Ebook 2.0OPPORTUNITY ANALYSIS PROJECT

I - Objectives of the project

There is a world between a novel writer and the reading experience.   With the revolution of tablet readers, a lot of innovations have been

realized, but they’re not fully taking advantage of new Web 2.0 interactions with the novel structure.  

Our objective is to create brand new Ebooks with new writing architecture, taking advantage from all the possibilities of the new tablet readers : ability to connect to network, enhanced reading experience / interactions with HTML5, touch and geolocalization capabilities, in order to have an enriched reading experience. 

II - Estimating the market size

Our market is focused on French-speaking countries.  

The market is thus limited to France, Canada, Belgium, Switzerland for the moment.  

In the next steps in term of star-up evolution, we'd work into product localization and as a consequence expand into english speaking countries.  

According the official XERFI database cabinet : the ebook segment is currently at 73 million € (2012) and would represent about 6% of the market of the book in 2015. This would represent as a total market about 260 million €uros.  

Inside this global market, we'd estimate that a huge part would be the digital versions sold  - of already paper published books -, or self-publishing, small houses of digital editions only. 

As our main customers are , according to our previous study and external positionning, we might consider female between 30 and 49 years, in families earning more than 75K$. This would represent about 21% of tablet owners.  

As a consequence, this first sub segment would represent about 15 Million Euros in 2012, evolving into 54.5 Million Euros in 2015. 

II - Estimating the market size

Source : XERFI via : JDN

II - Estimating the market size

But we cannot stop at the eBook/reader market only. We have to consider all the Tablets Market (even if the reading experience is slightly different).  

In this scenario, we might package the book into an interactive application (like Game Apps present on Windows Phones,..).  

In this case, we might touch a much larger audience, more and more interested on reading books on tablets. On the tablet market, we might consider as a weakness the number of Book Readers, but as a strength, the interactivity possibilities are much more interesting to investigate (touch sensors, high definition color HD screens, connectivity...). 

Source : Actualitté.  

III – Survey - Methodology

Online Interview Based on Quantitative and Qualitative Questions.

Sample of 72 people from 18 to 83

Available (in French) at:

https://docs.google.com/spreadsheet/viewform?formkey=dEVYTmpzRHJQeDBFd0xUVG1iOFJ1dEE6MQ

Result datas :

https://docs.google.com/spreadsheet/ccc?key=0AhnHe4M9_syBdEVYTmpzRHJQeDBFd0xUVG1iOFJ1dEE

Detail of Online Survey• Hello, we're currently realizing a survey on Book Readers. Would

you have a second ?  • First, tell me your Age, Sex, CSP ?   How many books are you

reading per year ?  • What kind of books (novels, sci-fi, romance,…) • Do you own a eBook reader ?  Do you own a tablet ?  

• a) if Yes : • What percentage of your books are you reading on your

tablet ?  • b) If no :  • Are you willing to buy one ? If Yes, Why ? If no, Why ?  

• Do you have a smartphone ?  • Did you read "Books in which you are the hero ? " • Defining what is interactive Ebooks according to the Team Rocket

Project • Here is an interactive Ebook (explanation). • Would you be interested in interactive ebooks ?  • How much would you pay for an interactive ebook ? • What would be interesting for you in an interactive Ebook Idea ?  • Thank you for your time

IV – Survey – Main Results

Facts : People from CSP related to executive read most interactive books, followed by unemployed people (students).

Consequence : We should also aim students as secondary target.

Work Categories Did you read Gamebooks ?

Your Working Category AND Did you already read GameBooks

Retired

Mid Class

Manual Worker

Employee

Exec

Students

IV – Survey – Main Results

Facts : People from CSP related to executive have most smartphones, followed by unemployed people (students).

Consequence : We confirm that Ebook readers / Tablets are related to people already using smartphones – tech trend setters aspect.

Work Categories Do you have a smartphone ?

