Embed Size (px)
Citation preview
Creatividad e innovación en el mundo editorial
Dominique RaccahSourcebooks, Inc.
Feria Internacional del Libro de Buenos Aires
[ about Sourcebooks]
Entered book publishing during desktop publishing revolution
entirely bootstrapped
Continuous evolution…
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
Critical importance of data during times of
change
Data is from BOOKSTATS
Special ConsiderationsBookStats Data Cube
E-BooksDownloadable Audio
Juvenile Fiction
ReligionCollege
Bookstores
Textbooks Mass-MarketPaperbackHigher Education
Adult Fiction
Jobbers &Wholesalers
Mass Merchants
Scholarly Books
Book Clubs& Fairs
Juvenile Non-Fiction
K-12
Physical Audio
Bundled ProductsExport Sales
Specialty Stores
Professional
Hardcover
Chain StoresDirect-to-Consumer
AdultNon-Fiction
Indie Bookstores
InstitutionalSales
Softcover
DigitalCourse Materials
Cooking
RomanceScienceFiction
Thriller
Gardening
ChristianFiction
Comics & Graphic Novels
Self-Help
Sports & Recreation
Spirituality
HorrorPets
Classics
LiteraryFiction
Nature
Fantasy
Crafts &Hobbies
HumorBiography &
Autobiography
Design
Science
Health & Fitness
Historical
Medical
Photography
Apps
59,719
SMALL MEDIUM LARGEVERY LARGE TOTAL
ACADEMIC 1 13 13 27ARTS 961 203 12 1 1177BISAC UNKNOWN 47 37 14 98BUSINESS 315 77 10 402EDUCATION 255 81 14 1 351LAW 79 50 7 136MEDICAL 155 37 8 200NON-TRADITIONAL 1 7 28 36OTHER 620 181 40 1 842RELIGION 555 181 26 1 763SMALL PUBLISHER 48,884 48,884TECHNICAL AND SCIENTIFIC 786 269 64 8 1127TRADE - GENERAL 1,296 406 76 4 1782TRADE - JUVENILE 356 189 64 5 614TRADE - NONFICTION 1,425 309 36 1770TRADE - ADULT FICTION 1,039 224 44 4 1311UNIVERSITY PRESS 100 65 34 199TOTAL 56,873 2,311 469 66 59,719
Digital transformation of the book
Where are we now? (US data only)
ebook consumer
ebook sales
ebook
ecosystem
[ U.S. ebook consumer ]
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 bookconsumers at the time of
last fielding
• 95% probability threshold
[ who is the US ebook customer? ]
Benefits of e-reading devices… BISG — US 2010 data
Why consumers purchase e-books instead of print books
© 2010, the Book Industry Study Group, Inc.
who is the customer: reader who reads a
lot
Sept. 2010
Jan. 2011
May 2011
Aug. 2011
Dec. 2011
Feb. 2012
May 2012
Aug. 2012
Feb. 2013
Aug. 2013
0%
20%
40%
60%
80%
More than a year ago
Within the last year
When did you begin acquiring e-books?
Sept. 2
010
Jan. 2
011
May
2011
Aug. 2011
Dec. 2011
Feb. 2
012
May
2012
Aug. 2012
Feb. 2
013
Aug. 2013
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 inter-changeably, 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
0% 10% 20% 30% 40% 50% 60%2 or more YEARS ago1 to 2 YEARS ago7 to 12 MONTHS ago2 to 6 MONTHS ago
Buying more books
Buying the same # of
books
Buying fewer books
Long time e-book readers buy more
[who is the US power buyer]
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)
Female45-54 years oldClerical worker or homemakerKindle user
Ebooks.com
iBooks/iTunes
Other
Library
B&N
Amazon
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Power Buyers
Other re-spondents
Where power buyers buy ebooks?
Device Use – Overall
NOOK e-reader
NOOK Color
Android tablet
iPhone
Kindle Fire
iPad
Kindle e-reader
0% 10% 20% 30% 40% 50%
Power Buyers
Other re-spondents
Device Use – Most Frequent
iPhone
Android tablet
NOOK e-reader
NOOK Color
iPad
Kindle Fire
Kindle e-reader
0% 5% 10%15%20%25%30%35%40%
Power Buyers
Other re-spondents
[ what are the results of this change?]
Authors Have A Lot More Choices
Today, it’s become much easier to publish a book in the US
An Overwhelming Amount of Content
Every day in America 3,500 books are
published* and only a handful will be
considered successful by any criteria
*Bowker 2013
Decline in price of traditionally published e-books
$0.00
$5.00
$10.00
$15.00
$20.00
$25.00
E-BooksSoftcoverHardcover
2008 2009 2010 2011 2012
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
[ 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
[ are print books dead or dying? ]
2008 2009 2010 2011 2012$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
eBooks Combined Print
© 2013, the Book Industry Study Group, Inc.
Print lives
2008 2009 2010 2011 2012$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
eBooks Hardcover Mass-market Softcover
© 2013, the Book Industry Study Group, Inc.
But e-books continue to grow…
[ are print books dead or dying?
Digital doesn’t affect every content category in the same
way ]
Print and eBook Sales in Units
8%
0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000
eBook
2010
2011
2012
2013
34%
37%
42%
2013 YTD Sales by Units
Adult Fic Adult NF Kids (ALL) Kids (not YA) YA0
500000
1000000
1500000
2000000
2500000
3000000
3500000
eBooks
63%
35%
14%
10%
38%
2008 2009 2010 2011 2012$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
Hardcover Mass-market Softcover eBooks
© 2013, the Book Industry Study Group, Inc.
