THE SOUND HORIZON	




 SERVICE CONCEPTS AND STIMULUS
CLOUD SERVICE – SUCCESS FACTORS
                                                                         Accessible	
  from	
  /	
  
                                                                          independent	
  of	
  multiple	
  
                                                                          devices	
  
                                                                         Value	
  in	
  the	
  service	
  /
                                                                          access	
  and	
  the	
  content	
  
                                                                         Optimised	
  for	
  device	
  
                                                                         Abundance	
  of	
  content	
  
                                                                         Highly	
  personal	
  
                                                                         Social	
  elements	
  



March	
  19,	
  2010	
     Dominic	
  Pride	
  -­‐	
  The	
  Future	
  of	
  Books.	
  Some	
  rights	
  reserved.	
     23	
  
CLOUD SERVICE – LAST.FM
                                                                                              Widget
                                                                                                                                                  Lifestream




                    iTunes Plugin
                                                                                Xbox 360                                         RSS reader

                                    Mobile
            Website                  app




March	
  19,	
  2010	
                       Dominic	
  Pride	
  -­‐	
  The	
  Future	
  of	
  Books.	
  Some	
  rights	
  reserved.	
        24	
  
CLOUD SERVICE – WHY NOT READING?
                                                                                                             Syndicated
                                                                                                                                                •    All	
  	
  my	
  reading	
  in	
  
                                                                                                                                                     the	
  cloud	
  
                                                                                                                                                •    Optimised	
  for	
  all	
  
                                                                                                                  Shared                             of	
  my	
  devices	
  and	
  
                                                                                                                                                     locations	
  
                                                                                                                                                      •  and	
  
                                                                                                                                                                 therefore	
  
                                                                                                                                                                 reading	
  
          Mobile / Handheld              Tablet                                                                                                                  styles!	
  
                                                                                                                       In-Car                   •    My	
  reading	
  comes	
  
                                                                                                                                                     with	
  me	
  when	
  I	
  
                                                                                                                                                     change	
  devices	
  
                                                                                                                                                •    Personal	
  
                                                                                                                                                     Investment	
  
                                                                                                                                                     rewarded	
  e.g.	
  by	
  
                                                                                                                                                     recommendations	
  	
  



                              E-reader                           Netbook
March	
  19,	
  2010	
                            Dominic	
  Pride	
  -­‐	
  The	
  Future	
  of	
  Books.	
  Some	
  rights	
  reserved.	
                        25	
  
SOCIAL READING – THE CASE FOR

•  Reading	
  is	
  highly	
                                                                •  Digital	
  natives:	
  
   personal	
                                                                                                –  Use	
  trust	
  networks	
  first	
  
               –  Formative	
                                                                                –  Instinctively	
  share	
  
               –  Creates	
  social	
  capital	
                                                                content	
  
•  Reading	
  is	
  highly	
  social	
                                                                       –  Expect	
  sharing	
  in	
  the	
  
                                                                                                                product	
  
               –  Clubs	
  
•  Arouses	
  strong	
  
   emotions	
  
               –  potential	
  for	
  sharing	
  at	
  
                  “point	
  of	
  inspiration”	
  

March	
  19,	
  2010	
                      Dominic	
  Pride	
  -­‐	
  The	
  Future	
  of	
  Books.	
  Some	
  rights	
  reserved.	
     26	
  
SOCIAL READING IN ACTION
        	
   	
  Should	
  be	
  revising
        	
    	
  Bronte	
  but	
  
                                                                                     	
      	
  @Eleanorjb	
  has	
  just	
  
halfway	
  through	
  #Eclipse	
  
                                                                             got	
  to	
  the	
  wedding	
  bit,	
  but	
  she’s	
  
instead.	
  Just	
  got	
  to	
  the	
  
                                                                             reading	
  a	
  paper	
  book.	
  LOL!	
  
bit	
  where	
  they	
  kiss.	
  
hfp://bit.ly/df	
  




                                                                                                                                               • Content	
  
                                                                                                                                               • Context	
  
                                                                                                                                               • Community	
  

                                                                                                                                               • Audience	
  
                                                                                                                                               • Awareness	
  
                                                                                                                                               • Desire?	
  