Your Working Category AND Do you have a smartphone ?

Retired

Mid Class

Manual Worker

Employee

Exec

Students

IV – Survey – Main Results

Facts : People from CSP related to executive have most smartphones, followed by unemployed people (students). Point confirmed by Graph 2 : Smartphone users have read interactive / Gamebooks.

Consequence : We confirm that Ebook readers / Tablets are related to people already using smartphones – tech trend setters aspect.

Retired

Mid Class

Manual Worker

Employee

Exec

Students

Work Categories

Work Categories per smartphone usage Smartphone usage per Did you read a Game Book ?

Do you have a smartphone ?

IV – Survey – Main Results

People would NOT be interested in interactive GAMEBOOKS on Ebook Readers for the Top 3 Reasons : Current Price of the Ebooks much more expensive in France than in US, The pleasure of Real Books versus Digital Books, Not Enough Innovations in the sector… yet.

Reasons %PRICE 33%REAL BOOKS 29%NOT ENOUGH INNOVATIONS 13%

V - Face to Face Interviews with Customers 

In Depth customer interviews feedbacks :  

Kathy, Female, 42 Years Old, Accounting Assistant, living in Paris Suburb 

Good concept, but need to make interactions easier to understand natively. 

Maybe putting first a short tutorial. 

Diversification of the stories : « The story seems scary, nice, but I’d prefer romance, do you have some of them ? » 

Need an easy way to navigate into the story : if the reader wants to go back 10 pages earlier, need a dedicated and simple way to perform the action. 

Jean-François, Gamer Student, 25 years Old, Paris 

Good concept, very creative.  

As Jean-François is a gamer, he’s able to imagine the final work, but he’d like to see practically how the touch would be used, especially in new Interactions (Windows 8, Apple Ipad Example – pinch the image, rotation,…) 

Need to investigate all the potentials of new readers to use potential new gestures. 

« Good creepy story, how does it end ? » 

V - Face to Face Interviews with Customers 

Manuel, merchant, 33 Years Old 

No time to use digital platform

What should make me interested is sharing my read experience with other readers

I like touch paper. But with digital books, there is practical aspect of mobility, without internet connection!

Paul, without any known activity, 24 years Old 

I wait for some better platforms, less expensive to buy one.

I’m very interested by the concept. I’m ready to pay 3€ each book.

I like the idea of multiple interactions, how could increase the life of a book.

This is a real added value for digital books, who are for now less interesting, compared to classick books.

V - Face to Face Interviews with Customers 

Carole, nurse, 58 Years Old, Paris

I have a eBook / eInk reader

I’m interested in interactive eBooks, if I can participate in the choice of the end of story

Success of eBooks will be linked to the price.

Marc, engineer, 55 Years Old, Montrouge 

I still have a tablet-PC, but I don’t read books on it.

I want to have a say in how the story unfolds. Interactive eBooks could do that.

I believe in the bundle concept (paper book + 20% = I get the eBook version)

V - Face to Face Interviews with Customers 

Frederic, student, 23 Years Old, Paris

Never though to buy an eReader

I don’t read a lot, but I see a big opportunity in education.

I’m waiting for an evolution in eBook paradigm to leap

Julie, student, 20 Years Old, Marseille 

eReaders or tablet-PC are much too expensive for a student, but I wish to have one soon.

Then, I think I’ll be ready to spend 15€ for an interactive book.

I'd love to deepen the details of the story

Keep going!

VI - Lessons Learned from Customer Feedback 

Real opportunity in term of customer segmentations.

Interactive GameBooks are related to Ebooks trend. For the time being, in France, the positionning is just for tech trend setters. Need more time for the market to be mature.

It’s perfect timing to prepare our Ebook concept in order to be present when market will be largerly evolving.

Public equipment is low (72% of the panel has neither tablet nor eReader)

Whatever public we discuss with, people are waiting for better eBook offer, and for platform evolution.