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Case Study

Andy Harris is a published author and professor at Indiana University/Purdue University

The Founders

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Matthew A. Cauble Speros Kokenes Robert Rhinehart

Board of Advisors

Josh Roberts

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A way for monthly subscribers to discover, read, and share eBooks – anywhere.

Goals

Provide customers pay-per use access to eBooks at competitive prices

Provide a platform for readers to connect with other readers

Increase literacy around the world

Cooperate with distributors and publishers to enhance the user experience

To be a secure system and protect the intellectual property on the service

What people want

17.6 Million active eBook customers in 2010 (Forrester Research)

Better browsing

Netflix movies, rDio music subscription, Pandora radio

70% of eBook users are interested in all-you-can-read service (Elasticpath Research)

Publisher contracts

Publishers receive up to 60% of value of book

When a book is sold, publishers receive 70% of the value

Executive Summary

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Why Athina

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This slide intentionally left blank for demo.

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Marketing Plan

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Key Competition: Library service Potential Entrants

• Almost free (requires library card)

• Libraries pay cost to lend book

• Digital scarcity

• Limit on books out at a time

• Available for dedicated eReaders

(Nook, Kindle, etc.)

• Develop simple, clean, extensive

all you can read model

• Expand library programs to

eliminate digital scarcity and time

restrictions

• Big publishers team to offer direct

service

• No time limits on checkouts

• No digital scarcity

• Greater revenue opportunity

for publishers

• Pending patent on Discover

• Athina is a community

• Develop Athina for dedicated

eReaders

• Users want the most selection

Athina’s competitive advantage and response

Competition analysis

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Major publishers refuse to

offer content on Athina.

Royalty expenses exceed the

revenue.

Why not offer a free model

for users where revenue is

generated by advertising?

• Small publishers have expressed a serious

interest

• Thousands of independent authors

• Users clearly demanding convenience and

price

• Subscribers notified of increase in price and

reason

• Expand service to selling eBooks

• Adjust contracts with publishers

• No conclusive research on potential revenue

• Facebook generates < $6/user annually

• Beta test potential

Scenario Analysis

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Sales Forecast

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Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12

Annual

Totals

Subscribers 10000 16300 30970 50481 82284 134123 218621 356352 580854 946792 1543270 2515531 6485578

Monthly Price 7.99 7.99 7.99 7.99 7.99 7.99 7.99 7.99 7.99 7.99 7.99 7.99

Monthly Total 79,900 130,237 247,450 403,344 657,451 1,071,645 1,746,781 2,847,253 4,641,022 7,564,866 12,330,731 20,099,091 51,819,770

17 Million eBook customers in 2010

35% of consumers are “Very interested”

46% of consumers mainly use Kindle

3.2 Million consumers available now

The Deal

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Today we have a demo product

With Capital – Beta Product for users in 6-8 weeks

$250,000 for acceleration of development, paying legal fees, and negotiating with

publishers