   March	
  19,	
  2010	
                   Dominic	
  Pride	
  -­‐	
  The	
  Future	
  of	
  Books.	
  Some	
  rights	
  reserved.	
     27	
  
API MODEL: LEARNING FROM TWITTER

                                                                                 •  50K	
  applications	
  /	
  
                                                                                    services	
  use	
  API	
  
                                                                                 •  “Firehose”	
  now	
  for	
  
                                                                                    commercial	
  
                                                                                    customers	
  
                                                                                 •  Usage	
  enabled	
  by	
  
                                                                                    open	
  platform,	
  not	
  
                                                                                    service	
  
                                                                                 •  Why	
  not	
  a	
  books	
  API?	
  

March	
  19,	
  2010	
     Dominic	
  Pride	
  -­‐	
  The	
  Future	
  of	
  Books.	
  Some	
  rights	
  reserved.	
     28	
  
THE SOUND HORIZON	




     5. THE CHANGE AGENDA
CREATE THE VISION OF READING 2.0

•  Define,	
  own	
  and	
  communicate	
                                                                                                                        *

   the	
  Future	
  of	
  Books	
  
               –  Inspire	
  your	
  partners,	
  your	
  
                  authors,	
  your	
  readers	
  
•  Lead	
  everyone	
  toward	
  the	
  new	
  
               –  Defending	
  the	
  old	
  has	
  
                  predictable	
  consequences	
  

               The	
  future	
  of	
  publishing	
  must	
  be	
  defined	
  by	
  what	
  it	
  will	
  be,	
  not	
  what	
  it	
  won’t	
  
                                                  *Source: Billboard Magazine - 19 Nov 2005
March	
  19,	
  2010	
                                   Dominic	
  Pride	
  -­‐	
  The	
  Future	
  of	
  Books.	
  Some	
  rights	
  reserved.	
     30	
  
START TO EARN AND OWN ALL 3Cs

•  Enable	
  conversations	
  /	
  
   relationships	
  around	
  your	
  content	
  
               –  service	
  features	
  which	
  let	
  readers	
  
                  talk:	
  
                           •  to	
  each	
  other	
  via	
  trust	
  networks	
  
                           •  to	
  you	
  
                           •  to	
  your	
  authors	
  
•  Recognise	
  /	
  measure	
  new	
  metrics	
  
                           •  KPIs	
  for:	
  
                                 –  audience	
  
                                 –  engagement	
  	
  	
  usage	
  

                                                 Don’t	
  wait	
  5ll	
  the	
  value	
  of	
  content	
  =	
  0	
  

March	
  19,	
  2010	
                                      Dominic	
  Pride	
  -­‐	
  The	
  Future	
  of	
  Books.	
  Some	
  rights	
  reserved.	
     31	
  
FOSTER AN INNOVATION CULTURE
Innovation	
  within	
                         Innovation	
  outside	
  
•  Evangelism	
  from	
  CEO	
  down	
   •  Position	
  publishers	
  as	
  open	
  
•  Involve	
  everyone	
                          to	
  innovative	
  partners	
  
•  Innovation	
  framework	
                   •  Visible	
  innovation	
  
    –  Create	
  a	
  home	
  for	
  ideas	
      figurehead	
  
    –  A	
  structure	
  to	
  manage	
  
                                             Y
                                               •  Encourage	
  partnerships	
  
                                                               our
               –  Bring	
  to	
  life	
                      pow most                                                                 •  hack	
  days	
  
                                                                   er
                                                             weap ful
               –  Build	
  on	
  knowledge	
                       o
                                                            capt n for
                                                                                                                                      •  workshops	
  	
  
                                                                  u
                                                           ideas ring                                                                 •  collaboration	
  with	
  partners	
  
•  Become	
  agile	
                                            !

               –  iterate	
  

             Publishers	
  must	
  invest	
  in	
  sustaining	
  innova5on	
  as	
  they	
  would	
  in	
  crea5ve	
  talent	
  

March	
  19,	
  2010	
                              Dominic	
  Pride	
  -­‐	
  The	
  Future	
  of	
  Books.	
  Some	
  rights	
  reserved.	
                    32	
  
Innovation will take
                                                             place with or without
                                                             you




March	
  19,	
  2010	
     Dominic	
  Pride	
  -­‐	
  The	
  Future	
  of	
  Books.	
  Some	
  rights	
  reserved.	
     33	
  
THE SOUND HORIZON	




             Thank You! 	


    dominic@thesoundhorizon.com	
  
      www.thesoundhorizon.com	
  
         @thesoundhorizon	
  

              Books	
  2.0	
  

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The Future of Books - Creating New Value from Reading