Especially for Adult Fiction
E-Growth is Slowing
$-
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
0%50%100%150%200%250%300%350%400%
2008 2009 2010 2011 2012
355%
199%143%
44%
[ 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
[ how is book retailing changing? ]
The Continuous Momentum Towards Online Shopping
DISTRIBUTION: How purchased?FO
RM
AT p
urc
hase
d?
PR
INT
eB
ooksBrick and Mortar Retail Online Retail
Retail Stores (Total)
Other Channels
Online Retail
-194
52
1,111
The billion-dollar shift in trade retail
The billion-dollar shift in Trade
Chains
Unclassi
fied
Indie sto
res
Spec
ialty
stores
Mass m
erchan
ts
College
stores
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
2010 2011 2012
[ 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)
[ 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
[devices]
law of diffusion of innovation
-Simon Sinek, Ted Talk
© 2013, the Book Industry Study Group, Inc. 56
What is your preferred device for reading e-books?
© 2013, the Book Industry Study Group, Inc. 57
Jan-
11
Mar
-11
May
-11
Jul-1
1
Sep-1
1
Nov-1
1
Jan-
12
Mar
-12
May
-12
Jul-1
2
Sep-1
2
Nov-1
2
Jan-
130.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
AmazonDesktop/LaptopAll Other
What is your preferred device for reading e-books – Power Buyers
© 2013, the Book Industry Study Group, Inc. 58
What is your preferred device for reading e-books?
© 2013, the Book Industry Study Group, Inc. 59
Tablets
Dedicated E-Readers
0.0% 10.0% 20.0% 30.0% 40.0% 50.0%
FrequentlyOccasionallyRarely
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
© 2013, the Book Industry Study Group, Inc. 60
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 Continuing increasing pressure on
pricing
Creativity and innovation in publishing
How to create more value in a rapidly changing publishing world
Creating more value…
Authors and
Agents
Retailers
Provide More Value
Publishers
1. experimentationexperimentación
Have to think about experimentation
differently
our goal has to be to increase the
probability that a book, a series or a
program will be successful
Need more and better data, better processes,
and more transparency around
every step in the publishing process
And what’s critically important is that we
rethink our whole view
on FAILURE
this experimental model has worked for
us
The Lean Startup Model
In this model: failure is an event. It’s about the facts.
It’s not about you.
Your goal is to…
2. focus on your readers
centrarse en sus lectores
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?
iPhoneapps
$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
ebook
Baby Names Content Continuum
iPhoneapps
$0.99 - $4.99
Gruber workbook
s
Gruber’s Complete
SAT
MyMaxScore
Gruber Test Prep
software
Gruber SAT
ebook
Gruber Word-Master
$$$$19.99
$14.99
$12.99
$17.99
ebook
Gary Gruber Content Continuum
Fiske Interactive Web Version
Work to create something that delights your readers
and helps your authors
- Steve Jobs, May 1997
“You’ve got to start with the customer experience and work back toward the technology — not the other way around.”
- Steve Jobs, May 1997
“Hay que comenzar con la experiencia del cliente y trabajar de nuevo hacia la tecnología - no al revés.”
“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
Shift focus from books…
…to readers/users
Shift focus from content…
…to experience
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?
3. think beyond ebooks
pensar más allá de ebooks
Digital opens opportunities beyond ebooks
the world for book publishers just got a lot BIGGER
enhanced e-books online platforms
(mobile) appsonline
communities
user-generated content
e-books
How can you serve your readers better?
enhanced e-books
online platforms
(mobile) apps
online communities
user-generated content
e-books
What is the value you’re adding…
Authors and
Agents
Retailers
Provide More Value
Publishers
Our strategy: develop our own direct-to-consumer platforms and channels
Our strategy: develop our own direct-to-consumer platforms and channels
4. Shakespeareexample
the problem of Shakespeare
the problem of Shakespeare
Teachers have told us “it takes about 3 weeks to get
kids into Shakespeare”
the problem of Shakespeare
the problem of Shakespeare
Can we make learning, engaging with, immersing in
Shakespeare…easier
Shakesperience
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
Touchable interface = language at your fingertips
Shakesperience lean forward vs lean back
experience
5. Put Me In The Story example
The bedtime reading experience
What Put Me In The Story Does
We create a personal connection between you and the books you love
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
Great Books!
Why It Works
We started with bestselling books and authors
And then we added Elmo!!
What Put Me In The StoryDoes 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
What Put Me In The StoryDoes DifferentlyWe’re using a digital process to
create both digital books (app) and physical books
Creating Books to Cherish Forever!
Why It WorksThe app and the website work together
to deliver a personalized content experience whenever and wherever you want it. Different use
cases.
Why It WorksIncredibly easy-to-use interface…
Allows you to see every page of the book as you personalize.
What We Know Now…The app, the web and print all work together
It’s a single ecosystem
Our 2013 partners
Many more great partners
coming!
And in 2014…
More great partners coming!
Anne Geddes!
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
We believe…
…Put Me In The Story will be the leading personalized book platform
Shakesperience Put Me In The Story
Discover a New Love
Extending the book — Content, format and experience
Keys to Creativity and Innovation in Book Publishing
1. Experiment Test and iterate quickly Allow yourself to learn from
failure
2. Think beyond ebooks3. Focus on your user/reader
What do they want/need?
Work to add new kinds of value to authors and retail partners
Authors and
Agents
Retailers
Provide More Value
Publishers
It’s not just the book that’s transforming. It’s the book publisher.
Digital changes
everything.
“Procuremos más ser padres de nuestro porvenir que hijos de nuestro pasado.”
-Miguel de Unamuno (1864-1936) Spanish essayist, novelist, poet, playwright, and philosopher
“We should try to be the parents of our future rather than the offspring of our past.”
Thank YOU!
Twitter: @draccah
LinkedIn Group: Ebooks, Digital Books and Content Publishing Network
