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Digital Book 2009 IDPF Forum

Bob LiVolsi

BooksOnBoardgrowthhasbeensustainedover9consecutivequarters,andisaccelerating

www.booksonboard.com BooksOnBoard CONFIDENTIAL 2

Q1 2007

Q2 2007

Q3 2007

Q4 2007

Q1 2008

Q2 2008

Q3 2008

Q4 2008

Q1 2009

Q2 2009

QTRLY BOOK REVENUE: ACT + Q2 '09 Proj’n

Seek Innovation

 First or among First  ePUB titles from major publishers  MP3 DRM free audio books  Revenue titles on Stanza  Qik Clik on Stanza  24/7 customer support by email

 Working on more  Looking for more  “All Ships Rise” www.booksonboard.com Confidential 3

Device Mix Today

www.booksonboard.com Confidential 4

0%

10%

20%

30%

40%

50%

60%

70%

PC or Mac eBook Readers iPhone Palms Others

Devices

Format Mix


Adobe 54% Mobipckt

20%

MS Reader

17%

eReader 9%

Format

Top Place to Read


0%

10%

20%

30%

40%

50%

60%

Work Home School Travel

Where Read

Where Read At Home


0%

10%

20%

30%

40%

50%

60%

In Bed Living Area Kitchen Study In Bath

Home Location

eContent Ecosystem

www.booksonboard.com BooksOnBoard PROPRIETARY &

CONFIDENTIAL 8

Publishers

News Orgs

Individual Authors

Distributors

Direct

Desktop Win or Mac

Smartphone e.g. iPhone

Proprietary e.g. Kindle

Open (with royalty)

Smartphone (e.g. iPhone)

Proprietary

eContent Store Customers

Content Distribution Store Device Reader SW

Wireless carriers


eBook Market: Device Segments

2009-2012

www.booksonboard.com BooksOnBoard Confidential 11

$0

$100,000,000

$200,000,000

$300,000,000

$400,000,000

$500,000,000

$600,000,000

2009 2010 2011 2012

eBooks: PCs, Macs NetBooks

eBooks: Smartphones

eBooks: Readers

Sources: International Digital Publishing Forum, Book Industry Study Group, AT&T Annual Report 2008, Institute for Publishing Research, BooksOnBoard

BooksOnBoard Has a Strong Foothold in the eBook Space, with developed infrastructure, industry relationships, and loyal customer base

Top US P-Book Sellers


Company 2008FYNorthAmericanSales(Books,Mediapluscoffee,etc:‐)

Barnes&Noble/B.Dalton1 $4.52billion(Downfrom$4.68billionin2007)

Borders/Waldenbooks (Waitingonfinalnumber)$3.41billion(excludesinternational)

AmazonMedia(excludeselectronics,services‐books,includesbooks,music,DVDs)

$5.35billion(AmazonInternationalstoressold$5.73billionin2008,morethanNorthAmerica)forthefirsttime.

BN.com $466million(Downfrom$477millionin2007)

Total $13.7billion

Landscape ahead

 Slug it out to stay competitive and keep margins intact v/v Amazon, Barnes & Noble

 Impact and timing of further dedicated eBook readers – with “proprietary” bookstores on board

 News Readers – impact on eBook adoption  Google initiatives – what happens if Google

enters digital space for revenue, ad model, etc.


Landscape ahead - opportunities

 Independent considerations  Openness a must for independents

  Open formats   Accessibility to content stores on ubiquitous devices

 Reduced cost of goods to compete with direct competition

 Co-op and/or other marketing programs to supplement revenue streams   Can the Home Page replace the end cap?

 Adobe ePUB is best hope for open standard


Market Abounds with New Requirements and Opportunities

 AltTabNation.Com  NoBackPacks.Com  FreeandGreen.Com  GreenReads.Com


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