  • 1. THE SOUND HORIZON BOOKS 2.0: CREATING NEW VALUE FROM READING Dominic  Pride   19  March  2010  
  • 2. ABOUT THE SOUND HORIZON ight, T ranslating ins nd intelligence a to things innovation in ! people use. Fast! ! Dominic  Pride:  Managing    Director  /    Principal  Consultant   Some  of  our  Clients   • Strategic  change     • Innova5on  management   • Product  marke5ng     • Mobile  and  converged  service        development   • Experience  with  operators,  handsets,  agencies,     content  brands,  labels,  associa5ons   March  19,  2010   Dominic  Pride  -­‐  The  Future  of  Books.  Some  rights  reserved.   1  
  • 3. TODAY’S SESSION How to transform the desire for change into reality 1.Dawn of 2. Welcome 3. Your new 4. From 5. The digital reading to the digital ecosystem books to change ecosystem partners Reading 2.0 agenda @thesoundhorizon   #books20   March  19,  2010   Dominic  Pride  -­‐  The  Future  of  Books.  Some  rights  reserved.   2  
  • 4. 1. THE DAWN OF DIGITAL READING
  • 5. DIGITAL READING GOES MAINSTREAM CES: 20+ E- reading devices on show The iPad: “ideal canvas” with No. of books rich user interface overtakes games in iPhone App Store* The  digital  reading  use  case  is  becoming  widely  understood   *Source: Mobclix http://blog.mobclix.com/ : March  19,  2010   Dominic  Pride  -­‐  The  Future  of  Books.  Some  rights  reserved.   4  
  • 6. BUT SERIOUS CHALLENGES LIE AHEAD Digital behaviours established by other services Consumer backlash Pricing and margin in App Today’s rich UI will begun? Stores become tomorrow’s hygiene factor Growth potential for reading beyond e-readers Competition for authors’ content from other media. VCs and disruptive startups targeting reading Disintermediation by self- publishing platforms Perpetual, accelerating pace of innovation Competition for audience and revenue in “reading” category. March  19,  2010   Dominic  Pride  -­‐  The  Future  of  Books.  Some  rights  reserved.   5  
  • 7. TO THE DIGITAL ECOSYSTEM
  • 8. FROM BOOKS 1.0 VALUE CHAIN … Actor Author   Agent   Publisher   Distributor   Retailer    Create   Maximise    Manage  risk   Deliver    Sell  book   Role work   revenues   Market  book   book   • Wri5ng   • Finding  /   • Edi5ng   • Storage   • Store   • Revising   developing   • Prin5ng   • Transport   mgmt   • Promo5on   /  placing   • Product  Marke5ng   (incl.   • Billing   Activity talent   • Release  management   returns)   • Customer   • Royalty   • Account   service   collec5on   mgm.t   March  19,  2010   Dominic  Pride  -­‐  The  Future  of  Books.  Some  rights  reserved.   7  
  • 9. …TO BOOKS 2.0 VALUE ECOSYSTEM Authors   Auto-­‐ VCs   mo5ve   Content Agents   Consumer   Electronics   Developers   Book   Publishers   Mobile   Magazine   Networks   Consumers   Film   Publishers   App  Stores   TV   Content   Newspaper   Brands   ISPs   Social   Networks   Owners   Publishers   Agencies   Digital  Retail   Games   Music   Publishers   Radio   Portals   Analy5cs  Providers   March  19,  2010   Dominic  Pride  -­‐  The  Future  of  Books.  Some  rights  reserved.   8  
  • 10. …TO BOOKS 2.0 VALUE ECOSYSTEM Authors   Auto-­‐ VCs   mo5ve   Revenue Agents   Consumer   Electronics   Developers   Book   Publishers   Mobile   Magazine   Networks   Consumers   Film   Publishers   App  Stores   TV   Content   Newspaper   Brands   ISPs   Social   Networks   Owners   Publishers   Agencies   Digital  Retail   Games   Music   Publishers   Radio   Portals   Analy5cs  Providers   March  19,  2010   Dominic  Pride  -­‐  The  Future  of  Books.  Some  rights  reserved.   9  
  • 11. …TO BOOKS 2.0 VALUE ECOSYSTEM Authors   Auto-­‐ VCs   mo5ve   Attention / Agents   Engagement Consumer   Electronics   Developers   Book   Publishers   Mobile   Magazine   Networks   Consumers   Film   Publishers   App  Stores   TV   Content   Newspaper   Brands   ISPs   Social   Networks   Owners   Publishers   Agencies   Digital  Retail   Games   Music   Publishers   Radio   Portals   Analy5cs  Providers   March  19,  2010   Dominic  Pride  -­‐  The  Future  of  Books.  Some  rights  reserved.   10  
