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
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
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
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
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
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
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