  • 12. …TO BOOKS 2.0 VALUE ECOSYSTEM   Linear     Open       Closed     Dynamic  and  sensitive     Values  only  end-­‐user     Can  visualise  flows  of   revenue,  not  other   new  generatives   value  created     Recognises  customers     Customer  as  source  of   as  adding  value   revenue  only     Can  identify  new     Measures  value  added   niches   to  physical  product,     Helps  determine   not  digital   service  design   March  19,  2010   Dominic  Pride  -­‐  The  Future  of  Books.  Some  rights  reserved.   11  
  • 13. WHAT IT MEANS FOR YOU •  You  are  connected  to  everything   –  You  are  exposed  to  disruptive  innovation   –  Your  offering  will  have  to  respond  to  this   •  Control  will  be  impossible   –  Finding  niches,  collaboration  and  symbiosis   become  important   •  You  will  have  different  models  for  partners   –  Each  channel  has  specific  needs  and  drivers   March  19,  2010   Dominic  Pride  -­‐  The  Future  of  Books.  Some  rights  reserved.   12  
  • 14. THE SOUND HORIZON 3.YOUR NEW ECOSYSTEM PARTNERS
  • 15. YOUR NEW ECOSYSTEM PARTNERS What do they need and what do you expect in return ? Digital Consumer Access Agencies Retail Electronics Partners and Brands They • Volume • Differentiation • Acquisition • Inventory • Margin • Brand Loyalty • Retention • Audience need • Support retail • ARPU • Engagement proposition You need • Volume • Distribution • Distribution • Data share • Margin • Placement • Activation • Conversation • Activation • Billing • Feedback Your  business  models  and  proposi5ons  will  change  depending  on  partner     March  19,  2010   Dominic  Pride  -­‐  The  Future  of  Books.  Some  rights  reserved.   14  
  • 16. AND HOW THEY COMMUNICATE Content  packaged  as  part  of  mix  of  access,  services,  communica5ons  and  discovery   March  19,  2010   Dominic  Pride  -­‐  The  Future  of  Books.  Some  rights  reserved.   15  
  • 17. e n ers ar w part e Your n selling ss • acce are w • hard y • inv entor ervices. s need u re o f They t s the fu in this What’ ducts o your pr ent? m e nviron 16  
  • 18. THE SOUND HORIZON 4. FROM E-BOOKS TO READING 2.0
  • 19. BOOKS TO E-BOOKS: 1.0 to 1.1? “the  ebook   [doesn’t]  really   have  that  much   to  offer   consumers  over   a  physical   book”   •  [publishers  should]  turn  from  the  disruptive  innovations  of  ebooks   and  ereaders  to  the  creation  of  sustaining  innovations  that  improve   those  technologies.    Ania  Wieckowski  -­‐Harvard  Business  Review  Feb  2010   March  19,  2010   Dominic  Pride  -­‐  The  Future  of  Books.  Some  rights  reserved.   18  
  • 20. BECOMING WEB AND CONTENT 2.0 WEB 1.0 WEB 2.0 • Read-­‐only   • Read-­‐write   • One-­‐way   • Two-­‐way   • Authored  by  webmaster   • (Co-­‐)  Authored  by  users   • Centralised   • Decentralised   • Des5na5on  sites   • Syndica5on   • “users  go  to  content”   • “content  comes  to  users”   The Broadcast Web The Social Web March  19,  2010   Dominic  Pride  -­‐  The  Future  of  Books.  Some  rights  reserved.   19  
  • 21. Digital  content  is   not  a  format  or   a  replacement   for  a  physical   product.   March  19,  2010   Dominic  Pride  -­‐  The  Future  of  Books.  Some  rights  reserved.   20  
  • 22. 3Cs VALUE CREATION FRAMEWORK Content at the heart of the experience but only one of three vital elements for customer value Community: • How does it bond me with my friends? • How does it confer status on me? • How does it enable me to make new friends? Context: • What device? • Where? • When? • Why? March  19,  2010   Dominic  Pride  -­‐  The  Future  of  Books.  Some  rights  reserved.   21  
  • 23. THE SOUND HORIZON SERVICE CONCEPTS AND STIMULUS
  • 24. CLOUD SERVICE – SUCCESS FACTORS  Accessible  from  /   independent  of  multiple   devices    Value  in  the  service  / access  and  the  content    Optimised  for  device    Abundance  of  content    Highly  personal    Social  elements   March  19,  2010   Dominic  Pride  -­‐  The  Future  of  Books.  Some  rights  reserved.   23  
  • 25. CLOUD SERVICE – LAST.FM Widget Lifestream iTunes Plugin Xbox 360 RSS reader Mobile Website app March  19,  2010   Dominic  Pride  -­‐  The  Future  of  Books.  Some  rights  reserved.   24  
  • 26. CLOUD SERVICE – WHY NOT READING? Syndicated •  All    my  reading  in   the  cloud   •  Optimised  for  all   Shared of  my  devices  and   locations   •  and   therefore   reading   Mobile / Handheld Tablet styles!   In-Car •  My  reading  comes   with  me  when  I   change  devices   •  Personal   Investment   rewarded  e.g.  by   recommendations     E-reader Netbook March  19,  2010   Dominic  Pride  -­‐  The  Future  of  Books.  Some  rights  reserved.   25  
  • 27. SOCIAL READING – THE CASE FOR •  Reading  is  highly   •  Digital  natives:   personal   –  Use  trust  networks  first   –  Formative   –  Instinctively  share   –  Creates  social  capital   content   •  Reading  is  highly  social   –  Expect  sharing  in  the   product   –  Clubs   •  Arouses  strong   emotions   –  potential  for  sharing  at   “point  of  inspiration”   March  19,  2010   Dominic  Pride  -­‐  The  Future  of  Books.  Some  rights  reserved.   26  
  • 28. SOCIAL READING IN ACTION    Should  be  revising    Bronte  but      @Eleanorjb  has  just   halfway  through  #Eclipse   got  to  the  wedding  bit,  but  she’s   instead.  Just  got  to  the   reading  a  paper  book.  LOL!   bit  where  they  kiss.   hfp://bit.ly/df   • Content   • Context   • Community   • Audience   • Awareness   • Desire?   March  19,  2010   Dominic  Pride  -­‐  The  Future  of  Books.  Some  rights  reserved.   27  
  • 29. API MODEL: LEARNING FROM TWITTER •  50K  applications  /   services  use  API   •  “Firehose”  now  for   commercial   customers   •  Usage  enabled  by   open  platform,  not   service   •  Why  not  a  books  API?   March  19,  2010   Dominic  Pride  -­‐  The  Future  of  Books.  Some  rights  reserved.   28  
  • 30. THE SOUND HORIZON 5. THE CHANGE AGENDA
  • 31. CREATE THE VISION OF READING 2.0 •  Define,  own  and  communicate   * the  Future  of  Books   –  Inspire  your  partners,  your   authors,  your  readers   •  Lead  everyone  toward  the  new   –  Defending  the  old  has   predictable  consequences   The  future  of  publishing  must  be  defined  by  what  it  will  be,  not  what  it  won’t   *Source: Billboard Magazine - 19 Nov 2005 March  19,  2010   Dominic  Pride  -­‐  The  Future  of  Books.  Some  rights  reserved.   30  
  • 32. START TO EARN AND OWN ALL 3Cs •  Enable  conversations  /   relationships  around  your  content   –  service  features  which  let  readers   talk:   •  to  each  other  via  trust  networks   •  to  you   •  to  your  authors   •  Recognise  /  measure  new  metrics   •  KPIs  for:   –  audience   –  engagement      usage   Don’t  wait  5ll  the  value  of  content  =  0   March  19,  2010   Dominic  Pride  -­‐  The  Future  of  Books.  Some  rights  reserved.   31  
  • 33. FOSTER AN INNOVATION CULTURE Innovation  within   Innovation  outside   •  Evangelism  from  CEO  down   •  Position  publishers  as  open   •  Involve  everyone   to  innovative  partners   •  Innovation  framework   •  Visible  innovation   –  Create  a  home  for  ideas   figurehead   –  A  structure  to  manage   Y •  Encourage  partnerships   our –  Bring  to  life   pow most •  hack  days   er weap ful –  Build  on  knowledge   o capt n for •  workshops     u ideas ring •  collaboration  with  partners   •  Become  agile   ! –  iterate   Publishers  must  invest  in  sustaining  innova5on  as  they  would  in  crea5ve  talent   March  19,  2010   Dominic  Pride  -­‐  The  Future  of  Books.  Some  rights  reserved.   32  
  • 34. Innovation will take place with or without you March  19,  2010   Dominic  Pride  -­‐  The  Future  of  Books.  Some  rights  reserved.   33  
  • 35. THE SOUND HORIZON Thank You! dominic@thesoundhorizon.com   www.thesoundhorizon.com   @thesoundhorizon   Books  2.0